Topic: impact of microfinance on poverty reduction’ INTRODUCTION Poverty reduction and development have been the famous buzz words for development sector since last three decades. Almost all countries of the world are committed to Millennium Development Goals. Reducing Poverty to half by 2015 has been the first and arguably the most important goal among them. Countries, Practitioners and researchers have been incorporating various tools to reduce poverty. Some of them include Economic reforms, Agricultural reforms, ICTs etc. However role of financial reforms through revolutionary tool of microfinance has been under looked in most cases. Nevertheless by securing Nobel Prize, Dr Yunus, who is pioneer of the most successful Grameen microfinance bank in the world, has elevated its importance. Hence it is imperative to comprehensively analyze the impact of microfinance in poor countries and its role to reduce poverty and complementing other toold for development The primary research question of the dissertation is: What is the impact of Microfinance Institutions on Poverty Alleviation?'' Objective: The research objectives aim to address the research question by dividing the explored area into three sub-topics. · To analyze that how does a microfinance institute work? This objective will assist in determining the general functioning of a microfinance institute. Without knowing its normal process, it would be difficult to determine the difference between importance of a microfinance institute and a general financial institute. This objective will also enable identification of its potential target market and scope of operations · To evaluate impact of Microfinance in various thematic areas of poverty and/or livelihoods assets related to poor people This particular objective will comprehensively cover role of microfinance in various thematic areas of poverty reduction. This objective will determine role of microfinance on financial, human, physical, social and natural assets of poor people · To compare various microfinance initiatives across the continents Finally, third secondary objective will primarily be dealt through case studies of sample countries from Asia, Africa and Latin America (Can be altered on the basis of availability of secondary data). Three different cases will assist in not only comparing the microfinance initiatives in different geographical areas but it will also determine the popularity and acceptance of MFI as a major tool of poverty reduction LITERATURE REVIEW The literature review for this research will be based on both academic and commercial sources. Multiple source data can be divided into area based and time series based data. AREA BASED Academic Topics · Introduction to microfinance and microfinance institution · Overview of Poverty Reduction and MDGs · General Functioning of Microfinance Bank · Microfinance Bank and Poverty Reduction $much deeper areas of terminologies, microfinance and poverty reduction. For instance under poverty reduction, the overall emphasis will be given on livelihood approach and livelihoods asserts to define poverty. In microfinance, its sub thematic areas of ‘microcredit facility’, ‘deposit’s, and ‘MFI’s role in building up livelihood assets’ Academic Sources · Scholarly electronic databases · Online journals · Electronic books Primers – core academic textbooks TIME SERIES BASED Commercial Topics · Evolution of Grameen Bank- the most successful MFI The case of Grameen bank will cater commercial aspect of literature review as Grameen bank is the most practical and relevant example of the linkage between microfinance and poverty reduction. Most of the experts in practical side of development sector have provided their practitioner view point of microfinance while keeping Grameen bank in mind Commercial Sources Website of Grameen Bank Government and IFI’s reports on Grameen Bank