Final answer:
Microfinance refers to financial services provided to small-scale entrepreneurs in developing countries, aimed at economic empowerment and poverty alleviation. It supports market-oriented economic reforms and contrasts with macroeconomic strategies that focus on stabilizing national economies.
Step-by-step explanation:
The concept of microfinance is most accurately identified as c. A lending practice that provides financial services to small-scale entrepreneurs in developing countries. Microfinance institutions offer loans, savings, and other basic financial services to communities traditionally excluded from formal banking systems. The focus of microfinance is on those who are low-income or in impoverished situations, typically in the developing world.
In an international political economy context, microfinance is a tool that can contribute to economic development and empowerment, particularly for women and marginalized groups. It aligns with efforts by organizations like the World Bank to combat poverty and enhance economic growth in low-income countries that struggle with instability and lack of investment. This approach to poverty alleviation is in contrast with macroeconomic strategies, which are broader policies aimed at stabilizing national economics and currencies.
Microfinance is part of a larger set of market-oriented economic reforms, aimed at supporting the development of human capital and offering the means for people to participate in economic activities. Despite some concerns regarding the risk of debt cycles and other negative outcomes, microfinance remains a significant approach in fostering inclusive financial sectors and has seen varying degrees of success in lifting individuals and communities out of poverty.