Microcredit application in struggling with unemployment and poverty and a proposal for Turkey microcredit model

Unemployment may arise in many different ways and its outcomes cause the socities to experience losses economically, socially and culturally. The active and passive employment policies applied to overcome the unemployment should be executed in a coordinated way with national employment policy whose outline is set rightly. The labor market and working life in general should be re-organized to achieve the results easily from the employment policies. In this context, as a means of way out from unemployment the applications, aimed at providing an opportunity for getting into debt for qualified but poor / unemployed workers to work for their own account, should be paid attention and implemented sistematically.Finance should not be a subject abstracted from labor market. Because the most important factor to bring about employment is capital, an element of production. The expand of domestic capital as well as foreign capital produces an important effect on expansion. Besides, the real outcomes are more effective. The applicability of various techniques of financing both in general and specifically, have significant effects on employment as well. To be predicated on getting into debt by microcredit and aiming at the lower echelons of the society, the microfinancing predicates on dispersal of capital to the floor and formes the social face of capital. Taking up the task of conducting the re-distribution of income justly, the state has to give the opportunity to reach the capital to those who are willing to survive and use their right to work by self-employment.Some of the financing techniques such as factoring, forfaiting and leasing can be used in the field of microfinancing as well. Since the target audience of microcrediting is unemployed and poor people, this makes microcredit an important element of employment policies. The point of view based on the social classes and brought forward by the Marxist concept, seperates capital and labour with rigid lines and regards it impossible for these two concepts to combine in the same person. This point of view is carried on in the ordinary capitalism as well. To be able to get into debt for production and survival should be a natural and basic right.Turkey labor market is a market in which a chronic unemployment has taken place for many years due to the inadequate complete information flow and lack of national employment policy. Policies and executions for informal sector should be focused on. Globalization and the increasing rival business as a result of globalization, make the Turkish labor market much problematic. The IMF policies executed in Turkey, as in other underdeveloped countries, were formed to open home market to foreign capital and reduce the labor costs. The IMF policies were not taken into consideration in labor market focused on inflation, exchange and interest rates and in this context, the unemployment oriented targets were not revealed to Turkey. Some of the crises arisen periodically in our economy, are gotten over with transitional solutions reflected on the rate of exchange and interest by IMF recommendations, hovewer, this period has made the unemployment chronic. The amount of investment required to struggle with unemployment and extra costs arisen from non-functioning structuring display that the opportunity for getting into debt that will be provided for the qualified but poor / unemployed workers will be low-cost. In our country, in addition to instutitions such as KGF, TOSYÖV, TESK, KOSGEB, KEDV and TİSVA, some banks such as Vakıfbank, HSBC and TEB have started to implement microcredit application even in symbolic level.Thanks to the increasing development in automation and especially in data storage resources and as a result of the compulsion of increasing competition, bank sector has experienced significant transformation and mutation not only in our country but also in other countries. While increasing search of profitability directs the banks to the new markets, the social responsibility of the enterprise stands out as an important prestige element. Struggle with unemployment and poverty has become a significant target for international institutions and states and the year 2005 was announced as the year of world microfinance. In this context, succesful microcredit applications were put into practice in Bangladesh, India and China.When compared to undeveloped countries, Turkey has a healhtier process of finance market. So banking business has fully penetrated to social structure. For this reason, the microcredit works in our country can be executed in accordance with the banking principles by business banks instead of non-govermental organizations (NGO?s) and private finance institutions. Turkey microcredit application will follow the phases below; determination and introduction of target audience (poor/unemployed), making up for the deficiency or need of vocational training in local base, development of local microcredit structuring (presently similar structuring are available in many governorships and districts), supply of exchange of information among the head offices of commercial banks and İŞ-KUR, BDDK, KOSGEB, KGF and DPT (UA and TDA), data warehousing at Microcredit data processing center, determination of guarantorship of state and its resources provided in case the credit may not be paid back and finally emitting a loan after the credit interview between the microcredit customer and the commercial bank and the follow up of the credits through common tracking system.Key Words1. Microcredit2. Banking3. Unemployment4. Employment5. Poverty