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The impact of microfinance programmes on poverty reduction

Document type: article
Download file(s): 188458 (911 KB)
Abstract: Muhammad Yunus was awarded the Nobel Peace Prize in 2006 for his pioneering approach and sustained effort in addressing the problem of poverty. In addition to the growth of Kiva and other web-based micro-lending organisations, microfinance programmes have continued to grow in usage and popularity. There are numerous studies that demonstrate the tremendous successes of such programmes throughout much of the underdeveloped world. However, the universal effectiveness of microfinance institutions in alleviating poverty is still being debated. Much of the evidence cited for the successes of microfinance and microcredit are merely anecdotal or involve in-depth case study approaches. These provide vivid examples and rich details of the impact and effectiveness of specific programmes in specific locations at a specific time, but generally fail to achieve a more rigorous standard that would allow for research findings to be widely generalised. Some more rigorous studies have been conducted and more are surely to follow, but in the meantime, NGO leaders and government policy makers must exercise caution and restraint in applying the microfinance approach universally as a means of alleviating poverty. Finally, this article proposes areas for future directions in the continued research of microfinance programmes.
Authors: Westover, J.H.
Category: General
End Page: 28
Serial number: 2
ISSN: [2210-2175]
Volume: I
Journal: Spanda Journal : quarterly of the Spanda Foundation
Keywords: credit , finance , poverty
Language: eng
Organization: Spanda Foundation
Year: 2010
Right: © 2010 Spanda Foundation
Subject: Economic Development and Trade
Start Page: 25
Title: The impact of microfinance programmes on poverty reduction