Financing microfinance for poverty reduction.

TLDR: The Micro Credit Summit Campaign has just announced that 30.6 million poor households around the world now have access to micro-credit and that the number covered increased by 40 per cent over the past year.

Abstract: Microfinance is now recognised as an effective and financially sustainable tool for poverty reduction particularly in developing countries but also for the poor in the developed world. The Micro Credit Summit Campaign has just announced that 30.6 million poor households around the world now have access to microcredit and that the number covered increased by 40 per cent over the past year. This means that there is now an opportunity to bring about a substantial reduction of poverty around the world. Microfinance is not a panacea for the elimination of world poverty as not all poor households can make good use of it. Those without an able-bodied member to engage in income-generating activities cannot be helped out of poverty by a loan. Many other poor households do not have either the entrepreneurial ability and/or the self-discipline required to make good use of microcredit. But experience from all around the world now shows that substantial numbers of poor women provided with access to microfinance services are using the opportunity to reduce their poverty and that of their families. (excerpt)