Journal ArticleDOI
Microfinance and poverty reduction - evidence from Latin America
Hege Gulli,Marguerite Berger +1 more
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TLDR
In this article, a discussion of common beliefs and assumptions regarding poor people and micro-finance programs is presented, and it reveals that many microentrepreneurs in Latin America are not poor, and many microfinance institutions lend mainly to non-poor clients.Abstract:
Are all entrepreneurs poor? Do all entrepreneurs see a lack of credit as their main constraint? Is poverty reduction the main objective of all microfinance institutions? Does lending methodology affect outreach? Can financially sustainable microfinance institutions (MFIs) reach the poorest of the poor? Do MFIs only reach petty traders? Do MFIs reach poor and remote areas? This article is structured around a discussion of common beliefs and assumptions regarding poor people and microfinance programmes. It reveals that many microentrepreneurs in Latin America are not poor, and many microfinance institutions lend mainly to non-poor clients. The microfinance industry consists of various market niches, with different services and varied objectives, and this diversity is necessary for achieving poverty reduction overall.read more
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Great expectations: microfinance and poverty reduction in Asia and Latin America
John Weiss,Heather Montgomery +1 more
TL;DR: The authors surveys the evidence from Asia and Latin America and contrasts experiences in the two regions and concludes that in both regions the evidence that micro-finance is reaching the core poor is very limited.
Journal ArticleDOI
Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America
John Weiss,Heather Montgomery +1 more
TL;DR: This paper surveys the evidence from Asia and Latin America and contrasts experiences in the two regions and concludes that in both regions the evidence that micro-finance is reaching the core poor is very limited.
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Microfinance and Poverty Reduction: Evidence from a Village Study in Bangladesh:
TL;DR: A village study in Bangladesh found that microfinance has resulted in a moderate reduction in the poverty of borrowers, as measured by a variety of socio-economic indicators, but has not reached many of the poorest in the village.
Journal ArticleDOI
Geographical Distance and Moral Hazard in Microcredit: Evidence from Colombia
TL;DR: In this article, information asymmetries in the ex-post loan arrangement between the microfinance institution (MFI) and local borrowers could partially explain the limited impact of microcredit.
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Book
Finance Against Poverty
David Hulme,Paul Mosley +1 more
TL;DR: In this article, the authors examined the effectiveness of the micro-entrepreneurs' theory when put into practice and presented empirical evidence drawn from comparative experiences in seven developing countries and produced some startling conclusions.