My thesis will call into question the 2 basic foundations that microfinance is built on: one, all poor people are entrepreneurs and two, that it alleviates poverty. Poor people are not necessarily in microfinance to make a killing. They use it to curb the risk that is inherent in living on practically no money. In other words, it is useful to have access to the relatively large chunks of money that microfinance offers for buying things or paying for medical treatment, but not necessarily for the opening of successful microenterprise. Basically, I’ll show that microfinance is in fact a useful tool because it provides financial services to the unbanked. But, it overstates its impact since it fails to adequately measure its affects on clients: so, who knows if the people get out of poverty or not? Don’t get me wrong, microfinance is great; it just needs to be more realistic in its approach.
Oh, also, you should read: my other blog. poor people = the jonses
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