Monday, November 22, 2004

[IWS] ADB: Microfinance and Poverty Reduction in Asia and Latin America [19 November 2004]

IWS Documented News Service
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Institute for Workplace Studies                 Professor Samuel B. Bacharach
School of Industrial & Labor Relations          Director, Institute for Workplace Studies
Cornell University
16 East 34th Street, 4th floor                  Stuart Basefsky
New York, NY 10016                      Director, IWS News Bureau
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From the Asian Development Bank (ADB)

ADBI Discussion Paper 15
Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America [19 November 2004]
http://www.adbi.org/discussion-paper/2004/11/19/817.microfinance.poverty.asia.latin/

Microfinance institutions (MFIs) are seen often by aid practitioners as an obvious means of improving the position of the poor. Despite this widely held view, detailed research studies have been much more guarded about the impact of MFIs. In particular several studies have raised doubts about the effectiveness of MFIs in reaching the 'core poor.'

This paper surveys the evidence from Asia and Latin America and contrasts experiences in the two regions. Studies on the former have been carried out more 'rigorously', but in both regions the evidence that microfinance is reaching the core poor is very limited.

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Institute for Workplace Studies *
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16 E. 34th Street, 4th Floor            *
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