Microfinance at a Crossroads

The business of making loans to poor people in underdeveloped countries is entering a critical period of development. Foundations and other non-governmental groups have shown the private sector that money can be made by lending to these populations.

1 minute read

October 20, 2006, 1:00 PM PDT

By Chris Steins @planetizen

"But they also warned, at the panel and in interviews afterward, that the drive for profit could leave behind some of the neediest citizens -- particularly those in remote rural areas -- and thus defeat the enterprise. Meanwhile, as an indication that microfinance is indeed on the global agenda, economist Muhammad Yunus, founder of Grameen Bank in Bangladesh, was awarded the Nobel Peace Prize on October 12.

...Although reliable statistics are hard to come by, there is evidence at all levels that microfinance is growing dramatically. As of the end of 2004, according to the Microcredit Summit Campaign Report, more than 3,000 microcredit institutions reported reaching over 92 million clients, two thirds of whom "were among the poorest when they received their first loan."

Thanks to Knowledge at Wharton

FULL STORY: Microfinance at a Crossroads: How Best to Create Value for the World's Poorest Citizens

Thursday, October 19, 2006 in Knowledge at Wharton

Community / Economic Development India

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