Microfinance’s midlife crisis, By Julian Evans, March 1, 2010, Wall Street Journal: “From humble beginnings, microfinance-a system of providing tiny loans and savings accounts to the poor-has grown into a global industry attracting the interest of large multinational banks. But the commercialization of the industry has sparked a fierce debate. Profit advocates highlight improved access to foreign capital and expertise; traditionalists say microfinance companies are in danger of becoming little better than predatory moneylenders. There is little doubt that microfinance is now big money. In 2008 it attracted $14.8 billion in foreign capital, up 24% from the previous year. For the first time, the majority of the money came from private investors-including pension schemes and private-equity funds-rather than governments, according to the World Bank…”
Poverty-related issues in the news, from the Institute for Research on Poverty