Where Microfinance Falls Short

“Despite the hype surrounding microfinance as an answer to solving world poverty, new research shows it isn’t the savior economists envisioned…Microfinance has been put on a pedestal by development economists thanks to its high repayment rates and ability to provide capital and growth where it used to be nonexistent. But recent research links its success with national economic growth, suggesting it only succeeds in economies that are already beginning to bloom. In other words, microfinance is less of a medicine for the sickest patients and more of a therapy for patients already on the mend.”