Microcredit doesn’t live up to promise of transforming lives of the poor, 6 studies show

Six studies, conducted independently in Bosnia and Herzegovina, Ethiopia, India, Mexico, Mongolia, and Morocco, and released in the American Economic Journal: Applied Economics, followed over 37,000 individuals in total. The studies conclude that while microloans can increase small business ownership and investment, the small, short-term loans generally do not lead to increased income, investments in children’s schooling, or substantial gains in women’s empowerment for poor borrowers. —> Read More Here


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