MIT's Poverty Action Lab did a study of micro finance, and found it much overhyped: http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/small_change_doe

MIT's Poverty Action Lab did a study of micro finance, and found it much overhyped: http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/small_change_does_microlending_actually_fight_poverty/ http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/... My personal impression is that microfinance have gone through the same hype curve of many developing world projects: it started as a local initiative by people who knew their environment and did nicely. Then organizations from developing nations picked up on it, knowing little about the place, ridiculously overhyped it and messed it up. What we're doing in Africa and Asia now is a continuation of the imperial age. In the past, we needed stuff, so went in and took it, regardless of the impact on locals. Now we have our stuff, and having climbed Maslow's pyramid we're looking for self-actualization - so we go to Africa and do projects that make us feel good, again regardless of the actual impact in the field (health projects not included). We should start listening to Esther Duflo and Bill Easterly, rather than Bono and Angelina Joli.