Here's a link to an article that was published about a year ago. It describes several reasons why microcredit might not alleviate poverty despite encouraging en

Here's a link to an article that was published about a year ago. It describes several reasons why microcredit might not alleviate poverty despite encouraging enterprise, such as the fact that most families must spend a large part of their loan on servicing other debts, medical emergencies, etc. There have also been rogue microcredit agencies that operated like loan sharks. The article proposes savings and insurance programs to augment loans -- a more comprehensive "microfinancing" scheme, as you proposed. > In fact, although many microloans did go towards starting businesses, a huge proportion was spent on simply getting by and surviving in poverty. The villagers used the loans to pay off other debts, meet medical fees or fund their children's weddings. http://www.independent.co.uk/news/world/asia/why-the-dream-of-microfinance-is-turning-sour-2280814.html http://www.independent.co.uk/news/world/asia/why-the-dream-o...