The Right Conditions for Microfinance

Across the world, there are a lot of poor people.  In the developing world, 1.4 billion people live on less than $1.25 USD per day.  While this catch-all gives an idea of who is struggling to get by, the impoverished are stratified in terms of desperation.  Some live in extreme poverty, racked by hunger and disease with little hope of “pulling themselves up by their bootstraps.”  Combating this type of poverty requires humanitarian and development aid.  But those higher on the ladder can be served by microfinance institutions.  But according to the latest statistics from the Microfinance Exchange (MIX), about 100 million people worldwide receive microfinance loans (these figures are self-reported, and the actual number is much higher).   There is still a large underserved population, and microfinance institutions (MFIs) are working to close the gap. (more…)