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Month: June 2010

Expansion and a Poverty Trap

Expansion and a Poverty Trap

One criticism of microfinance is its inability to produce meaningful poverty movement on a macro level. The belief is that providing credit for micro-entrepreneurs produces some incremental change on an individual basis, but doesn’t produce the substantive change needed to lift a community out of poverty. By substantive change, I mean employment, infrastructure, commerce, and improvements in healthcare and education. In this post I want to focus specifically on the idea of microfinance’s inability to produce businesses of adequate scale….

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