The staff of the NWTF branch in Puerto Princesa

“So health care reform and reducing taxes and reining in spending has got to accompany tax reductions, and tax relief for Americans, and trade — we have got to see trade as opportunity, not as, uh, competitive, um, scary thing, but one in five jobs created in the trade sector today. We’ve got to look at that as more opportunity. All of those things under the umbrella of job creation.” – Sarah Palin

The international economic development community is constantly holding its own feet to the fire.  I sometimes describe the push for transparency and demonstrated as a circular firing squad.  It s probably an unfair characterization, since a lack of oversight leads to billions of dollars in squandered aid and international investment.  Microfinance, in particular, is a frequent target of scrutiny from economists.  It is the darling of the development world, and often mischaracterized as the long-awaited solution to poverty alleviation.  But the impacts of microfinance are nuanced and cannot be reduced to a simple formula (i.e. poor woman starts business, business earns money, woman no longer poor).  In reality, microfinance smoothes consumption, offers money for non-livelihood expenses, like tuition and home repairs, and, in a few cases, propels women above the poverty line.  The impact on poverty alleviation is real, but perhaps more muted than the literature would have you believe. Continue reading →