Nickname: Melvin

Review: While microcredit is no panacea, it certainly is a vital tool in the current arsenal of tools used to fight Global poverty. I would like some comment on the success of microcredit in industrialized economies.

Date reviewed: Sep 22, 2007 2:12 PM

Nickname: Heidi

Review: Perhaps the most compelling data on the impact of microcredit to date can be found in two important documents published in 2005: Moderate poverty in all villages declined by 17 percentage points, 18 points in program areas and 13 percentage points in non-program areas. Poverty declined by greater than 20 percent for program participants who had been members since 1991/92, which is about three percentage points per year. Greater than half of this reduction is directly attributable to microfinance. The impact was greater on extreme poverty than moderate poverty. Spillover effects among non-participants due to growing economic activity: Microfinance reduced poverty among this group by some 1.0 percentage points annually for moderate poverty and 1.3 percent annually for extreme poverty. Based on his data, Khandker concluded that microfinance accounted for 40 percent of the entire reduction of moderate poverty in rural Bangladesh.

Date reviewed: May 11, 2006 8:46 PM

Nickname: RSchegg

Review: Kudos to Chris Farrell for pointing out that poor people around the world are no less "bankable" than you or me. Philanthropy will continue to be vital for the industry's growth, but private capital must be engaged to reach the millions who are denied access to financial services. Domestic private sector investment/financing in local currency from local banks and capital markets is particularly important. This is at the heart of Grameen Foundation's Capital Markets Initiative and its Growth Guarantees program, which uses the assets of U.S. social investors as guarantees for local currency loans. Strategies like this are a win-win for all. Microfinance institutions get the funding they need without being exposed to foreign exchange risks and international funders can make valuable use of their assets in the fight against global poverty - Regula Schegg, Acting Director, Capital Markets Group, Grameen Foundation.

Date reviewed: May 9, 2006 8:21 PM

Nickname: Clem

Review: Wow! I have been involved as one of the founding members of Opportunity since 1973. Keep up the good work.

Date reviewed: May 5, 2006 3:34 PM

Nickname: Kirsten

Review: The real two camps when it comes to development are: give more aid money vs. push developing governments to fix the environments they created that cause poverty. As much as I like microfinance, in the long term, it won't matter how much money the rich nations throw at the poor as long as developing governments can't get their acts together.

Date reviewed: May 5, 2006 10:03 AM

Nickname: Juli

Review: Do you (author or reader) know of proof that "microfinance is working in many countries"? I haven't come across many studies documenting the effectiveness of microfinance.

Date reviewed: May 5, 2006 2:38 AM

Nickname: AD

Review: Financial service is a crucial element in poverity reduction. There are many microfinance institutions providing financial services especially in India and Pakistan. In Ethiopia there are also microfinancial institutions, but their number is very low and the number of clients is also very low. Millions are waiting for an institution to provide them the service. There is a huge amount of money meant for this purpose from different sources (Gates foundation and the like). How can this money be accessed by poor Ethiopian farmers? Can I develop a project and get involved? Adane Hirpa (Lecturer, Agricultural Economist)

Date reviewed: May 3, 2006 6:05 PM

Nickname: Bruce

Review: ACCION International is thrilled to see BusinessWeek's coverage of microfinance. As a pioneer in the field -- we made the first microloan, in Recife, Brazil in 1973 -- it's rewarding to see the topic garnering mainstream-media attention at last. You might also like to know that the Gates Foundation's support for the industry did not stop with grants to Opportunity and the Aga Khan Foundation; ACCION itself received $5.5 million late last year from the Gates Foundation for developing microfinance in Africa and India. -Bruce MacDonald VP, Communications ACCION International

Date reviewed: May 2, 2006 10:20 PM