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A survey of research conclusions and recommendations on the impact of the practice of microfinancing on poverty reduction in selected countries outside Sub-Saharan Africa

Author Affiliations

  • 1Department of Economics, Mangalore University, Karnataka, India
  • 2Department of Economics, Mangalore University, Karnataka, India

Int. Res. J. Social Sci., Volume 7, Issue (5), Pages 39-49, May,14 (2018)


Microfinance is one development proposition that has gained much attention over the past few decades as an antipoverty strategy. Although various forms of what we now call 'microfinance' dates back centuries ago, institutional microfinancing has attracted worldwide recognition- since the establishment of the Grameen Bank in Bangladesh- as an antipoverty tool. Microfinance is deemed to be effective in fostering financial inclusion via extending financial services to the entrepreneurial poor aimed at "freeing" and then assisting them to do better. We adopt a methodology by surveying research conclusions and recommendations conducted in some emerging economies outside Sub-Saharan Africa- based on random selection of research publications- as available on the internet. The aim is to appreciate some similarities and/or divergence of research conclusions and recommendations whereby certain generalizations (especially of shortcomings of the practice of microfinancing via research findings and subsequent recommendations) could be deduced. Subsequently, we discuss and highlight current microfinance operations/practices which attempt to satisfy the recommendations, extracted. In all, twenty-five research conclusions and recommendations of thirteen countries were surveyed. By analyzing them, we conclude that the impact of the practice of microfinance on poverty in the majority of cases cited is positive. The two common recommendations, however, are for current microfinance practice to be 'enhanced' by the provision of 'training' to clients and 'responsible government supervision and collaboration with MFIs' to realize desirable intended impact. We recommend that sustainable microfinancing requires responsible finance based on a well thought out partnership and relationship-building strategy.


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