Factors Leading to the Malfunctioning of Credit Markets in Less-Developed Economies and the Role of Microfinance Institutions in Poverty Alleviation

Abstract:     
This mimeo discusses the relative significance of Microfinance to the poor in developed Economies. We analyse different vehicles of microfinance to the poor in less developed Countries (LDCs hereafter). The analysis also covers a global overview for Microfinance activity, and the dominant factors leading to the malfunction of credit lending in the LDCs and its contribution to the persistence of poverty. It concludes with an emphasis on the role of microfinance institutions in availing credit and the importance of innovative perspectives in dealing with conventional hurdles.

Number of Pages in PDF File: 15

Keywords: Access to Finance, Micro finance, Poverty Alleviation

JEL Classification: O12, E51

working papers series