Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America

Weiss, John; Montgomery, Heather

doi:10.2139/ssrn.1396122

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Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America

ADB Institute Research Paper No. 15

31 Pages Posted: 28 Apr 2009

See all articles by John Weiss

Heather Montgomery

International Christian University (ICU)

There are 2 versions of this paper

Date Written: February 2005

Abstract

Microfinance institutions (MFIs) are often seen by aid practitioners as a manifestly effective means of improving the position of the poor. Despite this widely held view, detailed research studies have been much more guarded about the impact of MFIs. In particular, several studies have raised doubts about the effectiveness of MFIs in reaching the “core poor”. This paper surveys the evidence from Asia and Latin America and contrasts experiences in the two regions. Studies on the former have been carried out more “rigorously”, but in both regions the evidence that microfinance is reaching the core poor is very limited.

Keywords: microfinance, poverty, Asia, Latin America

JEL Classification: O16, O17, G21

Suggested Citation: Suggested Citation

Weiss, John and Montgomery, Heather Anne, Great Expectations: Microfinance and Poverty Reduction in Asia and Latin America (February 2005). ADB Institute Research Paper No. 15, Available at SSRN: https://ssrn.com/abstract=1396122 or http://dx.doi.org/10.2139/ssrn.1396122