CORE OF THE ISSUE IN INDIA
"Comes from the confusion between gorwth and impact. At some pont in time we stopped equating progress with poverty alleviaitonand started measuring progress based on numbers of poor people reached. When metrics are highly valued, couting the number of borroweres is much easier thatn determing the impace of microloans on actual poverty alleviation."
NOT A GAME CHANGER
We now know that financial inclusion is not the end of the game.
Microcredit alone cannot "pull someone out off poverty."
Offering credit to more people does not equal poverty alleviation.
"It is one tool in the poverty-alleviation toolbox."
A SUITE OF SERVICES
must be offered.
Microinsurance. Financial literacy. Business development training. The list goes on.
Some MFIs are doing this well. Check out Jamii Bora which provides loans for microbusinesses, school fees, health, and housing: http://www.jamiibora.org/
The Jamii Bora mantra needs to spread thanks to Lindsay Clinton's article in GOOD it will.
