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Can Microfinance Reduce Economic Insecurity and Poverty? By How Much and How?

  • Nazrul Islam

The paper suggests that, rather than through its narrow, direct financial impact, microfinance may prove to be more potent in reducing insecurity and poverty through its indirect, broader impact leading to a more egalitarian initial endowment distribution that is necessary for the "take-off" of an equitable growth process. The paper begins by examining the distinctive roles of micro credit, micro savings, and micro insurance programs in dealing with poverty and insecurity, and highlights the complementariness that exists among these programs and how this complementariness can be used to overcome the weaknesses of the individual programs.

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Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 82.

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Length: 22 pages
Date of creation: Oct 2009
Date of revision:
Handle: RePEc:une:wpaper:82
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