Debate Stirs Over Tiny Loans for World's Poorest

Publication Date: 2004
Published by: New York Times

How do poorest of the poor benefit from microfinance?

This New York Times article presents the case of microfinance as an effective financial instrument to reach the poorest of the poor. It provides examples of how microfinance has helped poor people around the world.

The article highlights that:

• People near the poverty line are the main users of microfinance and are more likely to get more and bigger loans and build successful microenterprises;
• Microcredit industry needs to try new approaches to help the poorest people.

It also provides quotes from:

• Elizabeth Littlefield: Former managing director, J. P. Morgan; currently Head of Consultative Group to Assist the Poor;
• Jonathan Morduch: Associate Professor of Public Policy and Economics, New York University.