Saturday, September 22, 2007
The limits of microcredit
I have stumbled across a paper by Aneel Karnani, an associate professor at the University of Michigan, which argues that microcredit does little to alleviate poverty. Businesses funded by microcredit tend to have low productivity and no economies of scale. He sees employment creation, with backing from the government, as key to eradicating poverty.
Labels: development, finance
