Chapter 2 - Microfinance and the fight against poverty

The results: an efficient method to fight against poverty

In less than 10 years, one third of Grameen Bank clients have managed to step out of poverty and one third have lifted themselves to a level close to the poverty line. Moreover, the indirect result of loans was that beneficiary families were able to plan their future on a longer run, e.g. regarding access to education. Inequalities between men and women were also reduced. Generally speaking, microfinance contributes to the production and consumption increase of local products. However, microfinance can not change the situation of the poorest countries completely on its own.

Future challenges

In order for microfinance to really allow a sustainable development, it is necessary to strengthen the capacities of existing banks for the poor, through training and technical assistance, as well as to give them easier access to traditional funding sources.
Microfinance allows thus hundreds of millions people without resources to move out of poverty.