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Economics

The Impact of Microfinance Initiatives on Poverty Alleviation

Quick fact

Despite its popularity, rigorous studies show that microcredit has little to no measurable impact on lifting borrowers out of poverty on average, while some people do benefit by starting or expanding small businesses.

Why this is interesting

You've probably heard that giving small loans to the poor can lift them out of poverty. But what if the evidence tells a more complicated story?