Here‘s an interesting interview with Yale economist Dean Karlan, in which he discusses his recent research on microcredit, which seriously questions the efficacy of microlending as a way of getting people out of poverty.

Karlan’s study focused on the effect of increased credit for Filipino microentrepreneurs.  Karlan found that microcredit is more effective when targeted at the household level than directly to businesses, and that the overall effects of microcredit, although positive, are not as overwhelmingly great as they are sometimes thought to be.

Advertisements