The evidence suggests that the truth lies in the in-between: Microfinance works really well sometimes – but not always. It works for some people the way we thought it might, and for others in ways we didn’t anticipate. For some people, microfinance doesn’t seem to have any measurable effect…
People in developing countries don’t always make what we might think are rational savings decisions, just like people in developed countries. They may not save because the future is unknown, because they don’t have the self-control to follow through, because they don’t always foresee their future needs, or because they don’t see the point when they’ll just have to share their money with family and community members. All of these reasons sound familiar to anyone who has had trouble making a decision whether to save or spend – be it on budget, diet, or time and energy.
"— Leah Stern asks What do we really know about microfinance? The answer - it works for some people, some of the time, and is not the silver bullet it’s made out to be.
