Learning Curves: Microfinance, Poor Rural Households, and Women

Abstract

Microfinance is the practice of providing financial services to poor people. As the name suggests, most transactions involve small amounts of money, frequently less than $100. Microfinance has grown since the 1970s, spurred by institutions such as the Grameen Bank. Microfinance references attest to the role that it plays in development, and the United Nations proclaimed 2005 . The International Year of Microcredit ���� ADB first offered microfinance services for the poor in 1988. By end‐2006, it had approved 32 microfinance projects and 20 projects with microfinance components. These involved $1,012 million in loans and $6 million in grants, and took place in 16 countries. More than half of the projects were approved after 2000, and accounted for two thirds of ADBʹs lending for microcredit. To what extent have they reduced the poverty of poor rural households? What potential does microfinance hold to improve the socioeconomic status of women?.