Jeff Raderstrong, founder of Social Entrepreneurs of Grinnell, which raises money for international microlending from the US state of Iowa, recently published an article titled “2009: The Year Microfinance Died.”

Mr Raderstrong argues that, “Once heralded by some as a ‘silver bullet’ to end poverty, this year people got real about what microfinance is and isn’t….” He cites studies on microfinance whose results “were not so hot” in terms of “the transformative change people expected.” He continues to say that Kiva “took a fall from grace (at least in the blogosphere), admitting that its microfinance loans did not actually create a ‘person to person’ connection.” Finally he reports that charity rater GiveWell, “recently discouraged people from donating to Kiva and other US microfinance charities, including the Noble-Peace-Prize affiliated Grameen Foundation.”

Sources and Resources:

Change Charity source article:
http://changecharity.blogspot.com/2009/12/2009-year-microfinance-died.html

Social Entrepreneurs of Grinnell:
http://web.grinnell.edu/groups/socentre/index.shtml

GiveWell:
http://www.givewell.net/