The Microcredit Summit Campaign, a program of the US-based advocacy group RESULTS Educational Fund, recently released a report indicating that nearly 9 million Indian households involved in microfinance began earning more than USD 1.25 per day between 1990 and 2010. Furthermore, a survey of approximately 15,000 Indian households, by staff of the nonprofit India Development Foundation (IDF), concluded that the likelihood of moving out of poverty is highest for clients who have been associated with a microfinance institution (MFI) for a period of four to six years.
This report comes during a time when microfinance has been criticized by some in the academic community based on randomized controlled trials whose results question the effectiveness of microfinance as a poverty alleviation tool. In response to this criticism, Chris Dunford, the president of US-based nonprofit Freedom From Hunger states, “Two of the problems I have with the randomized control trials that have been done to date are that they haven’t studied programs that are known for their deep commitment to ending poverty, and they typically cover a 12- to 18-month period, which is too short a time for real change to take place.”
By Carol Kim, Research Associate
About the Microcredit Summit Campaign: Microcredit Summit Campaign is a project that was launched by RESULTS Educational Fund (REF), a nonprofit advocacy group that is based in Washington, DC. The campaign’s mission is to help 100 million people rise above the international poverty line of USD 1.25 a day by 2015. The campaign also aims to bring financial and business services to 175 million people by 2015, especially women.
Sources and Additional Resources:
The Microcredit Summit Campaign Press Release: “45 Million Indians Move Above $1.25 A Day”, August 2011, http://www.microcreditsummit.org/press_releases/45_million_indians_move_above_1.25_a_day/
Report Summary online: http://www.microcreditsummit.org/uploads/files/India_Report_Summary_Sheet_ENG.doc
Full Report online: http://www.microcreditsummit.org/uploads/files/India_Report_FINAL.pdf
MicroCapital.org: “MICROFINANCE EVENT: Microcredit Summit Campaign 2011, Valladolid, Spain, November 14-17, 2011”, March 22, 2011, https://www.microcapital.org/microfinance-event-microcredit-summit-campaign-2011-valladolid-spain-november-14-17-2011/
MicroCapital’s Universe Profile: Microcredit Summit Campaign, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microcredit+Summit+Campaign
MicroCapital’s Universe Profile: SKS Microfinance, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=SKS+Microfinance
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