Essay on Can Microfinance Aid Poverty Reduction?

1590 Words Dec 12th, 2016 7 Pages
Can microfinance aid poverty reduction? This question has been asked so many times on different occasions. You might wonder what more is there to say. However, the fact is, after decades of debate, experiment and research, experts still have not reached a conclusion on this topic. At the beginning of December, 500 microfinance practitioners, regulators, associations, scholars and journalists from eight different countries gathered in Beijing, China, to discuss the prospect of microfinance in the 2016 China International Microfinance Summit. Themed “Openness and Inclusion”, the conference assessed microfinance as a method of helping individuals to lift themselves out of poverty and injected some new thoughts such as technology microfinance.
Once again, the discussion of microfinance bursts into the spotlight, with new evidence of impact evaluation as well as its own development. But the core problem of this endless quarrel does not change too much: people tend to forget that financial inclusion is not the glamorous solution that can tackle poverty alone. It’s time to abolish superstition for the miracle of microfinance, but at the same time, realistically utilize it as a stepping stone for greater progress.
What is microfinance? This is easy to understand. Let’s close our eyes and imagine a world without banks. Where will you put your money? Hide it under a pillow, inside a sock or over the highest shelf? Don’t worry, thieves are considering these locations as well. Now…

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