Politics, Poverty, and Microfinance

How Governments Get in the Way of Helping the Poor

Business & Finance, Economics, International Economics, Nonfiction, Social & Cultural Studies, Political Science, International, International Relations
Cover of the book Politics, Poverty, and Microfinance by Brian Warby, Lexington Books
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Author: Brian Warby ISBN: 9781498517539
Publisher: Lexington Books Publication: December 29, 2015
Imprint: Lexington Books Language: English
Author: Brian Warby
ISBN: 9781498517539
Publisher: Lexington Books
Publication: December 29, 2015
Imprint: Lexington Books
Language: English

This book analyzes the affect that government institutions have on whether or not microfinance contributes to poverty alleviation in the context of Latin America. It concludes that political and economic stability, as well as and law order, have a statistically significant impact on microfinance effectiveness. The conditions that promote poverty alleviation are not entirely the same as those upon which major microfinance investors base their funding decisions. The result is that much microfinance funding is going to the wrong places. This means that not only is microfinance not helping the poor, but under the wrong conditions it actually exacerbates poverty. The author arrives at these conclusions through a mixed methods approach, using both statistical analysis and case studies.

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This book analyzes the affect that government institutions have on whether or not microfinance contributes to poverty alleviation in the context of Latin America. It concludes that political and economic stability, as well as and law order, have a statistically significant impact on microfinance effectiveness. The conditions that promote poverty alleviation are not entirely the same as those upon which major microfinance investors base their funding decisions. The result is that much microfinance funding is going to the wrong places. This means that not only is microfinance not helping the poor, but under the wrong conditions it actually exacerbates poverty. The author arrives at these conclusions through a mixed methods approach, using both statistical analysis and case studies.

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