This week, The Wall Street Journal featured a pair of articles on current issues in microfinance. The first highlights the varied strategies governments across Asia are employing to promote financial inclusion, including mobile technologies and India's policy of universal bank accounts. However, some are concerned about the $80 overdraft feature of these accounts, and liken the potential risk of indebtedness to the past failures of microfinance. FAI's Executive Director Jonathan Morduch notes that indeed, microfinance's impact on poverty alleviation to date has been "disappointing."
A companion piece takes a deeper dive into the impact of microcredit, covering the recent publication of six impact evaluations in the American Economic Journal: Applied Economics and the subsequent World Bank conference. We at FAI recently shared our thoughts on the studies and WSJ quotes FAI's Managing Director Timothy Ogden in the article. He notes, “Bringing these together really has shifted the conversation. There are a lot of people that were unaware that microfinance fails to lift many people out of poverty."
Click below to read more on the financial inclusion landscape in Asia and the impact of microcredit:
Editor’s Note: I’m going to assume that you are seeing plenty of AI content (news and papers, not AI slop, though I’m sure you’re getting plenty of that too) from other sources, so I’m trying to think hard about the marginal value that the faiV can provide. As far as I’ve gotten so far: a) make sure that directly AI-related content does not take up more than 2 of the 5 items, and b) try to focus specifically on the cybersecurity issue for financial inclusion. Beyond that, I’m open to feedback on the value you get from the faiV in relation to AI to help guide us in the future. On a different note, I’ll be making a brief cameo appearance at the e-MFP Inclusive Finance Conference to moderate the opening plenary. If you haven’t registered, do so and I hope to see you there! - Tim Ogden