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Savings Account For Microenterprise, Meghan Jarow

Honors College Theses

Will bundling savings accounts with loans increase the effectiveness of microfinance as a tool for alleviating poverty? Microfinance is the practice of offering small loans to poor people in developing countries. The development of this practice into a poverty dimishining, self-sustaining business won Muhammad Yunus a Nobel Prize in 2006. Today, there are thousands of microfinance institutions (MFIs) serving millions of people in developing countries. However, there is recent evidence that these loans do not help reduce poverty, and may do as much ahrm as good.

In truth providing credit to the poor may not be enough to eliminate poverty. …