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Microloans Don’t Solve Poverty

Stashed in: Business Facts, Economics!, Awesome, Poverty, Nate Silver

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The big takeaway for me here is that, despite billions being poured into microloans, they've been relatively little studied for effectiveness in their goals. It's a program everyone WANTS to believe in, but does it actually help people get more to eat or send their kids to school more often?

Apparently not. I had no idea. I thought micro loans were effective.

Microloans have become a huge industry:

Microcredit has grown into a $60-billion-plus industry reaching 200 million borrowers worldwide despite limited evidence that it actually achieves its goals.

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