The database of empirical studies showing how microfinance impacts the ability of poor people to improve the conditions in which they live continues to grow. Over the last three decades, poor people have used small loans to start new enterprises and expand ongoing ones. They have taken advantage of increased earnings to improve consumption levels, send their children to school, and build assets. They have accumulated savings to provide protection against illness and sudden shocks. They have accessed better health care. Women, the particular focus of many microfinance programs, have become empowered to participate in the decisions that most affect their lives.
This section is organized to illustrate how microfinance specifically promotes progress towards the Millennium Development Goals (MDGs) that many multilateral donors and national governments adopted for poverty alleviation in the 1990s. The information in this section will be periodically updated with the latest impact assessment research.
- MDG 1: Eradicate extreme poverty and
hunger
Microfinance programs across the world are helping to eradicate poverty and hunger as illustrated in this collection of studies. - MDG 2: Achieve universal primary
education
Microfinance clients are more likely than non-clients to send their children to school. Not only that, their children have a greater likelihood of staying in school, and have the chance to participate in some of the special education savings and credit plans developed by some microfinance programs. - MDG 3: Promote gender equality and empower
women
Many MFIs consciously design their programs to empower women, with the goal of increasing their voice in decisions (family, economic, social, political) that affect their lives. - MDG 4: Improve maternal and child health
Access to financial services provided by MFIs along with participation in MFI health education and microinsurance programs increase access to health care for the poor. - MDG 5: Ensure environmental
sustainability
A number of MFIs are currently integrating sustainable development concerns into their credit services for rural clients in an effort to effectively use and preserve natural resources while improving the economic and social welfare of their clients.