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Economic &Social AffairsDESA Working Paper No. 89 ST/ESA/2009/DWP/89 December 2009 Microfinance as a Poverty Reduction Tool A Critical AssessmentAnis ChowdhuryAbstractThis paper attempts to provide a critical appraisal of the debate on the effectiveness of Microfinance as a universal Poverty Reduction tool. It argues that while Microfinance has developed some innovative management and business strategies, its impact on Poverty Reduction remains in doubt. Microfinance , however, certainly plays an important role in providing safety-net and consumption smoothening.
Microfinance as a Poverty Reduction Tool— A Critical Assessment1 Anis Chowdhury “There are many stories of the transformative effect of microfinance on individual
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