Microlenders, the original and still the most common type of microfinance organization, help the poor start or expand businesses in places most banks shun, like the slums of Calcutta or these impoverished hills in Mexico's sugar cane country, three hours south of Mexico City.
This concept of a so-called "umbrella of care" will focus on developing and mobilizing various types of support (livelihood, microfinance, housing, water and sanitation, paralegal, self-help group initiatives, and so on) (Sekar et al. 2005, p. 49).
The story illustrates the types of criticism leveled at advocates of microfinance, despite the Nobel Prize and Grameen's 30-year record of aiding millions of poor people, primarily in Bangladesh.
At the very least, says Mr Watkins, governments should encourage the emergence of new types of money-transfer agents, such as microfinance institutions and Africa's thousands of post offices, only 20% of which are presently authorised to pay remittances.
Are you disdainful of microfinance?
He cites Dr Muhammad Yunus, creator of Microfinance.
FOR years Muhammad Yunus reigned as the public face of microfinance.
But what do the mainstream banks themselves make of microfinance?
Shouldn't it be the Year of Microfinance?
The future of microfinance sector, as such, is not dark.
