The widely held conventional wisdom — that poor people are credit-constrained, and giving them access to capital lets them invest in small equipment and escape poverty (echoing Hernando de Soto's collateral argument) — turned out to be false: controlled studies show no measurable effect on poverty.

causalpending

Speaker

Michael Munger

Evidence Quote

there's no evidence that it has any effect on levels of poverty either of communities or individuals it doesn't help

Source

Mike Munger on Microfinance, Savings, and Poverty 04/18/2011EconTalk
Created: 6/17/2026, 10:29:24 AM

My Notes

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