Microfinance: Shortcutting the Long and Winding Road to Financial Security

Microfinance: Shortcutting the Long and Winding Road to Financial Security

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by Lorna C. Malicsi
2007 | Policy Brief Series Vol. 2007 No. 1 | 2 pages
  • Print 1656-8818
  • e-ISSN 2599-3917
English

The Microcredit Summit in 2006 reported that about 97 million poor families have been served by a total of 1,652 microfinance institutions (MFIs) in Asia and the Pacific. How can poor families, particularly those relying on agriculture, become financially secure?

Microfinance promises to shortcut the long and winding road to financial security. Found to work out well in Asia, it involves smallscale credit, savings, and insurance to meet the needs of poor producers. Microfinance programs also provide skill-based training and other forms of support to empower the poor. It has become an important approach for poverty reduction in many parts of the world, including Asia and the Pacific region.