Posted on July 30, 2010 - by M. Bennett

Microfinance: For Community or for Gain?…

John Cookson on July 30, 2010, 11:04 AM

Microfinance—a system of small loans and money services geared toward small businesses—has been heralded as a bold new financial frontier, opening up a wealth of opportunity to those otherwise unable to obtain a loan. This attention is not without good cause; microfinance groups provide a valuable service to, for example, small businesses that are ineligible for bank loans.

However, as the microfinance industry grows, there appears to be a schism along two lines: one firmly rooted in its socially responsible core, and another capitalizing on the global tightening of credit to expand using more traditional business models. To learn more about this, Big Think spoke with Jonathan Morduch, Professor of Public Policy and Economics at the NYU Wagner Graduate School of Public Service.

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