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Is Micro-Finance Reaching the Poor? An Overview or Poverty Targeting Methods Image

Promoting Inclusive Markets and Financial Systems

Is Micro-Finance Reaching the Poor? An Overview or Poverty Targeting Methods

Is Micro-Finance Reaching the Poor? An Overview or Poverty Targeting Methods

Summary

Many questions have been raised about micro-finance and its importance as a means for poverty alleviation. As donors and practitioners become increasingly concerned about the quality of their interventions, interest has grown in developing clear and precise measurement methods. Who should be considered as a poor client? Why is it necessary to target poverty? How can a micro-finance institution (MFI) target the poor? What should be the best approach for targeting the poor? How can a MFI simultaneous focus on the very poor and face the challenge of sustainability and outreach? To what extent can financial and non-financial services help improve the living conditions of the poor?

Practitioners and donors have been developing impact measurement tools and promoting discussion groups to tackle this matter and come up with clear answers. Organisations like the CGAP (Consultative Group to Assist the Poorest) and the Micro-Credit Summit have a particular interest in this issue.

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