Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention
Written by: Jonas Helth Lønborg og Ole Dahl Rasmussen
Reaching the poorest members of the population is an important objective in many development interventions, and microfinance is no exception. We review performance indicators for the effectiveness of targeting described in the literature, and suggest a new metric to account for the extent and severity of poverty as well as the income distribution among the poor. In applying this to a panel dataset from a community-managed microfinance intervention in Northern Malawi, we find regressive outreach: participants are less poor than the general population in the area. In addition, we provide suggestions as to when and why the poor exit the project.
In 2014 the article was accepted for publication in the international interdisciplinary journal for development studies World Development Vol. 64.
Related publications

Scientific journal
Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention
Go to World DevelopmentMore about the initiative

Initiative
Microfinans in Malawi
Go to initiativeLatest releases on the same welfare topic

Analysis
Family networks within housing cooperatives are a phenomenon primarily observed in Copenhagen
April 2025

Comment
Seen through American eyes, could there be any rationale behind Trump’s actions? Even with the best intentions, the answer is no
April 2025

Analysis
Trade War: Far more jobs are at stake in the EU and China than in the United States
April 2025

Podcast
Is Denmark on its way to turning grey?
April 2025