Can microfinance reduce economic insecurity and poverty? By how much and how? / Nazrul Islam

The paper suggests that, rather than through its narrow, direct financial impact, microfinance may prove to be more potent in reducing insecurity and poverty through its indirect, broader impact onducing to a more egalitarian initial endowment distribution that is necessary for the "take-off" of an equitable growth process. The paper begins by examining the distinctive roles of micro credit, micro savings, and micro insurance programs in dealing with poverty and insecurity, and highlights the complementariness that exists among these programs and how this complementariness can be used to overcome the weaknesses of the individual programs.
1. Introduction-- 2. The vicious circle of insecurity and poverty -- 3. Poverty and insecurity in development thinking and policies -- 4. Some general features of microfinance -- 5. Micro credit programs and economic insecurity -- 6. Micro savings programs and economic insecurity -- 7. Micro insurance programs and economic insecurity -- 8. Complementarities among various microfinance programs -- 9. Role of microfinance as a whole -- 10. Concluding remarks.

19 p.: chart

On cover: Economic & Social Affairs.
Includes bibliographical references (p. 19).