Microfinance Institutions

It has been believed that microfinance was the solution to ending poverty. Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services. This however, is not the answer to solving poverty.

Yes, microfinance will help alleviate poverty, but microfinance alone can't end it. Microfinance institutions can help though. Microfinance institutions provide a lower credit rate than local money lenders, give people opportunities to make large purchases, help borrowers through rough times, and are not just a "handout."

Microfinance institutions may be the biggest players in the war on poverty. MFI's are constantly reaching to more and more clients, service many more people, so their business can flourish. MFI's have made very valuable networks due to this, which are sustainable networks. AMK currently has operations in 50% of Cambodian villages, and are continuing to grow.

Now AMK and other MFI's (Microfinance institutions) are working on new ways to use their networks to do even more. What more can they do to alleviate poverty in these struggling nations?

http://pages.kiva.org/fellowsblog/2010/02/09/microfinance-will-not-end-poverty-microfinance-institutions-will