Relationship between the Rise of Financial Micro Credits and Relief of Poverty in Latin America

Abstract

The purpose of this paper is to analyze the relationship between growth of micro credits for production as a tool of social inclusion of vulnerable people and the relationship with the decreased rates of poverty and indigence in Latin America countries for the period 2008-2011. The work hypothesis to be contrasted is that the increase in micro credits is manifested by tangible improvements for the society, through proper “leverage” for small scale workers, whose incomes are intended almost entirely for consumption and investment; therefore, the multiplication factor of this small economy is very important.