Role of Micro-Financing in Poverty Alleviation

Abstract

Micro-financing has been instrumental in alleviating poverty in rural and urban India as in different parts of the world. This paper provides an overview of how micro-financing has changed the lives of the poor in terms of their socio-economic empowerment and sustainable livelihoods based on dignity and self-respect. The author has reviewed a number of conceptual and empirical studies to decode the impact of micro-financing on poverty alleviation especially in Indian context. The paper presents an incisive critique of micro-financing as a holistic intervention strategy in contemporary development paradigm.