A little money goes a long way – microfinance

The article below from the BBC website looks at the issue of microfinance – the provision of very small loans as a form of development assistance to help people in developing countries to support themselves and develop their businesses.

Small loans to women make big changes BBC News Online (21/8/07)


1. Explain what is meant by microfinancing.
2. Examine the reasons why microfinancing is considered more effective at promoting economic development (as opposed to economic growth).
3. Assess the extent to which microfinancing could help in other developing countries to promote economic development.