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MICROLOANS AND POVERTY

Increasing the capacity to unite the developing world could lift more than 10.5 million people out of extreme poverty. That is one conclusion to my study, published last month in The B. Journal of Macroeconomics, which found that Microfinance not only reduces how many households live in poverty but also how poor they are. Currently, 836 million people - or 12% of the world's population - live in extreme poverty, living on less than US $ 1.25 a day. Using data from 106 developing countries between 1998 and 2013 to test the effectiveness of microlending as a poverty alleviation tool, I found that a 10% increase in the minimum per capita loan portfolio could reduce this number by 1.26%.While the world has seen some progress over the past 15 years in achieving the UN Millennium Development...

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