Reading time: 1 – 2 minutes

David Roodman’s latest post excerpts some of Stuart Rutherford’s thoughts on microfinance and its effect on the lives of the poor. Rutherford, founder of Save Safe, skips the marketing speak and gives a more realistic take on microfinance, which I appreciate. Roodman’s summary of Rutherford’s key insights is timely considering the increased scrutiny on microfinance lately. (See my posts on Portfolios of the Poor and on some recent studies from MIT for more information on the debate.)

Rutherford’s bottom line on microfinance is especially pragmatic so I will reproduce it here:

[Microfinance is] a useful service that may not always transform poor people’s lives but rarely fails to help them.

That is probably a good context in which to look at, and judge, microfinance as an aid to the poor. For more of Rutherford’s thoughts please check out Roodman’s post. It is well worth a read for anyone interested in the efficacy of microfinance.