Ultra Poor Graduation: The Strongest Case so Far for Why Financial Services Must Be a Part of the Solution to Extreme Poverty

The findings would depend upon the sample we choose for study although I am sure adequate care has been taken about this. Micro finance in India, at least, in Andhra Pradesh, has been accused of squeezing the poor showing them the heaven. The other window supported by the Government in the Self Help Group bank linkage program, the results have been mixed; there are several SHGs that have not created any durable assets and turned out to be money lenders with the help of subsidised financial assets.

Center for Financial Inclusion Blog

> Posted by Shameran Abed, Director, BRAC Microfinance Program

Shameran Abed, BRAC’s Director of Microfinance, joined the Microfinance CEO Working Group in January. He joins the Working Group’s efforts to support the positive development of the microfinance industry and brings tremendous insight into the discussion on pathways out of poverty.

This month, the results from six randomized control trials (RCTs), published in Science magazine highlighted a model of development that is an adaptable and exportable solution able to raise households from the worst forms of destitution and put them onto a pathway of self-reliance. The graduation approach – financial services integrated within a broader set of wrap-around services – is gaining steady recognition for its astonishing ability to transform the lives of the poorest.

These findings can be contrasted with the results of six RCTs published in January by the American Economic Journal: Applied Economics, which cited limited evidence of…

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