Journal de l'économie mondiale

Microfinace As An Instrument Against Poverty

Abstract

Mr Ali Maȃlej

The objective of the current approach is to set out how microfinance institutions (MFIs) are incentives for economic development and as sources of lowering poverty. In this respect, a sample of 197 new and old clients having recourse to MFIs is targeted. The discriminant descriptive analysis which is proposed in this article is useful for mainly meeting the results that microfinance has a highly significant effect on improving people’s standards of living as well as lowering poverty rates. The comparison between the new and old clients of MFIs is suggestive of the fact that: the older the MFIs is, the more the opportunity to escape poverty is at reach. It is noted that an ambiguity submerges in the short-term micro-credit. The impacts of microfinance are timely joined. Time as a variable is marked importantly in appreciating microfinance in the long term.