Not Enough Room For Tweaks
How to explain it? Abhijit Banerjee, an economist at MIT and another author of prominent studies of microfinance, says in theory these findings suggest that extremely poor people served by microloans are somehow inherently bad at business. But he notes that other studies have found that poor people can substantially boost their income if they're given a cash grant or a free asset – for example, some livestock – to use in a business. So Banerjee argues a better explanation could be that microloans have features that make them less suited to launching people into small business. Continue reading "Sometimes You Just Need A New Roof"