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Abstract
Microfinance is not a panacea, and the extent to which the very poor are being served remains unclear. This study examines whether microfinance programmes reach the intended target in vulnerable remote villages, and whether the borrowers improve their lives through microfinance. Seventy-two borrowers from three villages were studied. Remote villagers living below the poverty line were reached. Ninety-three per cent of the borrowers observed an increase in income, assets and spending on family members. Improvement on non-income aspects was also reported. The findings suggest that small loans can encourage the development of (1) rural enterprise, (2) skills and confidence in rural women and (3) social standing of rural women. The study concludes that microfinance is an empowering tool in vulnerable remote areas.
Acknowledgement
The first author is grateful to Arvind Singhal, Michael Papa and Timothy Simpson for inspiration in terms of initial research direction, to the University of Macau for the research leave to undertake the recent field study, and AIM for the permission to conduct the study. We thank all the staff and sahabats for their cooperation and for being so generous with their time and knowledge. Suggestions from five anonymous referees are much appreciated.