For a while, microfinance was the hottest trend in global development. The promise? That you could transform a poor person’s life with a very small loan that would let them start their own business — and then the lender gets their money back, which could then go on to transform someone else’s life. That early promise proved to be inflated. Microfinance did not, in fact, solve global poverty. But it wasn’t a complete failure either. Under the right circumstance, it does seem to improve conditions for some poor people. This month, a new study affirmed that finding in an unlikely place: New Jersey. The Garden State has recently played host to a program that allows low-income women to apply for a microloan as part of a small group, and all members of the group are accountable for ensuring each member makes payment. Thus far, the program found that recipients were less likely to run out of money, more able to afford necessities, and assessed their financial situation as better—though no improvements in income were measured yet. Whethermicroloanss will lead to increases in well-being and income in the long run, will still have to be seen.
Microloans are starting to show some promise for low-income women in New Jersey
More of Today's Solutions
7 ways to support your sober/non-drinking friends this holiday season
Holiday celebrations often involve alcohol. This can make things difficult for non-drinkers, whether they're sober for life or are pursuing sobriety for health or other ...
Read MoreCanada’s new 988 suicide crisis helpline aims for hope and healing
On November 30th, Canada launched the 988 Suicide Crisis Helpline, providing a quick and accessible lifeline to persons in mental health crises. This three-digit ...
Read MoreThis eucalyptus-based hoodie can be composted in your garden
Just over a year ago, we wrote about Vollebak, a Dutch clothing startup making T-shirts that you can bury in your backyard once you’re ...
Read MoreYour future rooftop could be made out of easy-to-install solar shingles
The roofs of the future may be made entirely out of solar panels. At least that’s the goal of GAF Energy, which has recently ...
Read More
