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
Where fitness meets kindness: GoodGym is getting people moving and giving back
BY THE OPTIMIST DAILY EDITORIAL On a chilly, damp evening in south London, a group of runners is doing something a little different. There ...
Read MoreCan dogs get the winter blues? What to know about seasonal depression in pets
BY THE OPTIMIST DAILY EDITORIAL TEAM It’s not just you; winter really can bring a certain mood. The shorter days, chilly weather, and long, ...
Read MoreHistoric global agreement protects international waters
For the first time ever, 193 nations have reached a conservation agreement on the High Seas Treaty, which intends to designate 30 percent of ...
Read More‘Queen of Salsa’ Celia Cruz is first Afro-Latina to be honored on...
BY THE OPTIMIST DAILY EDITORIAL TEAM Celia Cruz, the renowned "Queen of Salsa," has been the first Afro-Latina to appear on a US quarter, ...
Read More
