Microfinance Program Intervention: A Paradigm Shift

Abstract

Microfinance is a development program that aims to improve the economic and social life of people live in poverty. In terms of outreach, microfinance is one of the largest poverty interventions that reach millions of individuals and their families around the world. Besides recognitions for its claimed development potentials, microfinance has been facing strong criticism on the outcome of the program. Since inception, the approach of intervention of microfinance has changed overtime resulting changes in the outcomes of this development program. This paper identifies the genesis and trajectory of microfinance, changes in philosophy and approach of intervention, and the impact of the changes on development outcome and sustainability of the program. With a critical analysis on development philosophy and approach of intervention and implications of the changes, this paper concludes with a set of recommendations for achieving the objectives of this development program.