Microfinance, the poverty reduction tool of choice for the World Bank and many donor organisations, is not without its flaws.
Lenders, for example, often put intense pressure on borrowers to repay loans, leading to new forms of dominance, particularly over women. Many argue that microfinance does not, despite claims to the contrary, empower women.
Donors place pressure on the organisations running microfinance programmes, leading to financial reports showcasing performance in terms of their ability to collect repayments from the poor.
