The Principled Agent

Thoughts on development economics and impact measurement

Posts Tagged ‘microcredit

The missing middle: cash transfers and microcredit

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Many advocates for cash transfers and microcredit see their respective inputs addressing a capital constraint that is confining a person to lower productivity and lower quality of life (1). There is significantly better evidence for the former than the latter. At the same time, both cash transfers (capital the recipient doesn’t pay back) and microloans (capital the recipient does pay back with interest) are just points on a long continuum of options for addressing the capital constraint. Between these two poles of charity and business lies a vast expanse largely neglected (to my understanding) by NGOs, MFIs, and academics. Read the rest of this entry »


Written by Chris Prottas

November 22, 2013 at 1:52 pm