New studies suggest that micro-lending isn't all it's cracked up to be. Researchers at MIT have found that microlending may make poor people's lives a little easier, but doesn't lift them from poverty.
One of the big problems with micro-lending is that no one really seems to know exactly how effective it's been, and the above Boston Globe story acknowledges that researchers had to come up with creative ways to figure out the metrics. To me, the takeaway paragraph is:
That seems to be a big problem with aid programs. If well-intentioned aid workers invest a ton of time and money in a project, they probably won't particularly want to know whether it succeeded or not."And once an aid organization or philanthropically minded corporation, won over by powerful success stories, commits to an antipoverty tool, whether it’s microcredit or bed nets or building rural schools, they tend to lose interest in funding research that could suggest that it doesn’t work."