access to finance
Last week saw an all-day event at the World Bank on Mobile Innovations for Social and Economic Transformation. The sessions covered the use of mobile phones in everything from governance to education.
Microfinance has been getting its fair share of attention lately.
A recent article by Timothy Ogden (Computer Error?) provides a pretty clear answer: forget the glitzy computers, and put your scarce resources into the provision of deworming pills. The One Laptop per Child (OLPC) program provides computers at around $200 a pop, while deworming pills cost between 50 cents and 4 dollars per student per year. All the control trials of computers in classrooms have given—at best—ambiguous results.
Might access to credit have anything to do with support for employment protection legislation (EPL)? Felipe Balmaceda and Ronald Fischer propose a connection. Workers in firms with easy access to credit EPL. Workers in firms with shaky access to credit oppose EPL.
Microfinance received a nice fillip recently when Muhammad Yunus was awarded the Presidential Medal of Freedom by U.S. President Barack Obama. While Yunus's rockstar status has helped put the access to finance agenda center stage, I wonder if it might obscure some of the hard work that goes on behind the scenes. Perhaps the phrase "credit bureaus" may not cause your heart to race, but in some countries this is really where the action is at.
When I was growing up I heard a lot of stories about my grandfather. He died when I was a child so my recollection of him is a little hazy, but one thing sticks out very clearly in my mind: he believed in educating his daughters.
I just recently finished reading James Surowiecki's The Wisdom of Crowds, and I've been thinking a lot about how prediction markets could be mainstreamed into the work of development institutions.
Think you’ve got better money management skills than the world’s poorest? You might be surprised to find out that you’d be up against stiff competition.
Last month I wrote about the underwhelming results of a randomized control trial of microcredit in India. The long and short of it: access to credit helped increase business investment, but didn't have any noticeable effect on the things we really care about, like health and education. While it would perhaps be unfair to say that the study was a final verdict on microfinance, it was clearly a serious indictment.