Three Perspectives on the Achievements, Challenges and Future of Microfinance

This paper presents interviews with three professionals involved with microfinance. It examines the achievements, challenges and future perspectives of microfinance.The three people interviewed are Alex Counts, president and CEO of the Grameen Foundation; Elizabeth Littlefield, director of the World Bank and chief executive officer of the Consultative Group to Assist the Poor; and Dr. Milford Bateman, an active local economic development policy consultant and visiting professor of economics at the University of Pula, Croatia.The discussion brings forth different perspectives held by microfinance professionals. The paper summarizes their views as follows:

• Microfinance has an impact on lives of poor people at an individual level;
• Ability of microfinance to reduce poverty and contribute to sustainable development is difficult to prove;
• Strong growth of the sector helps to positively transform poor people's lives if funds are directed to sustainable projects;
• Microfinance can benefit from international social investors' funds provided they pursue social and financial objectives;
• Local capital involvement should be increased to allow qualified MFIs to offer savings capability to clients;
• Microfinance should not be regarded as a panacea, but as part of a comprehensive solution for poverty reduction.