THE EFFICACY OF MICROFINANCE.PART 6

This group should spearhead the battle and then the nonenlightened group through capacity building,training,workshops and seminars should follow from the rear,prior to microlending.In some parts of the world like Nigeria,it is a calamity to conduct empowerment seminar and capacity building without affordable to microlending. Microfinance is driven by philantropic motives and donor subsidies and sometimes high cost of lending drives poor people back deeper into poverty.Conventional investors see it as investment opportunities and disputations gather on these two sides of intellectual bickerings that it should be seen as development aid or driven by capitalist propensity. Institutions like SKS in India or Mexican Compartmentos already listed on stockexchanges,pulling funds from investors.These are emergent symptoms of the golden age era of commercial microfinance. It is illogical,irrational or baseless to compare the social cost benefit ratio of microfinance with the strategic intention of development aid.