THE EFFICACY OF MICROFINANCE.PART 9

Microfinance has been growing exponentially ever since 1970s,with thetechnology of microlending developed by Muhammed Yunus,transforming Bangladesh Communities.According to a study published in the B.E.Journal of Macroeconomics,it found out that a small boost in microloans or microlending in the developing countriescould lift about 10.5million people out ofmass poverty.With about 836million people,approximately 12percent of world population,living in extreme poverty,on less than $1.25 a day,the efficacyof microfinance driven by development aid can create a soft landing.Infact its unprecedented growth over the last twenty years specifically as shown in the prior analysis,is solid evidence that through the instrumentality of microfinance,mankind can battle the global poverty to a standstill.The available data from 106 countriesthat covers the period between1998 to 2013 found out that a ten percent increase in gross microfinance loans'portfolio,could this above number or population of world poor by 1.26percent.