Challenges in using micro-credit to help Yemen’s poor
Tik Root | IRIN News
Afrah Ahmed, 23, an entrepreneur based in Yemen’s capital Sana’a, is no stranger to micro-credit: she is preparing to take out her third loan.
But when asked if previous borrowing had helped improve her life, she gave a lukewarm reply.
“Only to a certain extent, honestly, because life is very hard, there's no money in the house, no-one works. I am looking for a solution to improve life,” she told IRIN.
Whether micro-credit “works” for lifting people about of poverty is a question that has been debated not just in Yemen but around the world.
“I wouldn’t describe it as a great way to tackle poverty; it does modest good at a modest cost,” David Roodman, a senior fellow at the Center for Global Development in Washington, and the author of a recent book on micro-finance, Due Diligence.
“I think it’s something that enriches the economic fabric of a society and contributes to the process of economic transformation in a modest but useful way, which in a sense is what development is.”



Tik Root


