It is now widely acknowledged that most people living on less than one dollar a day are women. For many, recognition that women make up the majority of the "poorest of the poor" justifies the recent focus on alleviating poverty and promoting gender equality - both of which are identified as top global priorities in the Millennium Development Goals. To achieve both aims, microfinance is a proven tool.
Pioneering microfinance institutions (MFIs) have already recognized that the twin goals of empowering women and developing poor communities are closely connected. The Nobel Prize-winning Grameen Bank, for example, gives around 96 percent of its micro-loans to women, while the UN estimates that around 76 percent of all microfinance clients globally are women.
"There are two different ways to look at this: one is that microfinance is good for women; the other is that women are good for microfinance," says Susy Cheston of Opportunity International, a US-based organization that gives around 86 percent of its micro-credit loans to women. "There are lots of different reasons that people lend to women. For some, it's about having customers that are very credit-worthy and bring better value to the institution."
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