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Microfinance was supposed to save Asia’s poor. Why has it failed to live up to its promise?

By Ruipeng Liu, Senior Lecturer in finance, Deakin University

Microfinance was once celebrated as Asia’s tool to lift people out of poverty. From Bangladesh to India, Cambodia and the Philippines, the promise was simple: provide small loans to low-income households, help them start businesses, increase income and escape poverty.

Pioneered in…

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