Studies show that most microfinance loans are being spent on consumer goods, not the creation of new enterprise. Microfinanciers need to create better consumption loans and couple them with savings and insurance products, suggests Jonathan Morduch, a New York University economics professor and co-author of “Portfolios of the Poor,” a book published in early 2009, with Stuart Rutherford, Daryl Collins and Orlanda Ruthven.
View more of our interview with Jonathan Morduch.
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About the author
David Lepeska
David has served as U.N. correspondent for the newswire UPI and reported for several major newspapers, including the New York Daily News and Newsday. He was chief correspondent for the Kashmir Observer in Srinagar, India, and regularly contributes to the Economist, among other publications. Since 2007, David has reported for Devex News from Washington, New York, as well as South Asia.