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.