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Demand-Led Microfinance for Sustainable Rural Poverty Alleviation
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The need to provide micro finance to the economically active rural poor cannot be overemphasized in this age of increasing disparity in income and living standard. However, it is critical to clearly identify those with capacity to appropriate efficiently finance options in the form of micro finance in order to leverage ongoing economic efforts geared towards raising personal income. Otherwise, micro finance options that are altogether government driven have tendencies for mis-allocation as well as mis-application, thus, causing a drain in scarce resources. It is of utmost importance that there be a mix of government and private application principles in micro finance options focused on the rural poor such that it is only identifiable economically active poor who are targeted. It is the identification of the economically active rural poor that must drive any social efforts put in place to provide small finance to alleviate rural poverty.
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