A recent article by James Suroweicki in the New Yorker argues that micro-finance has become over-hyped. Suroweicki concludes that micro-finance is not the binding constraint because it does not create new jobs. Instead, developing countries need more small and medium-scale enterprises (SMEs), which are the source of most job creation in the developed economy. So we should focus on SMEs instead.
After working in the international development field for over twenty years, I can tell you I have heard this...
]]>