Credit with Education Impact Review No. 2: Economic Capacity and Security

Credit with Education Impact Review No. 2: Economic Capacity and Security

This is a review of the impact of Credit with Education on economic impact and security. There is a literature review of major evaluation efforts influential in understanding economic impact of microfinance institutions and their role in poverty alleviation. Then, while the central study question was the impact of Credit with Education on children’s nutritional status, women’s economic capacity was conceptualized as having important mediating effects. The study draws on in-depth qualitative research of Credit with Education conducted in Burkina Faso and an assessment conducted with clients in Mali using the various quantitative and qualitative SEEP/AIMS practitioner tools, e.g., impact and exit survey, in-depth interview about loan use, empowerment and client satisfaction. Findings show that clients used program loans to build assets that are critical in protecting against risk and vulnerability shocks at the household level and that the principal economic effects of access to financial services may be increased livelihood security and consumption-smoothing rather than an increase in income. Credit with Education Impact Review No. 2: Economic Capacity and Security, by Barbara MkNelly and Mona McCord. September 2002. (Copies available from Freedom from Hunger at no charge.)