Microcredits: indicators and socio-economic impact

Abstract

Poverty reduction plans have included microcredits as an important tool to improve the social and economic development of a region. This project will try to explain what impact indicators are most commonly used in the field of microcredits. Next, the characteristics of those indicators will be analysed and also their usefulness in every area of measurement. It will also be observed, through several microcredit programmes impact studies carried out in Rwanda, Brazil and Chile and Malaysia, the indicators that have been used in these programmes, what aspect each indicator tries to measure and, finally, whether they have results with sufficient empirical evidence on its usefulness in the fight against poverty. Finally, the cases which have been analysed will be compared in order to draw enough conclusions to propose a simple model that enables to standardize the way of measuring the impact of micro credit programmes through the use of common indicators.