Making sense

Microfinance is a powerful tool for poverty reduction and a new business paradigm that aims to bridge the gap between the rich and the poor. While it has positively impacted the lives of millions in developing countries, many still lack access to essential financial services that could enhance their living standards. Naoko Felder-Kuzu, an independent financial consultant, addresses this gap in her book, targeting financial service providers. The first part shares her personal experiences in microfinance, illustrated with real-life cases demonstrating its effectiveness. The second part offers an analytical overview of financial service providers, explaining microfinance basics and suggesting ways to engage in this transformative movement. The United Nations recognized the significance of microfinance by designating 2005 as the International Year of Microcredit, aiming to improve statistics on its penetration and, more importantly, to enhance the availability of quality financial services. This initiative seeks to empower many poor individuals to improve their circumstances through their own efforts, as emphasized by Stanley Fischer, Vice Chair of Citigroup.