CGD program coordinator Sandy Stonesifer cites research fellow David Roodman's research on microfinance in her Slate.com column.
From the article:
"Experts say: Not really. But they also say there's a need for more research (particularly longer-term randomized control studies), and that even if we don't find a societal benefit, that that's not necessarily a good reason to cast it aside. Microfinance expert David Roodman points out that the authors of Portfolios of the Poor: How the World's Poor Live on $2 a Day suggest that the biggest challenge of poverty isn't necessarily how small your income is but rather how variable and unpredictable it can be. (Disclosure: Roodman is a fellow at the Center for Global Development, where I also work—and he recently kicked up a debate around Kiva's model that can be followed here.) Roodman also cites the work of Amartya Sen in discussing whether microfinance leads to development, stating that giving people the ability to smooth out these bumps gives them more freedom and can lead to greater economic empowerment—even if it doesn't change their net income."