Author(s) :

Asrith Sampath.

Volume/Issue :

Abstract :

The paper examines the roles of microfinance in poverty alleviation in North America and Latin America based on recent empirical research and policy analyses of the region. Since its introduction in the 1970s, microfinance has been promoted as a development tool defined as the provision of small-scale financial services to underserved populations. Although microfinance has been adopted in both North and Latin America, institutional structures, socioeconomic factors, and outcomes differ substantially. This paper also examines the performance of microfinance in enhancing income, psychological well-being, entrepreneurship, and social inclusion. Further, it investigates the integration of complementary services such as technical training, healthcare, and conditional cash transfers. Evidence from nations such as Mexico, Brazil, Bolivia, Peru, and the United States indicates that microfinance has the capacity to alleviate multidimensional poverty, especially when programs incorporate education and complementary support services. Nonetheless, system-wide transformative effects appear limited unless policies are coordinated across sectors and interventions are appropriately targeted. The discussion underscores the need for context-sensitive design, intersectional inclusion, and subnational financial support. The conclusion is that microfinance, when deployed as part of a multisector development strategy focused on institutional cooperation, financial inclusion, and the empowerment of disadvantaged communities, yields the strongest results.