The Poor and Their Money

Poverty alleviation is foremost on the government agenda of all developing countries. In order to meet the internationally agreed targets of poverty reduction there is a need to adopt the right policies and instruments. Microfinance–financial services for the poor–is one such. This slim volume illustrates the many ways by which poor people in developing countries manage their money, from keeping notes under floorboards and using moneylenders and savings collectors, to devising and running sophisticated savings, loans and insurance clube. All these devices are, essentially, ways to turn small savings into large enough lump sums. The author exphasizes the pivotal role of savings in the life of the poor, and in doing so, belies the common misconception that they are ‘too poor to save’. The book also describes recent attempts by the new breed of pro-poor banks and microfinance institutions to provide services to the poor. It attempts to contribute to their efforts by showing how a study of the poor managing their own money can lead to designing better-quality financial services. Based on twenty-five years of experience, Rutherford’s book is grounded in the real lives of people in the slums and villages of Asia, Africa and Latin America. The book’s clarity, simplicity and avoidance of jargon make it appealing not only to microfinance students and practitioners, including those working with non-government organizations, but to general readers as well.