This paper summarizes the results of a natural experiment in savings involving low income recipients of social benefits in Poland.
How do low-income people prepare with the changing situation as they age, and what is the potential role of microfinance in providing security for them during their old age?
Helping people save their way out of poverty can be much cheaper and less risky than helping people borrow their way out of poverty. Borrowing has its place, but now is the time to focus on saving.
Interested in learning more on the impact of micro savings on business investment and creation, consumption, and household well-being?
This article by Laura Elser, Alfred Hannig and Sylvia Wisniwski (1999) is the first empirical research about factors which make the mobilizing savings strategies of micro finance institutions optimal.