THE ROLE OF MICROFINANCE IN POVERTY REDUCTION: EVIDENCE FROM DEVELOPING ECONOMIES WITH A FOCUS ON UZBEKISTAN
Keywords:
microfinance, poverty reduction, developing economies, Uzbekistan, financial inclusion, small loans, economic empowerment, microcredit, sustainable development, poverty alleviation, grassroots finance, social impact, economic growthAbstract
Microfinance has emerged as a powerful tool to combat poverty by providing small-scale financial services to low-income individuals, particularly in developing countries. This study examines the effectiveness of microfinance programs in reducing poverty, with a specific focus on Uzbekistan. Using both qualitative and quantitative data, the paper analyzes how microloans, savings, and other services empower economically vulnerable groups, especially women and rural populations. The findings show that microfinance contributes to improved household income, entrepreneurship, and access to basic services, though challenges such as repayment risks, limited financial literacy, and geographic coverage persist. The study concludes with policy recommendations to enhance the role of microfinance in inclusive economic development.
