Are Credit and Savings Services Effective Against Hunger and Malnutrition?: A Literature Review and Analysis

This paper examines whether credit and savings programs designed for the poorest populations are appropriate responses to the problems of hunger and malnutrition.

Agricultural technology and food production have grown dramatically, but the number of people suffering from hunger and malnutrition has not diminished. The paper examines academic and practitioner literature to determine the necessary conditions for credit and savings programs to be effective against hunger and malnutrition. It aims to stimulate new thinking, research and practices that are innovative, effective, sustainable and large-scale enough to reduce hunger and malnutrition throughout the world.

The paper investigates evidence regarding the relationship of income, empowerment and behavior change to food security and nutritional status. It also examines the evidence that poverty lending programs have a positive impact on the intermediate benefits necessary for overcoming the underlying causes of hunger and malnutrition. Intermediate benefits include income, behavior change and empowerment. Finally, the paper presents conclusions regarding:

• Relationship of intermediate benefits to food security and nutritional status;
• Relationship of poverty lending to intermediate benefits.