A recent article in The Wall Street Journal mentioned that “China’s economy may lead the region in many ways, but in one surprising area it is lagging behind: microfinance […] A casual observer might say China doesn’t need microfinance. After all, it is now the world’s third-largest economy. But beyond the prosperous cities, millions of people still languish in poverty. China has the second-largest number of poor after India. About 254 million people in China lived on less than $1.25 a day in 2005 (as measured in purchasing power parity dollars), according to the World Bank.”
The author points to the importance of microfinance as a tool to alleviate poverty and mentions China, despite its growing influence as an International player, still has an enormous number of people living in poverty. Also as they mention in the article, China’s government has a responsibility to consent to let microfinance play a role in the country. Hopefully soon the Chinese government will create a favorable environment for its citizens to benefits from microfinance. As worldwide microcredit and microfinance are showing great results, China could become part of it.