While working on the thesis, there aresome very important considerations that need to be taken into account:· There is no one singlesolution to global poverty.
When it comes to poverty alleviation, microfinance goes hand in hand with a broad array of empowering interventions and various other social safetymeasures. By studying microfinance in isolation, we might be subjecting ourresearch to reductionism.· Althoughmicrofinance is a vital component in poverty alleviation, there is a generalconsensus among its proponents that it is not for everyone1.Hence a clear distinction will be required between the target group and thestakeholders in order have a representative sample of the population for fieldstudy purposes.
· Evenwithin Pakistan, there are extreme cultural diversities, so the sampling willneed to be done carefully in order to make sure it is representative of theentire population across different regions of Pakistan and to avoid selectionbias.· There are some majorcriticisms of microfinance and some deviant cases which contradict the basicunderlying assumption that microfinance plays a strong role in povertyalleviation. Though these criticisms are valid, there is ample evidenceto show that the benefits of microfinance outweigh the costs, hence a careful analysis will be required in order toinclude these factors in the thesis.· Over the years, a series of scandals includingsuicides among indebted borrowers in India has overshadowed how small loans canhelp people pull themselves out of poverty.
Hence the reasons for the failureof microfinance in certain areas should also be kept in mind.1 KhandekerS R (2001) Does Microfinance benefit the poor?