Despite claims that microcredit is one of the most powerful tools to alleviate poverty, the evidence on its impact remains scarce, and there is considerable debate on its impacts. This study is the first randomized evaluation of a microcredit program conducted in a rural area where there is almost no other credit access. Microcredit expanded in Morocco during the second half of the 90s, and today Morocco is one of the countries with the highest number of clients in the North Africa and Middle East region. Al Amana expansion to non-densely populated areas gives the opportunity to analyze the impact of microcredit basic product, the group-liability loan first introduced by Grameen Bank, in a context in which microcredit was almost inexistent and the use of both formal and informal lending was very low.
Crepon, B.; Devoto, F.; Duflo, E.; Pariente, W. Impact of microcredit in rural areas of Morocco: Evidence from a Randomized Evaluation. (2011) 2 pp.