By Moin Qazi* Microfinance – an approach to financial inclusion based on providing small denomination loans and other financial services to poor people who lack the collateral, credit history, or other assets -has generated considerable enthusiasm, not just in the development community but also at political levels. It has infused an entrepreneurial spirit in tiny entrepreneurs like clay-brick makers, seamstresses, and vegetable sellers. Microfinance continues to thrive despite being under fire from legions of critics. One plausible reason for the lingering faith in the power of microfinance is that it provides a convenient strategy for investors to demonstrate that they are active fighters against poverty and are trying to save the poor while making a substantial amount of money from them. It is built on a false belief that credit is the most vital need of the marginalized. One of those who have thoroughly studied the phenomenon, Thomas Dichter, says the idea that microfinance allows i