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Cash Handouts and Microfinance Loans

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Cash handouts vs. Microfinance
Cash Handouts and Microfinance Loans
What is the most effective way to generate income and increase social welfare?

One of the greatest challenges for many African countries is eradicating poverty. Methods to generate income are necessary to bridge the gap between impoverished communities and economic stability.

Families that receive cash handouts have no restrictions with how the money is spent and it is up to the individual who receives the money to use it for the benefit of their families. Microfinance loans are given with restrictions and have to be paid back with interest to the financial institution. With these two very different approaches of adding cash flow to a family's household; how do they choose the best option?
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