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are helpful, they are not effective enough on a wide scale. Large organizations and adapted governmentpolicies may make microfinance more widespread, but this is often at the cost of effectiveness on theground. These organizations may focus on their financial bottom line and lose sight of their ability tocreate social change. Peru’s economy should be prepared to expand along with these businesses andtheir expansions, as well as the other implications of a rising middle class and a growing formaleconomy. As well, they must make sure to focus on rural poverty in addition to urban poverty, especiallybecause of the severity of poverty in many rural communities.Poverty in Peru is a large issue that cannot be solved solely by grassroots efforts. Microfinancingalone cannot bridge the social gap between the rich and the poor and between men and women; thiswould require large-scale social reforms. A wider system reform must be implemented in order to bridgethe wealth disparity. In order for microfinance to permanently impact Peruvians, development mustoccur at the societal level and not just the individual level. Only then will greater financial stability for thepopulation amount to a true emersion from poverty. This will ensure that the method of reducing ofpoverty is sustainable.While microfinancing models in other parts of the world may be more effective at reducingpoverty, it does not mean that the same model is transferable to other regions. Microfinancinginstitutions must consider how their loans affect stability in the home and the societal impacts theseloans may have. Different social and political climates may adversely affect these initiatives inunexpected ways. Microfinancing institutions must continue to evolve with the changing times.While microfinance may not fully pull people out of poverty, it allows some to survive withoutdrastically improving their standard of living (Bello, 2006). Since they would otherwise be worse off, thisis an improvement and can contribute to a wider eradication of poverty. Its practices should not beabandoned despite some negative consequences, and, by recognizing these issues, organizations canmodify their practices to better serve their clientele. While Yunus may not be right in believing thatPeruvian children will visit museums to see what poverty was like, it is a goal worth striving towards.52