The Survey of the Effects of Micro Credits on Decreasing of Poverty and Income Inequality

During the last two decades among many countries, granting micro credits (micro finance), has been posed suitable approaches to make new job opportunities specially the activities of self – employing and to fight with poverty and bringing individuals higher level in the low – income realm, and some countries have been tremendously successful in this area. In this study, some different definitions of micro credits, the relationship between micro credits and poverty and inequality reduction, the effect of micro credits specified in recent years on poverty reduction and the increasing of income per capita among some the provinces in the country have been surveyed. The method used here, was the model of data panel among 28 provinces in the country and for the years of 1380 – 82 which with the use of the variable of the ratio of Gard ul Hassaneh facilities to the whole facilities (in the form of proxy the variable of micro credits), the effect of this variable on income per capita (as an index of inequality and poverty reduction) has been shown. The result of the model indicates that the micro credits can reduce poverty if, firsty, different classes of poverty are identified; and secondly these credits would be for making employments. That is, the poverty reduction through granting micro credits will be possible only through creating jobs and the equality of job opportunities.