Access To Financial Instruments

From the point of view of access to financial instruments, the key is to determine what can be improved in terms of access, cost and efficiency, it is clear that many of the informal mechanisms used by poor families do allow smooth consumption in the short term. However, access to many of these mechanisms is given, sometimes with very high costs and adverse consequences for the future, such as coming to the sale of productive assets that solve the short-term emergency but you capacity remaining in the family business. Informal mechanisms can be inefficient, costly, and often entail risks f loss of resources.

The savings under the mattress in inflationary environments represents a permanent loss of purchasing power, savings and assets associated with the risk of macroeconomic crises or covariates, the value of the assets depreciate rapidly, with consequent impairment of the mechanism insurance.

From there it follows the potential importance of facilitating access to financial instruments of various kinds as a component of a policy of social insurance and poverty reduction. Access to financial services would help reduce transient poverty and the further impoverishment of poor families through insurance, preventing the poor from falling into the higher levels of poverty but also offering a way out of poverty by providing access to better chance of generating income.