Another set of viable policies involve targeted poverty programs to increase the capabilities and human and social capital of the poor. An important example centers on helping the poor develop their microenterprises, on which a large fraction of the nonagricultural poor depend for their survival. It has been found that credit is the binding constraint for many of these tiny firms. By building up the working capital and other assets of microenterprises, the poor can improve their productivity and incomes. The microfinance strategy for accomplishing this goal, as exemplified by the Grameen Bank of Bangladesh, is
examined in Chapter 15. In addition, relatively new approaches to attacking poverty focus on an integrated approach to achieving higher incomes together with improved education, health, and nutrition among the poor, notably, conditional cash transfer (CCT) programs that transfer incomes to poor families conditional on behaviors such as keeping their children in school; these approaches are considered in Chapter 8 and its case study. Finally, strategies to
assist the development of the urban informal sector are examined in Chapter 7.