When and how far is group formation a route out of chronic poverty?

Group formation has great potential to empower and raise the incomes of poor people. However, the chronically poor are disadvantaged in group formation, and this may form a significant part of the vicious circle and dynamics of chronic poverty. These disadvantages include a lack of assets, isolation, and low levels of access to political institutions. Successful groups formed among the poor often exclude the even poorer, particularly those associated with market functions. It is the political function of groups that is of primary importance in helping to overcome marginalization and social exclusion experienced by the poorest.