Description
Since the 1980s when the microfinance revolution began, much has been accomplished, but the field became more refined in the 1990s as a result of shifts in paradigms, strategies, and development practices. This volume addresses the three policy objectives that now occupy those who wish to use credit as a development tool: financial sustainability of microfinance institutions, outreach to the poor, and welfare impact.
Inevitable tradeoffs exist among these objectives, and the book advances an analytical framework that assists students of and experts in microfinance to identify the tradeoffs and synergies at the institutional level and in the policy environment. The book features a wealth of empirical data and innovative analytical studies, and critically discusses the role of public support for microfinance institutions (MFIs) in light of the social costs and benefits generated by such financial systems.
The book is organized into five parts. The first discusses the demand for and access to financial services by the poor, emphasizing that demand-oriented, pro-poor financial services are crucial in reaching the poor. The second is concerned with two of the criteria used to evaluate MFIs—outreach and financial sustainability. The third features innovative econometric studies seeking to evaluate the impact of MFIs at the household level. The fourth looks at the role of both public- and private-sector institutions in developing sustainable financial systems. And the fifth summarizes implications for policy and research.
Given the lack of sound, empirical literature on microfinance, this volume is sure to advance knowledge and research methodology in the field.Reviews
"The book features a wealth of empirical data and innovative analytical studies and critical discussions of the role of public support for microfinance institutions in light of the social coasts and benefits generated by such financial systems . . . The book provides sound information and remarkable experience from many countries about financial services for the poor."—S. Bauer, German Journal of Agricultural Economics"The Triangle of Microfinance is an important book that comes at a time when a revival is at hand for donor-driven rural finance following a hiatus of more than ten years. The hiatus began after it had become overwhelmingly clear that donor-driven farm credit projects had been a massive government failure. Successful microfinance can to some degree invigorate the forthcoming revival, but little has been done to design better rural financial systems, which remains the most challenging task. Empirical work presented in this book offers useful points of reference for meeting this challenge. Its chapters provide a valuable and essential statement of core policy issues for donors and their friends and detractors to struggle with and debate. As the revival unfolds, this book is likely to emerge as a centerpiece."—J. D. von Pischke, author of Finance at the Frontier "The genius of microfinance lies in simple ideas, like group lending, that have made it possible to provide financial services to people previously thought to be 'unbankable.' But behind those simple ideas are a set of complicated tradeoffs and relationships. This important book faces those tradeoffs head-on, exploring tensions between creating profitable banks and facilitating meaningful social change. The editors have brought together leading researchers to investigate both the mechanics of microfinance institutions and the roles these institutions can play in the lives of the poor. The result is new, unvarnished evidence on the achievements and limits of microfinance and a renewed assessment of its possibilities. The studies replace advocacy with analysis and come together to form a clear agenda to push the field forward."—Jonathan Morduch, Associate Professor of Public Policy and Economics, New York University "The book addresses a remarkable breadth of important issues faced in providing financial services to the poor, including the difficult tradeoff between reaching the poorest and financial sustainability, the multiple interrelated needs of the poor not only for credit but also for savings and insurance facilities, and the very high transactions cost to be faced in providing services to the dispersed rural poor. It also addresses a number of difficult methodological issues faced by analysts of microfinance schemes in assessing effective needs for credit, evaluating outreach, and measuring impact. As such, it will be of interest to both practitioners and analysts of microfinance schemes."—Elisabeth Sadoulet, Professor, University of California, Berkeley
Author Information
Manfred Zeller was a research fellow at IFPRI and leader of its multicountry program on rural financial policies and food security until 1999. He is now professor at the University of Göttingen, Germany, and director of its Institute of Rural Development. Richard L. Meyer is Emeritus Professor and Senior Research Specialist in the Department of Agricultural, Environmental, and Development Economics at The Ohio State University.
|
Add hardcover to shopping cart
Land Tenure and Natural Resource Management: A Comparative Study of Agrarian Communities in Asia and Africa