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Prospects, problems and potential of credit-granting NGOs

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Author Info

  • Reinhard H. Schmidt

    (J.W. Goethe-Universit├Ąt, Frankfurt)

  • Claus-Peter Zeitinger

    (Internationale Projekt Consult Frankfurt)

Abstract

Recently NGOs have begun to be regarded as ideal providers of credit to small and micro businesses. The paper investigates whether this claim is justified and how the co-operation between donor institutions and NGOs should be structured. It reports the main results of an empirical investigation of the financial efficiency of credit-granting NGOs. These results cast serious doubts on the ability of NGOs to be viable institutions and lead the authors to suggest an institution-building approach of co-operating with NGOs as a promising alternative. Such an approach requires that donors assume a much more active role than they have played up to now.

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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Journal of International Development.

Volume (Year): 8 (1996)
Issue (Month): 2 ()
Pages: 241-258

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Handle: RePEc:wly:jintdv:v:8:y:1996:i:2:p:241-258

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Web page: http://www3.interscience.wiley.com/journal/5102/home

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Cited by:
  1. White, Robert & Eicher, Carl K., 1999. "Ngo'S And The African Farmer: A Skeptical Perspective," Staff Papers, Michigan State University, Department of Agricultural, Food, and Resource Economics 11532, Michigan State University, Department of Agricultural, Food, and Resource Economics.
  2. Claudio Gonzalez-Vega & Richard L. Meyer & Sergio Navajas & Mark Schreiner & Jorge Rodriguez-Meza & Guillermo Monje, 2001. "Microfinance Market Niches and Client Profiles in Bolivia," Computational Economics, EconWPA 0109002, EconWPA.
  3. Schreiner, Mark, 1997. "Ways Donors Can Help The Evolution Of Sustainable Microfinance Organizations," Economics and Sociology Occasional Papers, Ohio State University, Department of Agricultural, Environmental and Development Economics 28327, Ohio State University, Department of Agricultural, Environmental and Development Economics.
  4. Navajas, Sergio & Schreiner, Mark, 1998. "Apex Organizations And The Growth Of Microfinance In Bolivia," Economics and Sociology Occasional Papers, Ohio State University, Department of Agricultural, Environmental and Development Economics 28324, Ohio State University, Department of Agricultural, Environmental and Development Economics.
  5. Gonzalez-Vega, Claudio & Schreiner, Mark & Meyer, Richard L. & Rodriguez-Meza, Jorge & Navajas, Sergio, 1996. "Bancosol: The Challenge Of Growth For Microfinance Organizations," Economics and Sociology Occasional Papers, Ohio State University, Department of Agricultural, Environmental and Development Economics 28333, Ohio State University, Department of Agricultural, Environmental and Development Economics.

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