Promoting Institutional Innovations in Microfinance: Replicating Theories is Not Enough
AbstractThe wisdom in rural finance has long been that lending to and saving by the poor is doomed to failure: costs are too high, they are not creditworthy and they are not able to save. A number of success stories in microfinance industry (MFI) have changed this pessimistic assessment during the past twenty years or so. Recounting the failure of traditional financial liberalization theory in ensuring the access of the rural poor to the institutional sources of finance, this paper, taking the Grameen Bank (GB) of Bangladesh- the cradle of microfinance movement, as a case study, argues for a continuation of the support towards institutional innovation in MFIs that will help achieve the goal of ensuring the access of the rural poor to the institutional sources of finance.
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Bibliographic InfoPaper provided by American International University-Bangladesh, Office of Research and Publications (ORP) in its series AIUB Bus Econ Working Paper Series with number AIUB-BUS-ECON-2008-06.
Date of creation: Feb 2008
Date of revision: Feb 2008
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Web page: http://orp.aiub.edu/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-02-23 (All new papers)
- NEP-CWA-2008-02-23 (Central & Western Asia)
- NEP-MFD-2008-02-23 (Microfinance)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jonathan Morduch, 1999. "The Microfinance Promise," Journal of Economic Literature, American Economic Association, vol. 37(4), pages 1569-1614, December.
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