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Reduction of global development cost caused by microfinance inefficiencies


  • Tomas Hes
  • Karel Srnec


The purpose of the paper is to quantify the annual financial losses incurred owing to the lack of global coordination in the international microfinance investment sector, leading to inefficiencies. This paper attempts to examine the scale of idle potentials on the basis of available international investment flow statistics and proposes innovative instruments, arched over in the Global Microfinance Financing Authority (GMFA). As several dramatic inefficiencies are taking place, forming of the proposed body would prevent substantial annual losses, at present absorbed by the clients, raising the cost of capital for the poor.

Suggested Citation

  • Tomas Hes & Karel Srnec, 2011. "Reduction of global development cost caused by microfinance inefficiencies," International Journal of Electronic Finance, Inderscience Enterprises Ltd, vol. 5(4), pages 374-384.
  • Handle: RePEc:ids:ijelfi:v:5:y:2011:i:4:p:374-384

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