Group dynamics, gender and microfinance in Bolivia
This paper examines the wider impacts, or externalities, of microfinance in Bolivia, an environment in which the loss of confidence in the formal banking system and the proactive role of the Superintendencia de Bancos in converting NGOs into deposit-taking institutions have been positive factors. Our focus is on the group-lending technology of ProMujer, which practises a 'credit plus' technology in which training, health and advisory services for women only are linked with lending (and savings services through FIE). There is some preliminary evidence that such groups have achieved the externality of stimulating collective public action outside of the immediate microfinance context (for example by lobbying for better public services or changes in policy); such growth seems to happen most readily where the group has collective experience of adversity, and|or where intragroup equality is high. They also have exemplary repayment rates, which-unlike those of most other microfinance institutions-did not fall off during the recent recession. This creates a second externality for the economy as a whole-a contribution to macro-economic stability. We hypothesise that the chain of causation goes from ProMujer's 'credit plus' ancillary services, to client loyalty to the institution, to high repayment rates, to ability to expand lending and investment. Copyright © 2004 John Wiley & Sons, Ltd.
Volume (Year): 16 (2004)
Issue (Month): 3 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
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.:
- Daniel Hardy & Paul Holden & Vassili Prokopenko, 2003.
"Microfinance institutions and public policy,"
Journal of Economic Policy Reform,
Taylor & Francis Journals, vol. 6(3), pages 147-158.
- International Monetary Fund, 2002. "Microfinance Institutions and Public Policy," IMF Working Papers 02/159, International Monetary Fund.
- Binswanger, Hans P, 1981. "Attitudes toward Risk: Theoretical Implications of an Experiment in Rural India," Economic Journal, Royal Economic Society, vol. 91(364), pages 867-890, December.
- Hans Binswanger, 1981. "Attitudes toward risk: Theoretical implications of an experiment in rural india," Artefactual Field Experiments 00010, The Field Experiments Website.
- Newman, John & Jorgensen, Steen & Pradhan, Menno, 1991. "How Did Workers Benefit from Bolivia's Emergency Social Fund?," World Bank Economic Review, World Bank Group, vol. 5(2), pages 367-393, May.
- Patten, Richard H. & Rosengard, Jay k. & Johnston, Don JR., 2001. "Microfinance Success Amidst Macroeconomic Failure: The Experience of Bank Rakyat Indonesia During the East Asian Crisis," World Development, Elsevier, vol. 29(6), pages 1057-1069, June.
- P. Mosley, 2001. "Microfinance and Poverty in Bolivia," Journal of Development Studies, Taylor & Francis Journals, vol. 37(4), pages 101-132. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:16:y:2004:i:3:p:519-528. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.