The A B C of Microfinance

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The A B C of Microfinance
ABC Microfinance
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The A B C of Microfinance

• Case studies

• Bookkeeping and beyond

• Analysis

• Conclusions

ABC Microfinance
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Case Studies
Description specific situation with questions
varying per case
1972 Spring Review USAID Farmer Credit

• 60 descriptive studies in different countries

• 20 analytical papers

• Role Case studies
• New Questions
• New Hypotheses

• Many people involved Start of discussion

Now

• Cases over 20 years analysis time series

• Comparative analysis one or more specific
  aspects over more cases

ABC Microfinance
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Bookkeeping and beyond
From cases attention for costs and returns
credit provision with discussion issues

• Government intervention in interest rates etc.

• Cost-covering interest rates

• Financial sustainability MFIs

• Financial liberalisation

Theoretical framework

• State and/or Market Govt and MFIs

• Neo-classical economics monopoly, supply costs

• Financial development Shaw and McKinnon

ABC Microfinance
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Analysis
1980s and 1990s New Institutional Economics New
insights into behaviour individuals and
organisations

• Limitation price mechanism in credit markets

• Focus on asymmetric information with problems
  for screening, monitoring and enforcement

• Institutions as set of rules that relate to
  limitations of markets

• Attention for contracts and interlinkages

ABC Microfinance
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Conclusion
Currently combination of

• Cases of many real life situations formulation
  questions and hypotheses

• Set of theoretical insights
  Neo-classical economics costs, returns
  and prices with attention of financial aspects

New institutional economics explanation current
practices and difficulties
Macro economic theories financial sector
liberalisation financial deepening

and more .
ABC Microfinance
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Conclusion
Currently combination of

• Cases of many real life situations formulating
  questions and hypotheses

This with widespread international
attention Microfinance attractive
for students and researchers

• Set of theoretical insights
  ---Neo-classical economics costs,
  returns and prices with attention of financial
  aspects

New institutional economics explanation current
practices and difficulties
Macro economic theories financial sector
liberalisation financial deepening

and more .
ABC Microfinance
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Examples of studies
MSc study Outreach in Microfinance a case study
of Swamitra Units in Jakarta, Indonesia.
Yuniearti Setyaningsih

• Defining Outreach
• Assess duration relationships members Swamitra
• Content and development relationship
• Typology members

ABC Microfinance
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Examples of studies
PhD study Risk matching behaviour in credit
group formation and implications for repayment
evidence from Tigray, Ethiopia. Guush Berhane
Testing the empirical validity of the homogeneous
risk matching hypothesis. Are groups formed by
people with same risk profile (homogeneous risk
matching)?
ABC Microfinance