Economics Commons^™

Microfinance In Latin America: Poverty Alleviation And The Impact Of Institutional Mimicry, Lindsay Jouben

Graduate Theses, Dissertations, and Problem Reports

Microfinance has become a program of choice in the international development community. The World Bank has promoted microfinance programs under the idea that poverty alleviation can be accomplished by mainly providing credit. [1] As such, these policies are often replicated throughout the developing world. This replication is done through international organizations adopting a standard of best practices for the microfinance field. Best practices consist of a complex set of standard by which all banks must adhere if they receive funding from the World Bank or International Monetary Fund. These best practices, following neoliberal economics, lay out how microfinance should operate …

Effects Of Agricultural Loans In Developing Countries – Benin Case Study, Nicaise S. M. Sagbo

Theses and Dissertations--Agricultural Economics

Limited access to financial services is known as a major constraint to agricultural development (FAO, 2002). Farmers need liquidity to face agricultural expenses throughout the production cycle but mainly at the beginning. Mainstream financial institutions are reluctant to serve the agricultural sector for several reasons. First, they consider the sector to be highly risky with low performance. Also, agricultural activities depend on the weather, they take place in remote rural areas, and commodities prices are volatile. All these aspects make it hard for standard banks to reach their profit goals when lending to farmers. Since microfinance was conceived, it has …

The New Financial Framework For The Cuban Non-State Sector, Pavel Vidal, P.V. Viswanath

Faculty Working Papers

A cornerstone of the current Cuban economic model reforms is its opening to the non-state small-scale sector. Using the results of a survey of non-state businesses, we look at the provision of financial services to the small- and medium-sized enterprises in the non-state sector from two perspectives: first, the nature of the new credit regulations and bank policies and how they accomplish the evaluation of credit to a hitherto non-existent sector; and second, how these small business clients view their relationship with their lender state banks. We look at Cuba from the perspective of a socialist economy in transition and …

Microcredit And Survival Microenterprises: The Role Of Market Structure, P.V. Viswanath

Faculty Working Papers

Poverty remains a pervasive problem all over the world, but the problem is worst in underdeveloped areas like Africa. While microfinance is supposed to address this problem through the promotion of viable businesses, it has not been very successful in helping survival microenterprises, i.e., businesses that the very poor with limited human capital have access to, in sectors with low barriers to entry and selling undifferentiated products. In this paper, I examine the role of market structure in mediating the impact of micro-lending to such survival enterprises. While there have been many evaluations of microfinance institutions (MFIs), there have been …

Gender Bias In Microlending: Do Opposites Attract?, Kanyinsola Adepoju

Master's Theses

This study exploits a quasi-random assignment of clients to loan officers using a unique database and survey from a large microfinance bank in Nigeria to show that opposite-sex preferences affect credit demand and supply. We find that clients matched to loan officers of the opposite gender are more likely to receive credit and are more likely to return for an additional loan with the credit lender.

El Rol Esencial De La Educación Y La Salud En La Estrategia Microfinanciera: Un Comentario Sobre El Neoliberalismo Contemporáneo, Julia Smith

Latin American Studies Honors Projects

Abstract

This thesis answers the question: “What is the relationship between microfinance and neoliberalism?” by arguing that microfinance is an effective strategy for poverty eradication and community development only when it is coupled with public education and health for all members of society. Therefore, countries need to change their policies in these areas to ensure that microfinance institutions are successful in ending poverty. This thesis engages with scholars such as David Harvey and Mohammed Yunus who provide the theoretical framework for neoliberalism and microfinance and more importantly with Milford Bateman and Yogendra Bahadur Shakya who argue that microfinance can never …

Are Credit Unions In Ecuador Achieving Economies Of Scale?, Nick A. Marchio

Economics Honors Projects

This study tests the assertion that membership growth in credit unions is constrained by their unique structural features, such as their non-profit mission and member-based ownership. Although these features enhance inclusiveness, existing theory suggest that they work against efficiency when membership grows too diffuse. To address this issue, this study uses a model that takes into account existing theory on constrained-optimization in credit unions and theory on the adverse effects of diffuse ownership. Using data on 36 public credit unions in Ecuador, the empirical analysis finds evidence that credit unions can achieve economies of scale despite their problematic structural features. …