Financial sustainability, targeting the poorest, and income impact : are there trade-offs for micro-finance institutions?
Mosley, Paul | Helms, Brigit
Can micro-finance institutions (MFIs) achieve financial sustainability and reach the poorest of the poor? What are the tradeoffs in pursuing these two goals simultaneously? These are among the key questions addressed by David Hulme and Paul Mosley in their book, "Financial Against Poverty." The authors examined 13 MFIs in seven countries, all poverty-reducing in intention and all using slightly different combinations of design features. They compared the change in each impact variable over the period 1989-1993 in a random sample of 150 borrowers with the change in that variable in a control group of 150 non-borrowers whose incomes, asset holdings, and access to infrastructure were similar to the borrower group's. This note describes the results of their study.
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