Comments on: Microfinance as Business, Faults and All http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/ Critiquing the Politics, Policy & Practice of Development Mon, 26 Jul 2010 01:24:49 +0200 http://wordpress.org/?v=2.8.4 hourly 1 By: Microfinance is Growing Up http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/comment-page-1/#comment-127929 Microfinance is Growing Up Sat, 02 Jan 2010 16:17:02 +0000 http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/#comment-127929 [...] early proponents, not of the method itself. As a report pointed out in 2006, microfinance should be viewed as just another business. That perspective is very necessary if we are to get some realism into the debate on what works in [...] [...] early proponents, not of the method itself. As a report pointed out in 2006, microfinance should be viewed as just another business. That perspective is very necessary if we are to get some realism into the debate on what works in [...]

]]> By: Dweep Chanana http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/comment-page-1/#comment-90188 Dweep Chanana Mon, 10 Sep 2007 16:48:28 +0000 http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/#comment-90188 Manju, Thanks for your comment. I could not have put it better - this is essentially about changing the viewing lens. Another point that you mention, which does not get enough attention, is that credit must be packaged with other services. I do think that is happening, though possibly not fast enough. I had done some evaluation of it earlier this year, and a few notes are <a href="http://www.planetd.org/2007/01/19/financial-inclusion-in-india/">here</a>. Manju,
Thanks for your comment. I could not have put it better – this is essentially about changing the viewing lens.

Another point that you mention, which does not get enough attention, is that credit must be packaged with other services. I do think that is happening, though possibly not fast enough. I had done some evaluation of it earlier this year, and a few notes are here.

]]> By: Manju George http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/comment-page-1/#comment-90049 Manju George Sun, 09 Sep 2007 12:56:26 +0000 http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/#comment-90049 As you rightly mentioned, guess its a matter of changoing the viewing lens...Many new generation MFIs are initiated by entrepreneurs who believes its another wealth creation idea...and money, be it for consumption or to be deployed in productive purposes, has a great demand..the formal system fails to address issues of access and affordability...a well-designed, localised intervention seems to provide an alternative to traditional money lending - and that it!. Today, its seeing further trends - of moving into financing 'small businesses' (competing with the citi financials and the Fullertons), adding new services (remittances, insurance etc) and exploring synergies with growing sectors such as retail. Yes, in the process its may be creating 'access' which, given alternate developmet inputs, market linkages etc...could contribute to a second bottomline, social returns. for the investor/clients. Business, indeed it is. Manju As you rightly mentioned, guess its a matter of changoing the viewing lens…Many new generation MFIs are initiated by entrepreneurs who believes its another wealth creation idea…and money, be it for consumption or to be deployed in productive purposes, has a great demand..the formal system fails to address issues of access and affordability…a well-designed, localised intervention seems to provide an alternative to traditional money lending – and that it!. Today, its seeing further trends – of moving into financing ’small businesses’ (competing with the citi financials and the Fullertons), adding new services (remittances, insurance etc) and exploring synergies with growing sectors such as retail. Yes, in the process its may be creating ‘access’ which, given alternate developmet inputs, market linkages etc…could contribute to a second bottomline, social returns. for the investor/clients. Business, indeed it is.

Manju

]]> By: Evaluating Microfinance: CGD, IPA and other experiments - The Discomfort Zone http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/comment-page-1/#comment-48868 Evaluating Microfinance: CGD, IPA and other experiments - The Discomfort Zone Fri, 23 Feb 2007 15:44:06 +0000 http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/#comment-48868 [...] is led by David Roodman, who authored the Microfinance as Business report (previously covered here). The article explains how their assessments are different: Understanding how microfinance affects [...] [...] is led by David Roodman, who authored the Microfinance as Business report (previously covered here). The article explains how their assessments are different: Understanding how microfinance affects [...]

]]> By: Microfinance: Not a Development Tool, Then What? - The Discomfort Zone http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/comment-page-1/#comment-42104 Microfinance: Not a Development Tool, Then What? - The Discomfort Zone Mon, 01 Jan 2007 07:26:38 +0000 http://www.planetd.org/2006/11/03/microfinance-as-business-faults-and-all/#comment-42104 [...] Even as experts have started to question the efficacy of microfinance, the mainstream has embraced it as a panacea. The result is an entirely new industry that hires and retains thousands of people to manage these funds, disburse and monitor loans. However, while microfinance as a business has been a resounding success, its benefits for development are anecdotal and largely overstated, thus far. [...] [...] Even as experts have started to question the efficacy of microfinance, the mainstream has embraced it as a panacea. The result is an entirely new industry that hires and retains thousands of people to manage these funds, disburse and monitor loans. However, while microfinance as a business has been a resounding success, its benefits for development are anecdotal and largely overstated, thus far. [...]

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