Comments on: The Results are in on Microfinance http://www.planetd.org/2009/05/26/results-microfinance/ Critiquing the Politics, Policy & Practice of Development Wed, 20 Jan 2010 12:51:47 +0100 http://wordpress.org/?v=2.8.4 hourly 1 By: Microfinance is Growing Up | The Discomfort Zone http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-127928 Microfinance is Growing Up | The Discomfort Zone Sat, 02 Jan 2010 16:16:45 +0000 http://www.planetd.org/?p=888#comment-127928 [...] on poverty, enterprise, and socio-economic development. These studies originally came out earlier this summer, discussing the activities of Spandana in India (full report), and First Macro Bank in the [...] [...] on poverty, enterprise, and socio-economic development. These studies originally came out earlier this summer, discussing the activities of Spandana in India (full report), and First Macro Bank in the [...]

]]> By: Debating Which Aid Works Best is to Miss the Point | The Discomfort Zone http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-122506 Debating Which Aid Works Best is to Miss the Point | The Discomfort Zone Thu, 11 Jun 2009 13:10:48 +0000 http://www.planetd.org/?p=888#comment-122506 [...] rests on yet unproven ideas. For instance, he places a lot of hope in microfinance - yet few if any studies have shown that microfinance has any lasting developmental impact. And why is he placing so much [...] [...] rests on yet unproven ideas. For instance, he places a lot of hope in microfinance – yet few if any studies have shown that microfinance has any lasting developmental impact. And why is he placing so much [...]

]]> By: Dweep Chanana http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-122399 Dweep Chanana Fri, 05 Jun 2009 22:22:58 +0000 http://www.planetd.org/?p=888#comment-122399 Uday. Thanks for the link - look forward to reading it, and zour blog. Uday. Thanks for the link – look forward to reading it, and zour blog.

]]> By: P.Uday Shankar http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-122009 P.Uday Shankar Fri, 29 May 2009 18:16:59 +0000 http://www.planetd.org/?p=888#comment-122009 The study I mentioned was commissioned by SIDBI and carried out by two institutions EDA Rural Systems (2001-04) and AFC (2004-07)and the final report is available at: http://www.afcindia.org.in/public_other_publications.php By the way, I have just started blogging and pleas visit my blog “microMUSINGS” at www.udaysmicromusings.blogspot.com. I would like to have your valuable comments on both of my first two postings. Uday Shankar mF Consultant Coimbatore-India. The study I mentioned was commissioned by SIDBI and carried out by two institutions EDA Rural Systems (2001-04) and AFC (2004-07)and the final report is available at: http://www.afcindia.org.in/public_other_publications.php

By the way, I have just started blogging and pleas visit my blog “microMUSINGS” at http://www.udaysmicromusings.blogspot.com.

I would like to have your valuable comments on both of my first two postings.

Uday Shankar
mF Consultant
Coimbatore-India.

]]> By: P.Uday Shankar http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-122008 P.Uday Shankar Fri, 29 May 2009 18:13:50 +0000 http://www.planetd.org/?p=888#comment-122008 The study I mentioned was commissioned by SIDBI and carried out by two institutions EDA Rural Systems (2001-04) and AFC (2004-07)and the final report is available at: By the way, I have just started blogging and pleas visit my blog "microMUSINGS" at . I would like to have your valuable comments on both of my first two postings. Uday Shankar mF Consultant Coimbatore-India. The study I mentioned was commissioned by SIDBI and carried out by two institutions EDA Rural Systems (2001-04) and AFC (2004-07)and the final report is available at:

By the way, I have just started blogging and pleas visit my blog “microMUSINGS” at .
I would like to have your valuable comments on both of my first two postings.

Uday Shankar
mF Consultant
Coimbatore-India.

]]> By: Dweep Chanana http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-122003 Dweep Chanana Fri, 29 May 2009 16:40:31 +0000 http://www.planetd.org/?p=888#comment-122003 Interesting point Bhalchander. What you say is that the MFI universe is not monolithic - but rather diverse. I agree that socially oriented MFIs might have more developmental impact. However, don't you overstate the basked of services MFIs provide. Credit remains their bread and butter - no? Are you aware of any studies that look at more social MFIs and have contrasting results? Interesting point Bhalchander. What you say is that the MFI universe is not monolithic – but rather diverse.

I agree that socially oriented MFIs might have more developmental impact. However, don’t you overstate the basked of services MFIs provide. Credit remains their bread and butter – no?

Are you aware of any studies that look at more social MFIs and have contrasting results?

]]> By: Bhalchander Vishwanath http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-121912 Bhalchander Vishwanath Wed, 27 May 2009 18:43:27 +0000 http://www.planetd.org/?p=888#comment-121912 Firstly, I think the title of the study is quite misleading. The study was on microcredit and not microfinance. The organizations they worked with are almost single product MFIs on a rapid growth path to meet investor expectations. Microfinance is providing a whole basket of fiancial services and not pure credit alone. The second point to be discussed is alignment to social goals. I think microfinance organizations with true alignment to social goals such as Grameen Bank, Brac and few other definitely make a difference. However studies which pick up a scaled down implementation of true microfinance and draw conclusions create more confusion than enlighten the public. Bhalchander Firstly, I think the title of the study is quite misleading. The study was on microcredit and not microfinance. The organizations they worked with are almost single product MFIs on a rapid growth path to meet investor expectations. Microfinance is providing a whole basket of fiancial services and not pure credit alone. The second point to be discussed is alignment to social goals. I think microfinance organizations with true alignment to social goals such as Grameen Bank, Brac and few other definitely make a difference.

However studies which pick up a scaled down implementation of true microfinance and draw conclusions create more confusion than enlighten the public.

Bhalchander

]]> By: Dweep Chanana http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-121911 Dweep Chanana Wed, 27 May 2009 18:36:37 +0000 http://www.planetd.org/?p=888#comment-121911 Uday - thanks for your comment and for pointing out this error. I suspect the authors believe this is the first <i>randomized</i> study - though other types of studies may have taken place. That said, the study you mention is VERY interesting, because to my knowledge there have been very few real studies. Could you share the study and its results? Uday – thanks for your comment and for pointing out this error. I suspect the authors believe this is the first randomized study – though other types of studies may have taken place.

That said, the study you mention is VERY interesting, because to my knowledge there have been very few real studies. Could you share the study and its results?

]]> By: P.Uday Shankar http://www.planetd.org/2009/05/26/results-microfinance/comment-page-1/#comment-121866 P.Uday Shankar Tue, 26 May 2009 17:28:34 +0000 http://www.planetd.org/?p=888#comment-121866 Thanks for providing the URL of the study report. I am yet to go through the report and therefore this comment pertains to only one matter. I have been in the mF field for the past ten years and had worked as the CEO of an MFI till 2007. I was taken aback by the first line of the Abstract of the Study. "To date there have been no randomised trials examining the impact of microcredit." It has now become a fashion to claim "I/we am/are the first to do it." It reminds me of the way the top TV news channels in India vie with each other to claim that they were the first to report a news. I got put off by just reading the first line of the report. I just want to inform that EDA Rural Systems had taken up a Seven Year study sponsored by SIDBI way back in 2000. After the first phase of the study it was handed over to AFC to complete the work. The institution where I worked was one of the institutions selected for the study. Individual families were tagged on a random basis to monitor the impact over the years. It is worth taking a look at the work. SIDBI should be in a position to provide the final study report. Uday Shankar Coimbatore. Thanks for providing the URL of the study report. I am yet to go through the report and therefore this comment pertains to only one matter.

I have been in the mF field for the past ten years and had worked as the CEO of an MFI till 2007.

I was taken aback by the first line of the Abstract of the Study. “To date there have been no randomised trials examining the impact of microcredit.”

It has now become a fashion to claim “I/we am/are the first to do it.” It reminds me of the way the top TV news channels in India vie with each other to claim that they were the first to report a news.

I got put off by just reading the first line of the report.

I just want to inform that EDA Rural Systems had taken up a Seven Year study sponsored by SIDBI way back in 2000. After the first phase of the study it was handed over to AFC to complete the work. The institution where I worked was one of the institutions selected for the study. Individual families were tagged on a random basis to monitor the impact over the years. It is worth taking a look at the work. SIDBI should be in a position to provide the final study report.

Uday Shankar
Coimbatore.

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