Microfinance: Broader Achievements and New Challenges
Assesses dimensions of recent achievements in microfinance. Defines achievements in terms of six dimensions of outreach (quality, cost, depth, breadth, length, and variety) and of sustainability.
Discusses the reasons for gaps among current achievements, potential supply, legitimate demand, and political expectations. A distinction is made between gains in technical efficiency and innovation, and the determinants of each type of improvement are examined. Threats from unwarranted political expectations are also identified.
Further discusses recent changes in the microfinance field due to systemic risk, increasing competition, improper regulation, and attempts of return by the state to development finance. Evaluates threats emerging from these changes.