The Microfinance Experience in Latin America and the Caribbean

This paper provides a snapshot of the microfinance experience in Latin America and compares the same with Asia on certain key performance indicators.

The paper briefly covers the following aspects:

• Evolution of microfinance in Latin America and important trends in the industry;
• Comparison of Latin American microfinance institutions with their Asian counterparts on certain key performance indicators;
• Economic and social importance of the micro-enterprise sector in Latin America;
• Evidence of inadequate credit for the Latin American micro-enterprises.

The paper concludes with a description of the Inter-American Development Bank's (IDB) support programs for the microfinance sector, in general, and for microfinance, in particular. Some of the key initiatives of IDB for micro-enterprises include:

• Social entrepreneurship program;
• Multilateral Investment fund;
• Global micro-enterprise and credit programs;
• Policy dialogue and dissemination of best practices.