Microfinance systems : designing quality financial services for the poor / Graham A.N. Wright.

Format:

Book

Author/Creator:

Wright, Graham, 1960-

Language:

English

Subjects (All):

Microfinance.

Financial services industry.

Poor.

Physical Description:

xix, 283 pages ; 22 cm

Place of Publication:

London ; New York : Zed Books Dhaka : University Press, a New York : Distributed in the USA exclusively by St Martin's Press, [2000]

Summary:

This book, written at the request of practitioners and donor agencies, draws on the author's research and practical experience in Bangladesh, Philippines and East Africa. The first part outlines cutting edge issues such as how far micro-finance can contribute to reducing poverty and how to recruit, develop and maintain high quality clients. The second part provides a practical guide, and the third and final section has two case studies, detailing how two very different systems were developed.

Contents:

Section 1 What Are We Trying to Do? In Theory 1

Chapter 1 Microfinance: The Solution or a Problem? 3

Increasing Income or Reducing Poverty? 7

Community Organisation and Social Development 17

Women's Empowerment and Gender Issues 23

Health and Education 30

Cost-effective Development that Creates Sustainable Organisations 34

Chapter 2 Optimising Systems for Clients and the Institution 41

Groups 43

Drop-Outs 43

Graduates 51

Defaulters 52

The Excluded 56

Chapter 3 Savings: Services for the Clients or Capital for the Institution? 69

Some Detailed Analysis from Bangladesh 73

The Clients' Perspective: Ability and Desire to Save 73

The Clients' Perspective: Compulsory vs. Voluntary Savings 77

The Clients' Perspective: Open Access v. Locked

In Savings 78

The Microfinance Institution's Perspective 80

Regulation and Supervision 87

Definition of Terms 87

Options for Regulation and Supervision

The Conventional View 89

The Unconventional View 92

Chapter 4 Replicating Microfinance Systems: Are Blue-Prints Enough? 109

The Gospel 110

Blue-Prints for Replication 113

Mass-Production Blue-prints 116

Incomplete Blue-Prints 119

Part-Time Bankers 123

Section 2 So What Should We Do? In Practice 127

Chapter 1 The Principles of Microfinance 129

Group Formation 130

Permanent Institutions and Sustainable Systems 134

Savings vs. Credit 136

Loans 138

Chapter 2 Beyond Basic Credit and Savings: Developing New Financial Service Products for the Poor 145

Review Existing Systems 148

Conduct Market Research 149

Review the Literature and Contact Market Leaders 150

Design, Cost-Out and Price New Products 151

Implement the New Products on a Pilot Basis 154

Monitor Financial and Organisational Consequences 156

Conduct More Market Research 156

Make Necessary Amendments 157

Scaled-up Implementation 158

And Beyond... 158

Section 3 How Has it been Done? Case Studies 161

Chapter 1 Central Cordillera Agricultural Programme: System Design Process

in Progress 163

The Setting 165

The Programme 165

The Rural Finance Component 167

Initial Research and System Design 168

Initial System Design and Implementation Methodology 186

Pilot-Testing and Action Research 189

Regular Participatory Training Workshops 191

External Review of the Initial Research and Design 193

Six Month Review 195

The Results of the Pilot Testing and Action Research Phase 196

Detailed System Design and Implementation Methodology 197

Summary of Policies and Procedures for the Implementation of the CECAP II Rural Finance System 199

Identification of Key Issues for the Future 210

Results to Date 213

Appendix 1 SIG Organising Process 214

Appendix 2 PRA & FGD Summary Report 218

Appendix 3 Issues and Challenges Facing CECAP Il's Rural Finance System 222

Chapter 2 Buro, Tangail: Systems and Services Under Development 227

The Anatomy of a Tragedy 230

Intervention 234

Testing the Phoenix 235

The Phoenix Rises 244

Indicators of Programme Impact 259

Indicator of Programme Quality 261

Indicator of Programme Quantity 263

The Way Forward... 264.

Notes:

Includes bibliographical references (pages [267]-276) and index.

ISBN:

1856497887

OCLC:

42649787