Alternative Approach for Evaluating the Performance of Microfinance

Hae-du Hwang, Gwang-Min KIM

Abstract


The commercial approach of microfinance has been hailed by global microfinance institutions whereas it has been criticized by development studies groups. The relatively high returns of microfinance institutions may meet the necessary condition for their financial sustainability, but they may fail to cater for the sufficient condition for alleviating mass poverty. This article argues that it may be required to reflect different economic and social context for evaluating the performance of microfinance among the outreach for the poor, financial sustainability, and the welfare impact. It recommends that cooperative microfinance may be more effective for alleviating mass poverty than commercial one.


Keywords


Microfinance, Outreach, Sustainability, Welfare Impact, Commercial Innovation, Social Objectives, Cooperative Microfinance

Full Text:

PDF

Refbacks

  • There are currently no refbacks.


*The views, interpretations and opinions expressed in the articles are those of the authors and may not necessarily be of JDP.


Number of Visitors to this Journal: web counter

 The Journal is indexed with Cosmos Impact Factor