Pobreza Y Microfinanzas: Lecciones Y Perspectivas
Creators:González Vega, Claudio
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Publisher:Ohio State University. Department of Agricultural, Environmental, and Development Economics
Series/Report no.:Ohio State University. Department of Agricultural Economics and Rural Sociology. ESO (Economics and Sociology Occasional Paper). No. 2392
This paper addresses the dangers and opportunities of using microfinance in efforts to alleviate poverty. It discusses threats originating from the prominence of micro finance as a politically correct intervention and from unrealistic expectations about what financial services can accomplish. It argues that a correct understanding of the determinants of success of micro finance programs warns about unreasonable expectations about the feasibility of immediate replications of successful experiences. It uses the rules of optimum intervention theory to argue the case. From this perspective, the paper discusses the importance of financial services for microentrepreneurs (stressing creditworthiness) and the difficulties of providing financial services to marginal clientele (stressing information and contract enforcement problems). Success in terms of outreach and sustainability results from correct policies (business plan), appropriate technologies, and incentive compatible organizational designs.
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