Ana Marr

The limitations of group-based microfinance and ways to overcome them

In group-based microfinance, success in attaining the goals of inancial sustainability and poverty reduction is crucially dependent on the sustainability of groups as organizations. This article argues that as mounting tensions arise between financial sustainability and organizational sustainability, this produces fundamental instability within groups and a tendency for the system to collapse. What is more, tensions tend to lead to the fracturing of groups and greater exclusion of the poor, creating negative impacts on well-being. The article discusses how tensions between financial and organizational sustainability can be minimized, and suggests that incentives should be put in place to strengthen groups.

Adoption and impact of index-insurance and credit for smallholder farmers in developing countries : A systematic review

Purpose – The purpose of this paper is to review the most recent scientific literature on the determinants explaining the demand for index-insurance, the impact of index-insurance and the existing links between insurance and credit. In this meta-analysis, the authors identify key discoveries on the potential of index-insurance in enhancing credit supply for smallholders and thus farm productivity. Design/methodology/approach – Following a systematic literature search in Scopus and Web of Science, relevant empirical articles were identified by using the following criteria search algorithm: “insurance” and (“weather” or “micro” or “area?based” or “rain*” or “livestock” or “index”), and ((“empiric*” or “experiment” or “trial” or “RCT” or “impact”) or (“credit” or “loan*” or “debt” or “finance”)). The authors identified 1,133 related papers, 110 of which were selected as closely matching the study criteria. After removing duplicates and analysing each document, 45 papers were included in the current analysis....

Sustainability and outreach: a comparative study of MFIs in South Asia and Latin America and the Caribbean

Previous studies indicate that microfinance institutions (MFIs) in Latin America and the Caribbean (LAC) have different operational strategies to MFIs in South Asia (SA). Given the recent emphasis placed on the feasibility of MFIs to achieve the dual goals of outreach and sustainability concurrently, we examine and compare the relationship between sustainability and outreach of MFIs in LAC with MFIs in SA. Our results indicate that trade-offs exist between outreach and sustainability in both regions. However, the severity of trade-off is dependent on which goal MFIs decide to focus on in each region.

SUSTAINABILITY AND OUTREACH: A COMPARATIVE STUDY OF MFIs IN SOUTH ASIA AND LATIN AMERICA AND THE CARIBBEAN

Previous studies indicate that microfinance institutions (MFIs) in Latin America and the Caribbean (LAC) have different operational strategies to MFIs in South Asia (SA). Given the recent emphasis placed on the feasibility of MFIs to achieve the dual goals of outreach and sustainability concurrently, we examine and compare the relationship between sustainability and outreach of MFIs in LAC with MFIs in SA. Our results indicate that trade-offs exist between outreach and sustainability in both regions. However, the severity of trade-off is dependent on which goal MFIs decide to focus on in each region.

Does transformation enhance or hinder financial relationships in microfinance? The struggle between financial and social goals in Peru

Dynamic microfinance institutions are evolving from non-governmental organizations into regulated financial institutions at rapid speed. In Peru, recent economic growth and a facilitating regulatory environment have set the conditions for this kind of institutional transformation in an increasingly competitive microfinance market. Following a life-cycle approach, this paper scrutinizes key developmental stages with regard to the case-study microfinance institutions financial relationships, and then situates it within the overall Peruvian microfinance wholesale lending market of nearly 200 organizations. A major finding is that, in the transformational process from NGO to regulated financial status, new and highly diverse lending relationships are forged while others peter out. While there is evidence to suggest that the Peruvian wholesale market creates opportunities for all to benefit from all types of lender, there exists a tendency for specialization whereby commercial lenders tend to partner with reg...

SUSTAINABILITY AND OUTREACH: A COMPARATIVE STUDY OF MFIs IN SOUTH ASIA AND LATIN AMERICA AND THE CARIBBEAN: Microfinance Sustainability and Outreach

Previous studies indicate that microfinance institutions (MFIs) in Latin America and the Caribbean (LAC) have different operational strategies to MFIs in South Asia (SA). Given the recent emphasis placed on the feasibility of MFIs to achieve the dual goals of outreach and sustainability concurrently, we examine and compare the relationship between sustainability and outreach of MFIs in LAC with MFIs in SA. Our results indicate that trade-offs exist between outreach and sustainability in both regions. However, the severity of trade-off is dependent on which goal MFIs decide to focus on in each region.

Stimulating private investment in agricultural research for greater impact on poverty reduction

This article reviews the international experience with approaches to encouraging private investment in agricultural research and technology for a greater impact on poverty reduction. Some specific types of technologies and the roles for public and private sector involvement in generating new technology are identified, as well as the potential for public–private partnerships. Three most promising mechanisms for stimulating private investment in agricultural research are then revised in some detail: taxation schemes, co-funding arrangements, and output-based approaches. The article concludes that in order to help create a significant impact on poverty reduction, the innovative incentive system of tying rewards to adoption of technology development is the most likely to succeed.

How can the poor benefit from private investment in agricultural research? A case study from Bolivia

This article evaluates potential mechanisms for facilitating increased private-sector engagement in agricultural research for development and technology transfer (ARDTT), with particular emphasis on Bolivia. It reviews the mixed results of efforts, in developed and developing countries alike, to decentralise ARDTT and to encourage private-sector investment. Potential mechanisms for Bolivia are considered within three broad categories: taxation schemes; co-funding arrangements; and output-based approaches. The constraints to participation in ARDTT by the private sector that arise from concerns over high transaction costs, intellectual property rights, and the legal and regulatory environment are also assessed. The article concludes that compliance, or a hybrid of compliance and a competitive co-funding scheme, is most suited to Bolivias needs. A flexible approach to intellectual property rights systems is required, although it remains a challenge to identify appropriate taxation regimes.

[Book review] Housing and Finance in Developing Countries Edited by Kavita Datta and Gareth A. Jones. London and New York: Routledge, 1999

Global Transformations: Politics, Economics and Culture. By David Held, Anthony McGrew, David Goldblatt and Jonathan Perraton. Cambridge: Polity, 1999. Pp.xxiii + 515. £59.50 and £16.99. ISBN 0 7456 1498 1 and 1499 X Housing and Finance in Developing Countries. Edited by Kavita Datta and Gareth A. Jones. London and New York: Routledge, 1999. Pp.xxiii + 270. £50. ISBN 0 415 17242 X Comprehending and Mastering African Conflicts: The Search for Sustainable Peace and Good Governance. Edited by Adebayo Adedeji. London and New York: Zed Books, in association with African Centre for Development and Strategic Studies (Ijebu‐Ode, Nigeria), 1999. Pp.xxii + 384. £50 and £16.95. ISBN 1 85649 762 3 and 763 1 Income Poverty and Beyond: Human Development in India. Edited by Raja J. Chelliah and R. Sudarshan. New Delhi: Social Science Press, 1999. Pp.xxvi + 221. Rs 395. ISBN 81 87358 00 9 Fiscal Decentralisation in Developing Countries. Edited by Richard M. Bird and Francois Vaillancourt. Cambridge: Cambridge University Press, 1999. Pp.xiv + 304. £37.50 (US

Aid and the political economy of policy change

59.95). ISBN 0 521 64143 8 The Future of Development Assistance: Common Pools and International Public Goods. By Ravi Kanbur and Todd Sandier with Kevin M. Morrison. Baltimore, MD: Johns Hopkins Press, 1999. ODC Policy Essay No.25. Pp.x + 106.