• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content

Loading…

Flash Player 9 (or above) is needed to view presentations.
We have detected that you do not have it on your computer. To install it, go here.

Like this presentation? Why not share!

Making Sense of Microfinance

on

  • 557 views

Abhijit Banerjee's(MIT) presentation on Making Sense of Mircrofinance. Presented at the Microfinance Impact & Innovation Conference 2010.

Abhijit Banerjee's(MIT) presentation on Making Sense of Mircrofinance. Presented at the Microfinance Impact & Innovation Conference 2010.

Statistics

Views

Total Views
557
Views on SlideShare
557
Embed Views
0

Actions

Likes
0
Downloads
2
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Making Sense of Microfinance Making Sense of Microfinance Presentation Transcript

    • Abhijit Banerjee MIT and JPAL MAKING SENSE OF MICROFINANCE
    • THE PUZZLE  Marginal returns are high  Micro-loans are available but…  A lot of people don’t want them  Though they borrow from money lenders  Business growth is very limited.  Most microenterprises will ever have an employee  Loans don’t get paid down
    • LIMITS OF MICRO-CREDIT  The loans are not designed for risk-taking  Repayment starts immediately  There is no flexibility about time of payment  Zero tolerance of default  People do very different things when they take a micro-loan and when they get a “gift”  Does not seem to be the case  May be we need to look more closely
    • THE MISSING MIDDLE  What is the shape of the technology?  Is growing beyond a particular size hard?  Are the people who build very large firms special?  Or is it just that you have to cross some threshold to get going?  What happens if you don’t expect to be able to cross the threshold?
    • R P Marginal Return Overall Return O K K+ I 1 Figure 1: Marginal and Average return
    • R P’ P O I Figure 2: Two Technologies
    • R R P O Q I Figure 3: Combining Technologies and the S-Shape of entrepreneurship
    • THE RELUCTANT ENTREPRENEUR  May be being an entrepreneur is not what people aspire to.  Perhaps it is a way to “buy” a job.  Especially a job for your wife that allows her to keep minding the children and cooking the meals.  This why the business never grows—she has no time for it. It is not intended to grow  This is why De Mel, Mackenzie and Woodruff find what they find for women  Do women actually always want the opportunity?
    • MY GUESS  All three stories probably have something to them  The next frontier of microfinance research will be to figure out which of these stories is most right  And how to respond to what we learn.