Can Microfinance Reach the Poorest: Evidence from a Community-Managed Microfinance Intervention

Jonas Lønborg and Ole Dahl Rasmussen

World Development, 2014, vol. 64, issue C, 460-472

Abstract: Reaching the poorest is an important objective in many development interventions, and microfinance is no exception. We review performance indicators for effectiveness of targeting described in the literature and suggest a new metric in order to account for extent and severity of poverty as well as the income distribution among the poor. When applying this to a panel dataset from a community-managed microfinance intervention in Northern Malawi, we find regressive targeting: Participants are less poor than the general population in the area. In addition, we provide suggestions as to when and why the poor exit the project.

Keywords: targeting; outreach; microfinance; Africa; Malawi; savings groups (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:wdevel:v:64:y:2014:i:c:p:460-472

DOI: 10.1016/j.worlddev.2014.06.021

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