Apex Organizations and the Growth of Microfinance in Bolivia

Sergio Navajas and Mark Schreiner
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Sergio Navajas: USAID

Development and Comp Systems from University Library of Munich, Germany

Abstract: Bolivia has the most advanced microfinance sector in Latin America and has been a model worldwide. Apex organizations--second-tier wholesaling mechanisms that lend and offer non- financial assistance to retailing microfinance organizations--have not been responsible for this success. Former and current Bolivian apex organizations have engaged in little market development. Some have provided some liquidity to microfinance organizations, but they have not played an indispensable role in the development of the sector. Other mechanisms for the delivery of donor aid have been more effective in strengthening the best Bolivian microfinance organizations. There appears, therefore, to be no justification for various apex organizations planned for the future. These mechanisms may actually discourage deposit mobilization and if they would disburse funds to un-sustainable microfinance organizations, they may create an unfair playing field. This paper examines the role of apex organizations in the development of microfinance in Bolivia in two sections. The first one discusses demand and supply in the market for microfinance, the regulatory framework for the sector, and the nature of constraints on sustainable microfinance in this country. The second one evaluates the poor performance of a number of public-sector apex mechanisms and the predicament of one non-government apex organization. It also discusses options for the future.

JEL-codes: O P (search for similar items in EconPapers)
Date: 2001-09-05
New Economics Papers: this item is included in nep-lam and nep-mfd
Note: Type of Document - Adobe Acrobat 3.0; prepared on Windows 98; to print on Adobe Acrobat 3.0; pages: ; figures: Included in pdf file
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Related works:
Working Paper: APEX ORGANIZATIONS AND THE GROWTH OF MICROFINANCE IN BOLIVIA (1998)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwpdc:0109010

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