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Timothy Ogden Dec 2016
The Case for Social Investment in Microcredit
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Comprehensive research on microfinance and subsidy shows that virtually all microfinance institutions are subsidized, but these subsidies are small. There are two clear paths for increasing microcredit’s impact through continued investment: » Lowering the cost of microcredit by lowering operating cost or increasing subsidy » Boosting the impact of microcredit through innovations such as better targeting (by identifying borrowers most likely to benefit) or better “products” (which more closely meet the needs of borrowers). This paper particularly focuses on the latter.
Author: Timothy Ogden
Topic: Consumer protection
Publisher: Financial Access Initiative
Location: United States
Format: Report
Content Type: Research
Publication Date: December 31, 2016