Microfinance and its Macro-environment

The significant rise of the microfinance industry over the past 30 years has produced an ever-increasing number of microfinance institutions (MFIs) in the developing world. Over the past ten years the industry has been supported largely by development programs and social investors. The ongoing commercialization of the industry has attracted significant capital over recent years, as the Bulletin Highlights in this issue showcases, as well as those in the previous issue. Donors and investors are increasingly demanding industry rankings that allow identification of the best performing MFIs according to relevant criteria. At the same time return-driven fund managers complain about the high levels of often subsidized capital available for top tier MFIs. These issues have stimulated a debate about read more…