Microfinance, Efficiency and Public Policy

The GIAN/RUIG1 project “Microfinance and Public Policy” was implemented from 2004 to 2006 by the ILO in partnership with the University of Geneva, the Geneva Institute of Development Studies (GIDS) and the University of Cambridge. The project sought to clarify an issue that microfinance practitioners and donor agencies have been struggling with for some time: how to preserve the dual commitment of microfinance institutions to both social and commercial goals – poverty reduction and profitability – whilst ensuring their progressive integration into the financial market and phasing out of subsidies. The project generated original empirical data about the clients of 45 microfinance institutions in 24 countries, their loan portfolio, financial statements and relations to donor agencies and government. The selected microfinance institutions had a read more…