Breaking It Down: Subsidy Dependence Index vs. Financial Self-Sufficiency
Date:
May 2009
Microfinance practitioners have often sought a single, easy-to-understand indicator for evaluating the performance of microfinance institutions (MFIs). To date, the most commonly used indicator has been financial self-sufficiency (FSS). However, FSS is an incomplete model of an institution’s performance, as is any single number. The subsidy-dependence index (SDI) has been suggested as an alternative measure that more accurately reflects an read more...