Product Description
This book invites aid agencies and governments to consider efficiency as a more robust and reliable criterion that should guide their decisions on continuing or discontinuing support microfinance institutions (MFIs). Efficiency is a criterion that helps discriminate with greater accuracy than financial performance alone between support-worthy and underperforming MFIs, irrespective of the overall orientation of the MFI. An MFI can be more or less efficient in reaching many poor people with on average small transactions, as an MFI can equally be more or less efficient if it seeks positive financial results in the shortest term possible. Support-worthy are both as long as they are on or near the efficiency frontier or moving towards it, for a given production function and in a given operating environment.
About the Author
BERND BALKENHOL heads the Social Finance Program of the International Labour Office (ILO). SFP is the focal point for work in the ILO on financial sector issues. It examines the impact of financial policies on employment, incomes and social cohesion, analyses the accessibility of different types of financial institutions and promotes innovations in finance that work for the poor, entrepreneurial or not. For several years Bernd Balkenhol served as advisor to central banks in Africa on policies and regulations in support of SME financing. He holds a PhD from Freiburg University and an MA from the Fletcher School of Law and Diplomacy. He lectures regularly at the Geneva Institute of Development Studies and the University of Geneva. He has published on informal finance, collateral and property rights, savings and credit cooperatives, small enterprise finance, remittances and related subjects.