> Posted by Center Staff
Andhra Pradesh’s shadow is long, and particularly dark where it falls across the media. But beyond the bleaker headlines are stories of a different kind, about countries where microfinance is working.
The Center’s managing director, Beth Rhyne, this week published an article on this topic in The China Daily. It may cast a new light on microfinance for the newspaper’s nearly 400,000 readers, many of whom hail from Asia’s business and investor community.
Here are some excerpts from “Five Countries Where Microfinance Works”:
- “Indian policymakers created a perfect storm for a microfinance shipwreck … MFIs, locked out of the ability to provide a range of services, had no other channel for growth than unbridled credit expansion.”
- “Tiny Bolivia got many things right … competition between … strong institutions brought interest rates in Bolivia below 20 percent, among the lowest microfinance rates in the world.”
- “Cambodia and Mongolia followed Bolivia’s example. Acleda Bank in Cambodia and Xac Bank in Mongolia … added savings and other services, offering a solid range of products.”
- “Indonesia showed what a state-owned bank can do … Bank Rakyat Indonesia now serves tens of millions of clients, has been profitable since it began, and has never experienced a significant crisis of over-lending.”
- “The government’s nurturing approach led the Economist Intelligence Unit to rank the Philippines second in the world in its “Global microscope on the microfinance business environment 2010.”
To access the entire article, please click here.
For more information, sign up for updates from the Financial Inclusion 2020 campaign.