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Reimagining Microfinance
- Article from:
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Stanford Social Innovation Review
- Article date:
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July 1, 2008
- Author:
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Copyright informationCopyright Stanford University, Center for Social Innovation Summer 2008. Provided by ProQuest LLC. (Hide copyright information)
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Critics of microfinance institutions (MFIs) ask them to choose between helping the poor or making money for investors, but this is a false choice. MFIs can have their impact and profit, too, says the author, the CEO of the Grameen Foundation. He sketches a new vision of microfinance as a platform, not a product; one that relies on high volumes, not high margins, and that uses limits on private benefit, holistic performance standards, and third-party certification to help MFIs meet both their bottom lines.
DESPITE THE FACT THAT MOST microfinance institutions (MFIs) were established to reduce poverty, many are starting to look like traditional financial institutions. To expand their outreach ...
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