The Economics of Microfinance

by Beatriz Armendáriz and Jonathan Morduch

Book Overview

Since the 1970s, microfinance has helped some 65 million poor people receive small loans and build assets without collateral. This book offers an evaluation of the scheme and questions the accepted view of how poor households save and how institutions can overcome market failures.

• Format: Paperback
• Language: English
• ISBN: 0262512017
• ISBN13: 9780262512015
• Release Date: January 2007
• Publisher: MIT Press (MA)
• Length: 346 Pages
• Weight: 1.10 lbs.
• Dimensions: 0.8" x 6.3" x 9.0"

Customer Reviews

An eye opener

To those that, as i am, have an Economics background and are just grasping the all immense universe that microfinance is becoming, this book opens perspectives and clears some very important issues. Issues such as the value of interest charging or the many different ways there actually are to build a microfinance initiative or the value of professional dedication to make it an effective and efficient working and sustainable intervention ... A must have!

Great book for self-teaching

After reading "Banker to the Poor," I was interested in getting a bit more of an unbiased view of the subject of microfinance. The authors' views are clear and concise about each topic, plus they offer lots of other sources for the information. While it is obviously intended as s textbook, this book is a great way to teach yourself about the theory and empirical studies about microfinance. I could not have chosen a better book than this one.

Microfinance at its finest

Microfinance is one of the newest strategies for development and Princeton economist Morduch takes a look at how it impacts societies. While he only looks briefly at the social issues he makes several compelling economic arguments for why we should consider microfinance as a viable option. The book is very well written although I think it does leave out some of the long term structural and institutional changes that need to be addressed. This is a field where new research comes out every day but Morduch's book is likely to be a staple for a very long time. This is a must have for anyone studying microfinance and will be for a long time to come.

The authoritative source on microfinance

I've consulted a number of books on microfinance and found this to be one of the most intelligent, cogent sources of info on the field. Particularly impressive is the clearly written, even handed views on oft debated subjects (e.g. the role of subsidy in microfinance). Highly recommended.

Essential reading for development economists

Microfinance has become one of the most important mechanisms for the development of informal business in developing economies. As such, it has attracted attention from development practitioners, economists and politicians. Disappointingly, most books on the subject can be best described as infomercials - rarely do they go beyond success stories of happy women in brightly coloured clothes who are now running home enterprises. But practitioners know that there is far more to microfinance than simply providing loans - just as there is far more to development than simply pouring money into a country. There are pitfalls to microfinance: it can crowd out local business, it can catapult poor people further into poverty if incorrectly adminstered, and there are a host of governance issues surrounding it. This book provides a comprehensive analysis of the economics of microfinance, as the title suggests. It is a technical book: it expects a high level of economic understanding, but it synthesises a vast amount of information on the subject and communicates it succintly. This is without a doubt one of the best technical economics books I have read - and I have read an awful lot of them. I've given this book to my PhD students working in this area as essential background reading before they commence research. I commend this book to any economist or development practitioner who is interested in the economics behind the stories and photos, who want to find solutions that will really catalyse economic development, who want to see successful projects implemented and who want to learn from the expertise of others to make sure they do the best for their clients.