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Global Solidarity: Towards a More Rational and Transparent Promotion of Micro-Finance Institutions

Annual Call for Projects 2002


Micro-finance is an anti-poverty strategy that can make a tangible contribution to the attainment of the Millennium Development Goal to halve poverty by 2015. However, contrary to ideas expressed by promoters of that strategy, with few exceptions, most micro-finance institutions do not fully recover costs and remain dependant on contributions from donors. This research project aims, firstly, to analyse the characteristics of an efficient, poverty-oriented micro-finance institution and determine whether all existing institutions are indeed subsidy-dependent; secondly, to determine the subsidy form that is most effective for these micro-finance institutions and to spell out over what time frame and under what conditions long-term support would be required; thirdly, to design transparent and verifiable norms and rules for donor support to micro-finance institutions so to avoid negative externalities of competition amongst donors and; lastly, to define the purpose, operating modalities, funding requirements and governance of possible funding mechanisms.

The grant provided by the GIAN for this project totals SFr 300,000

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Project Team

Dr. Bernd Balkenhol , Coordinator, Social Finance Programme , Employment Policy Department (EMP/POLICY), Employment Sector (EMPLOYMENT) , International Labour Organisation (ILO) .

Mr Flavio Comim , Principal Member, University of Cambridge .

Prof. Daniel Fino , Principal Member, Graduate Institute of Development Studies (GIDS) .

Ms Yousra Hamed , Principal Member, International Labour Organisation (ILO) .

Prof. Jean-Michel Servet , Principal Member, Graduate Institute of Development Studies (GIDS) .

Related News

Related Conferences

Microfinance: A Solution to Reduce Poverty? Debate at the FIFDH – 15 March 2007, 8:00 pm, Maison du Grütli
The GIAN co-presents a debate on microfinance in the framework of the International Film Festival on Human Rights...
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Research Output

Microfinance and Public Policy: Results of Survey Questionnaires: Synthesis Report
(available in English only)
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Microfinance and Public Policy: Outreach, Performance and Efficiency
(available in English only)
> more