Tensions between financial and organisational sustainability: the problematic case of group-based microfinance and possible ways forward
Marr, Ana (2011) Tensions between financial and organisational sustainability: the problematic case of group-based microfinance and possible ways forward. In: Sorell, Tom and Cabrera, Luis, (eds.) The Ethics of Microfinance. Oxford University Press, Oxford, UK. (In Press)Full text not available from this repository.
Contemporary microfinance schemes worldwide have, for some years, been persuaded to aim at achieving both, and simultaneously, financial sustainability and poverty reduction. In group-based microfinance, success in attaining these goals is crucially dependent on the sustainability of groups as organisations. This article argues that as mounting tensions arise between financial sustainability and organisational sustainability, this produces fundamental instability within groups and a tendency for the system to collapse. What is more, tensions tend to lead to the fracturing of groups and greater exclusion of the poor, creating negative impacts on wellbeing. Practitioners of microfinance will therefore be preoccupied with the following questions, which the article attempts to address in its recommendations to help overcome the failings of group lending:
• How can tensions between financial and organisational sustainability be minimised?
• What types of incentive structures can be put in place to strengthen groups?
• How can different financial and non-financial services be combined to help attain the dual purpose of financial sustainability and poverty reduction?
|Item Type:||Book Section|
|Additional Information:|| Chapter in edited volume, an output of the Microfinance Research Network project of the University of Birmingham’s Centre for the Study of Global Ethics. The network brought together globally prominent economists, philosophers and practitioners of microfinance to explore the ethical implications of current practice in this increasingly widespread development approach.|
|Uncontrolled Keywords:||tension, financial sustainability, organisational sustainability, microfinance|
|Subjects:||H Social Sciences > HF Commerce|
H Social Sciences > HG Finance
|School / Department / Research Groups:||Natural Resources Institute|
Natural Resources Institute > Food & Markets
School of Business
School of Business > Department of International Business & Economics
|Last Modified:||03 Apr 2013 13:02|
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