MICROFINANCE PUBLICATION ROUND-UP: Group Versus Individual Lending in Mongolia, “State of the Practice” of Client Protection, Uganda “Triple Partnership” Case Study

Group lending or individual lending? Evidence from a randomised field experiment in Mongolia” by Orazio Attanasio, Britta Augsburg, Ralph De Haas, Emla Fitzsimons, Heike Harmgart; published by the European Bank for Reconstruction and Development (EBRD); December 2011; 48 pages; available at: http://www.ebrd.com/downloads/research/economics/workingpapers/wp0136.pdf

In this paper, the authors present the results of a field experiment in Mongolia regarding the impact of group lending versus that of individual lending. The results indicate that access to group loans has a positive impact on food consumption and entrepreneurship, while individual borrowing was not associated with significant change in these factors. This supports theories on the disciplining effect of group lending. Borrowers in group-lending villages were also found to be less likely to make informal transfers to families and friends while borrowers in individual-lending villages were more likely to do so. The authors suggest that the groups may be taking the place of some informal financial networks, although further analysis is needed to make this conclusion.

Implementing Client Protection in Microfinance: State of the Practice, 2011” by Daniel Rozas, Isabelle Barrès, Charlotte Connors, Elisabeth Rhyne; published by the Center for Financial Inclusion; November 2011, 48 pages; available at: http://centerforfinancialinclusionblog.files.wordpress.com/2011/11/111116_smart-campaign_implementing-client-protection-principles-in-mf-state-of-the-practice-2011_final.pdf

This report has been released by the Smart Campaign, a global consumer protection initiative housed within US-based nonprofit ACCION International, to explain how the Smart Campaign and other industry players are working to move from an initial phase of raising awareness regarding client protection to a new phase of capacity building, implementation and certification. The paper provides insight on how the industry is progressing in terms of the Client Protection Principles (CPPs), which include appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair treatment of clients, privacy of client data and mechanisms for complaint resolution.

Rethinking Development Strategies in Africa. The Triple Partnership as an Alternative Approach – The Case of Uganda” by Johnson Makoba, published by Peter Lang International Academic Publishers, 2011, 269 pages, available for a fee through http://www.peterlang.com/index.cfm?event=cmp.ccc.seitenstruktur.detailseiten&seitentyp=produkt&pk=52848&concordeid=11948

In this book, Johnson Makoba looks at how development-oriented non-governmental organizations (NGOs) and microfinance institutions (MFIs) are seen as an alternative approach to state or market strategies for achieving sustainable development and poverty reduction. The book includes development strategies in Africa, particularly the role of NGOs and MFIs in Uganda and analyses how NGOs and MFIs working together with the public and private sectors in a triple partnership can reduce poverty in Uganda and other African countries.

By Kristha Abores, Research Associate

Sources and Additional Resources:

[1] “Group lending or individual lending? Evidence from a randomised field experiment in Mongolia,” by Orazio Attanasio, Britta Augsburg, Ralph De Haas, Emla Fitzsimons, Heike Harmgart, European Bank for Reconstruction and Development, December 2011,http://www.ebrd.com/downloads/research/economics/workingpapers/wp0136.pdf

[2] “Implementing Client Protection in Microfinance: State of the Practice, 2011,” by Daniel Rozas, Isabelle Barrès, Charlotte Connors, Elisabeth Rhyne, http://centerforfinancialinclusionblog.files.wordpress.com/2011/11/111116_smart-campaign_implementing-client-protection-principles-in-mf-state-of-the-practice-2011_final.pdf

[3] “Rethinking Development Strategies in Africa,” by Johnson W. Makoba, http://www.peterlang.com/index.cfm?event=cmp.ccc.seitenstruktur.detailseiten&seitentyp=produkt&pk=52848&concordeid=11948

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