The microfinance schism

Research output: Contribution to journalArticlepeer-review


Leading advocates for microfinance have put forward an enticing 'win-win' proposition: microfinance institutions that follow the principles of good banking will also be those that alleviate the most poverty. This vision forms the core of widely-circulated 'best practices,' but as a general proposition the vision is fully supported neither by logic nor by the available empirical evidence. Recognizing the limits to the win-win proposition is an important step toward reaching a more constructive dialogue between microfinance advocates that privilege financial development and those that privilege social impacts. (C) 2000 Elsevier Science Ltd. All rights reserved.

Original languageEnglish (US)
Pages (from-to)617-629
Number of pages13
JournalWorld Development
Issue number4
StatePublished - 2000


  • Bangladesh
  • Credit
  • Indonesia
  • Microenterprise
  • Poverty

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Development
  • Sociology and Political Science
  • Economics and Econometrics


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