nep-mfd New Economics Papers
on Microfinance
Issue of 2012‒10‒13
two papers chosen by
Olivier Dagnelie
Instituto de Analisis Economico, CSIC

  1. Is microcredit targeted to poor people? Evidences from a Cambodian microfinance institution. By Alberto Lanzavecchia
  2. The Responsibility of Mobile Money Intellectuals? By Donovan, Kevin

  1. By: Alberto Lanzavecchia (University of Padova)
    Abstract: This study extends research on the social performance of microfinance institutions. The research methodology is based on Grameen Progress out of Poverty IndexTM (PPITM) for Cambodia applied to a sample of borrowers randomly extracted from a Cambodian microfinance institutionÕs loan portfolio. Dataset has been directly collected through in-house interviews. Main questions discussed here are: (1) Is microcredit targeted to poor people? (2) Has the poverty rate of the sample changed in last six months? and (3) What percentage of male vs. female clients is poor? We found an average poverty likelihood of about 8.1%, estimated at the day of the interview, steady over a period of six months and not statistically different between male and female borrowers. This evidence might be related to business geographical location or targeting. Actually, PPI too much relies on asset ownership rather than on cash flows and saving capacity. Despite the general wisdom microcredit is targeted to the Òpoorest among the poor peopleÓ, this is utterly consistent with a sound and safe (micro)banking activity, aimed at sustainable results. Here comes a call for a triple bottom line performance evaluation on microfinance institutions: economic, social and environmental effects of their activities.
    Keywords: microcredit, social performance, poverty index, case study, Cambodia.
    JEL: G29 O16 I32
    Date: 2012–09
  2. By: Donovan, Kevin
    Abstract: [This is a review of three books on microfinance and the cashless society]
    Keywords: microfinance; casless society; economic history
    JEL: N8 L96 E42 H23 G21
    Date: 2012

This nep-mfd issue is ©2012 by Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.