| 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. |