Informace o kvalifikační práci Mission Drift in the Middle East & North Africa: The Effect of the Financial Sustainability of Microfinance Institutions on their Depth of Outreach to the Poor
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Hlavní téma
Microfinance Services & Development
Hlavní téma v angličtině
Microfinance Services & Development
Název dle studenta
Mission Drift in the Middle East & North Africa: The Effect of the Financial Sustainability of Microfinance Institutions on their Depth of Outreach to the Poor
Název dle studenta v angličtině
Mission Drift in the Middle East & North Africa: The Effect of the Financial Sustainability of Microfinance Institutions on their Depth of Outreach to the Poor
The objective of this study is to analyse mission drift among microfinance institutions (MFIs) in the Middle East and North Africa (MENA). Mission drift occurs when MFIs focus more on financial sustainability (financial objective) instead of depth of outreach to poor borrowers (social objective). This study uses a panel dataset, representing a sample of 52 MFIs from 10 countries across the region, from 2008-2017. It implements fixed and random effects estimations on two dynamic models. Findings of this study show that the provision of larger loans to the poor (evidence of mission drift) in the MENA region is strongly associated with better financial self-sustainability and efficiency, especially considering higher portfolio quality, but this comes with higher costs per borrower and lower profits. In addition, shows that MFIs with a higher percentage of female borrowers generally are more operationally self-sustainable and efficient, requiring fewer employees to produce a given number of borrowers. Therefore, this study reveals conflicting evidence as to whether MFIs in the region experience mission drift. Future policy efforts should prioritize technological advances to increase outreach, enabling regulations that allow a variety of types of MFIs to exist, and the diversification products (savings, micro-insurance, Islamic, etc).
Anotace v angličtině
The objective of this study is to analyse mission drift among microfinance institutions (MFIs) in the Middle East and North Africa (MENA). Mission drift occurs when MFIs focus more on financial sustainability (financial objective) instead of depth of outreach to poor borrowers (social objective). This study uses a panel dataset, representing a sample of 52 MFIs from 10 countries across the region, from 2008-2017. It implements fixed and random effects estimations on two dynamic models. Findings of this study show that the provision of larger loans to the poor (evidence of mission drift) in the MENA region is strongly associated with better financial self-sustainability and efficiency, especially considering higher portfolio quality, but this comes with higher costs per borrower and lower profits. In addition, shows that MFIs with a higher percentage of female borrowers generally are more operationally self-sustainable and efficient, requiring fewer employees to produce a given number of borrowers. Therefore, this study reveals conflicting evidence as to whether MFIs in the region experience mission drift. Future policy efforts should prioritize technological advances to increase outreach, enabling regulations that allow a variety of types of MFIs to exist, and the diversification products (savings, micro-insurance, Islamic, etc).
Klíčová slova
Microfinance; Poverty Alleviation; Financial Sustainability; Depth of Outreach; Middle East & North Africa; Financial Inclusion
Klíčová slova v angličtině
Microfinance; Poverty Alleviation; Financial Sustainability; Depth of Outreach; Middle East & North Africa; Financial Inclusion
Rozsah průvodní práce
72
Jazyk
AN
Anotace
The objective of this study is to analyse mission drift among microfinance institutions (MFIs) in the Middle East and North Africa (MENA). Mission drift occurs when MFIs focus more on financial sustainability (financial objective) instead of depth of outreach to poor borrowers (social objective). This study uses a panel dataset, representing a sample of 52 MFIs from 10 countries across the region, from 2008-2017. It implements fixed and random effects estimations on two dynamic models. Findings of this study show that the provision of larger loans to the poor (evidence of mission drift) in the MENA region is strongly associated with better financial self-sustainability and efficiency, especially considering higher portfolio quality, but this comes with higher costs per borrower and lower profits. In addition, shows that MFIs with a higher percentage of female borrowers generally are more operationally self-sustainable and efficient, requiring fewer employees to produce a given number of borrowers. Therefore, this study reveals conflicting evidence as to whether MFIs in the region experience mission drift. Future policy efforts should prioritize technological advances to increase outreach, enabling regulations that allow a variety of types of MFIs to exist, and the diversification products (savings, micro-insurance, Islamic, etc).
Anotace v angličtině
The objective of this study is to analyse mission drift among microfinance institutions (MFIs) in the Middle East and North Africa (MENA). Mission drift occurs when MFIs focus more on financial sustainability (financial objective) instead of depth of outreach to poor borrowers (social objective). This study uses a panel dataset, representing a sample of 52 MFIs from 10 countries across the region, from 2008-2017. It implements fixed and random effects estimations on two dynamic models. Findings of this study show that the provision of larger loans to the poor (evidence of mission drift) in the MENA region is strongly associated with better financial self-sustainability and efficiency, especially considering higher portfolio quality, but this comes with higher costs per borrower and lower profits. In addition, shows that MFIs with a higher percentage of female borrowers generally are more operationally self-sustainable and efficient, requiring fewer employees to produce a given number of borrowers. Therefore, this study reveals conflicting evidence as to whether MFIs in the region experience mission drift. Future policy efforts should prioritize technological advances to increase outreach, enabling regulations that allow a variety of types of MFIs to exist, and the diversification products (savings, micro-insurance, Islamic, etc).
Klíčová slova
Microfinance; Poverty Alleviation; Financial Sustainability; Depth of Outreach; Middle East & North Africa; Financial Inclusion
Klíčová slova v angličtině
Microfinance; Poverty Alleviation; Financial Sustainability; Depth of Outreach; Middle East & North Africa; Financial Inclusion
Zásady pro vypracování
An analysis of microfinance services and the use of targeting tools in order to expand the depth and breadth of MFI services to the most poor. This research will focus in particular on the use of microinsurance as an MFI service. Furthermore, this research will also take into account the evolution of loan amounts, activity size, gender of the client, the sector of activity and the use of individual loans or guaranty group solidarity. Finally, this research will analyze data at the level of branches and study their viability according to different variables, such as staff, services provided, regions, and rural - urban comparison.
Zásady pro vypracování
An analysis of microfinance services and the use of targeting tools in order to expand the depth and breadth of MFI services to the most poor. This research will focus in particular on the use of microinsurance as an MFI service. Furthermore, this research will also take into account the evolution of loan amounts, activity size, gender of the client, the sector of activity and the use of individual loans or guaranty group solidarity. Finally, this research will analyze data at the level of branches and study their viability according to different variables, such as staff, services provided, regions, and rural - urban comparison.
Seznam doporučené literatury
Fletschner, D. & amp; Kenney, L. (2014). Rural women? S access to financial services: credit, savings, and insurance. In Gender in Agriculture (pp. 187-208). Springer, Dordrecht.
Greeley, M. (2003). Part I: Microfinance and Poverty 1. Poverty Reduction and Microfinance?Assessing Performance.
Littlefield, E., Morduch, J., & Hashemi, S. (2003). Is microfinance an effective strategy to reach the millennium development goals?. Focus note, 24(2003), 1-11.
Maleika, M., & Kuriakose, A. T. (2008). Microinsurance: extending pro-poor risk management through the social fund platform.
Mourji, F. (2000). Impact Study of the Zakoura Microcredit Program. Microstart, UNCDF, New York, USA.
Schreiner, M. (2002). Aspects of outreach: A framework for discussion of the social benefits of microfinance. Journal of international development, 14(5), 591-603.
Simanowitz, A. (2003). Appraising the poverty outreach of microfinance: A review of the cgap poverty assessment tool (PAT) (No. 1762-2016-141571).
Simanowitz, A. (2003). Microfinance, poverty and social performance.
Weber, O. & Ahmad, A. (2014). Empowerment through microfinance: The relationship between the loan cycle and the level of empowerment. World Development , 62 , 75-87.
Seznam doporučené literatury
Fletschner, D. & amp; Kenney, L. (2014). Rural women? S access to financial services: credit, savings, and insurance. In Gender in Agriculture (pp. 187-208). Springer, Dordrecht.
Greeley, M. (2003). Part I: Microfinance and Poverty 1. Poverty Reduction and Microfinance?Assessing Performance.
Littlefield, E., Morduch, J., & Hashemi, S. (2003). Is microfinance an effective strategy to reach the millennium development goals?. Focus note, 24(2003), 1-11.
Maleika, M., & Kuriakose, A. T. (2008). Microinsurance: extending pro-poor risk management through the social fund platform.
Mourji, F. (2000). Impact Study of the Zakoura Microcredit Program. Microstart, UNCDF, New York, USA.
Schreiner, M. (2002). Aspects of outreach: A framework for discussion of the social benefits of microfinance. Journal of international development, 14(5), 591-603.
Simanowitz, A. (2003). Appraising the poverty outreach of microfinance: A review of the cgap poverty assessment tool (PAT) (No. 1762-2016-141571).
Simanowitz, A. (2003). Microfinance, poverty and social performance.
Weber, O. & Ahmad, A. (2014). Empowerment through microfinance: The relationship between the loan cycle and the level of empowerment. World Development , 62 , 75-87.
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Ano
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Záznam průběhu obhajoby
Student presented the results of the diploma thesis "Mission Drift in the Middle East & North Africa: The Effect of the Financial Sustainability of Microfinance Institutions on their Depth of Outreach to the Poor". Ferrity introduces his topic and challenges while writting thesis as well as the results. Comittee was familiarized with both reviews from supervisor and reviewer. Discussion followed - student answered this question: Can you explain basic principles of Islamic microfinance and compare it to conventional microfinance? He also discussed other research on this topic with different results and different approaches in research as well as clarification of the presentation of his results in the thesis.