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Institutional Support and Sustainability of Microcredit Programmes in Developing Countries: The Case of Venezuela

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  • Francisco J. García‐Rodríguez
  • Maribel Suárez‐Mancha
  • Carlos Castilla‐Gutiérrez
  • José León García‐Rodríguez

Abstract

This paper analyses a microcredit programme that was developed in a rural area of Venezuela, a standard‐bearer for left‐wing movements in Latin America, after significant initial support from the public sector disappeared. The findings indicate high levels of stability for the microfinance organisations: the number of shares, the volume of savings and the amount of the loans granted had all increased, with low levels of loan default. However, significant organisational deterioration and a reduction in the social and environmental impact in the community were also observed, aspects that point to a need to rethink institutional support in these areas. © 2019 John Wiley & Sons, Ltd.

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  • Francisco J. García‐Rodríguez & Maribel Suárez‐Mancha & Carlos Castilla‐Gutiérrez & José León García‐Rodríguez, 2019. "Institutional Support and Sustainability of Microcredit Programmes in Developing Countries: The Case of Venezuela," Journal of International Development, John Wiley & Sons, Ltd., vol. 31(8), pages 786-804, November.
    • Handle: RePEc:wly:jintdv:v:31:y:2019:i:8:p:786-804
    DOI: 10.1002/jid.3437
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