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Recent Trends In Microfinance Institutions: Some Theoretical Implications

In: New And Enduring Themes In Development Economics

Author

Listed:
  • SUMAN GHOSH

    (Department of Economics, Florida Atlantic University, USA)

  • ERIC VAN TASSEL

    (Department of Economics, Florida Atlantic University, 777, Glades Road, Boca Raton, FL 33431, USA)

Abstract

In this paper, we offer a theoretical formalization of the phenomenon known as mission drift. In recent years, there have been claims that the entry of large donors with deep pockets have led to a mission drift phenomenon whereby microfinance institutions (MFI) who were previously catering to the poorest agents have drifted towards catering to the 'better off' poor. Our aim in this chapter would be two-fold: one is to trace very briefly some of the current ongoing debates and the concomitant empirical work that sheds light on those debates. Second, we want to highlight a few of the theoretical ramifications that arise as a result of the most recent studies and debates.

Suggested Citation

  • Suman Ghosh & Eric Van Tassel, 2009. "Recent Trends In Microfinance Institutions: Some Theoretical Implications," World Scientific Book Chapters, in: Bhaskar Dutta & Tridip Ray & E Somanathan (ed.), New And Enduring Themes In Development Economics, chapter 20, pages 467-484, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789812839428_0020
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    Cited by:

    1. Ghosh, Suman & Van Tassel, Eric, 2011. "Microfinance and competition for external funding," Economics Letters, Elsevier, vol. 112(2), pages 168-170, August.

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