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Bottom of the Pyramid Strategies as a Development Tool: Case of Morocco Microfinance

Author

Listed:
  • Abdellatif Zriouli

    (LAREM - Laboratoire de Recherches en Management - ISCAE - Institut Supérieur de Commerce et d'Administration des Entreprises)

  • Salma Echcharqy

    (ISCAE - Institut Supérieur de Commerce et d’Administration des Entreprises)

Abstract

Microfinance emerges as a special tool for Bottom of the Pyramid (BoP) strategies developed by Prahalad (2005). It has an interesting history in Morocco since 1993 with a non-profit organization granting small loans to rural women (Diani, 2019). The initiative has aroused the interest of public authorities and international institutions, allowing a considerable growth of microfinance (Duval, 2001). Using a systematic review of empirical articles, this paper aims to explore how BoP strategies function as a development tool in Moroccan microfinance. We'll consider financial outcomes as income, saving, expenditure, accumulation of assets, and expanding current activities; as well as non-financial outcomes including health, food security and nutrition, education, child labor, and women's empowerment. We'll examine the regulatory environment, key players, and trends in the sector, assessing the impact of microcredit on low-income populations. We'll also identify challenges and opportunities to enhance financial inclusion and economic development in Morocco. The mixed outcomes of microcredit on poor populations all over the world led us to investigate the case of Morocco, answering the question: Does microcredit combine social development with profitability? We find positive impact for borrowers, although some cases reveal non-significant or even negative outcomes whose causes must be sought elsewhere, such as in the transformative effect (Banerjee et al., 2015) or in loan delinquency (Chong, 2021).

Suggested Citation

  • Abdellatif Zriouli & Salma Echcharqy, 2024. "Bottom of the Pyramid Strategies as a Development Tool: Case of Morocco Microfinance," Post-Print hal-04629415, HAL.
    • Handle: RePEc:hal:journl:hal-04629415
    DOI: 10.5281/zenodo.12189089
    Note: View the original document on HAL open archive server: https://hal.science/hal-04629415
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    References listed on IDEAS

    as
    1. Vogelgesang, Ulrike, 2003. "Microfinance in Times of Crisis: The Effects of Competition, Rising Indebtedness, and Economic Crisis on Repayment Behavior," World Development, Elsevier, vol. 31(12), pages 2085-2114, December.
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    3. Greenwood, Jeremy & Jovanovic, Boyan, 1990. "Financial Development, Growth, and the Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 1076-1107, October.
    4. Joanna Ledgerwood, 2013. "The New Microfinance Handbook : A Financial Market System Perspective," World Bank Publications - Books, The World Bank Group, number 12272, December.
    5. Bruno Crépon & Florencia Devoto & Esther Duflo & William Parienté, 2015. "Estimating the Impact of Microcredit on Those Who Take It Up: Evidence from a Randomized Experiment in Morocco," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 123-150, January.
    6. Fennee Chong, 2021. "Loan Delinquency: Some Determining Factors," JRFM, MDPI, vol. 14(7), pages 1-7, July.
    7. Yogendra Shakya & Katharine Rankin, 2008. "The Politics of Subversion in Development Practice: An Exploration of Microfinance in Nepal and Vietnam," Journal of Development Studies, Taylor & Francis Journals, vol. 44(8), pages 1214-1235.
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    9. Abhijit Banerjee & Dean Karlan & Jonathan Zinman, 2015. "Six Randomized Evaluations of Microcredit: Introduction and Further Steps," American Economic Journal: Applied Economics, American Economic Association, vol. 7(1), pages 1-21, January.
    10. Marcella Corsi & Fabrizio Botti & Tommaso Rondinella & Giulia Zacchia, 2006. "Women and Microfinance in Mediterranean Countries," Development, Palgrave Macmillan;Society for International Deveopment, vol. 49(2), pages 67-74, June.
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    Keywords

    Stratégies BdP; microcrédit; impact; Maroc.;
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