Microcredit and the Poorest of the Poor: Theory and Evidence from Bolivia

Posted: 18 Jul 2001

See all articles by Sergio Navajas

Sergio Navajas

Inter-American Development Bank (IDB)

Mark Schreiner

Washington University in St. Louis - Center for Social Development

Richard L. Meyer

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Claudio Gonzalez-Vega

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Jorge Rodriguez-Meza

affiliation not provided to SSRN

Abstract

We construct a theoretical framework that describes the social worth of a microfinance organization in terms of the depth, worth to users, cost to users, breadth, length, and scope of its output. We then analyze evidence of depth of outreach for five microfinance organizations in Bolivia. Most of the poor households reached by the microfinance organizations were near the poverty line - they were the richest of the poor. Group lenders had more depth of outreach than individual lenders. The urban poorest were more likely to be borrowers, but rural borrowers were more likely to be among the poorest.

Keywords: Latin America, Bolivia, microcredit, poverty, outreach, sustainability

Suggested Citation

Navajas, Sergio and Schreiner, Mark Joseph and Meyer, Richard L. and Gonzalez-Vega, Claudio and Rodriguez Meza, Jorge, Microcredit and the Poorest of the Poor: Theory and Evidence from Bolivia. Available at SSRN: https://ssrn.com/abstract=253250

Sergio Navajas

Inter-American Development Bank (IDB)

1300 New York Avenue NW
Washington, DC 20577
United States

Mark Joseph Schreiner

Washington University in St. Louis - Center for Social Development ( email )

St. Louis, MO 63130
United States
314-935-9778 (Phone)
314-935-8661 (Fax)

Richard L. Meyer

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

Rural Finance Program
Columbus, OH 43210-1067
United States
614-247-6357 (Phone)
614-292-7362 (Fax)

Claudio Gonzalez-Vega (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

Rural Finance Program
Columbus, OH 43210-1067
United States
614-825-0622 (Phone)

Jorge Rodriguez Meza

affiliation not provided to SSRN

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