1 January 2003
What Makes Microcredit Programmes Effective? Fashionable Fallacies and Workable Realities
Published by: IDS
There is an influential, orthodox explanation of the success of large scale micro-credit programmes, based particularly on interpretations of the Grameen Bank in Bangladesh. There are three core elements: the alleged importance of strong social bonds among small borrower groups; the notion of substantial borrower participation in management; and the belief in the centrality of charging unsubsidised rates of interest.