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Profit for the Poor
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Micro-credit is the latest development fashion, and has even received the ultimate accolade of a "world summit."What is not appreciated is that there is a wide variety of quite different approaches to the profitable delivery of financial services to the poor. Such services are being and, indeed, have for many years been provided by different types of institutions, including traditional commercial banks, NGO s, and the much publicized "new generation" institutions.This book presents case studies from India, Bangladesh, East and Southern Africa, Indonesia and Latin America, together with many challenging comments and questions. The author, who has been teaching and studying this field for 25 years, reaches two conclusions: first, that there is no universally applicable methodology; and second, that well managed micro-finance can be profitable, both for its customers and providers. It presents a business opportunity for bankers, and need not depend on donor assistance.
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