Institutional transformation of poverty focused microfinance institutions in Bangladesh, Nepal and Malaysia
| dc.contributor.author | Hassan, Md. Mahmudul | |
| dc.date.accessioned | 2014-11-03T02:37:08Z | |
| dc.date.available | 2014-11-03T02:37:08Z | |
| dc.date.issued | 2006 | |
| dc.description | PhD | en_US |
| dc.description.abstract | A research discovery in 1976 on the role of microfinance in reducing poverty in Jobra, Bangladesh facilitated the growth of an NGO-driven poverty-focused microfinance movement. However, these NGO-driven microfinance institutions (MFIs) face a number of challenges that can be overcome through the appropriate transformation route. The main objective of this study is to examine the link of leadership characteristics (Professional Qualifications, Experience and Continuity of leader in the management) with process of institutional transformation of MFIs in their efforts to overcome constraints of rendering financial services to the poor in a sustainable manner. To meet this objective, 33 MFIs in Bangladesh, Nepal and Malaysia were studied empirically. With the theoretical framework of North (1990) and Eckel et al. (1998), an analysis of 33 matured MFIs of different original status, have uncovered important dimensions. This study notes that irrespective of the diversity in the economic, social and political environments of Bangladesh, Nepal and Malaysia on the one hand, and the initial institutional status or identity on the other, the probability of reaching out to huge numbers of poor clients while maintaining a high degree of financial selfsufficiency is greater among microfinance institutions that are entrenched with the economic and banking knowledge of their founding members, their continuity in the management, and their ability to pursue financial and management efficiency. The experience of Grameen Bank and ASA of Bangladesh and Nirdhan Uttan Bank Limited of Nepal demonstrates the vital link. At the other end of the spectrum, those NGO-driven poverty-focused microfinance institutions founded by non-professionals and experiencing discontinuity of professional leadership such as Women Entrepreneurs Association of Nepal and Nepal Educational and Social Development Organisation of Nepal, KSUS of Bangladesh and Yayasan Usaha Maju of Malaysia remain ineffectively small and costly. Nepal’s experience with a government-driven poverty-focused microfinance institution and the Malaysian Amanah Ikhtiar Malaysia experience with favourable and liberal funding did not bring about respectable achievements either. The debate over the issue of trade-off has been put to rest by this study as reaching out to a large number of poor households can be undertaken in a financially sustainable manner through the continuity of professional leadership armed with innovations towards maximising financial and management efficiency. Irrespective of their operating environments and despite the variety of forms at the point of start-up, this study demonstrates that poverty-focused microfinance institutions have to secure appropriate transformation status that will strengthen and entrench their dual mission of benefiting the poor and achieving financial self sufficiency. | en_US |
| dc.identifier.uri | http://hdl.handle.net/123456789/326 | |
| dc.language.iso | en | en_US |
| dc.subject | Humanities | en_US |
| dc.subject | Poverty | en_US |
| dc.subject | Microfinance | en_US |
| dc.title | Institutional transformation of poverty focused microfinance institutions in Bangladesh, Nepal and Malaysia | en_US |
| dc.type | Thesis | en_US |
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