A case study of social performance of Amanah Ikhtiar Malaysia: "reaching the bottom billion"
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Date
2009
Authors
Abdul Halim, Siti Nazariah
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Abstract
Microcredit programnle is developed to provide financing access to the poor so that
they can increase their income and improve their living conditions. The survival of
microfinance institutions depends on their ability to be financially sustainable that is
the ability to generate their own funds either intelnally or commercially to cover
operational costs and generate profit. As many micro finance institutions (MFIs) around
the world are progressing towards cOlTIlnercialization, non-governmental organisations
like Arnanah Ikhtiar Malaysia (AIM) is also planning to follow suit. Initially,
achievement of microfinance institutions are directed towards financial indicators.
This has raised concerns that microfinance programmes are drifting away from their
social mission to serve the poor. Thus, donors requires MFls to conduct social
performance asseSSlnents to ensures that MFls are not drifting away from their social
mission. As a result, several social performance assessment tools are developed to
gauge whether microfinance institutions are adhering to their social mission. The
purpose of this thesis is to evaluate AIM's social performance, the challenges it faces in
achieving its social mission and to propose recommendations to improve its social
performance.