Complementing Value Chains and Micro and Small Enterprise Growth, this course explores the history of microfinance and applies financial-sector tools to assess its potential. Reviewing case studies as well as examining policy and regulatory issues, considers programmatic, methodological, institutional and financial factors and covers the field’s best practices. Covers sources of financing, the relationship between microfinance and poverty and questions of competition and commercialization in the microfinance industry. Due to student demand for this topic, two sections of the course are offered. Both sections provide the concepts and skills that prepare students to take IDEV’s course, Advanced Topics in Microfinance.
Section 2 provides a complete survey of the microfinance field, from both developmental and operational perspectives. Examines financial service needs of low-income households and explores how the microfinance industry has evolved to respond to these needs, including product and service offerings, policy and regulatory considerations, relationship between microfinance and poverty and questions of competition and commercialization in industry. Students gain concrete professional skills through drafting of succinct policy memos and in-depth financial and institutional analysis of microfinance institutions. As part of their course requirement, students are required to develop a business plan for a new microfinance institution. Prerequisite: general understanding of financial concepts.