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Institutional Analysis to Explain the Success of Moroccan Microfinance Institutions
2 Jun 2009, Allaire, V., Ashta, A., Attuel-Mendes, L. & Krishnaswamy, K.
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Paper presented at the First European Research Conference on Microfinance, Bruxelles, June 2-4, 2009

This paper conducts a comparative analysis of Morocco and its North African neighbours, namely, Algeria, Tunisia, Libya and Egypt, in order to identify conditions that are conducive to the success of microfinance.

The study identifies institutional factors which can be introduced in regulation to enable microfinance success. Key findings include:

  • Microfinance’s success is linked to population density, the country's geographical size and its poverty level as well as the amount of international donor funds received;
  • Revenues on account of oil exports may lead to a delay in microfinance development;
  • Establishing a specific legal framework for microfinance, such as in Morocco, may help foster the growth of microfinance;
  • Existence of apex organizations for centralizing international aid and redistributing funds may lead to lower donor participation.

Study results indicate the need for a better quality database than that currently provided by the MIX. Future research may focus on correlation with violence, corruption, women's rights, political risk and economic sanctions. These findings would help MFIs lobby for specific laws, more initial direct donor funding, less government apex distribution and better information databases.


09 Dec 2009
 
nelle smith
France


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Journal Volume/Pages:
30

 
 

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