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The Synergy of Microfinance

The Synergy of Microfinance
Fighting Poverty by Moving beyond Credit

First Edition
  • Binod B. Nayak - Independent Researcher and Financial Consultant, Washington, DC

January 2015 | 372 pages | SAGE India

The Synergy of Microfinance underlines the significance of innovative financial and risk management tools and non-financial complementary services by microfinance institutions in poverty alleviation. It undertakes a nuanced analysis of financial instruments— microcredit, microsavings, microinsurance, microleasing and payment systems for money transfer— and non-financial services such as social intermediation, livelihood promotion and access to broader market place. 

Given the diminished expectations on microcredit impact, the book highlights results from randomized control trial (RCT)-based studies around the world. It argues that exclusive access to microcredit alone may not suffice in alleviating poverty on a mass scale and could pose a financial risk for poor households or households that over-borrow. There is also a discussion on the Andhra Pradesh microfinance crisis of 2010, and the developments that took place in its aftermath.

On Poverty: Who Are the Poor? Why Poverty Persists?
Borrowing and Saving: A Critique
How Small Loans Can Make a Big Difference: The Birth of Microcredit and Its Evolution into Microfinance and Beyond
Microcredit: Anatomy of an Instrument That Revolutionized Lending
Microsavings: Voluntary Savings for the Poor
Microleasing: Improving Access to Tools and Technology
Remittances, Payment Systems and Microfinance
Complementary Non-financial Services
Critiquing Microfinance
The Synergy

It is a unique book…a must for every micro-finance practitioner…rare blending of qualitative and quantitative analysis…. A must reference for those who want to delve into the gamut of origin and growth of micro-credit processes as well as interested to know the status of various policy decisions.

Journal of Rural Development, April-June 2015

Binod B. Nayak

Binod B. Nayak retired from the World Bank in 2001 after more than 27 years of service. During this period, he worked in the following areas: financial modeling and forecasting, financial policy and planning, and financial risk management at the corporate level. He also worked on development finance companies and project evaluations in member countries of the World Bank.From 1999 to 2005, he was involved with a small US-based charitable organization that worked in villages of Odisha to help the villagers after the 1999 devastating ‘Super Cyclone.’ During this time, Binod was involved in introducing microfinance to the members of the... More About Author

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ISBN: 9789351500421