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Cited by 153Microfinance and Financial InclusionInnovation and Socioeconomic DevelopmentFinTech, Crowdfunding, Digital Finance

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Learning from Failures in Microfinance: What Unsuccessful Cases Tell Us About How Group‐Based Programs Work

Woolcock, Michael J. V.·1999·The American Journal of Economics and Sociology
DOI 10.1111/j.1536-7150.1999.tb03281.x
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Abstract

Five cases of failure within group‐based microfinance programs are presented. I argue that group performance turns not only on the program's lending policies and cost structures–important as these are–but on the nature and extent of social relations (a) among potential and actual group members, (b) between group members and program staff, and (c) among program staff. Failures teach us important lessons regarding how (as opposed to why) these programs work in happier times. Those seeking to replicate microfinance programs, especially at the rate envisioned by the Microcredit Summit, need to pay serious attention to these institutional junctures.

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Crossref · 10.1111/j.1536-7150.1999.tb03281.x

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  • Long-term members of group-based credit programs may find that obligations and commitments to their colleagues present obstacles to further advancement, especially for the more ambitious.

    “Similarly, long-term members of group-based credit programs may find that obligations and commitments to their colleagues present obstacles to further advancement, especially for the more ambitious (Woolcock 1999).”

    From Social Capital: Implications for Development Theory, Research, and Policy (2000) · cites this paper as Woolcock 1999

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Metadata

Authors
Woolcock, M. J. V.
Affiliations
Brown University (US)
Corresponding author
Woolcock, Michael J. V.
ORCID
Woolcock, Michael J. V.
Venue
The American Journal of Economics and Sociology
Publisher
Wiley
Published
1999-01
Volume
58
Issue
1
Pages
17-42
ISSN
  • 0002-9246 (ISSN-L)
  • 1536-7150
DOI
10.1111/j.1536-7150.1999.tb03281.x
OpenAlex
W1601075096
Cited by
153
References
0
Citations by year
2026: 1 · 2025: 2 · 2024: 3 · 2023: 4 · 2022: 4 · 2021: 4 · 2020: 4 · 2019: 6 · 2018: 4 · 2017: 5 · 2016: 5 · 2015: 10 · 2014: 10 · 2013: 15 · 2012: 12
FWCI
7.95
Type
journal article
Language
en
Open access
closed
Licence
onlinelibrary.wiley.com/termsAndConditions#vor (vor, 2740 d)
Locations
American Journal of Economics and Sociology (publishedVersion)
Topics
  • Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Microfinance and Financial Inclusion
  • Social Sciences › Business, Management and Accounting › Business and International Management › Innovation and Socioeconomic Development
  • Social Sciences › Business, Management and Accounting › Management Information Systems › FinTech, Crowdfunding, Digital Finance
Keywords
microfinance, group lending, interpersonal relationships, group performance, program staff, institutional analysis

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