Institutional Support and Sustainability of Microcredit Programmes in Developing Countries: The Case of Venezuela

Abstract

This paper analyses a microcredit programme that was developed in a rural area of Venezuela, a standard‐bearer for left‐wing movements in Latin America, after significant initial support from the public sector disappeared. The findings indicate high levels of stability for the microfinance organisations: the number of shares, the volume of savings and the amount of the loans granted had all increased, with low levels of loan default. However, significant organisational deterioration and a reduction in the social and environmental impact in the community were also observed, aspects that point to a need to rethink institutional support in these areas. © 2019 John Wiley & Sons, Ltd.

Strategic alliances and social performance of microfinance institutions in Indonesia

“…Microfinance institutions (MFIs) make a valuable contribution to improving financial inclusion by providing convenient and affordable credit, savings and other financial services, especially to poor households and micro enterprises (Ben Abdelkader & Mansouri, 2019; Bros et al, 2022; Das, 2018; Garcia et al, 2022; Garcia‐Rodriguez et al, 2019; Hermes & Hudon, 2018; Khurram et al, 2019; Milana & Ashta, 2020). MFIs can help low‐income households reduce credit constraints and borrowers' reliance on informal lenders (loan sharks) (Bros et al, 2022; Islam & Pakrashi, 2020; Singhe, 2020).…”