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Author: Wu Jinglian
Publisher:
Publish Date: 2006-09-01
Features: Comparative is an academic platform that provides readers with insights into comparative institutional analysis. Standing at the forefront of theory, Comparative selectively introduces the experiences and lessons of other countries, the theories and practices of transition economies, and the developments in the field of comparative research based on major issues encountered in China's economic reform. It also provides targeted introductions of the design of reform plans, policy proposals, and evaluations of China's economic reform by domestic and international academic circles. Comparative is an academic platform that provides readers with insights into comparative institutional analysis. Standing at the forefront of theory, Comparative selectively introduces the experiences and lessons of other countries, the theories and practices of transition economies, and the developments in the field of comparative research based on major issues encountered in China's economic reform. It also provides targeted introductions of the design of reform plans, policy proposals, and evaluations of China's economic reform by domestic and international academic circles. This article has three particularly commendable points: First, the article conducts rational and in-depth analysis of the real performance and results of microfinance globally. The author's quantitative research shows that microfinance has not been as successful as claimed so far, and some positive conclusions do not hold up to close scrutiny, for example, a high repayment ratio rarely translates into profits as advertised. Second, the author argues that case studies cannot replace comprehensive analysis, and it is necessary to conduct more in-depth research on the financial integrity and related data of microfinance in the next step. Quantitative research on the mechanisms that affect the performance of microfinance will help to understand microfinance from an empirical perspective and improve future institutional arrangements. Third, although the prospects for microfinance are exciting, especially in the absence of attractive alternative methods, microfinance should be adapted to local conditions. Even in the best environment, microfinance projects help self-employment activities secure funding, and these activities are usually only a supplement to the borrower's income rather than fundamentally transforming the borrower's employment model.