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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, while also targeting the design of reform plans, policy recommendations, and evaluations of China's economic reforms 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, while also targeting the design of reform plans, policy recommendations, and evaluations of China's economic reforms by domestic and international academic circles. There are three points in this article that are particularly commendable: First, the article conducts rational and in-depth thinking and analysis on the actual 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 soundness and related data of microfinance in the next step. Quantitative research on the mechanisms affecting 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 provide loans to support self-employment activities, which are often only a supplement to the borrower's income and do not fundamentally change the borrower's employment model.