Replicating the Grameen Bank – the Latin American Experience
The Grameen Bank's success in lending to microenterprises, and particularly women, using solidarity groups, is well known. Attempts have been made to replicate the model outside Bangladesh, and much of this work taking place in rural African and Asian projects has been written aboutbefore. This article describes urban solidarity-group lending in Latin America, and evaluates the success of such attempts in terms of project efficiency and of benefits to the borrowers. The evidence is that a number of long-standing micro-lending projects have achieved reasonable efficiency
levels, even though evidence of changes brought about by the loans in the borrowers' enterprises is difficult to come by, and suggests quite modest improvements.
before. This article describes urban solidarity-group lending in Latin America, and evaluates the success of such attempts in terms of project efficiency and of benefits to the borrowers. The evidence is that a number of long-standing micro-lending projects have achieved reasonable efficiency
levels, even though evidence of changes brought about by the loans in the borrowers' enterprises is difficult to come by, and suggests quite modest improvements.
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