Abstract:
This special issue analyzes governance mechanisms and efficiency of "market-based' microfinance institutions (MFIs) with a focus on "mutual type" MFIs. There is a delicate equilibrium between mutual and capitalist ownership, the two predominant forms of ownership, with shifts in both directions occurring continuously. The first four papers are mainly theoretical; the next four are contextual studies of agency problems and efficiency in financial cooperatives in some of the countries that participated in the "Microfinance: A Market Approach" research program. The final paper deals with the measurement of the impact of MFIs on household poverty levels.
