David Roodman's Microfinance Open Book Blog

Of all the microfinance network groups, none has shown more commitment to studying of the impact of its activities than Freedom from Hunger. Under the leadership of Christopher Dunford for 20 years, FfH has commissioned a series of studies using various methodologies. You won't find much mention of them in my book because they have not been as credible is the more recent randomized ones. But I respect the culture of FfH nonetheless.

• RT @AndrewSprung "The hype is long over" -- #microfinance CEOs respond to @DavidRoodman (and a headline writer) http://t.co/btDj3kb6 #

*Yet Another Randomized Trial of Microcredit

The latest randomized study of the impact of microcredit has popped up on the web. Snarky blog post title notwithstanding, I very much welcome having yet another randomized test of microcredit---by my count, the fifth---because only after we test in a variety of forms and circumstances can we generalize with (cautious) confidence. We have been fortunate in the diversity so far: group and individual microcredit, rural and urban locales in India, the Philippines, Morocco, Mongolia, and now Bosnia and Herzegovina.

The cooperating lender in this newest study was EKI, one of a clutch of microlenders created and financed by outsiders after the explosion of Yugoslavia. I believe it is the first non-profit studied, an important distinction given all the debate about the role of the profit motive in microcredit. And, somewhat bizarrely, the study brings diversity of another kind to the literature: where the India and Morocco trials took place in overheating markets, this one occurred as economic crisis hit and a microcredit bubble popped. In December 2008, as the experiment began, EKI had a "portfolio at risk" (loan amounts outstanding owed by those at least 30 days behind on repayment) of just 1.63%. Within a year, the PAR shot to 10.83%.

• RT @CGAP: "Development as freedom" - a look inside a chapter of @davidroodman's book Due Diligence. http://t.co/7OcuAJf1 #microfinance #