The microfinance revolution : sustainable finance for the poor : lessons from Indonesia, the emerging industry

Around the world, a revolution is occurring in finance for low-income people. The microfinance revolution is delivering financial services to the economically active poor on a large scale through competing, financially self-sufficient institutions. In a few countries this has already happened; in others it is under way. The emerging microfinance industry has profound implications for social and economic development. For the first time in history, capital is well on its way to being democratized. The Microfinance Revolution is aimed at a diverse readership--economists, bankers, policymakers, donors, and social scientists; microfinance practitioners and specialists in local finance and rural and urban development; and members of the general public interested in development. The first volume of what will be a three-volume series, this book focuses on the shift from government- and donor-subsidized credit systems to self-sufficient microfinance institutions providing voluntary savings and credit services. Forthcoming volumes in this series include: The Microfinance Revolution: Lessons from Indonesia, ISBN 0-8213-4953-8 The Microfinance Revolution: The Emerging Industry, ISBN 0-8213-4954-6 The Revolution Occurring In Finance For Low-income People Refers To Commercial Microfinance-the Delivery Of Financial Services To The Economically Active Poor On A Large Scale Through Competing, Financially Self-sufficient Institutions. Lessons From Indonesia Examines In The Indonesian Context The Principles And Practices Of Commercial Microfinance. The First Country To Develop Profitable Microfinance On A Large Scale, Indonesia Is Home To The World's Oldest And Largest Commercial Microfinance Institutions, As Well As Many Others. The Book Examines Many Financial Institutions, With A Special Emphasis On Bank Rakyat Indonesia's Microbanking System, Which In The Mid-1980s Was Transformed From A Failed Subsidized Credit Program To A Nationwide Commercial Financial Intermediary That Now Profitably Provides Microfinance Services-savings And Credit-to More Than 20 Million People. Commercial Microbanking Remained Stable And Profitable In Indonesia Even As The Country's Financial System Collapsed During The Recent Crisis. This Volume Shows Why, And Offers Crucial Lessons For Developing Countries Everywhere. [1] Sustainable Finance For The Poor -- V. 2. Lessons From Indonesia. Marguerite S. Robinson. Includes Bibliographical References And Index. The revolution occurring in finance for low-income people refers to commercial microfinance -- the delivery of financial services to the economically active poor on a large scale through competing, financially self-sufficient institutions. 'Lessons from Indonesia', volume 2 of 'The Microfinance Revolution', examines in the Indonesian context the principles and practices of commercial microfinance that were explored and analyzed in volume 1. The first country to develop profitable microfinance on a large scale, Indonesia is home to the world's oldest and largest commercial microfinance institutions, as well as many others. The book examines many financial institutions, with a special emphasis on Bank Rakyat Indonesia's microbanking system, which in the mid-1980s was transformed from a failed subsidized credit program to a nationwide commercial financial intermediary that now profitably provides microfinance services -- savings and credit -- to more than 20 million people. Commercial microbanking remained stable and profitable in Indonesia even as the country's financial system collapsed during the recent crisis. This volume shows why, and offers crucial lessons for developing countries everywhere

Around the world, a revolution is occurring in finance for low-income people. The microfinance revolution is delivering financial services to the economically active poor on a large scale through competing, financially self-sufficient institutions. In a few countries this has already happened; in others it is under way. The emerging microfinance industry has profound implications for social and economic development. For the first time in history, capital is well on its way to being democratized.

'The Microfinance Revolution', in three volumes, is aimed at a diverse readership - economists, bankers, policymakers, donors, and social scientists; microfinance practitioners and specialists in local finance and rural and urban development; and members of the general public interested in development. This first volume, 'Sustainable Finance for the Poor', focuses on the shift from government- and donor-subsidized credit systems to self-sufficient microfinance institutions providing voluntary savings and credit services.

This book focuses on how the demand for microfinance can be met on a global scale. It documents the contributions of institutions and of people who have led the development of commercial finance for the poor, and it analyzes the principles on which the microfinance revolution is based. In sum, this work offers a detailed overview of the development of microfinance over the past 20 years; a global view of microfinance in the developing world (largely excluding Eastern Europe); a thesis on the future path of microfinance; a coherent theory about microfinance--why it works when so many other development interventions fail; detail on a number of important microfinance topics--such as informal moneylending and savings; an important study on, and lessons from Indonesia, with detailed analysis of Bank Rakyat Indonesia; and, brief studies of many other microfinance institutions in Africa, Asia, and Latin America. An overview of the development of microfinance over the past 20 years with a global view of microfinance in the developing world. v. 1. Sustainable finance for the poor v. 2. Lessons from Indonesia v. 3. Emerging industry.