Microfinance and Public Policy: Outreach, Performance and Efficiency

The goal of microfinance institutions (MFIs) is to help the poor cope better with risk, take advantage of small income-generating opportunities, and empower themselves through organization. To have this impact, MFIs need to be financially sound and sustainable. However, while there may be situations where MFIs can meet both of these objectives, there are other markets where it is very difficult or even impossible for an institution to break even, no matter how efficiently it operates. This is…