livelihoodsthroughmicro-enterpriseservicesassessing.docVIP

Livelihoods Through Micro-enterprise Services? Assessing Supply and Demand Constraints for Microfinance in Ethiopia (With Particular Reference to the Amhara Region) By Getaneh Gobezie (getanehg2002@) Paper Presented at the 3rd International Conference on the Ethiopian Economy, Organized by the Ethiopian Economic Association June 2-4, 2005, Addis Ababa, Ethiopia. Nov. 2005 Bahir-Dar Most of the people in the world are poor; so if we knew the economics of being poor we would know much of the economics that really matters.” (Theodore W. Shultz, on accepting the Nobel Prize, in Economics, 1979)  ACCRONYMS ACSI: Amhara Credit and Saving Institution AIMS: Assessing Impact of Microenterprise Services BDS: Business Development Services DECSI: Dedebit Credit Saving Institution GGLM: Group Guarantee Lending Model HHEP: Household Economic Portfolio Model IFAD: International Fund for Agricultural Development MFIs: Microfinance Institutions MGD: Millennium Development Goals NBE: National Bank of Ethiopia NGOs: Non Governmental Organizations PWR: Participatory Wealth Ranking REMSEDA: Regional Micro and Small Enterprises Development SACCOs: Saving and Credit Cooperatives SIDA: Sweden International Development Agency WDR: World Development Report OUTLINE 1. BACKGROUND The Poverty Situation and Microfinance as an Anti-poverty Strategy The “Modern” Microfinance Service Provision 2. GAPS IN RURAL FINANCIAL INTERMEDIATION: A FRAMEWORK FOR ANALYSIS The Inefficiency Gap The Insufficiency Gap The Feasibility gap 3. ASSESSING THE GAP IN THE REGION a) Microfinance Policies, Organizational Behaviours, and the Incentive Problem Policy, Regulation, Supervision Issues Organizational Behaviours in Service Delivery The Incentives Problem b) Institutional capacity for innovative service delivery Lending Methodology: From Replicating to Customizing Models? Micro-Saving: Reducing Donor Dependence The Human R