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Special report

Photo : Stephan Chaboureau

07.29.2011

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MicroWorld

The Social Impact of Microfinance

Destined to fight against exclusion to banking facilities, microfinance also has to prove that it doesn’t lead to over-indebtedness and that it contributes to reduce poverty. To confirm the means put in place to accomplish this mission, certain tools have been put into place. Since 2005, the Grameen Foundation has tested the PPI, a chart which evaluates living conditions of MFI clients, while the rating agencies have developed analytical systems of the MFIs’ “social performance.” The next stage might be to establish a quality label for MFIs wishing to specify their social impact.

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