Prospects, problems and potential of credit-granting NGOs
- R. H. Schmidt and C. P. Zeitinger (1996). Journal of International Development, 241-258
- Abstract: Recently NGOs have begun to be regarded as ideal providers of credit to small and micro businesses. The paper investigates whether this claim is justified and how the co-operation between donor institutions and NGOs should be structured. It reports the main results of an empirical investigation of the financial efficiency of credit-granting NGOs. These results cast serious doubts on the ability of NGOs to be viable institutions and lead the authors to suggest an institution-building approach of co-operating with NGOs as a promising alternative. Such an approach requires that donors assume a much more active role than they have played up to now.
- Theme: Finance
- Keywords: credit, donor-NGO relations, microenterprise credit, nongovernmental organisation
- Reference type: Journal Article
- Geographic location: Global SOuth