Microfinance in Nepal: Same same, but different

Date created: 
2011-08-23
Identifier: 
etd6786
Keywords: 
Microfinance
Nepal
Deprived Sector Lending Policy
Dalit
Women's empowerment
Poverty alleviation
Abstract: 

The introduction of Grameen model microfinance in Nepal was a neoliberal strategy that employed the perceived efficiency of women to distribute credit to rural households. Microfinance mitigated state-directed rural development finance outreach failures of subsidized credit capture by elites and use of funds for political patronage. Yet the very poor in Nepal are still not reached by microfinance. Nepal retained targeted lending through the Deprived Sector Lending Program, resulting in excess liquidity and low efficiency in microfinance institutions. The number of microfinance institutions has grown exponentially, yet microfinance still does not reach the remote hills and mountain areas. Dalits, the poorest caste group, are negligibly included in microfinance cooperatives. Women have gained valued access to credit through microfinance, but research about empowerment is inconclusive. Greater transparency and increased assessment of microfinance institutions, including social performance measurement, is required. There is no systematic research showing that microfinance in Nepal reduces poverty.

Document type: 
Graduating extended essay / Research project
Rights: 
Copyright remains with the author. The author granted permission for the file to be printed and for the text to be copied and pasted.
File(s): 
Senior supervisor: 
Alvaro Santos Pereira
Department: 
Arts & Social Sciences: School for International Studies
Thesis type: 
(Project) M.A.
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