chapter  4
10 Pages

The Political Economy of Microfinance Governance: The Experience of ACSI

The system of governance of ACSI is discussed in this chapter, exploring the positive and negative consequences of government direct involvement in microfinance process. The chapter argues that government can play a key role in enabling microfinance institutions to be sustainable while simultaneously targeting their financial services to the poorest of the poor. However, it also warns that government repayment enforcement structures at local level can result in the destruction of the livelihoods of the poor.