MICROFINANCE IN THE PHILIPPINES: A Study of Grameen Foundation Australia and its Innovative Lending Program
Open Access
Author:
Hendershot, Beth Leigh
Area of Honors:
International Business (Behrend)
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Kenneth Louie, Thesis Supervisor Kenneth Louie, Thesis Supervisor James Anthony Kurre, Faculty Reader Kenneth Louie, Thesis Honors Advisor
Keywords:
microfinance Philippines Grameen
Abstract:
This thesis will introduce readers to the microfinance industry, covering basic concepts, and then delving into specific programs in the Philippines. There will be a heavy focus on the microfinance initiatives by Grameen Foundation Australia (GFA), a small non-profit organization based in Sydney, Australia. This organization is a replicator and supporter of Grameen Bank, created in Bangladesh by Professor Muhammad Yunus, a Nobel Laureate. As an intern at GFA, I was able to play an active role in further developing its programs, one of which is the innovative Rotating Credit Cycle. I have taken an in-depth look at this program, measuring its sustainability and competence over time in projected models. I also set up an econometric model in which to test two hypotheses: the superiority of the rotating program versus a traditional one, and the effect of an incentive program on program success, defined as the change in household income. All in all, however, it may be too early to measure the true impacts that microfinance has on eliminating poverty amongst the world’s poorest of the poor.
