Todd A. Watkins, Rauch 471, x84954, watkins@lehigh.edu
Required Books:
- Marguerite S. Robinson, The Microfinance Revolution: Sustainable Finance for the Poor, World Bank, 2001.
- Beatriz Armendáriz and Jonathan Morduch, The Economics of Microfinance, MIT Press, 2005.
- Muhammad Yunus, Banker to the Poor, PublicAffairs Books, 2007 paperback edition.
Course Description
Surveys the rapidly growing global microfinance industry, financial services to the poor on a large scale, mostly in developing nations. Historical origins and industry evolution. Nature of and developmental role of microenterprises and financial systems. Methods and technologies used by microfinance institutions (MFIs). Case studies of leading MFIs and the lives and businesses of their clients. Role of policy and regulatory environments. Sources of financing, including controversial role of global financial markets. Debates over health and environmental goals. Emerging conflicting evidence on economic and social impact. Includes meetings with authors and practitioners, and field trip to MFIs in Washington DC.
Course Objectives: You should develop a substantive understanding of the practice and intermediate economic theories of microfinance. By the end of the course you should:
- Develop a working knowledge of the structure, history and evolution of the microfinance industry worldwide.
- Understand the nature of and developmental role of micro-enterprises and financial systems.
- Become familiar with the main products, methods, funding sources and technologies used by microfinance institutions (MFIs).
- Gain exposure to case studies of leading MFIs and the lives and businesses of their clients.
- Be able to apply intermediate-level economic theories to analyze markets for micro-credit, savings and insurance for the poor in developing nations.
- Understand the role of policy and regulatory environments on the sustainability of MFIs.
- Be able to articulate the main debates and empirical evidence within the industry regarding commercialization, health and environmental goals and social impact.
- Meet several authors and practitioners and have the opportunity to participate in several field visits.
- Understand specific topics of practice and theory in microfinance well enough to write clear explanations of them.