MICROFINANCE: THEORY AND PRACTICE

SHE Level 5
SCQF Credit Points 20.00
ECTS Credit Points 10.00
Module Code MMN323273
Module Leader Olga Biosca Artinano
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimester
  • A (September start)

Summary of Content

-14 Microfinance-6 -1 is-6 a-5 model-6 to-5 -1 provide-6 small-5 -1 loans-6 that-5 -1 people,-6 -1 especially-5 -1 poor-5 -1 women,-6 could-5 -1 use-6 to-5 -1 lift-6 themselves-6 -1 out-5 -1 of -1 poverty.-7 The-7 -1 global-7 microfinance-7 sector-7 continues-7 to-7 -1 grow-7 rapidly.-8 The-7 Microcredit-7 Summit-7 -1 Campaign-6 -1 estimates-6 that microfinance-7 currently-6 reaches-6 -1 over-6 -1 200-6 million-6 clients-6 -1 worldwide-5 -1 and-7 -1 has-6 -1 assets-5 -1 over-6 -1 30-6 -1 USD-6 -1 billion.-6 Popular-6 -1 in -1 developing-6 -1 economies,-5 the-6 microfinance-6 model-6 -1 has-6 -1 now-6 -1 expanded-6 to-6 countries-6 such-6 -1 as-6 the-6 -1 US-7 -1 and-6 -1 UK-6 -1 where-6 -1 pioneer microfinance-6 -1 institution-5 Grameen-5 Bank-6 -1 is-6 -1 operating-4 -1 in-6 the-5 cities-6 -1 of-6 -1 New-8 -6 York-5 -1 and-6 Glasgow. This-7 -1 unique-6 module-6 critically-6 -1 introduces-6 the-6 student-6 to-7 the-6 concepts-6 -1 of-6 microfinance.-6 The-7 module-6 -1 aims to-6 -1 equip-6 students-6 -1 with-5 a-6 -1 general-6 -1 overview-4 -1 as-6 to-6 -1 how-6 -1 global-5 -1 and-6 -1 local-6 circumstances-5 have shaped how microfinance is practiced and understood,-6 -1 and-6 to-6 -1 equip-5 them-6 -1 with-6 the-6 knowledge-5 -1 and-6 skills-6 to-6 -1 determine-5 -1 what-5 factors-6 they-6 should-6 take-5 -1 into-6 -1 account -1 when-7 critically evaluating the concept of -1 microfinance ,-7 -1 or-6 -1 when-6 creating-7 -1 an-6 -1 enabling-6 -1 environment-6 for-6 microfinance to thrive. The-7 module-6 -1 aims-6 to-7 -1 develop-6 critical-6 -1 awareness-5 -1 of-7 microfinance-6 -1 in-6 -1 both-6 -1 developing-6 -1 and -1 advanced-7 -1 economies.-6 This-7 -1 includes-6 the-7 theoretical underpinnings and -1 origins-7 -1 of-7 microcredit, -1 different-7 types-7 -1 of-7 microcredit-7 methodologies,-7 -1 and -1 organisation-7 -1 and-7 -1 operation-6 -1 of-7 microfinance-7 -1 institutions-6 (MFIs).-7 The-7 financial-7 -1 and-7 -1 non-financial-6 -1 product-6 range-7 -1 will-7 -1 be -1 introduced-5 to-6 the-6 students,-6 -1 as-6 -1 well-5 -1 as-6 regional-6 case-6 studies-6 -1 of-5 successful-6 MFIs.-6 The-6 role-6 -1 of-6 commercial-5 funding-6 sources for-8 MFIs-7 -1 will-8 -1 be-7 -1 discussed,-6 focusing-8 -1 on-7 microfinance-7 -1 investment-7 vehicles-7 -1 and-7 -1 international-7 financial-7 -1 institutions.-7 Attention -1 will-6 -1 be-6 -1 paid-6 to-5 the-6 -1 drivers-5 -1 of-5 microfinance-6 crises-6 -1 in-6 -1 different-5 countries,-6 -1 and-6 the-5 subsequent-6 recent-6 -1 developments-4 -1 of-6 the microfinance-18 market. Summary of how PRME-related issues / topics -1 are -1 covered in this -1 module: This-7 module-7 critically-7 -1 engages-7 -1 with-7 the-7 -1 principles-6 for-7 responsible-6 management-7 -1 education.-6 The-7 module-7 -1 is-7 -1 wholly-7 focused -1 around-7 the-7 PRME

Syllabus

The -1 origins -1 of microfinance Forms -1 of microfinance The -1 geography -1 of microfinance Funding Microfinance -1 Crises and controversies in microfinance Contemporary -1 issues -1 in microfinance The future of microfinance

Learning Outcomes

On successful completion of this module, the student should be able to:" Appraise and critically assess the concept of microfinance" Identify how different political, economic and cultural circumstances have shaped how microfinance is practiced and understood" Move beyond a 'one size fits all' model of developing and evaluating microfinance initiatives" Consider the kind of world they would like to co-create and understanding the challenges to making this happen" Develop and apply critical thinking skills

Teaching / Learning Strategy

The module will be delivered in 36 lectures and seminars. In addition, 8 hours of tutor-led activities will be delivered using applied learning strategies. -1 Overview: -1 Learning -1 and teaching -1 will -1 be carried -1 out through -1 lectures, -1 guest -1 lectures, seminars -1 and visits to social -1 businesses -1 and micro finance -1 projects. Guest speakers -1 will -1 provide -1 examples -1 of -1 different -1 approaches to social -1 business -1 and microfinance. -1 Case studies, -1 journal -1 articles -1 and -1 book chapters -1 will -1 be -1 used -1 as a -1 basis for -1 discussion -1 and -1 debate-7 . -1 Use-6 -1 will-6 -1 be-5 made-6 -1 of-5 GCU-6 -1 Learn-6 to-5 -1 provide-6 -1 additional-5 module-5 material. -1 Lectures: -1 Lectures -1 will -1 be -1 designed -1 around the -1 latest research findings. Key concepts -1 will -1 be -1 introduced -1 alongside theories -1 purporting to -1 explain their -1 evolution. Where -1 appropriate -1 lectures -1 will -1 be -1 given -1 by research -1 active -1 lecturers -1 and social -1 business / microfinance -1 practitioners -1 who -1 are -1 leaders -1 in their field. Academics -1 and PhD students from the -3 Yunus -1 Centre for Social Business -1 and -1 Health -1 will -1 play a key role -1 in -1 delivering -1 lectures -1 on social -1 business -1 and micro-13 -finance, -1 and -1 assisting-9 -1 with-10 tutorials. Seminars: -1 Contact -1 based seminars -1 delivered -1 in -1 partnership -1 with the -3 Yunus -1 Centre for Social Business -1 and -1 Health. The seminars-6 -1 will-6 -1 be-6 structured-6 -1 around-6 key-5 -1 articles-5 -1 in-6 the-6 research-6 -1 literature-5 related-5 to-6 the-6 -1 lecture-5 topics. GSBS will -3 c-2 ontinue to use the ad-2 v ancement -2 of GCU -2 Learn as a blended learning t-2 ool through its t-2 eaching and learning as -2 well as through en-2 g a-2 g ement with -2 s tudents. GSBS will ensure that all modules are GCU -2 Learn enabled and with the support -2 of the -2 Learning -3 Technologis-2 ts, at the cutting ed-2 g e -2 of de-2 v elopment -2 of -2 online mat-2 erials. Ac ademic -3 s-2 taff and the L-2 earning -3 Technologis-2 ts will -3 c-2 ontinue to -2 work to-2 g ether to de-2 v elop and -2 operate all modules on GCU Learn to ensure student support and -3 i-2 n-3 f-2 ormation -2 sharing. Students are pro-2 vided with -3 f-2 ormati-3 ve and summati-2 v e -2 f eedback via a -2 vari e-2 ty -2 of mechanisms. -2 F eedback on -3 c-2 our-3 s-2 e-3 work is pro-2 vided-24 within-22 three-23 -2 working-23 -2 w ee-2 ks

Indicative Reading

Set texts: -546 Armendariz, B. and Morduch, J. (2010). The -1 Economics -1 of Microfinance (2nd Edition). Cambridge, MA: MIT -1 Press. Bateman, M. (2010) Why -1 Doesn't Microfinance Work? -1 London: Zed Books -1 Course readings: -515 Agier I and Szafarz A (2013) Microfinance and Gender: Is There a Glass Ceiling on Loan Size? World Development, 42, 165-181. Akerlof GA (1970) The Market for 'Lemons': Quality Uncertainty and the Market Mechanism. The Quarterly Journal of Economics, 84(3), 488-500. -515 Berger, M, Goldmark, -1 L, and Miller-Sanabria, T. (eds.), An Inside view -1 of -1 Latin American -1 Microfinance. -2 Washington D.C.: Inter-American -1 Development Bank. -515 Biosca O, Lenton P and Mosley P (2014a) Microfinance Non-Financial Services as a Competitive Advantage: The Mexican Case: Credit-plus as a Competitive Advantage. Strategic Change, 23(7-8), 507-516. Biosca O, Lenton P and Mosley P (2014b) Where is the 'Plus' in 'Credit-Plus'? The Case of Chiapas, Mexico. The Journal of Development Studies, 1-17. -515-1 Conning, J and Morduch, J -2 (2011) Microfinance -1 and Social Investment. Annual -1 Review -1 of Financial Economics -1 3: -1 407-434 -515 Cull R, Demirgfce7-Kunt A and Morduch J (2009) Microfinance Meets the Market. Journal of Economic Perspectives, 23(Winter), 167-192. D'Espallier B, Hudon M and Szafarz A (2013) Unsubsidized Microfinance Institutions. Economics Letters, 120(2), 174-176. Kleynjans L and Hudon M (2014) A Study of Codes of Ethics for Mexican Microfinance Institutions. Journal of Business Ethics, DOI: 10.1007/s10551-014-2434-y -515 Krauss, -1 N and -2 Walter, I (2009) -1 Can Microfinance -1 Reduce Portfolio -1 Volatility? Economic -1 Development -1 and -1 Cultural -1 Change, -1 58(1), -2 85-110. -515-1 Ledgerwood, J and White, V (2006). -2 Transforming Microfinance -1 Institutions: Providing Full Financial Services to the Poor. -2 Washington, -1 DC: -2 World Bank. -515 McHugh N, Gillespie M, Loew J, Donaldson, C (2014) First Steps towards Self-Employment - Microcredit for Enterprise in Scotland. Scottish Affairs, 23(2), 169-191. -515 Morduch, J. (2000). The Microfinance Schism. World -1 Development, -1 28(4), -1 617-62. -1 Journals Journal -1 of Development Studies World Development Journal of Business Ethics -1 Additional-5 -1 reading-4 -1 materials-5 will-5 be-6 drawn-5 from-5 online-6 -1 resources.

Transferrable Skills

By the end of this module students will have gained competence in the following key areas: -1 Understanding -1 of the rapidly -1 developing field -1 of microfinance -1 Critical thinking -1 and -1 analysis The -1 ability to communicate clearly The -1 ability to -1 work -1 independently -1 Understanding -1 of complex -1 problems -1 and -1 ability to -1 negotiate them

Module Structure

Activity Total Hours
Assessment (FT) 40.00
Independent Learning (FT) 116.00
Lectures (FT) 24.00
Seminars (FT) 12.00
Practicals (FT) 8.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 02 n/a 75.00 45% Individual Microfinance essay (3000 words)
Course Work 01 n/a 25.00 45% Individual Presentation