MICROFINANCE: THEORY AND PRACTICE

SHE Level 5
SCQF Credit Points 15.00
ECTS Credit Points 7.50
Module Code MMN324965
Module Leader Neil McHugh
School Glasgow School for Business and Society
Subject Finance and Accounting
Trimesters
  • A (September start)
  • B (January start)
  • C (May 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-23 -2 of-24 -2 submission.

Indicative Reading

Core Reading Armendariz, B. and Morduch, J. (2010). The Economics of Microfinance (2nd Edition). Cambridge, MA: MIT Press. Additional Reading 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. Bateman, M. (2010) Why Doesn't Microfinance Work? London: Zed Books. Berger, M, Goldmark, L, and Miller-Sanabria, T. (eds.), An Inside view of Latin American Microfinance. Washington D.C.: Inter-American Development Bank. Biosca O, Lenton P and Mosley P (2014a) Microfinance Non-Financial Services as a Competitive Advantage: The Mexican Case. 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. Conning, J and Morduch, J (2011) Microfinance and Social Investment. Annual Review of Financial Economics 3: 407-434 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 Krauss, N and Walter, I (2009) Can Microfinance Reduce Portfolio Volatility? Economic Development and Cultural Change, 58(1), 85-110. Ledgerwood, J and White, V (2006). Transforming Microfinance Institutions: Providing Full Financial Services to the Poor. Washington, DC: World Bank. 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. Morduch, J. (2000). The Microfinance Schism. World Development, 28(4), 617-62.

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
Lectures (FT) 24.00
Seminars (FT) 12.00
Assessment (FT) 40.00
Independent Learning (FT) 74.00

Assessment Methods

Component Duration Weighting Threshold Description
Course Work 01 n/a 25.00 45% Group Presentation
Course Work 02 n/a 75.00 45% Individual Microfinance essay (2500 words)