WAYS DONORS CAN HELP THE EVOLUTION OF SUSTAINABLE MICROFINANCE ORGANIZATIONS

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This paper suggests ways donors can help the evolution of sustainable microfinance organizations. Sustainability is good because it helps MFOs help more poor people than otherwise. Sustainability is hard because it requires balancing outreach and sustainability with prices the poor can afford yet high enough to cover the costs of the MFO. Donors are like genetic engineers whose job is to speed the evolution of sturdy MFOs. Technical assistance is the best way to tinker with MFOs.

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