Chronicle of a failure foretold: the challenge of rural areas for micro-finance, through a case study in Ecuador[Research paper] by Caroline Charhon


The author was part of the “Alternative Management” third year program in HEC in 2010. In order to write this research paper, Caroline Charhon stayed three months at the University of FLACSO, in Ecuador, in 2010. She studied there the reasons for the failure of a product of micro-finance, that was supposed to help rural producers.

In the last couple of years, micro-finance has been subject to growing critics regarding its efficiency and its ability to reach its goals of poverty alleviation. In this research essay, we intend to think about one of the main challenges for micro-finance today: the rural areas. Through the study of an innovative project of microcredit designed for rural areas in Ecuador that failed, we aim at understanding whether it is possible for micro-finance to address rural areas and, if so, analysing in depth mechanisms that determine success or not of a project of rural finance.

Quote article  Caroline Charhon, « Chronicle of a failure foretold: the challenge of rural areas for micro-finance, through a case study in Ecuador », 18 august 2011, Alternative Management Observatory (AMO), [Research paper]

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