Study On Mission Drift Of Microfinance In South Asia

Microfinance from the date of birth carries the social mission of poverty alleviation, especially in South Asia. With the Continuously deepening of economic globalization trend, microfinance institutions in south Asian tend to apply more and more commercial operation mode.These institutions begin to pursue economic profits, pay attention to improve their financial situation, and increase their financial sustainability, but these actions may be harmful to depth of outreach of microfinance. Microfinance first can not aim at the poor,so this will produce the problem of mission drift.Therefore, microfinance institutions must be a trade-off between their own financial sustainability and depth of outreach of microfinance,and this influence causes a conflict between economic target and social target on microfinance. Mission drift promotes that microfinance is divorced from own social goals and loses the original attributes for poverty alleviation.People from all walks of life have started to question its existence value.On the basis of study about Mission Drift of microfinance at home and abroad, This paper mainly Combines the theoretical research and empirical analysis to Study on Mission Drift of microfinance in South Asia and puts forward relevant policy suggestions.The paper firstly begins with an overview of mission drift of microfinance on relevant theory,introduces variables and index of mission drift and gives a statistical description of relevant variables.Secondly,the paper carries out research through financial data of many microfinance institution in South Asia that are based on MIX data,builds the economic measurement model,respectively uses least square method of random effects and least squares method of fixed effects about panel data to estimate model parameter,and meanwhile analyses the average size of loans and the loan share of female borrower of microfinance institution in South Asia.These measures could explore depth of outreach of microfinance,and distinguish the Commercial operation mode of microfinance institution can whether cause the problem of mission drift or not.Thirdly,the paper summarizes the experience of target aim on grameen rural bank of Bangladesh,according to operation model of grameen rural bank of Bangladesh.Finally,the paper introduces the experience of target aim of developing course of microfinance in South Asia to microfinance development of China in order to provide experience support that enlarges depth of outreach of microfinance and determines target groups.The research result shows that microfinance institutions in South Asia don’t appear the problem of mission drift in the operation process of commercialization.The increase of profitability of microfinance institution don’t lead to increase of the average size of loan and decrease of the loan share of female borrowers.At the same time, in the basis of summarizing microfinance targeting experience of South Asia,the paper makes targeting experience for reference to the development process of microfinance of China so that it could solve the problems in the progress of microfinance of China,and hopes that our country will form a new rural financial system of "generalized system of preferences" as soon as possible.