Journal of Microfinance

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1 Journal of Microfinance Volume Five, Number One Spring 2003 CENTER FOR ECONOMIC SELF-RELIANCE MARRIOTT SCHOOL BRIGHAM YOUNG UNIVERSITY PROVO, UTAH SCHOOL OF BUSINESS BRIGHAM YOUNG UNIVERSITY HaWAII LAIE, HAWAII

2 Journal of Microfinance is a joint publication of The Center for Economic Self-Reliance, Marriott School, at University Provo, Utah, USA and the School of Business University Hawaii Laie, Hawaii, USA Copyright 2003 Journal of Microfinance All rights reserved. Printed in the United States of America on acid-free paper. Journal of Microfinance thanks the following for their contributions: The Marriott School at University Professor Don Norton and his students at the BYU Faculty Editing Service. Professor Mel Thorne and his students at the BYU Humanities Publication Center.

3 SUBSCRIPTIONS AND SUBMISSIONS Journal of Microfinance (ISSN ) is published semiannually by University. Second-class postage paid at Provo, Utah, and at additional mailing offices. Postmaster: please send address changes to Journal of Microfinance, 790 TNRB, Marriott School, University, Provo, UT Subscriptions: The subscription rate for subscribers in the U.S. and Canada for two issues is the following (in U.S. dollars): Individuals Libraries On-line $20 $50 Hard Copy $35 $100 Combination $45 $145 Add $10 for non-u.s. / Canada hard copy or combination subscriptions. All claims on issues not received must be made within three months of publication if within the United States, or within six months for subscriptions outside the United States. Please send all correspondence regarding subscriptions to microjournal@byu.edu or Journal of Microfinance, 790 TNRB, Marriott School, University, Provo, UT 84602, USA; visit us online at or call (801) Submissions: Journal of Microfinance is pleased to accept submissions for publication sent to the special attention of the editor. All communications dealing with articles should be sent by to microjournal@yahoo.com; or to Journal of Microfinance, 790 TNRB, Marriott School, University, Provo, UT 84602, USA. Content: All citations conform to the standards of American Psychological Association. Views expressed herein are to be attributed to their authors and not to Journal of Microfinance or University unless otherwise indicated. Copyright: Except as otherwise noted, Journal of Microfinance is pleased to grant permission for copies of articles to be made for classroom use, provided that (1) a proper notice of copyright is affixed to each copy, (2) the author and source are identified, (3) copies are distributed at or below cost, and (4) Journal of Microfinance is notified of the use. Copyright 2003 Journal of Microfinance

4 EDITORS Gary Woller University Beth Haynes Book Review Editor University Hawaii Norman Wright University Hawaii EDITORIAL BOARD Craig Churchill International Labour Organisation Sam Daley-Harris Microcredit Summit Christopher Dunford Freedom From Hunger Elaine Edgcomb Aspen Institute Jason Friedman Association for Enterprise Opportunity Kathleen Gordon MicroBusiness USA John Hatch FINCA International Gerald Hildebrand Katalysis North/South Development Partnership Mildred Robbins Leet Trickle Up David Richardson World Council of Credit Unions Mark Schreiner Washington University, St. Louis Hans Dieter Seibel International Fund for Agricultural Development J. D. Von Pishke Frontier Finance International Muhammad Yunus Grameen Bank

5 CONTENTS ARTICLES 1 Self-Help Groups as Financial Institutions: Policy Implications Using a Financial Model R. Srinivasan 21 SHG-Bank Linkage Program in India: An Overview Hema Bansal 51 Microfinance for Housing: The Mexican Case Michael Goldberg and Marialisa Motta 77 Designing Microfinance from an Exit-Strategy Perspective Larry Hendricks 89 The Impact of Large Capital Infusion to Community Development Credit Unions Jared Raynor 115 Problems? What Problems? We Have None at All: Qualitative Data Collection for Impact Assessment Katie Wright BOOK REVIEW 139 New Directions in Poverty Finance. By Craig Churchill, Madeline Hirschland, and Judith Painter Stuart Rutherford

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