Microfinance in Brazil: Government Polices and Their Effects
This thesis investigates the policies adopted by the Brazilian president, Mr. Luís Ignácio Lula da Silva, as a result of campaign promises towards microfinance. Data were collected from Brazilian government institutions, from microfinance institutions’ websites and from interviews with institutions’ managers. The study analyzes how effective these policies were in fighting the existent barriers upon the sector and promoting its development. After Mr. da Silva’s term, the sector has made significant improvements in the number of institutions, number of clients, and the active loan portfolio volume. Despite the success, however, the government actions did not deepen the sector sustainability and its policies are oriented much more towards microcredit than microfinance, following an old paradigm for finance to the poor. This study recommends that the Brazilian government, as a second step, supports microfinance institutions, through regulations and policies, in order to facilitate their sustainability and lower their dependence on the government.
School Location:USA - Ohio
Source Type:Master's Thesis
Keywords:microfinance in brazil government policies finance to the poor
Date of Publication:01/01/2008