Replication: Regressive Reproduction or Progressive Evolution?

In this paper, the author disapproves of organizations that attempt to implement blue-prints of existing successful institutions without suitably adapting them to the local environment. The article states that such an approach brings down the quality of these microfinance programs and is characterized by:

• Lack of careful analysis of local requirements in providing financial services;
• Lack of innovations in providing financial service as a result of blind replication;
• Inadequate exploration of all the options open to client organization, while promoting only specific approaches;
• Provision of 'part time banking' by some organizations, against the interests of their clients.

In conclusion, the author reiterates that quality should not be compromised for quantity and that:

• The process of replication must include a period of research and reflection, pilot-testing, monitoring and modifications;
• The modifications made should maintain the basic principles of microfinance;
• Financial services should be tailored to meet the needs of the community that the institution desires to serve;
• Mechanisms that support innovative and client-driven models should be promoted.