Microfinance Impact in Chile: A Tale of Two Cooperatives
This document presents a research proposal to assess the impact of MFIs in Chile. It seeks to understand whether microfinance policies adopted from Asia are appropriate for South Americas unique cultural climate.
The proposed study will focus on two microcredit cooperatives, namely, Cooperativa de Ahorro y Crédito Talagante Ltda. (COOCRETAL) and Cooperativa de Servicios Financieros a la Microempresa (CREDICOOP). It will estimate the impact of program participation on outcomes including business profits, consumption, primary schooling of children, and health expenditures.
The document reviews existing empirical literature on microfinance impact in Chile, and provides an overview of Chilean MFIs. It expects that the proposed study will help validate or counter the claims made by policy makers and NGOs about the effectiveness of microfinance in reducing poverty and creating employment