Efficiency and productivity analysis of global not-for-profit microfinance institutions:data envelopment analysis approach

Microfinance has been regarded as the one of the effective solutions in poverty alleviation efforts globally. Its growth has been driven by not‐for‐profit microfinance institutions in the form of non‐governmental organization, credit unions, cooperatives and others. Microfinance sits at the unique position between social welfare programme and financial institutions as it faces dual objectives of outreach to the poor and financial sustainability. Due to its unique dual objectives, it is imperative to undertake a comprehensive performance and productivity assessment as microfinance institutions currently hold an important roles in improving the lives of the poor globally. This thesis thus has multi‐faceted objectives: firstly, it seeks to propose a comprehensive performance measurement that can evaluate these objectives comprehensively, as opposed to current focus on trade‐offs between microfinance dual objectives and shortsighted focus on financial indicator, yet proficient to track microfinance performance and total factor productivity over time. It therefore proposes Data Envelopment Analysis (DEA) as adept measurement for microfinance institutions globally, especially using hyperbolic, non‐oriented DEA model due to its benchmarking capability and DEA‐based Circular Malmquist Index in measuring total factor productivity under condition of unbalanced data, such as the case with microfinance. This thesis also proposes Social‐Financial Efficiency Matrix as a performance monitoring tool for microfinance. Secondly, this thesis seeks to provide thought‐provoking empirical evidence to the performance comparison between Islamic and conventional microfinance. Thirdly, it seeks to explore the relationship between loan methodology and microfinance efficiency in six different regions globally, in contributing to the search of an adept loan method that can boost efficiency. Fourthly, it seeks to analyse microfinance productivity globally in times of crisis, i.e. evaluating its resilience toward external shocks, so that improvement can be proposed for the future

Social and financial efficiency of Islamic microfinance institutions:a Data Envelopment Analysis application

Microfinance has been developed as alternative solution for global poverty alleviation effort in the last 30 years. Microfinance institution (MFI) has unique characteristic wherein they face double bottom line objectives of outreach to the poor and financial sustainability. This study proposes a two-stage analysis to measure Islamic Microfinance institutions (IMFIs) performance by comparing them to conventional MFIs. First, we develop a Data Envelopment Analysis (DEA) framework to measure MFIs' efficiency in its double bottom line objectives, i.e. in terms of social and financial efficiency. In the second stage non-parametric tests are used to compare the performance and identify factors that contribute to the efficiency of IMFIs and MFIs

Observing choice of loan methods in not-for-profit microfinance using data envelopment snalysis

Distributing loan using group lending method is one of the unique features in microfinance, as it utilises peer monitoring and dynamic incentive to lower credit risks in extending collateral-free loan to the poor. However, many microfinance institutions (MFIs) eventually perceive it to be costly and restricting loan growth thereby resorted to individual lending method to enhance profitability. On the other hand, village banking method was developed to boost outreach and to create self-sustaining village microbanks. We thus seek to empirically observe the loan method – efficiency relationship and to examine the best loan method regionally; focusing on not-for-profit MFIs that are widely regarded as best microfinance provider. Non-oriented Data Envelopment Analysis with regional meta-frontier approach is used for efficiency assessment of 628 MFIs from 87 countries in 6 regions, followed by Tobit regression. We also investigated factors affecting efficiencies such as borrowings, total donation, cost per borrower (CPB), portfolio at risk (PAR), interest rates, MFI age, regulation status, and legal format. The results support our argument that appropriate performance analysis should best be performed on regional basis separately as we find different results for different region

Financial crises and the attainment of the SDGs: an adjusted multidimensional poverty approach

This paper analyses the impact of financial crises on the Sustainable Development Goal of eradicating poverty. To do so, we develop an adjusted Multidimensional Poverty Framework (MPF) that includes 15 indicators that span across key poverty aspects related to income, basic needs, health, education and the environment. We then use an econometric model that allows us to examine the impact of financial crises on these indicators in 150 countries over the period 1980–2015. Our analysis produces new estimates on the impact of financial crises on poverty’s multiple social, economic and environmental aspects and equally important captures dynamic linkages between these aspects. Thus, we offer a better understanding of the potential impact of current debt dynamics on Multidimensional Poverty and demonstrate the need to move beyond the boundaries of SDG1, if we are to meet the target of eradicating poverty. Our results indicate that the current financial distress experienced by many low-income countries may reverse the progress that has been made hitherto in reducing poverty. We find that financial crises are associated with an approximately 10% increase of extreme poor in low-income countries. The impact is even stronger in some other poverty aspects. For instance, crises are associated with an average decrease of government spending in education by 17.72% in low-income countries. The dynamic linkages between most of the Multidimensional Poverty indicators, warn of a negative domino effect on a number of SDGs related to poverty, if there is a financial crisis shock. To pre-empt such a domino effect, the specific SDG target 17.4 on attaining long-term debt sustainability through coordinated policies plays a key role and requires urgent attention by the international community

PENGARUH LUAS CELAH UDARA PADA KOMPOR BRIKET BATUBARA TERHADAP EFISIENSI WAKTU PENDIDIHAN AIR

The material of world oil has been scarce and it make the source of mineral andenergy department issued of the nationality energy policy, one of step is verificationenergy, that is to be increasing variety usage the alternative energy like coal, gas and newenergy. The briquette coal is alternative energy from fossil and blended with waster ortapioca flour. In usage briquette coal get in stove coal briquette the process burned usinghelp air gap at stove coal briquette. With assumption at the wide of air gap stove briquettecoal large, so the flame more than large. The purpose of this analysis is to examineinfluence of air rapid about the Efficiency Time of boiling water. The analysis steps: thecollecting material and tools that will be use for analysis. After that weighing the coal andthen briquette heating until appearance the good quality fire then set of pain which iscontain 1 liter water with air gap in stove coal briquette 16 cm2. Next when the water wasboiled, make no the time of boiling water. And then, change the water with new water andair gap to be large. The influence of air gap at stove coal briquette about Efficiency time ofboiling water is time quickly to need briquette for boiling water. The time quicker for coalbriquette in boiled 1 liter water is 10 minutes with wide gap 56 cm2 and air rapid line 0,4m/s. the conclusion is that the air gap opened wide in the process burning can be make fastprocess of burning and efficiency time of boiling water can be optimum. Because of gapwas opened. Wide air and oxygen get reaction with fire until can be make fast the rapid ofburning. More that wide gap in stove coal briquette, so oxygen more that bigger, with thehigh fire more that faster in the process boiling water. And the grade of efficiency timemore than faste