Accessing the efficiency and productivity of INGOs in Myanmar's microfinance area

Abstract

Microfinance International Non-Governmental Organizations (INGOs) are pioneers in microfinance services of Myanmar. After delivering microfinance services for the poor in the country for a decade, microfinance INGOs became the largest licensed Microfinance Institution (MFI) in Myanmar. The positive impacts of microfinance institutions on the welfare of the poor can only be sustained if the institutions can achieve good financial performance. The main objective of this paper is to examine current situations of INGOs in microfinance services of Myanmar by assessing the efficiency and productivity. Empirical evidence indicates that microfinance institutions and INGOs cannot simultaneously achieve both efficiency and productivity. Therefore, INGOs should find ways to balance the two in relation to socioeconomic situations.