Success of Mexican Microfinance on a Macroeconomic Scale

Abstract

Microfinance aims to combat poverty and enhance financial markets globally by serving individuals and communities in developing countries. To determine the impact of microfinance, it’s essential to understand a country’s macroeconomic conditions. Mexico has a thriving microfinance market, making it a valuable case study for understanding similar emerging economies. The commercialization of microfinance institutions is a topic of contention among experts. This thesis will examine how Mexico’s macroeconomic context affects the effectiveness of microfinance as a poverty alleviation tool, and assess the commercialization debate by examining socially oriented and commercialized Mexican microfinance institutions and their advantages and limitations. Additionally, an interview with Alvaro Chocano, the Director of Investor Relations at MICROWD microfinance firm, provides valuable insight into the current state and future outlook of the industry and his opinions on microfinance commercialization.