[2013] JARAMILLO, Miguel. Guide to microfinance in Latin America. ELLA. Economic Development, Microfinance, ELLA Guide.

Developing countries around the world struggle with supplying resources to the poor. Though social assistance programmes are one option, the challenge of creating dependence amongst the intended beneficiaries always arises. Hence the draw of microfinance, an institution with origins in Europe in the 1800s as a «cooperative movement» involving urban wage earners and small farmers, that has been adopted in Latin America and has grown at a two-digit rate for the past decade. This Guide reviews the concept of microfinance as developed in Latin America, underscoring its unique features. We present an overview of its recent evolution and the current state of the market. The different types of institutions offering microcredit in the region are also presented and analysed. Next, regulations and practices of Latin American institutions are presented, as they are key to understanding microcredit in a context where neither guarantees nor documentation is mandatory. Finally, the Guide reviews technologies and strategies that microfinance institutions use to increase profits and presents what may be the next frontier for the industry, integrating services to support company development combined with microfinance. The Guide concludes with lessons that may be relevant for other contexts, as well as highlighting key publications and organisations related to microfinance in the region.