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Chapter 5

The “Developed World”

 1. See its “business philosophy”

 3. See

 4. See

 5. Reported at

 6. Chuck Waterfield, “Explanation of Compartamos Interest Rates,” May 19, 2008,

 7. Ira W. Lieberman, Anne Anderson, Zach Graffe, Bruce Campbell, and Daniel Kopf, Microfinance and Capital Markets (n.p.: Council of Microfinance Equity Funds, 2008), p. 18,

 8. Roodman, “Does Compartamos Charge 195% Interest?”

9. See, for example, for a good summary of Compartamos. Some valuations are estimated, or depend on the share price at a certain point in time. What is beyond doubt, and visible on websites such as, is that Accion International’s net assets grew from $34 million in 2006 to $332 million in 2007, an increase of $298 million in one year. This same website publishes the 2009 salary of the CEO, but not for previous years. See also Focus Note no. 42, p. 14,, or “The Implications of Increased Commercialization of the Microfinance Industry,” MFI Solutions/ La Colmena Milenaria, July 2008, p. 9,, which states that the immediate sale of 50 percent of Accion’s shares in Compartamos earned them US$134,965,740 net of fees, suggesting a total valuation of just under $270 million, and accounting for over 90 percent of the increase in net assets that occurred over this period.


11. “Implications of Increased Commercialization of the Microfinance Industry,” p. 6.

12. Accion IRS Form 990 2008, pp. 34 and 35, available on book website, described vaguely as “investment”.

13. Accion IRS Form 990 2009, p. 9.

14. See, at minute 31.

15. IRS Form 990 2010, p. 43,

16. Steve Beck and Tim Ogden, “Beware of Bad Microcredit,” Harvard Business Review, September 2007; summary available at

17. David Lascelles and Sam Mendelson, Microfinance Banana Skins 2011: The CSFI Survey of Microfinance Risk (London: Centre for the Study of Financial Innovation, 2011); available at


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