ACCION International - Essay Example

Finance and Accounting In this case, both readings talk about the economic performance in the microfinance sector. According to the second reading, ACCION International is an independent organization that is based in Boston (Chu 1). This corporation has various initiatives, which are aimed at improving the local conditions especially in the poor regions. In both readings, the corporations involved aimed at improving the economic activities in several regions. These initiatives aimed at improving economic growth in the places that had been affected by acute poverty.

This article will provide a general opinion regarding the readings concerning the economic performance. It is quite evident that ACCION International had a mission of eradicating poverty. This organization provided financial services in the form of loans and business training to enable the poor individuals to sustain a decent lifestyle. In both cases, they have developed microfinance institutions that are able to achieve several financial factors (Chu 5). This enables them to attain a significant scale in the market.

All contributions made were directed to the economic development of the poor countries. Therefore, they used two methodologies to develop commercial microfinance institutions. The first method involved performing a transformation of the Non-Governmental Organizations to microfinance institutions. The second priority was based on creating equity funds, which will enable to provide a capital base for the microfinance institutions (Chu 9). The Non-Governmental Institutions could also be transformed into financial institutions to manage economic crisis.

In conclusion, this will enhance partnership in most commercial banks and maintain a strong leadership position in the microfinance industry. Furthermore, the transformation will entail the development of certain methodologies that enable the microfinance institutions to serve individuals from the low-income population. This will substantially boost the outreach of the microfinance segment in the society (Chu 17). Work Cited Chu, Michael. ACCION International: Maintaining High Performance through Time.

United States: Harvard Business School Press, 2005. Print.