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http://www.youtube.com/watch?v=JnNPgtx7mdY I am a big fan of microfinance, having started my first microfinance project for water and sanitation in rural KwaZulu, Natal, South Africa in 1993. But I learned very quickly in this project that there was often a gap between repayment rates and actual impact. The microfinance sector spends a great deal of time focused on repayment rates – with organizations suggesting that they are successful and impactful because they can show a high repayment rate on the loans that they made. To illustrate, MFIs will often publish statistics like 95% repayment rates on loans and suggest that this means they are great at transforming poverty and changing lives. Repayment matters of course, but it does not in any way confirm the impact of the loan. In the case of water and sanitation, a focus on loan repayment as the key (or only) indicator of success is misleading. Repayment of loans simply show that money was...