This report outlines the fi ndings of the Economist Intelligence Unit’s in-depth analysis of the microfi nance business environment in 55 countries. The index that underlies this report allows countries and regions to be compared across two broad categories: Regulatory Framework and Practices, which examines regulatory and market-entry conditions, and Supporting Institutional Framework, which assesses business practices and client interaction. The Microscope was originally developed for countries in the Latin American and Caribbean region in 2007 and was expanded into a global study in 2009. Most of the research for this report, which included surveys, interviews and desk analysis, was conducted in the fi rst half of 2011. This year’s Microscope builds on last year’s study, but signifi cantly improves it by utilising a new methodology, increasing the number of interviews conducted per country, and featuring fi nancial performance data to provide context for each country’s scores.