This is a summary of a book edited by Milford Bateman, Stephanie Blankenburg and Richard Kozul-Wright; published by Routledge; September 2018; 290 pages; available for purchase at https://www.routledge.com/The-Rise-and-Fall-of-Global-Microcredit-Development-debt-and-disillusion/Bateman-Blankenburg-Kozul-Wright/p/book/9781138714120
The authors of this book discuss the history, concepts and adverse impacts of microfinance as it has been deployed in the Global South since the 1980s. Contrary to the intent of microcredit and associated economic policies to enable low-income people to benefit from entrepreneurship, the authors present cautionary studies from Bangladesh, Brazil, Cambodia, Colombia, India, Mexico, Morocco, Peru and South Africa. These case studies link microcredit to problems such as: (1) rising levels of debt among low-income borrowers; (2) the emergence of economic recessions; and (3) transferring wealth and power away from poor people. Despite these criticisms, the authors argue that financial inclusion is important, and they suggest continued work to increase the sustainability of development interventions.
Sources and Additional Resources
“The Rise and Fall of Global Microcredit – Development, Debt and Disillusion”
https://www.routledge.com/The-Rise-and-Fall-of-Global-Microcredit-Development-debt-and-disillusion/Bateman-Blankenburg-Kozul-Wright/p/book/9781138714120
Rutledge Critical Development Studies Series
https://www.routledge.com/Routledge-Critical-Development-Studies/book-series/RCDS
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