Tuesday, 3 July 2012

Harsh words against microfinance

Interesting video! Milford Bateman explaining why he is against microfinance. His bottom line: microfinance does not offer any shortcut out of poverty. In many cases, it makes it harder for people to get decent prices for the goods they sell, worsens their debt burden and maintains them in difficult work conditions. His conclusion is that microfinance actually keeps local economies from developing healthy enterprises that would provide regular paid jobs.
The video takes about 25 minutes and contains some acronyms that are not explained. If you want something quicker or your internet connection is poor, I recommend Bateman's visual presentation which you find HERE, or his scolarly PAPER co-authored with Cambridge economist Ha-Joon Chang. There is also an hour-long lecture at the UK Overseas Development Institute (ODI) available HERE.

2 comments:

Milford Bateman said...

Dear Michaela

Interesting post. You can find out the final version of our article at

http://werdiscussion.worldeconomicsassociation.org/?post=microfinance-and-the-illusion-of-development-from-hubris-to-nemesis-in-thirty-years

Best

Milford

Michaela Raab said...

Dear Milford,
Many thanks for this helpful information. I have updated the link in my post.
I hope your concerns are heard - the other day "my" bank, which has presented itself as super-ethical and politically correct, sent PR materials inviting their clients to invest in microfinance. They don't seem to get it.
Best, Michaela