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.