Microcredit programs, which often give small loans to borrowers in developing countries who lack collateral, have been considered efficient tools for economic development in struggling regions around the world. Yet, recently, microcredit has come under increasing critic by experts who feel that these loans are doing more harm than good by creating a debt trap for borrowers as well as a privatized form of welfare. The Crises of Microcredit brings together distinguished contributors to offer the latest research on the effects of microcredit around the world.
Drawing on extensive empirical research, this important volume examines the whole chain of microcredit—from investors and donors to clients— in order to provide a comprehensive analysis of its impact. In doing so, the essays collected here shed light on the many causes of the current microcredit crisis, including microcredit organizations that have been unprepared for massive growth and greedy investors and shareholders attracted by profits. The result is a timely and necessary look at what has become one of the most contentious topics within global economic development.
Part I. Supply
1. Microcredit Crises and Unsustainable Growth: a Management Perspective – Bert D’Espallier, Marc Labie and Philippe Louis
2. Estimating Levels of Credit Market Saturation – Emmanuelle Javoy and Daniel Rozas
3. Microcredit Crises and the Absorption Capacity of Local Economies – Isabelle Guérin and Jean-Michel Servet
Part II. Demand
4. Is the demand for microcredit in rural Tamil Nadu sustainable? – Isabelle Guérin, Cyril Fouillet, Santosh Kumar, Marc Roesch and G. Venkatasubramanian
5. How Good Repayment Performances Can Harm Borrowers: Evidence from the Dominican Republic – Morvant-Roux Solènem, Joana Afonso, Davide Forcella and Isabelle Guérin
6. The social credibility of microcredit in Morocco after the default crisis – Morvant-Roux Solène and Roesch Marc
Part III. Environment
7. Malaise in the Senegalese microfinance landscape – Eveline Baumann, Abdoulaye Fall, Cécile Godfroid
8. No Pago, a Social Movement Against Microcredit Institutions in Nicaragua – Jean-Michel Servet
9. When microfinance collapses: Development and politics in Andhra Pradesh – Picherit David
Conférence de Jean-Michel Servet sur “Les monnaies du lien” à Etika Luxembourg. Lien vidéo de la conférence
Lien vers une recension d’ouvrage parue dans Alternatives Economiques. Lien
Écoutez une interview de Jean-Michel Servet à propos de son livre sur Radio Suisse Romande. Lien
Guérin I., Morvant-Roux S. and Villareal, M., Microfinance, Debt and Over-Indebtedness. Jugling with Money, Routledge, London, 316 p.
Although microcredit programmes have long been considered efficient development tools, many forms of debt-induced distress have emerged in their wake. This has brought to light the problem of over-indebtedness, a topic which has been previously underexplored in the literature.
This new book, from a group of leading scholars, explores the manifestations, scale, and economic and social implications of household over-indebtedness in areas conventionally considered as financially excluded. The book approaches debt not only as a financial transaction, but also as a form of social bond, and offers a socioeconomic analysis of over-indebtedness.
The volume puts forward a broad definition of over-indebtedness, highlighting its situational and semantic complexity and diversity. It provides a close analysis of local conceptions of debt and over-indebtedness, highlighting frameworks of calculation and the constant renegotiation of their boundaries. On top of this, it looks far beyond microcredit to examine all the financial practices that individuals juggle. The volume argues that over-indebtedness has more to do with social inequalities than financial illiteracy, and should therefore be understood in the light of global trends of financialization. It also reveals the ambiguity of “financial inclusion” policies, and in many respects questions the actions of new credit providers.
This book will be valuable reading for students, researchers and policy makers interested in microfinance and development issues.