After the Nicaraguan Non-Payment Crisis
Alternatives to Microfinance Narcissism
Bibliographic Data
| ID | 3885148 |
|---|---|
| Authors | Johan Bastiaensen (0000-0002-1369-8570), Peter Marchetti, René Mendoza, Francisco Seoane Pérez (0000-0001-9738-1230), Francisco Pérez |
| Year | 2013 |
| Volume | 44 |
| Issue | 4 |
| Pages | 861-885 |
| Publication date | 2013-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/dech.12046 |
| OpenAlex | W2156579757 |
| Language | EN |
| Citations received | 10 |
| References cited | 9 |
This article argues against 'microfinance narcissism' and calls for a re-politicization of the microfinance paradigm. The dominant verdict on microcredit has undergone a damning transformation, from 'magic bullet for poverty reduction' to 'cause of suicide'. Nowadays, both radical critics and mainstream voices deplore microcredit's negative impact on micro-entrepreneurs. They argue for a reorientation where credit is targeted at established small and medium-sized enterprises, particularly in rural areas. The crisis in microfinance worldwide, including burgeoning protests, are viewed as proof of the commercial derailment and/or misplaced faith in microfinance's positive social and economic impact on the poor. This article engages with this debate through a study of the Nicaraguan micro-finance crisis. It challenges existing analyses that pin the crisis on agricultural over-indebtedness, lack of due diligence, or Sandinista populist politics. Illustrating the dangers of neglecting the diverse nature of microfinance, it reveals the paradoxical outcomes of the crisis: a refocus on the urban at the expense of agricultural credit for small and medium enterprises and a consolidation of the power of national processing elites. Nicaragua's Non-Payment Movement is also shown to be both a product of elite manipulation and an expression of legitimate resistance to an industry that turns a blind eye to the manner in which markets and politics constrain clients' potential
Development economics · Economic growth · Economics · Magic bullet · Microfinance · Political economy · Political science · Politics · Poverty · Innovation and Socioeconomic Development · Law · Microfinance and Financial Inclusion · Urban and Rural Development Challenges
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| Unique citing works | 10 |
|---|---|
| Citations per year | 1 |
| Citation span | 2016 - 2026 (11) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 9 |