Representing financial inclusion: The CGAP microfinance photo contest (Respond to this article at http://www.therai.org.uk/at/debate)

This article examines representations of financial inclusion through the lens of the CGAP microfinance photo contest. It situates the contest's winning images within current contestations surrounding global financial inclusion strategies, to show how these photos construct particular representations of microfinance that legitimize CGAP's minimalist, commercially‐driven model. The production of the need for large‐scale financial inclusion is key to this model, which is depicted through gendered representations of microfinance beneficiaries. On the one hand, the CGAP photos present a shift from stereotypical images of female micro‐entrepreneurs in traditional contexts to more complex images that disrupt such stereotypes while at the same time reinforcing other assumptions about microfinance. On the other, they bring men back into the picture as worthy microfinance recipients. While contributing to pluralist representations that valorize photography in developing countries, the CGAP microfinance photo contest is ultimately unable to portray the complexities and contradictions of financial inclusion interventions.     

Financialisation through Microfinance: Civil Society and Market-Building in India

Abstract

Microfinance does not reduce poverty, but it does successfully construct economic relations between owners of capital and borrowers of capital, allowing surpluses to accumulate through finance. It does so by drawing on the agency of financialised civil society actors who facilitate financialisation by working around the state to build new markets in finance and other goods. This article understands financialisation as the expansion of the frontier of financial accumulation. Microfinance is shown to achieve this expansion by establishing credit-based linkages between owners and borrowers of capital, allowing surplus accumulation to take place via the credit relation. Underlying this material relationship, there is also a level at which financialisation motivates and pressures civil society actors to bring microfinance to the poor. By becoming financialised agents themselves, civil society organisations act as conduits for an expansion of financial markets and the construction of new market relations for other goods. A case study of microfinance for water and sanitation in India shows in detail how this construction of markets via civil society works in practice, highlighting the pressures and opportunities presented by microfinance as a vehicle for building markets.     

Regulating Over-indebtedness: Local State Power in Cambodia's Microfinance Market

Cambodian microfinance borrowers are suffering from an over-indebtedness crisis. In the past 20 years, the Cambodian government has implemented financial reforms that have commercialized the microfinance sector and promoted industry self-regulation. Echoing long-standing concerns about neoliberal microfinance, critics maintain that these reforms have hollowed out the Cambodian state's ability to regulate a highly competitive market, thereby exacerbating the problem of over-indebtedness. In contrast, based upon 20 months of ethnographic research in southern Cambodia by the author, this article argues that the microfinance market would not function without local authorities performing key regulatory roles of the state. These local authorities include commune councillors — elected representatives of multiple villages — who work closely with village leaders and local police. They are the primary state actors who enforce the property rights and loan contracts upon which Cambodia's microfinance market depends. The author analyses how this local state regulation contributes to household indebtedness by encouraging multiple borrowing, rural out-migration and land repossession. The article advances development studies scholarship on over-indebtedness by demonstrating that the inequitable outcomes of neoliberal microfinance can be better understood, and contested, by interrogating the multi-scalar spaces of state regulatory power.     

After the Nicaraguan Non‐Payment Crisis: Alternatives to Microfinance Narcissism

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.     

The Underside of Microfinance: Performance Indicators and Informal Debt in Cambodia

Microfinance is a dominant strategy used to promote rural development around the world. Rather than directly track its impact on borrowers, however, microfinance institutions rely on indicators of financial performance adopted from commercial banking as proxies for positive social impact. Yet, as critical research has shown, the industry depends on coercive peer pressure, social shaming and various forms of gendered exploitation to achieve its high rates of loan repayment. This article maintains that there is a need to investigate how the microfinance industry's own indicators of impact contribute to the ways microfinance can harm borrowers. Based on qualitative research in Cambodia during 2021 and 2022, the article demonstrates how financial performance indicators, most notably portfolio quality, both hide and exacerbate the ways that borrowers juggle debt between formal and informal lenders. In making this argument, the article advances critical scholarship on microfinance by showing how microfinance repayment structures debt-juggling practices in ways that put borrowers at greater risk of over-indebtedness. As a result, the microfinance industry is able to claim that it successfully helps to alleviate poverty, even as it accumulates profits by appropriating wealth from poor and low-income households across the global South.     

‘Milking The Elephant’: Financial Markets as Real Markets in Kenya

Financial liberalization policies in the 1990s were intended to raise formal sector interest rates, enhance competition and expand access for users. This article investigates patterns of provision and use in a local financial market in Karatina, Kenya, at the end of the 1990s after a period of financial and economic liberalization. It takes a holistic approach, examining both formal and informal financial arrangements and microfinance interventions. This is because the role of the informal financial sector is particularly important for poor people and has received relatively little attention in the discussion of the consequences of reform. The author does this using a ‘real’ markets approach that sees markets as socially regulated and structured. Significant provision by the mutual sector (formal and informal), and poor lending performance by the banking sector is explained through an examination of the characteristics of the services on offer and their embeddedness in social relations, culture and politics.     

Financial Inclusion or Subordination? The Monetary Politics of Debt in Cambodia

Financial inclusion is a leading driver of household debt across the global South. Although critical geographers have analysed this debt through the lens of financialisation, few have examined it in terms of monetary politics. This is a salient issue, because poorer nations often have limited control over their monetary policy due to their dependence on foreign currencies, which can adversely affect the structure of their financial markets. Building on the concept of monetary dependency from scholarship on financial subordination, I analyse the monetary politics of debt in Cambodia. Drawing on elite interviews and ethnographic research, I argue that Cambodia's extreme monetary dependence on the US dollar has shaped monetary and fiscal policies that compel poorer households to take on private debt to pay for their basic needs. This paper advances critical geographies of debt and development by studying financial subordination and its impact on financial inclusion in the global South.     

Gender,Risk and Micro‐financial Subjectivities

Abstract: This article analyses the gendered contradictions of microfinance's celebrated “double bottom line” of social and financial impact. The example of microfinance is used to illustrate the gendered and colonial constructions of “risk” and “responsibility” that underpin neoliberalism and its gendered paradoxes. After revisiting the discursive critique of these terms, I draw on how indigenous women participating in a microfinance institution in Bolivia describe their experience to suggest how gendered ideas of risk and responsibility are framing their negotiation of and resistance to the market. While the gendered and colonial construction of risk creates dynamics that perpetuate indigenous women's exclusion from the market, the terms of the resistance and use of the intervention also challenge feminist critiques of neoliberal governmentality developed mostly with reference to advanced modernity and welfare regimes.     

Women and Money: Lessons from Senegal

This article examines the complexity and diversity of women's informal financial practices using data from surveys conducted in Senegal. It suggests that these practices are at the centre of a constant dialectic between short‐term and long‐term horizons, between the requirements of daily survival and the demands of community solidarity, and between personal aspirations and collective constraints. These practices also clearly illustrate a desire among the women in Senegal to impose a form of financial self‐discipline, and to create situations that will oblige them to earn income. The socio‐economic diversity among these entrepreneurs is also underscored. Informal financial arrangements are both a product and producer of gender inequalities and inequalities among women, as reflected in the research. This has direct policy implications, especially for microfinance products. If they are to be effective, microfinance services must develop beyond a standard, one‐size fits all model and become more innovative and adaptable to the diverse demands of women. They must be combined with complementary measures that challenge the systemic causes of inequality. Microfinance programmes should draw on informal financial arrangements while challenging their tendency to perpetuate inequality.     

Pricing the revolution: Financial analysts respond to the Egyptian uprising (Respond to this article at http://www.therai.org.uk/at/debate)

On 25 January 2011, thousands of Egyptians gathered to raise their voices against their country's long‐standing president, Hosni Mubarak. I received the news as I was conducting fieldwork in a research department of an international bank based in Zurich. Here, I document how Egypt's revolution was perceived, discussed and interpreted within this research department. I argue that the process of ‘pricing the revolution’ that took place may be understood as an ongoing interaction among participants in financial markets and that, given this, it should be understood as a social process, rather than an economic one.     

Bodies That Walk,Bodies That Talk,Bodies That Love: Palestinian Women Refugees,Affectivity, and the Politics of the Ordinary

In this article I interrogate what is lost in war and displacement through the affective memories of Palestinian refugee women who remember through their body and what their body has endured. I reflect on how bodies and spaces connect and disconnect at violent junctures, and on the vital forces vulnerability and precariousness ignite in displacement. Throughout the geography of separations and shifting shelters, refugee women engaged in place‐making, transforming the transience enforced by their continuous evictions into the permanence of home, not as a static identity‐place‐nation, but as a site of dynamic affective, social relations and connections. Read through Michael Hardt's metaphor of “social muscles”, as bodily and emotional drives that blur the boundaries of intimate and social spaces, affective memories can serve as a political horizon that redesigns, in Arendtian terms, the love for the nation as love for concrete relations and for existing in the world.     

Bodies,Shrines, and Roads: violence, (im)mobility and displacement in Sri Lanka

In Sri Lanka, gender and national identities intersect to shape people's mobility and security in the context of conflict. This article aims to illustrate the gendered processes of identity construction in the context of competing militarised nationalisms. We contend that a feminist approach is crucial, and that gender analysis alone is insufficient. Gender cannot be considered analytically independent from nationalism or ethno‐national identities because competing Tamil and Sinhala nationalist discourses produce particular gender identities and relations. Fraught and cross‐cutting relations of gender, nation, class and location shape people's movement, safety and potential for displacement. In the conflict‐ridden areas of Sri Lanka's North and East during 1999–2000, we set out to examine relations of gender and nation within the context of conflict. Our specific aim in this article is to analyse the ways in which certain identities are performed, on one hand, and subverted through premeditated performances of national identity on the other hand. We examine these processes at three sites—shrines, roads and people's bodies. Each is a strategic site of security/insecurity, depending on one's gender and ethno‐national identity, as well as geographical location.     

Engendering Gramsci: Gender,the Philosophy of Praxis,and Spaces of Encounter in the Climate Caravan,Bangladesh

This paper examines the gendered politics of national and international networking amongst peasant farmers' movements in South Asia. In particular the paper provides an ethnographic account, based upon the author's critical engagement with the Bangladesh Krishok (farmer) Federation and the Bangladesh Kishani Sabha (Women Farmers' Association), of the Climate Change, Gender and Food Sovereignty Caravan that was organised in Bangladesh in 2011. The paper draws upon Antonio Gramsci's theory of the philosophy of praxis and feminist research on social reproduction, dispossession and materiality to interrogate the spaces of encounter and solidarity‐building practices of the Caravan between different communities in the country and between different social movement actors. The paper examines how processes of political organisation and consciousness‐raising within and between social movements are problematised by gendered power relations. The paper concludes with suggestions concerning how the philosophy of praxis in Bangladesh might be “engendered” to incorporate a politics of social reproduction.     

Understanding Social Performance: A ‘Practice Drift’ at the Frontline of Microfinance Institutions in Bangladesh

This article examines the role of microfinance staff and procedures in enabling microfinance's social mission. It does so primarily through studying institutional ruling relations and practices in rural Bangladesh. Attempting to move away from the linear and deterministic approaches of impact studies, it ethnographically scrutinizes the everyday practices of implementers. Findings point to the emergence of systemic practices that jeopardize microfinance institutions’ potential to perform their social mission. These include low client‐selection standards, hard selling of loans and forceful loan renewal, little follow‐up on loan use, and abusive and violent client‐retention and repayment‐collection strategies. This is conceptualized as a ‘practice drift’ as distinct from the commonly reported ‘mission drift’. Rather than stemming from planned, top‐down changes in institutional mission and strategy, practice drift emerges from a displacement of decision‐making processes to the branches. The article argues that observed changes in microfinance practice are enabled by decentralized structures and management systems that leave the choice of tactics used to achieve targets to the discretion of field staff.     

Absent Regions: Spaces of Financialisation in the Arab World

This paper examines processes of financialisation in the Arab world, a region that has been almost completely absent from the wider financial literature. The paper shows that financialisation is much more than simply the expansion of financial markets within neatly bounded sets of social relations operating at the national scale. In the Arab world, financialisation has been marked by the growing weight of regional finance capital—most specifically, those capital groups based in the Gulf Cooperation Council—in circuits of capital operating at all scales. This has important implications for processes of class and state formation. Approaching financialisation in this manner—moving away from methodologically nationalist assumptions and the literature's largely singular focus on the advanced capitalist core—brings into focus the significance of cross‐scalar accumulation patterns, their spatial hierarchies, and geographic unevenness. The paper thus reaffirms the need for a more spatially sensitive approach to financialisation.     

Women and Peace Building: Local Perspectives on Opportunities and Barriers

The UN Security Council Resolution 1325 has made strong provisions to include women in peace‐building interventions and actions. This is, however, rarely observed in practice beyond local‐level activities. This article discusses new qualitative evidence on the opportunities and barriers to women's participation in peace‐building processes, based on a comparative analysis of case studies conducted in Afghanistan, Liberia, Nepal and Sierra Leone. The findings show that women's engagement in peace‐building activities, beyond their immediate social relations, is restricted by institutional, economic, cultural and social obstacles. These barriers prevent the realization of gender equality objectives in peace‐building initiatives. Moreover, local understandings of peace typically place family relations at the centre of how women engage with peace‐building processes, and how other community members perceive women's roles in peace building.     

Dwelling in Diaspora: Judith Butler’s Post-secular Paradigm

Abstract

This article aims to present Judith Butler’s theory of diaspora as a theological paradigm for post-secular social existence. Her accounts of dispossession, statelessness, and exilic identity all afford us a normative challenge for how to think politics and the theological together. We begin by framing Judith Butler’s diasporic theory of politics within Adriennes Rich’s poetic perspective on ecstatic identity. We proceed to argue that by emphasizing both the precariousness and interdependency of social life, Rich and Butler’s shared commitments to universalizing queer forms of collective belonging and affective relations offer an alternative post-secular paradigm to that offered so far by theorists such as Charles Taylor or Jürgen Habermas. Achieving a post-secular “state” may ultimately be a matter of embracing the failure of our own representations, particularly the failures of contemporary religion to represent either the divine or the human, or to constitute a society with its own political theology. It is paradoxically this kind of failure that can open us up to look at ourselves, and to focus on the precariousness and vulnerability of human existence that we see with our very eyes and reproduced by our very own hands.     

Governing Homo Subprimicus: Beyond Financial Citizenship,Exclusion, and Rights

The paper presents an alternative to scholarship on the distributional politics of finance that emphasizes citizenship‐based claims to new financial rights. To compensate for the dominance of exclusion‐based etiologies of financial marginality in financial geography, I reframe financial exclusion as a problem of financial government—that is, as a problem of conducting the conduct of risky populations without threatening the security and autonomy of financial markets. Drawing on Foucault's distinction between technologies of discipline and security, I describe how barriers to the extension of financial government create tiered processes of financial subject formation. The inchoate “subprime’ financial subject produced is the correlate of a specialized financial governmentality—a homo subprimicus eminently governable by financial means. I close by calling for greater attention to questions regarding the relationship between technologies for valorizing bare life, new systems of financially mediated value extraction, and emerging capitalist class processes.     

Geographical Takes on Three Decades of Economic Reform in Australia

The idea of an economy taking a geographical journey highlights the importance of changing spatialities and how these shape and result from economic change. It also focuses on the geographical scaling of key processes. Using these insights, this paper explores three decades of economic change in Australia in which the nation State has played a central role in the operation of markets and accumulation processes, albeit with dramatic shifts in the qualitative nature of that role. Such shifts have been crucial during the emergence of Australia's particular variety of neoliberalism. The paper explores the liberalisation of Australia's financial and corporate environment, trade policies and the industrial relations environment. The three cases suggest contradictions inherent in the State's adherence to a neoliberal reform agenda, in the name of globalisation, while facing: first, political needs to retain sovereignty over national security and tighten border protection; and second, multi‐scaled political processes including clashes with State governments grappling with regional and local impacts of change. There has been no simple roll‐out of neoliberalism in Australia since the mid 1990s. Geographical scales, constructed contingently by social and political agents, have contributed in fundamental ways to the power and direction of economic reform. Despite powerful re‐scalings to both global and local levels over the past three decades, there is no evidence of a diminished role for the nation State.     

The Impact of Microfinance on Decision‐Making Agency: Evidence from South India

Evaluations of the effects of microfinance programmes on women's empowerment generate mixed results. While some are supportive of microfinance's ability to induce a process of economic, social and political empowerment, others are more sceptical and even point to a deterioration of women's overall well‐being. Against this background, development scholars and practitioners have sought to distil some of the ingredients that might increase the likelihood of empowerment or at least reduce adverse effects. This article formally tests the impact of some of the suggested changes in programme features on one particular dimension of empowerment: decision‐making agency. Using household survey data from South India, the author explores the importance of the borrower's gender and the lending technology for intra‐household decision‐making processes. It is shown that direct bank–borrower credit delivery does not challenge the existing decision‐making patterns, regardless of whether men or women receive the credit. These findings change when credit is combined with financial and social group intermediation. Women's group membership seriously shifts overall decision‐making patterns from norm‐guided behaviour and male decision‐making to more joint and female decision‐making. Longer‐term group membership and more intensive training and group meetings strengthen these patterns.