Global Politics of Microfinancing Poverty in Asia: The Case of Bangladesh Unpacked

Abstract

This article offers a critical and systematic political analysis of microfinance schemes linking international, national and local development policy. It substantiates the argument that microfinance schemes are a neoliberal development strategy, primarily advanced to realise a dual purpose: (1) financial sector liberalisation and commercialisation, while extending microfinance as a means to “poverty reduction”, and (2) the dampening and undermining of resistance to neoliberal development policies, by relying on the disciplinary potential of these schemes. I illustrate this argument through an examination of the politics of microfinance and development in Bangladesh, which includes analyses of policies prescribed by the World Bank (and also the CGAP). The analysis also draws out the implications (legal and institutional) for many NGOs who have been required to change their status to Microfinance Institutions (MFIs). Microfinance schemes are exemplary of (new) efforts to build markets in Asia in accordance with neoliberal visions of development, and in ways that advance and capitalise on the contradictions of neoliberal development. But they also challenge us to reflect more deeply on the limits of “market society”.     

Women and microcredit: alternative readings of subjectivity,agency, and gender change in rural Mexico

Within the last two decades, the growth of microcredit, or the provision of small loans to poor borrowers, has become a key development initiative in the Global South. This is particularly important for questions of gender relationships, as the majority of microcredit recipients worldwide are low-income women. However, most assessments of microcredit and gender emphasize issues of individual empowerment rather than the large-scale political implications of credit provision. In this article, I critique the use of mainstream empowerment models employed in the assessment of microcredit's ability to provoke changes in gender relationships. I argue that these models often fail to describe microcredit's effects on women's lives due to their epistemological framework, which pushes aside questions of geographical and historical specificity in pursuit of a universally empowered microcredit subject. Examining a mainstream empowerment model I used to conduct research in rural Mexico, I highlight these problems and present an alternative analysis of subjectivity, agency, and gender change as a result of microcredit provision.     

Developing tourism products and new partnerships through participatory action research in rural Cameroon

At present, several obstacles to tourism development have been identified in developing countries. These include: poor infrastructure; shortage of facilities; a weak tourist image; a lack of know‐how with regard to how to welcome visitors and market tourism services; and the scarcity of available capital. In the research reported on in this paper, we explore the involvement of microcredit institutions to alleviate these issues. Because tourism is not yet developed in our study area of West Cameroon, action research was considered the only way to validate (by action) the recommendations of both the actors and the researchers. Action research permits the researchers to study the complex issues that typify the management of tourist destinations, including, for example, governance problems. It allows for networking and capacity to change the ways in which actions are carried out. The paper explores possible synergies between microfinance institutions (MFIs) and small and medium tourism businesses in an African rural community. First, we emphasise the obstacles to the formation of partnerships between MFIs and tourism businesses and we suggest ways to minimise them. Second, we describe how we facilitated networking between tourism actors and MFIs, which enabled the development of tourism products through new partnerships. As a result, four businesses are currently operating. From a research perspective, we point out the strengths and weaknesses of different types of associations and list the challenges. The results indicate that asymmetry of information and a lack of entrepreneurial spirit emerge as key concerns. The action research has promoted place and community based development. However, we underline that proper tourism development also requires the participation of stakeholders acting at different spatial scales.