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MARKET AND POLITICAL DEVELOPMENT (1) answer(s).
 
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Microfinance, the market and political development in the inter / Barry, Jack J   Journal Article
Barry, Jack J Journal Article
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Publication 2012.
Summary/Abstract This article steps outside traditional economic analysis of microfinance, and instead investigates the political ramifications of microfinance in developing countries. In particular, I argue that microfinance affects social capital, political empowerment and democratisation. I examine three emerging trends in microfinance: new technology; the rise of for-profit microfinance institutions; and the increase in individual, rather than group microfinance lending. In exploring these trends, I analyse seven prominent institutions: non-profits Kiva, Global Giving, Calvert Organization and MicroCredit Enterprises; and for-profits MicroPlace, MicroVest, and Oikocredit. My findings indicate that different types of microfinance institutions have unique characteristics that influence political development in a variety of ways, including but not limited to: democratisation, social capital, and economic and political empowerment. The article attempts to fill a gap in the literature and open up a conversation as to how differing approaches to microfinance lending influence political development.
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