The Age of Microfinance: Destroying Latin American Economies from the Bottom Up

ÖFSE Working Paper No. 39

33 Pages Posted: 27 Jan 2014

See all articles by Milford Bateman

Milford Bateman

Juraj Dobrila University of Pula (UNIPU); St Marys University, Halifax; UFF, Rio de Janeiro, Brazil

Date Written: May 25, 2013

Abstract

This article argues that the microfinance model that arrived in Latin America in the 1970s has proven, as elsewhere around the world, to be an almost wholly destructive economic and social policy intervention. Centrally, I argue that the microfinance model is responsible for embedding and giving continued impetus to an adverse ‘anti-development’ trajectory in Latin America’s economies, one that has progressively helped to de-industrialise, infantilise and informalise the overall local economic and social structure. Until recently, the extent and precise nature of this ‘anti-development’ trajectory has been ignored for fear of undermining and delegitimizing the global microfinance model and, with it, the dominant political-economic philosophy – neoliberalism – that essentially gave life to it. Effective local industrial policies and ‘pro-development’ local financial institutions are now urgently required in Latin America to build genuinely sustainable and equitable solidarity-driven local economies from the bottom up.

Keywords: microcredit, microfinance, neoliberalism, productivity, deindustrialisation

Suggested Citation

Bateman, Milford, The Age of Microfinance: Destroying Latin American Economies from the Bottom Up (May 25, 2013). ÖFSE Working Paper No. 39, Available at SSRN: https://ssrn.com/abstract=2385189 or http://dx.doi.org/10.2139/ssrn.2385189

Milford Bateman (Contact Author)

Juraj Dobrila University of Pula (UNIPU) ( email )

Zagrebačka 30
Pula, 52100
Croatia

St Marys University, Halifax ( email )

Halifax, nova scotia
Canada

UFF, Rio de Janeiro, Brazil ( email )

Rio de Janeiro
Brazil

HOME PAGE: http://www.aai.uff.br/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
303
Abstract Views
1,225
rank
120,567
PlumX Metrics