Why Doesn't Microfinance Work?: The Destructive Rise of Local Neoliberalism

Since its emergence in the 1970s, microfinance has risen to become one of the most high-profile policies to address poverty in developing and transition countries. Beloved of celebrities, royalty, politicians and ‘troubleshooting’ economists. In this deeply provocative analysis, Milford Bateman reveals that microfinance doesn’t actually work. In fact, the case for it has been largely built on hype, on egregious half-truths and – latterly – on the greed of those promoting and working in microfinance. Using a multitude of case studies, from India to Cambodia, Bolivia to Uganda, Serbia to Mexico, Bateman demonstrates that microfinance actually constitutes a major barrier to sustainable economic and social development, and thus also to sustainable poverty reduction. Why Doesn’t Microfinance Work? remains the definitive study of what is still one of the key shibboleths of contemporary development thinking.

Table of Contents:
1. Introduction 2.The rise of microfinance 3. Microfinance myths and realities 4. Microfinance as poverty trap 5. Commercialization: The death of microfinance 6. The politics of microfinance 7. Alternatives to conventional microfinance 8. Conclusion: the need for a new beginning Endnotes Bibliography Index

About the Author :
Milford Bateman is a freelance consultant specialising in local economic development policy, particularly in relation to the Western Balkans. He has worked as a consultant for most of the major international development agencies and for several of the major international NGOs. He is also currently a Visiting Professor of Economics at the University of Juraj Dobrila at Pula, Croatia.

Review :
'It's a timely, much-needed, and must-read book for anyone interested in the problems of development assistance.' David Ellerman, author of Helping People Help Themselves 'Microfinance has suffered too long from unthinking enthusiasm, but some negative views are beginning to make themselves heard. Bateman is the first, however, to examine microfinance critically and coherently as a whole, and to take a sceptical long term view of its social and economic effects.' Malcolm Harper, Cranfield School of Management 'DO NOT READ THIS BOOK - if you wish to retain the myths attached to microfinance rather than enjoy and appreciate the best available scholarly, reasoned and readable critique.' Ben Fine, SOAS