Microfinance and fintech have been sold as innovative solutions to poverty in the Global South. But for the most part, they’ve just enriched wealthy investors at the poor’s expense.
Milford Bateman is a freelance consultant on local economic development and a visiting professor of economics at the Juraj Dobrila University of Pula (Croatia). He is also adjunct professor of development studies at St Mary’s University in Halifax, Canada, associate researcher at the Fluminense Federal University (UFF) in Rio de Janeiro, and honorary research associate at the Royal Holloway College of the University of London.
Microcredit is nothing more than a socially validated way for financial elites to exploit the poor.