CHAPTER FOUR
Petit Bourgeois Fantasies
Microcredit, Small-Is-Beautiul Solutions,
and Development's New Antipolitics
ELLIOTT PRASSE-FREEMAN
Introduction
eriseofmicroinanceromanobscureBangladeshinongovernmentalorga
nization(NGO) innovation(withaninitialportolioo,amously,US$27)toa
worldwideinstitutionmovingUS$90billioninloansthroughvirtuallyevery
pocket ofthe globeand all in three decades-has been nothing shortof
miraculous.Andperhapsevenmore impressivethanthegrowhofthe industry
andthemovementbehindithasbeenmicrocredit'sability toestablishitselfasa
comonsensepillar,perhapsthesinequanon,of thisnewcentury'sglobalanti
povertydevelopmenteforts.Indeed,whenMohammadYunus(2011),awarded
the200NobelPeacePrize orhisrolein oundingandpromotingmicrocredit,
entsoar astoclaimthatpovertywouldbeeliminatedromtheearth,people
listened,peoplebelieved.
Setagainst thispromise,onthesurace,themicrocreditindustryappears
tohave beenstrugglingthroughanumberofrough years.Yunushasbeen
accusedofmisappropriatingdonorundsinordertokeephisGrameenBank
alive(Heineman 2011). For-profit (Thriani2012)andnot-or-profit (Sinclair
2012a;Karim2011b)microfinanceinstitutions(MFis)alikehavebeenexposed
asoperatingnodiferently thanthe.usurious predators they weremeant to
replacewhichhascorrelatedwithinreasedindebtednessormillionsacross
theglobe(Bateman2010)andanumberof armersuicidesinIndia(Polgreen
and Bajaj 2011). A massive platorm or eicient peer-to-peer lending that
captured theimaginationof theAmericanuppermiddleclass,Kivahasbeen
evealedasneitherpeer topeer (Roodman 2009a),norparticularlyeicient
(Sinclair2014a).
1
Toppingitall,acomprehensiveassessmentofmicrofinance
programshascastthepovertyeliminatingclaimsofthepracticeintoserious
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