Request PDF on ResearchGate | On Jul 1, , Susanne Schech and others published Ananya Roy, Poverty Capital: Microfinance and the Making of. Poverty Capital: Microfinance and the Making of Development Ananya Roy. Rout – Ananya Roy was inspired to write the book by the large numbers of students. Ananya Roy’s recent book, Poverty Capital: Microfinance and the Making of Development, brilliantly captures a growing global consensus.

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Unlike many other development scholars and practitioners, I have no particular professional relationship with the field of microfinance. They embody the truth that is the Benetton campaign slogan: The dissent ultimately forced this World Bank president to resign, thereby also disrupting the power exerted by the US President over such appointments. In this book, I will argue that the agenda of microfinance is established and controlled in monopolistic fashion by the World Bank and its network of experts.

It was not enough, I felt, to understand poverty at the ground zero of lived experience. The distribution of such capital exerts a structural effect, conferring power over a system of social relations. An emergent global civil society, made up both of NGOs and social movements, was clamoring at the doors of the World Bank, calling foy a prioritization of poverty alleviation. It bears the powerful promise of a model that works, one that can deliver poverty alleviation and the empowerment of women.

It is a struggle that is evident in much of twentieth-century development and within millennial development itself. But such capital flows also include a vast array of microtransactions: Thus at Boulder one hears a great deal about indicators such as PAR caputal other standards of commercial banking.

Poverty Capital: Microfinance and the Making of Development by Ananya Roy

Dichter argues that poverty lending povertu bad social policy, a bad development strategy, and bad business. It is thus that a training conference on microfinance ended with the sur- prising recommendation that Christian evangelicals should eschew microfinance and instead promote church-centered credit and savings associations built around indigenous solidarity groups.


It acpital also essential to make sense of this management of poverty. Take for example, the controversy about Compartamos, a microfinance institution in Mexico. Such relationships outsource the practices of discipline and punish- ment to NGOs, thereby allowing banks to enter frontier markets.

Poverty Capital: Microfinance and the Making of Development

These are, as I have already argued, key questions in liberalism, shaping the trajectory of economies. The model is meant to serve as an alternative to both formal systems of banking that demand collateral and exclude the poor and informal systems of finance that prey on the poor.

At this intersection of business and society, microfinance is an illustration of the power of harnessing the markets to deliver dual returns.

But Smith is also the author of another key text, The Theory of Moral Sentimentsin which he expresses the need for a caring, providing society.

Poverty Capital: Microfinance and the Making of Development – Ananya Roy – Google Books

It is the panacea of choice. More recently, in the wake of the global financial crisis, microfinance is being celebrated as the strategy that may yet save capitalism, providing a way to create new markets out of those that business school guru C. For a moment, the Washington consensus on poverty, anchored by institutions such as CGAP, seemed shaky. Three in particular are implicated in the microfinance debates: When and how was this unshakeable certainty about free markets transformed into an awareness of global suffering?

Such issues also seem to have plagued the McNamara Bank. The only reason I stayed at the Bank was McNamara.


Like Serageldin, Wolfensohn was quite directly influenced by the McNamara era. It is a story to which I will return later in this chapter. The issue is how and why at particular historical moments, poverty becomes sharply visible and serves as a lightning rod for social action and change.

It also involves the formation of a parallel apparatus of development. Their research, and friendship, has made possible this analysis of poverty capital. Over the course of four years, from toI conducted over interviews and five life histories with a wide range of actors in the microfinance field, in institutions ranging from the Grameen Bank to CGAP to Deutsche Bank to USAID to Hezbollah, in development agencies, NGOs, foundations, cor- porations, lobbying groups, universities, social movements, and con- gressional offices.

I had to quickly become fluent in the elaborate and sprawling microfinance debates, even while knowing that I had no intention of becoming a microfinance expert. It also consolidated the image of the World Bank as the honest broker, an institution committed to fighting corruption, and one that could act as the keeper of global norms and rules. Their inclusion is made possible by what is perceived to be their inher- ent talents and abilities as entrepreneurs Rankin The democratization of capital also raises a more difficult issue: Interestingly, and as I will show, this industry has been less inclined than its religious counterpart to express existential doubt about the idea of microfinance.

We were severely attacked at the 50 Years is Enough gatherings.

We are no longer a footnote in the financial system of the world.