Yunus joins politics in Bangladesh by launching his own party in the coming month, writes several newspapers. The connection between politics and microfinance has always interested me as many microfinance institutions survive in environments were involvement in politics is a necessity for doing business. At the same time, previous times’ rural finance has been infamous for being captured by politicians. Bangladesh is one of the most corrupt countries in the worlds, which does not make the connection less interesting. Right now it looks as if that is one of the likely conclusions in my thesis: Microfinance should not be public, but probably not entirely private either, in order to achieve it’s double goal of financial and social performance. The question is not whether or not there is a connection between politics and microfinance, but which connection and how it works. Yunus has made this question even more interesting by his move today.
The politics of microfinance