The politics of microfinance

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.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: