This Article gives an account of the practice of microcredit that reveals its

ambivalent relationship to global markets. Microcredit consists in nonprofit

lending to poor communities, often at subsidized interest rates, to

encourage small-scale entrepreneurial activity. Microcredit organizations

view themselves, alternatively, as an extension of global markets into poor

communities, designed to draw them permanently into the global

economy, or as an efficient mechanism for providing aid to compensate the

poor for their exclusion from the market. The Article argues that

organizations would do well to clarify their relationship to the global

market because that relationship has implications for how they should

structure their lending program, whether they can become selfsustainable,

and how they should measure their success. It further argues

that, at a more general level, some residual ambivalence is unavoidable

because the limits of globalization are unclear and microcredit necessarily

is both an extension of, and a remedy for, the logic of the global market.