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.
"Microcredit: Fulfilling or Belying the Universalist Morality of Globalizing Markets?,"
Yale Human Rights and Development Journal: Vol. 5
, Article 3.
Available at: http://digitalcommons.law.yale.edu/yhrdlj/vol5/iss1/3