Paradoxical Outcomes of the Social Movement Opposing “Neoliberal” Microfinance in Nicaragua: A Political Analysis

Bastiaensen, Johan

Paradoxical Outcomes of the Social Movement Opposing “Neoliberal” Microfinance in Nicaragua: A Political Analysis - 2013.


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In “progressive circles”, microfinance is often denounced as a neoliberal project against the poor’s interests. The recent crises and rebellions led by the customers are seen in a positive light and would announce the end of the “microfinance paradigm”. This study of the Nicaraguan crisis emphasizes the variegated nature of microfinance and exposes the paradoxical outcomes of the crisis: reconcentration on petty commercial microcredit and increased power of agribusiness elites. It illustrates the need for more careful political analysis and innovative alliances for rural change.

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