Confessions of a Microfinance Heretic

How Microlending Lost Its Way and Betrayed the Poor

Business & Finance, Economics, Microeconomics
Cover of the book Confessions of a Microfinance Heretic by Hugh Sinclair, Berrett-Koehler Publishers
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Hugh Sinclair ISBN: 9781609945206
Publisher: Berrett-Koehler Publishers Publication: July 9, 2012
Imprint: Berrett-Koehler Publishers Language: English
Author: Hugh Sinclair
ISBN: 9781609945206
Publisher: Berrett-Koehler Publishers
Publication: July 9, 2012
Imprint: Berrett-Koehler Publishers
Language: English

Very little solid evidence exists that microloans make a dent in long-term poverty. Sadly, evidence does exist for negligence, corruption, and methods that border on extortion. Part exposé, part memoir, and part financial detective story, this is the account of a one-time true believer whose decade in the industry turned him into a heretic. Hugh Sinclair worked with several microfinance institutions around the world. He couldn’t help but notice that even with a booming $70 billion industry on their side, the poor didn’t seem any better off. Exorbitant interest rates led borrowers into never-ending debt spirals, and aggressive collection practices resulted in cases of forced prostitution, child labor, suicide, and nationwide revolts against the microfinance community. Sinclair weaves a shocking tale of a system increasingly focused on maximizing profits—particularly once large banks got involved. He details his discovery of several scandals, one of the most disturbing involving a large African microfinance institution of questionable legality that charged interest rates in excess of 100 percent per year and whose investors and supporters included some of the most celebrated leaders of the microfinance sector. Sinclair’s objections were first met with silence, then threats, attempted bribery, and a court case, and eventually led him to become a principal whistleblower in a sector that had lost its soul. Microfinance can work—Sinclair describes moving experiences with several ethical and effective organizations and explains what made them different. But without the fundamental reforms that Sinclair recommends here, microfinance will remain an “investment opportunity” that will leave the poor with hollow promises and empty pockets.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Very little solid evidence exists that microloans make a dent in long-term poverty. Sadly, evidence does exist for negligence, corruption, and methods that border on extortion. Part exposé, part memoir, and part financial detective story, this is the account of a one-time true believer whose decade in the industry turned him into a heretic. Hugh Sinclair worked with several microfinance institutions around the world. He couldn’t help but notice that even with a booming $70 billion industry on their side, the poor didn’t seem any better off. Exorbitant interest rates led borrowers into never-ending debt spirals, and aggressive collection practices resulted in cases of forced prostitution, child labor, suicide, and nationwide revolts against the microfinance community. Sinclair weaves a shocking tale of a system increasingly focused on maximizing profits—particularly once large banks got involved. He details his discovery of several scandals, one of the most disturbing involving a large African microfinance institution of questionable legality that charged interest rates in excess of 100 percent per year and whose investors and supporters included some of the most celebrated leaders of the microfinance sector. Sinclair’s objections were first met with silence, then threats, attempted bribery, and a court case, and eventually led him to become a principal whistleblower in a sector that had lost its soul. Microfinance can work—Sinclair describes moving experiences with several ethical and effective organizations and explains what made them different. But without the fundamental reforms that Sinclair recommends here, microfinance will remain an “investment opportunity” that will leave the poor with hollow promises and empty pockets.

More books from Berrett-Koehler Publishers

Cover of the book The People Equation by Hugh Sinclair
Cover of the book Don't Kill the Bosses! by Hugh Sinclair
Cover of the book Creating Personal Presence by Hugh Sinclair
Cover of the book Useful Research by Hugh Sinclair
Cover of the book Changing Business from the Inside Out by Hugh Sinclair
Cover of the book What Your Boss Really Wants from You by Hugh Sinclair
Cover of the book Hungry Start-up Strategy by Hugh Sinclair
Cover of the book A Leadership Kick in the Ass by Hugh Sinclair
Cover of the book The Big Four by Hugh Sinclair
Cover of the book Collaboration Begins with You by Hugh Sinclair
Cover of the book Strategies for Project Sponsorship by Hugh Sinclair
Cover of the book Winning the Global Talent Showdown by Hugh Sinclair
Cover of the book Hidden Strengths by Hugh Sinclair
Cover of the book The New Why Teams Don't Work by Hugh Sinclair
Cover of the book Winning with Past Performance by Hugh Sinclair
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy