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Accumulation by Microfinance? Explaining the Microfinance Crises in Andhra Pradesh

Stolt, Hanna LU (2015) STVK12 20151
Department of Political Science
Abstract
The world of microfinance is changing. More and more people are turning to microfinance as neoliberal reforms shape the world, diminishing welfare across the globe. Microfinance has in turn been debased by the same process driving people to seek microfinance. Through privatization, state redistribution, and financialization, (three of the processes of accumulation by dispossession) microfinance, is becoming increasingly profitable. As the poor populations of the world are coming to rely on microfinance, they are opening themselves up to exploitation by global investors and microfinance institutions alike. Twice, microfinance crises have ravaged Andhra Pradesh, bringing with them coercive loan collection, rural distress and a diminished... (More)
The world of microfinance is changing. More and more people are turning to microfinance as neoliberal reforms shape the world, diminishing welfare across the globe. Microfinance has in turn been debased by the same process driving people to seek microfinance. Through privatization, state redistribution, and financialization, (three of the processes of accumulation by dispossession) microfinance, is becoming increasingly profitable. As the poor populations of the world are coming to rely on microfinance, they are opening themselves up to exploitation by global investors and microfinance institutions alike. Twice, microfinance crises have ravaged Andhra Pradesh, bringing with them coercive loan collection, rural distress and a diminished capacity for fulfilling consumption needs. These stem from neoliberal reforms undertaken by India in the 1980s and the increased accumulation by dispossession (David Harvey’s take on Marx’s primitive accumulation) that followed. Regulation of microfinance will do little to stop another crisis if the root causes of the crisis are not addressed. This paper presents the Andhra Pradesh crises as a method where by capitalist are exploiting the people of Andhra Pradesh for profitability at the expense of the poor through accumulation by dispossession. (Less)
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author
Stolt, Hanna LU
supervisor
organization
course
STVK12 20151
year
type
M2 - Bachelor Degree
subject
keywords
Andhra Pradesh microfinance, microfinance crisis, accumulation by dispossession, neoliberalism, Andhra Pradesh (India)
language
English
id
5435623
date added to LUP
2015-07-14 12:37:17
date last changed
2015-07-14 12:37:22
@misc{5435623,
  abstract     = {The world of microfinance is changing. More and more people are turning to microfinance as neoliberal reforms shape the world, diminishing welfare across the globe. Microfinance has in turn been debased by the same process driving people to seek microfinance. Through privatization, state redistribution, and financialization, (three of the processes of accumulation by dispossession) microfinance, is becoming increasingly profitable. As the poor populations of the world are coming to rely on microfinance, they are opening themselves up to exploitation by global investors and microfinance institutions alike. Twice, microfinance crises have ravaged Andhra Pradesh, bringing with them coercive loan collection, rural distress and a diminished capacity for fulfilling consumption needs. These stem from neoliberal reforms undertaken by India in the 1980s and the increased accumulation by dispossession (David Harvey’s take on Marx’s primitive accumulation) that followed. Regulation of microfinance will do little to stop another crisis if the root causes of the crisis are not addressed. This paper presents the Andhra Pradesh crises as a method where by capitalist are exploiting the people of Andhra Pradesh for profitability at the expense of the poor through accumulation by dispossession.},
  author       = {Stolt, Hanna},
  keyword      = {Andhra Pradesh microfinance,microfinance crisis,accumulation by dispossession,neoliberalism,Andhra Pradesh (India)},
  language     = {eng},
  note         = {Student Paper},
  title        = {Accumulation by Microfinance? Explaining the Microfinance Crises in Andhra Pradesh},
  year         = {2015},
}