Microfinance North and South: Contrasting Current Debates

This paper sets out to examine the apparent consensus around microfinance as a tool to address poverty and social exclusion in North and South.

The paper informs that the emphasis on scale and sustainability in Southern microfinance practice fits the 'counter revolution' in development thought but contrasts with the origins of community banking in the North. The paper:

• Identifies ideological and historical differences between the underlying origins of approaches to microfinance in North and South;
• Draws contrasts between the economic and social functions of financial systems in North and South;
• Examines the role of financial systems in building sustainable local economies in North and South.

Finally, the paper suggests that microfinance has no inherent capability to address gender inequities but must be deliberately made to do so.