Financial inclusion may be jargon which appeals to international donors and academics, but the strategic implementation in developing countries is often based on international du jour priorities, such as microfinance. The topic of microfinance is highly debated in the academic literature, although little empirical work has been published. Further, no literature to date has considered microfinance from a law and economics perspective. This paper seeks to contribute to the gap in the literature by considering how microfinance has evolved to address the credit market failure, and how microfinance regulation should be designed to promote long term financial inclusion via financially self-sustainable Microfinance Institutions (MFI’s). This paper presents practical policy recommendations including specific CSR, facilitative and direct regulation, based on the law and economics analysis of microfinance.
- development law,
- law and economics,
- microfinance regulation
Available at: http://works.bepress.com/katherine_hunt/1/