Mega-interest on Microcredit: Are Lenders Exploiting the Poor?

Journal of Applied Philosophy 29 (3):169-185 (2012)
Abstract
Microcredit is often hailed as an effective way of alleviating poverty. In recent years, however, microfinance institutions have been the target of much criticism due to their comparatively high interest rates (which may be as high as 70–100% per annum). This paper discusses whether it can be morally justified to charge very high rates of interest when lending money to the poor. Arguments are drawn from contemporary as well as historical debates on usury, exploitation, egalitarianism and consequentialism. It is conceded that it would be preferable if interest rates could be reduced, but it is argued that typical microlenders today do nothing wrong in setting their rates at the current levels. Instead the responsibility rests on governments, commercial banks and overseas investors to facilitate an environment where rates could be reduced
Keywords No keywords specified (fix it)
Categories (categorize this paper)
Options
 Save to my reading list
Follow the author(s)
My bibliography
Export citation
Find it on Scholar
Edit this record
Mark as duplicate
Revision history Request removal from index
 
Download options
PhilPapers Archive


Upload a copy of this paper     Check publisher's policy on self-archival     Papers currently archived: 11,392
External links
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
Through your library
References found in this work BETA

No references found.

Citations of this work BETA
Similar books and articles
Martin Lewison (1999). Conflicts of Interest? The Ethics of Usury. Journal of Business Ethics 22 (4):327 - 339.
Brian Weatherson (2002). Keynes, Uncertainty and Interest Rates. Cambridge Journal of Economics 26 (1):47-62.
Analytics

Monthly downloads

Added to index

2012-04-20

Total downloads

9 ( #159,846 of 1,102,934 )

Recent downloads (6 months)

2 ( #183,209 of 1,102,934 )

How can I increase my downloads?

My notes
Sign in to use this feature


Discussion
Start a new thread
Order:
There  are no threads in this forum
Nothing in this forum yet.