Questioning the Role of Microfinance – Beyond the Clichés, 1 October 2015, Luxembourg
Jean-Michel Servet, Researcher, Professor at the IHEID Geneva and author of the book The True Revolution of Microcredit. will be the special guest of the 32n Midi de la Microfinance in Luxembourg.
Does microfinance improve the lives of the poorest? Who actually benefits from the development of microfinance? Questions have also been raised regarding certain abuses in the sector: the high interest rates, consumer loans or badly accompanied loan processes. These items can cause client over-indebtedness and lead to misery. These outcomes are far from what the sector promises.
Jean-Michel Servet is one of the sector’s most fervent critical authors. In his latest book True microcredit revolution (La vraie révolution du microcrédit), he assimilates microfinance to a myth. He argues that microfinance would work if it met several conditions: eleven requirements of micro, meso and macroeconomics, enumerated and defined in the book, must be met to provide actual results on poverty in the world.
Mr Servet has written other publications on the subject, such as the famous Barefoot bankers (2006). The participation of Jean-Michel Servet will be a good opportunity to address issues which are often cast aside by the sector: inclusive finance is changing, certainly, but is the sector developing in the “right” direction? Is this initially promising solution to poverty-alleviation still valid today? Does Microfinance actually help the poor?
Although everyone agrees on the fact that there are limits to microfinance, would the development of financial inclusion not provide an answer to this problem?
ADA, NGO specialized in microfinance in Luxembourg, must give voice to criticism of microfinance. It must also take this criticism into account to improve its services and the quality of its service to the poor. Finally, it should respond constructively.
This discussion will be led by Luc Vandeweerd, Executive Advisor of ADA with many years of experience in the inclusive finance sector.
The conference will be in French.
Date of the Conference: 1 October 2015 from 12:00 to 2:00 pm
Place: Banque de Luxembourg (14 Boulevard Royal, Luxembourg)
