Doing good by doing well? Microfinance, self-regulation and borrower’s over-indebtedness in the Dominican Republic

Joana Da Silva Afonso; Solène  Morvant-Roux; Isabelle  Guérin; Davide  Forcela

doi:10.1002/jid.3244

Doing good by doing well? Microfinance, self-regulation and borrower’s over-indebtedness in the Dominican Republic

Joana Da Silva Afonso
, Solène Morvant-Roux
, Isabelle Guérin
, Davide Forcela

Research output: Contribution to journal › Article › peer-review

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Abstract

The Dominican Republic’s microfinance sector is considered to be a solid market where overindebtedness prevention best practices are widely, and successfully, implemented. Relying on qualitative data collection tools and analysis, we identify these ‘best practices’ as self-regulation mechanisms, and we show how they fail to fully fulfil their goals in the Dominican market. While financial exclusion supports the idea of a sizeable microcredit market, we argue that the focus on growth and high competition strongly jeopardize the positive social outcomes of microcredit, and that only a paradigm shift within the sector will change the present situation.

Original language	English
Pages (from-to)	919-935
Journal	Journal of International Development
Volume	29
Issue number	7
Early online date	7 Sept 2016
DOIs	https://doi.org/10.1002/jid.3244
Publication status	Published - 1 Oct 2017

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 1 No Poverty
SDG 8 Decent Work and Economic Growth
SDG 10 Reduced Inequalities
SDG 17 Partnerships for the Goals

Keywords

Dominican Republic
financial practices
microfinance
over-indebtedness prevention
self-regulation

Access to Document

10.1002/jid.3244

JID Paper Dominican Republic Final version
This is the peer reviewed version of the following article: Afonso, J.S., Morvant-Roux, S., Guérin, I. & Forcela, D. (2017). Doing Good by Doing Well? Microfinance, Self-Regulation and Borrower’s Over-Indebtedness in the Dominican Republic. Journal of International Development, 29 (7), 919 – 935 which has been published in final form at https://onlinelibrary.wiley.com/doi/abs/10.1002/jid.3244. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
Accepted author manuscript (Post-print), 400 KB

Cite this

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Doing good by doing well? Microfinance, self-regulation and borrower’s over-indebtedness in the Dominican Republic

Abstract

UN SDGs

Keywords

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