Social Capital as Collateral: Banking on the Poor

Esayas Bekele Geleta

American Journal of Economics and Sociology, 2014, vol. 73, issue 1, 108-125

Abstract: Group-based micro finance is a field in which the place of social capital in development has been given a central focus. The formation of micro group is based on tapping into the information that group members have about each other, thus relying on social capital. Group-based micro finance has also been explained as a means of creating social capital. This article, drawing on Pierre Bourdieu's conception of social capital, in contrast to the widely accepted notion of it, critically examines the link between social capital and group-based micro finance. It argues that group-based MF is not favored by the marginalized poor, and it serves as a mechanism in the production and reproduction of social conflict and inequality.

Date: 2014
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