The political economy of financial inclusion: tailoring donor policy to fit

Susan Johnson and Richard Williams

Development Policy Review, 2016, vol. 34, issue 5, 721-743

Abstract: type="main" xml:id="dpr12170-abs-0001">

Financial inclusion has recently become a globally acclaimed policy objective. This provokes the need to review policy in this sector, particularly in light of the tensions that arise between donor approaches founded on market modernism and governments with more activist leanings. This is done here in the context of efforts to move donor development policy beyond ‘best practice’ institutional blue-prints to those which are ‘good enough’, which seek to understand underlying political economy dynamics in order to find space to engage with governments. In doing so, it is argued that there is scope for ‘working with the grain’ and harnessing the political economy of government policy in order to produce financial inclusion outcomes.

Date: 2016
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