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The Dark Side of Microfinance: An Industry Where the Poor Play 'Cameo Roles'
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The Dark Side of Microfinance: An Industry Where the Poor Play 'Cameo Roles'

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Hugh Sinclair is the author of a new book titled, Confessions of a Microfinance Heretic: How Microlending Lost Its Way and Betrayed the Poor , in which he debunks the image of microfinance as a do-good industry committed to helping poor people create sustainable businesses. Instead, he documents rampant corruption, extortionist interest rates, cover-ups and a lack of transparency that he says characterize much of the microfinance industry today. Sinclair, who has worked in the field with global organizations, banks and funds for more than a decade and holds degrees from the University of Durham and IESE Business School, spoke with Knowledge at Wharton about his book, the problems microfinance continues to face, and some solutions for moving forward. Below is an edited transcript of the conversation. Knowledge at Wharton : Hugh, thanks for joining us. Hugh Sinclair : Thank you. Knowledge at Wharton : I’d like to start out asking you why you wrote this book.…

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