The “Moral Hazards” of Microfinance: Restructuring Rural Credit in India

This paper explores how economic ideas are produced, how they travel, and how they are contested, in complex and contingent ways, in particular places. It stems from events that took place in coastal Andhra Pradesh, India, where I conducted fieldwork on microfinance programs during 2007. I begin by tracing how the practices of microfinance—and the ideas and rationalities underpinning them—have been increasingly globalized as a development tool since the 1970s. I then move on to describe the proliferation of various microfinance programs across Andhra Pradesh over the last decade. In the closing section, I consider the implications of a recent protest that took place against commercial microfinance institutions in the region.