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Social Capital as Collateral: Banking on the Poor

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  • Esayas Bekele Geleta

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.

Suggested Citation

  • Esayas Bekele Geleta, 2014. "Social Capital as Collateral: Banking on the Poor," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(1), pages 108-125, January.
    • Handle: RePEc:bla:ajecsc:v:73:y:2014:i:1:p:108-125
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    References listed on IDEAS

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    Cited by:

    1. Esayas Bekele Geleta & Paitence Elabor-Idemudia & Carol Henry & Nigatu Reggassa, 2017. "The Challenges of Empowering Women: The Experience of Pulse Innovation Project in Southern Ethiopia," SAGE Open, , vol. 7(4), pages 21582440177, October.
    2. Getahun Fenta Kebede, 2018. "Social Capital and Entrepreneurial Outcomes: Evidence from Informal Sector Entrepreneurs in Ethiopia," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 209-242, September.

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