Should Access to Credit be a Right ?
AbstractDiscussion on financial ethics increasingly includes the problem of exclusion of the poorer segments of society from the financial system and access to credit. This paper explores the ethical dimensions surrounding the concept of a human right to credit. If access to credit is directly instrumental to economic development, poverty reduction and the improved welfare of all citizens, then one can proclaim, as Nobel Prize Laureate M. Yunus has done, that it is a moral necessity to establish credit as a right. Arguments both supporting and opposing the concept of a right to credit are presented. While there may be general agreement that access to financial services may provide a pathway out of poverty, granting a universal right could induce perverse effects such as overindebtedness. Bearing in mind the ultimate goal of proponents of this right as well as the potential harmful consequences, this paper offers a new perspective on the question of access to credit based on a goal-right system.
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Bibliographic InfoPaper provided by ULB -- Universite Libre de Bruxelles in its series Working Papers CEB with number 07-008.RS.
Length: 24 p.
Date of creation: 2007
Date of revision:
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credit; financial exclusion; human right; justice; microfinance;
Other versions of this item:
- O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
- Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
This paper has been announced in the following NEP Reports:
- NEP-AGR-2007-05-19 (Agricultural Economics)
- NEP-ALL-2007-05-19 (All new papers)
- NEP-ENT-2007-05-19 (Entrepreneurship)
- NEP-HPE-2007-05-19 (History & Philosophy of Economics)
- NEP-MFD-2007-05-19 (Microfinance)
- NEP-PKE-2007-05-19 (Post Keynesian Economics)
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