The Andhra Pradesh Microfinance Crisis and American Payday Lending: Two Studies in Vulnerability

Microcredit, a non-profit lending approach that is often championed as a source of women’s inclusion and empowerment, has in the past decade been followed by microfinance, a forprofit sibling of a different temperament. Microfinance in India is now in turmoil, precipitated by legislation in the state of Andhra Pradesh, which has encouraged withholding of payment, which in turn has frozen the market. This paper considers one precipitating condition of the crisis: the remarkable, new, and developing burden of formal economic debt that poor women in the state have only recently come to hold – debt that now surpasses one year’s family income, on average. The development of this lending sector follows upon innovation in lending to the poor of the global north over the past two decades, and the practices show noteworthy parallels. Both lending schemes have produced similar disproportionate burdens upon some low-status individuals within their respective economic orders, and both may exploit a vulnerability that is born of aspiration and produces great dysfunction for borrowers. This paper introduces the two lending schemes, sketches the parallels, and introduces the claim that ethical finance arrangements for the poor require attention to vulnerability, an under-utilized category in both liberal ethical theory and in finance.

A Tangled Web? Asking the Gender Question in the Multilateral Development Banks’ Law and Justice Policies in India

Over the course of the last two decades, IFIs (most prominently the World Bank) have begun acknowledging the centrality of human development as an essential element of the economic development process if the growth aimed at is to be holistic and sustainable. Strikingly, there is no agreement on the manner in which this approach is to be achieved, especially in the field of gender and development. This paper focuses on the issue of whether the Multilateral Development Banks’ policies have truly attempted at implementing their stated model of gender mainstreaming through their programmes and projects in India, with a specific focus on the legal sector, since that sector has both instrumental and intrinsic value for gender rights advocates. This article will aim at reviewing their approach towards rule of law projects and the manner in which gender equality norms have or have not been addressed within that framework; it will end with recommendations as to the necessary issues which gender programmes must address within the rule of law framework in order to achieve the Millennium Development Goal of gender equity.

Enjeux économiques et éthiques de la mesure du travail non rémunéré des femmes

A large part of the work done by women is not counted in the gross national product (GDP) of nations. Which type of work are we referring to? Unpaid work; also commonly called domestic work. Because all the services produced by households for their own consumption are not subject to monetary exchange, they are excluded from de production boundary defined by the United Nations System of National Accounts (SNA). In doing so, this key statistics, inspired by the Keynesian school of thoughts, shows an accepted iniquity in the quantification of the product since women’s productive contribution within the households is not taken into account. In other words, national accounts are not gender neutral. In fact, this breach of a fundamental ethical rule which is equity towards gender inequalities is just the reflection of a social conception that prevails within the SNA since its creation, namely that domestic work is not considered as work. It is therefore essential to quantify women’s unpaid work, a concern that has long been the preserve of feminist activists even though; this should go beyond feminists considerations. This article shows how the issue of measuring unpaid work on a broader prospective is relevant on both ethical and economic fronts. The recognition of this production factor as a macroeconomic variable is indeed fundamental to get a more complete understanding and assessment of the economy. Valorization of unpaid work would also allow women to claim better retribution, or at least, to expect an effective social recognition of their actions and efforts and in the end would contribute to the establishment of greater social justice.

Una relectura de la noción de bien común y su relación con la economía

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Le comportement coopératif à la lumière de deux conceptions de la moralité : devoir et choix

Nous nous proposons dans ce papier d'étudier la question de la coopération à la lumière de la moralité. Cela nous conduit à discerner deux formes de moralité, celle conçue comme un devoir (impératif catégorique de Kant) et celle conçue comme un choix (l'altruisme). Néanmoins, ces deux représentations se recoupent dans leur traitement de la coopération. Dans la mesure où elles sont formalisées dans le cadre d'un jeu statique, les résultats qui en ressortent ne nous disent pas plus qu'il est dans l'intérêt d'un individu de s'y soumettre lorsque les autres en ont fait autant. Toutefois, il n'est pas expliqué comment les autres en sont venus à adopter un comportement moral. Cela soulève en substance le problème de l'outil utilisé, celui-ci définissant les comportements à l'équilibre sans nous livrer la moindre information sur la situation qui prédominait avant d'arriver à l'équilibre.

Constructive Universalism: Sen and Sensitivity to Difference

Amartya Sen’s capability approach is, on the one hand, in line with universalism such as exhibited in Martha Nussbaum’s capabilities approach and Len Doyal and Ian Gough’s human need theory. On the other hand, his approach puts priority on people’s “self-evaluation” of capabilities and needs. The latter emphasis makes his approach distinctly sensitive to people’s differences such as gender, ethnicity, disability, sexual orientation, etc.. One could ask, however, how successfully the former commitment to universalism relates to this latter feature that places importance on taking difference seriously. This question is especially relevant with respect to global justice and gender, for example. To offer a potential answers to this question is main goal of this paper.

Should we boycott child labour ?

In high income countries, there is nearly universal popular support for boycotts against products using child labor or punitive sanctions against countries with high levels of child labor. This essay assumes that the reason for this popular support is a concern for the well- being of these child laborers. Consumer boycotts or sanctions should then be viewed by advocates as successful if they make children in low-income countries better off. This essay argues that much of the popular debate on boycotts and sanctions suffers from a failure to consider what children will do if they are not working. To answer this question, the responsible activist or policymaker must understand why children work. While some circumstances of child laborers are so insidious that policies even more aggressive than boycotts may be justified, most of the work performed by children in low income countries reflects the desperateness of their family's poverty. For these cases, if consumer boycotts diminish the earnings power of children, then the incidence of the boycott can be on the poorest of the poor. In this sense, a consumer boycott of products made with child labor can be equivalent to a consumer boycott of poverty relief for both child laborers and their families.

Réflexions d'un historien sur le travail des enfants en Europe (XIX-XXè)

Lorsqu'on essaie, en historien, de comprendre comment le travail des enfants a reculé en Europe occidentale depuis environ un siècle (des enfants d'une douzaine d'années sont encore au travail dans des verreries de la Sarthe ou de la Seine-Inférieure, dans les années 1930...), on découvre deux séries de facteurs concommittants à l'oeuvre.

Le Travail des Enfants. Une Revue de la Littérature Économique Récente

Dans cet article nous passons en revue les différentes théories économiques traitant du travail des enfants. Nous distinguons deux analyses différentes du travail des enfants. Une première analyse se référant à la pauvreté, étudie les impacts sur le bien-être du ménage d’une décision parentale de mettre les enfants au travail. De ce fait, la pauvreté est l’unique facteur explicatif du travail des enfants. Dans cette approche, le ménage arbitre entre offrir du loisir aux enfants ou les mettre au travail, en fonction du revenu parental. Dans la deuxième analyse, l’arbitrage ne s’opère plus en terme de loisir et travail mais en terme d’éducation et travail. Selon cette approche, le travail des enfants est facteur non seulement de la pauvreté mais aussi des imperfections du marché des capitaux. La décision parentale de mettre les enfants au travail a un impact sur le bien-être futur de ces enfants. Ces deux analyses montrent que le travail des enfants conduit à une situation de trappe à pauvreté.