Marketing micro-finance to women: integrating global with local

Since the 2005 'International Year of Microfinance', how well are micro-finance interventions (MFIs) working? MFIs are often seen as a panacea for poverty reduction, particularly among women and through enterprise development. Yet MFIs in Africa have often failed, and may even cause more harm than good. In East Africa for example, MFIs continue to advocate that one size (credit only) fits all strategy. Such a generic remedy is by definition relatively (i) harmonized but not necessarily (ii) aligned with the full diversity of preferences and norms at a local grassroots level. To improve any marketing 'fit' between MFIs and local market contexts in East Africa, interventions can become more pluralistic, blending global with local solutions. Based on a review of research with economically poor women in East Africa, a blend of 'credit only' and communal-based systems like 'rotating savings' and 'credit associations', is suggested. Diversified delivery systems like this are antithetical to (i) harmonisation, but would improve the degree of (ii) alignment between MFIs and the adaptively pluralistic belief systems already in place. Hence a key to making MFIs more sustainable, and thereby reducing poverty more effectively, is to respect their global-local interface, or 'glocality'. Copyright (C) 2009 John Wiley & Sons, Ltd.