You are currently browsing the tag archive for the ‘world bank’ tag.

The World Bank’s previously public data on microfinance and financial inclusion has recently been locked away behind a paywall. It’s hard to figure out why. However, it raises larger questions about the Bank’s strategies for microfinance and knowledge more broadly.

(This is a background piece to an article published on the IDS blog.)

Since the 1990s, the World Bank has sought to present itself as not only as a lender, but also a global “Knowledge Bank” that collects and provides knowledge as a global public good. It has garnered some praise, and perhaps more criticism, for ostensibly seeking to monopolise knowledge about development. In 2012, the Independent Evaluation Group concluded the objective of creating a global Knowledge Bank had not been achieved, criticising a lack of uptake of knowledge within the Bank and “intellectual silos”.

So how about intellectual vaults, with knowledge securely locked away? Turning public monopolies into private (or pseudo-private) monopolies; now that doesn’t sound like something the World Bank would be in favour of, does it? It’s precisely what happened with the World Bank’s microfinance data platform earlier this month.

The MIX (also known as “Microfinance Information Exchange”, or “”) was created by the World Bank’s in-house-but-arms-length microfinance governing body, CGAP, to improve the transparency of the microfinance industry. Since 2002, the MIX (whose connections to the World Bank are not made very clear, but its headquarters are across the street) has collected data about the global microfinance sector, packaged primarily to cater to investment decision-makers.

The MIX’s “.org” suffix denotes its claim to serve the greater good. The data were made available on-line.  Anyone with an interest in microfinance could access it: “a big win for open data in international development”.

Get the “public” data – for upwards of $486

Those days, it seems, are over. All the data which were previously available for downloading and (usually after some cleaning) analysing in a spreadsheet are now behind a paywall. What used to be a “global public good” is now priced at at least $486 a year – clearly too much for most students or researchers, let alone those from developing countries.


(Image: screenshot from

Read the rest of this entry »

Excerpt from “The Political Economy of Microfinance: Financializing Poverty”, Chapter 2, A Genealogy of Microfinance. (see other excerpts here)

Microcredit allowed the well-institutionalized tool of credit programming to remain inside mainstream development policy, despite a diminished role for governments, and despite the fall from grace of subsidies. In reality, microcredit programming merely shifted the subsidies and state involvement one level “up”: no longer were loans to the poor subsidized and publicly supported; now the organizations which lent to the poor were subsidized and supported.

Historical growth of the microfinance industry

Sources: World Bank (2001); Maes/Reed (2012); MIX (2013) = Basic MIX MFI Data Set, as of 26 December 2013.

Reliable data on microfinance from before 2000 are very rare. In the mid-1990s the World Bank surveyed the sector and counted over 900 “institutions which offer microfinancial services” (around 735 of them being “proper” microfinance institutions), each serving at least 1,000 clients. The list included seven large banks and one NGO. The survey tallied around $5 billion in outstanding loans. However, the vast majority of MFIs were recently founded NGOs which placed little, if any, emphasis on savings and received over two-thirds of their funding from donors (see Figure below). This group was fast-growing. The World Bank (2001: 4) noted: “Much of the impetus for this growth comes from donor organizations and NGOs embracing microfinance as the latest tool in development and poverty reduction. Due to the increasing availability of donor funds, microfinance institutions have grown rapidly.”

Standardizing microfinance, financially

The World Bank’s decision to support microfinance primarily through its International Finance Corporation (IFC) arm, whose purpose is “financing private sector investment, mobilizing capital in the international financial markets, and providing advisory services” (IFC 2011), affected which type of organizational model would become dominant: MFIs that were willing and able to manage funds that were channelled from mainstream financial markets were favoured. Read the rest of this entry »

Over at “social enterprise” website NextBillion, Jemima Sy of the World Bank’s Water and Sanitation Program posted an interesting article debunking “Five Myths About the Business of Sanitation“. While I hardly disagree on some of the debunkings – for instance, it is true that poor people don’t see much value in minor upgrades, and instead want to go the whole nine yards when they pay for water and sanitation – the overriding conclusion that water and sanitation can and should be more of a business just ruffled my feathers. As a response, here are my Five Myths of the World Bank’s Approach to Water and Sanitation:

1. “Water and sanitation are untapped business opportunities.” Myth. Most of the privatisation efforts under Structural Adjustment went badly. Networks usually weren’t expanded, many companies didn’t even manage to make a profit. Water and sanitation work badly as businesses.

2. “Water and sanitation are private problems.” Myth. Clean water and environments are actually a public good. They have large public benefits which households cannot privately capture, and therefore are best tackled through public interventions. Read the rest of this entry »

The Book

Governance across borders: transnational fields and transversal themes. Leonhard Dobusch, Philip Mader and Sigrid Quack (eds.), 2013, epubli publishers.
February 2017
« Jan    

Twitter Updates

Copyright Information

Creative Commons License
All texts on governance across borders are licensed under a Creative Commons Attribution-Share Alike 3.0 Germany License.