ABSTRACT
The literature on group dynamics suggests that an awareness of the tensions which exist in groups is all too often overlooked in the literature on microfinance (Marr, 2002). It is argued that microcredit programmes are open to abuse by group leaders, particularly the president and treasurer, and that there are often great differences in terms of experience and power between these agents and the rest of the members. This problem is compounded by the fact that NGOs, due to time constraints, are seldom in touch with the rank-and-file, and only have contact with the leaders. For example, Mercado has noted this trend in relation to women’s groups in Mexico:
It is worrying that preparation is limited to very few women, leaving the development of the rest of the group very problematic. Across Mexico and Central America, many NGO and government initiatives promote the setting up of women’s groups and fund the training merely of the president, secretary and treasurer for each. Often these posts have gone to women who already have considerable ‘powerover’…encouraging them to misuse both power and funds…the women may use their knowledge to personal ends rather than share it.
