ABSTRACT
This chapter explores the dynamics and impacts of microcredit in Mexico. Although small-scale credit has a long history in Mexico, the contemporary microcredit sector was largely born as a result of the two major financial crises that hit Mexico in 1982 and 1994. The microcredit model has been pursued for several decades around the world based on a wide range of economic and social development objectives. Mexico is one of the early pioneers and it has accumulated many years of experience in the development of a microcredit sector in order to address key economic and social issues. Going further, against a background of a major over-indebtedness crisis that is washing over so many of the most microcredit touched parts of Mexico, the above broadly upbeat results arrived at by such as Nino-Zarazua (2013) and, though less so, by Angelucci et al. (2015), are largely missing the point.
