Social Capital, Microfinance and Poverty Reduction
This chapter provides a theoretical discussion of social capital, and the links between microfinance and social capital. It illustrates how groupbased microfinance emerged as a field in which the place of social capital in development has been given a central focus. Drawing on Pierre Bourdieu’s conception of social capital, in contrast to the widely accepted understanding of it, the chapter critically examines the links between social capital and groupbased microfinance. Drawing on empirical data gathered in the Amhara region of Ethiopia, this chapter argues that the marginalised poor do not favour group-based microfinance, and it serves as a mechanism in the production and reproduction of social conflict and inequality.