It was once very difficult for people experiencing poverty in the Global South to obtain credit and loans because they were seen as unable to provide adequate collateral. This situation changed with the emergence of microfinance, a model pioneered by Muhammad Yunus and the Grameen Bank in Bangladesh which has now been widely disseminated to countries around the world.

At the heart of the Grameen system is the organization of borrowers into groups of women (97 percent of the bank's loans are to women) where collateral is each woman's social connections and reputation. This model is touted for contributing to Women's Empowerment and for "rising people out of poverty" and even won a Nobel Peace Prize in 2006.

But does this model actually empower women? Does it address the structural causes of poverty? Or is it just another frontier for capitalism — a new way of profiting off of the most marginalized, exploiting the trust and social cohesion among groups of women, and even triggering what's been described as "India's micro-finance suicide epidemic"?

To answer these questions, we've invited on Dr. Sohini Kar, a socio-cultural anthropologist at the London School of Economics who focuses on the economic anthropology of South Asia, particularly in urban India. She is also the author of Financializing Poverty: Labor and Risk in Indian Microfinance.

In this conversation, Dr. Kar breaks down what microfinance is and how it's hurting women in India and beyond, she shares stories of the experiences women in India have had with microcredit programs, she connects microlending in India with predatory payday lending in the United States as part of capitalism's financialization of poverty, and finally, she offers truly transformative and empowering financial pathways for both investors and purchasers alike.

Thank you to Carolyn Raider for this episode's cover art and to Gopal Maurya for the intermission music. Upstream theme music was composed by Robert Raymond/Lanterns.

Further Resources:

• Dr. Sohini Kar at LSE
• Dr. Sohini Kar
• Subprime Empire: On the In-Betweenness of Finance, The University of Chicago Press Journals

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