Financial inclusion and the 2030 Agenda for Sustainable Development: a missed opportunity
Approximately 2 billion adults, just below half of the world’s adult population, are financially excluded. They lack access to formal or semi-formal savings, credit, and insurance services. The vast majority of these adults live a hand-to-mouth existence in the developing world. The 2030 Agenda for Sustainable Development takes a rather unambitious approach to financial inclusion (FI). It recognizes its importance in advancing several sustainable development goals (SDGs), but it does not include it as a stand-alone goal. This paper criticizes this approach and claims that the new agenda has been a missed opportunity to focus efforts on finding ways of meeting the financial needs of the global poor. We analyse three of the main reasons for not including FI as a sustainable goal: namely, the instrumentality argument, the free market argument, and the veil argument.AFI (2015) Financial Inclusion Strategies: State of Practice 2015, Washington, DC: Alliance for Financial Inclusion.
Armendáriz, B. and Morduch, J. (2010) The Economics of Microfinance, 2nd edn, Cambridge, MA: MIT Press.
Barr, M., Kumar, A. and Litan, R. (2007) Building Inclusive Financial Systems, Washington, DC: Brookings Institution Press.
Bateman, M. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, London: Zed Books.
Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007) ‘Finance, inequality, and the poor’, Journal of Economic Growth 12: 27–49 <http://dx.doi.org/10.1007/s10887-007-9010-6>.
CGAP (2014) Focus Note: Financial Inclusion and Development, Washington, DC: Consultative Group to Assist the Poor.
CGAP (2016) ‘2014 Global Findex’ [online] <www.cgap.org/blog/series/2014-global-findex> [accessed 20 December 2016].
Demirgüç-Kunt, A. and Levine, R. (2009) ‘Finance and inequality: theory and evidence’, Annual Review of Financial Economics 1: 287–318 <http://dx.doi.org/10.1146/annurev.financial.050808.114334>.
Demirgüç-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2014) Measuring Financial Inclusion Around the World: The Global Findex Database, Policy Research Working Paper 7255, Washington, DC: World Bank.
Dupas, P. and Robinson, J. (2013) ‘Savings constraints and microenterprise development: evidence from a field experiment in Kenya’, American Economic Journal – Applied Economics 5: 163–92 <http://dx.doi.org/10.3386/w14693>.
ECOSOC (2001) Report of the Twenty-Fifth Session, 23 April–11 May 2001, Poverty and the International Covenant on Economic, Social and Cultural Rights, E/C.12/2001/10, Geneva: UN.
Economist Intelligence Unit (EIU) (2015) The Global Microscope 2015: The Enabling Environment for Financial Inclusion, New York: EIU.
GPFI (2011) Global Standard Setting Bodies and Financial Inclusion. Insights and Lessons from Five Countries: Brazil, Kenya, Mexico, the Philippines, and South Africa, Washington, DC: Global Partnership for Financial Inclusion.
Hulme, D. and Maitrot, M. (2014) Has Microfinance Lost its Moral Compass? Working Papers, Manchester, UK: Brooks World Poverty Institute.
Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion, Washington, DC: Center for Financial Inclusion (CFI)/ACCION.
Ledgerwood, J., Earne, J. and Candance, N. (2013) The New Microfinance Handbook: A System Perspective, Washington, DC: World Bank.
Miller, M.J. (ed.) (2003) Credit Reporting Systems and the International Economy, Cambridge, MA: MIT Press.
Porter, B. (2016) ‘A means to an end: The post-2015 future of financial inclusion’ [blog], New York: UNCDF <http://uncdf.org/en/means-end-post-2015-future-financial-inclusion> [accessed 20 December 2016].
Portocarrero, F., Tarazona, A. and Westley, G. (2006) How Should Microfinance Institutions Best Fund Themselves? Sustainable Development Department, Best Practices Series, Washington, DC: Inter-American Development Bank.
Prina, S. (2012) Do basic savings accounts help the poor to save? Evidence from a field experiment in Nepal’, Mimeo, Cleveland, OH: Case Western Reserve University.
Satz, D. (2010) Why Some Things Should Not Be for Sale: The Moral Limits of Markets, New York: Oxford University Press.
Sen, A. (1992) Inequality Re-examined, Oxford, UK: Clarendon Press.
Sen, A. (1999) Development as Freedom, New York: Knopf.
Sherrat, L. (2015) Can Microfinance Work? How to Improve its Ethical Balance and Effectiveness, New York: Cambridge University Press.
Staschen, S. (2010) Regulatory Impact Assessment in Microfinance: A Theoretical Framework and its Application to Uganda, Working Paper, London: London School of Economics.
United Nations (2013) Financing for Sustainable Development in the Global Partnership beyond 2015, New York: United Nations.
Wisor, S. (2015) ‘On the structure of development goals’, Journal of Global Ethics 11: 280–7 <http://dx.doi.org/10.1080/17449626.2015.1010656>.
AFI (2015) Financial Inclusion Strategies: State of Practice 2015, Washington, DC: Alliance for Financial Inclusion.
Armendáriz, B. and Morduch, J. (2010) The Economics of Microfinance, 2nd edn, Cambridge, MA: MIT Press.
Barr, M., Kumar, A. and Litan, R. (2007) Building Inclusive Financial Systems, Washington, DC: Brookings Institution Press.
Bateman, M. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, London: Zed Books.
Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007) ‘Finance, inequality, and the poor’, Journal of Economic Growth 12: 27–49 <http://dx.doi.org/10.1007/s10887-007-9010-6>.
CGAP (2014) Focus Note: Financial Inclusion and Development, Washington, DC: Consultative Group to Assist the Poor.
CGAP (2016) ‘2014 Global Findex’ [online] <www.cgap.org/blog/series/2014-global-findex> [accessed 20 December 2016].
Demirgüç-Kunt, A. and Levine, R. (2009) ‘Finance and inequality: theory and evidence’, Annual Review of Financial Economics 1: 287–318 <http://dx.doi.org/10.1146/annurev.financial.050808.114334>.
Demirgüç-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2014) Measuring Financial Inclusion Around the World: The Global Findex Database, Policy Research Working Paper 7255, Washington, DC: World Bank.
Dupas, P. and Robinson, J. (2013) ‘Savings constraints and microenterprise development: evidence from a field experiment in Kenya’, American Economic Journal – Applied Economics 5: 163–92 <http://dx.doi.org/10.3386/w14693>.
ECOSOC (2001) Report of the Twenty-Fifth Session, 23 April–11 May 2001, Poverty and the International Covenant on Economic, Social and Cultural Rights, E/C.12/2001/10, Geneva: UN.
Economist Intelligence Unit (EIU) (2015) The Global Microscope 2015: The Enabling Environment for Financial Inclusion, New York: EIU.
GPFI (2011) Global Standard Setting Bodies and Financial Inclusion. Insights and Lessons from Five Countries: Brazil, Kenya, Mexico, the Philippines, and South Africa, Washington, DC: Global Partnership for Financial Inclusion.
Hulme, D. and Maitrot, M. (2014) Has Microfinance Lost its Moral Compass? Working Papers, Manchester, UK: Brooks World Poverty Institute.
Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion, Washington, DC: Center for Financial Inclusion (CFI)/ACCION.
Ledgerwood, J., Earne, J. and Candance, N. (2013) The New Microfinance Handbook: A System Perspective, Washington, DC: World Bank.
Miller, M.J. (ed.) (2003) Credit Reporting Systems and the International Economy, Cambridge, MA: MIT Press.
Porter, B. (2016) ‘A means to an end: The post-2015 future of financial inclusion’ [blog], New York: UNCDF <http://uncdf.org/en/means-end-post-2015-future-financial-inclusion> [accessed 20 December 2016].
Portocarrero, F., Tarazona, A. and Westley, G. (2006) How Should Microfinance Institutions Best Fund Themselves? Sustainable Development Department, Best Practices Series, Washington, DC: Inter-American Development Bank.
Prina, S. (2012) Do basic savings accounts help the poor to save? Evidence from a field experiment in Nepal’, Mimeo, Cleveland, OH: Case Western Reserve University.
Satz, D. (2010) Why Some Things Should Not Be for Sale: The Moral Limits of Markets, New York: Oxford University Press.
Sen, A. (1992) Inequality Re-examined, Oxford, UK: Clarendon Press.
Sen, A. (1999) Development as Freedom, New York: Knopf.
Sherrat, L. (2015) Can Microfinance Work? How to Improve its Ethical Balance and Effectiveness, New York: Cambridge University Press.
Staschen, S. (2010) Regulatory Impact Assessment in Microfinance: A Theoretical Framework and its Application to Uganda, Working Paper, London: London School of Economics.
United Nations (2013) Financing for Sustainable Development in the Global Partnership beyond 2015, New York: United Nations.
Wisor, S. (2015) ‘On the structure of development goals’, Journal of Global Ethics 11: 280–7 <http://dx.doi.org/10.1080/17449626.2015.1010656>.
AFI (2015) Financial Inclusion Strategies: State of Practice 2015, Washington, DC: Alliance for Financial Inclusion.
Armendáriz, B. and Morduch, J. (2010) The Economics of Microfinance, 2nd edn, Cambridge, MA: MIT Press.
Barr, M., Kumar, A. and Litan, R. (2007) Building Inclusive Financial Systems, Washington, DC: Brookings Institution Press.
Bateman, M. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, London: Zed Books.
Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007) ‘Finance, inequality, and the poor’, Journal of Economic Growth 12: 27–49 <http://dx.doi.org/10.1007/s10887-007-9010-6>.
CGAP (2014) Focus Note: Financial Inclusion and Development, Washington, DC: Consultative Group to Assist the Poor.
CGAP (2016) ‘2014 Global Findex’ [online] <www.cgap.org/blog/series/2014-global-findex> [accessed 20 December 2016].
Demirgüç-Kunt, A. and Levine, R. (2009) ‘Finance and inequality: theory and evidence’, Annual Review of Financial Economics 1: 287–318 <http://dx.doi.org/10.1146/annurev.financial.050808.114334>.
Demirgüç-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2014) Measuring Financial Inclusion Around the World: The Global Findex Database, Policy Research Working Paper 7255, Washington, DC: World Bank.
Dupas, P. and Robinson, J. (2013) ‘Savings constraints and microenterprise development: evidence from a field experiment in Kenya’, American Economic Journal – Applied Economics 5: 163–92 <http://dx.doi.org/10.3386/w14693>.
ECOSOC (2001) Report of the Twenty-Fifth Session, 23 April–11 May 2001, Poverty and the International Covenant on Economic, Social and Cultural Rights, E/C.12/2001/10, Geneva: UN.
Economist Intelligence Unit (EIU) (2015) The Global Microscope 2015: The Enabling Environment for Financial Inclusion, New York: EIU.
GPFI (2011) Global Standard Setting Bodies and Financial Inclusion. Insights and Lessons from Five Countries: Brazil, Kenya, Mexico, the Philippines, and South Africa, Washington, DC: Global Partnership for Financial Inclusion.
Hulme, D. and Maitrot, M. (2014) Has Microfinance Lost its Moral Compass? Working Papers, Manchester, UK: Brooks World Poverty Institute.
Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion, Washington, DC: Center for Financial Inclusion (CFI)/ACCION.
Ledgerwood, J., Earne, J. and Candance, N. (2013) The New Microfinance Handbook: A System Perspective, Washington, DC: World Bank.
Miller, M.J. (ed.) (2003) Credit Reporting Systems and the International Economy, Cambridge, MA: MIT Press.
Porter, B. (2016) ‘A means to an end: The post-2015 future of financial inclusion’ [blog], New York: UNCDF <http://uncdf.org/en/means-end-post-2015-future-financial-inclusion> [accessed 20 December 2016].
Portocarrero, F., Tarazona, A. and Westley, G. (2006) How Should Microfinance Institutions Best Fund Themselves? Sustainable Development Department, Best Practices Series, Washington, DC: Inter-American Development Bank.
Prina, S. (2012) Do basic savings accounts help the poor to save? Evidence from a field experiment in Nepal’, Mimeo, Cleveland, OH: Case Western Reserve University.
Satz, D. (2010) Why Some Things Should Not Be for Sale: The Moral Limits of Markets, New York: Oxford University Press.
Sen, A. (1992) Inequality Re-examined, Oxford, UK: Clarendon Press.
Sen, A. (1999) Development as Freedom, New York: Knopf.
Sherrat, L. (2015) Can Microfinance Work? How to Improve its Ethical Balance and Effectiveness, New York: Cambridge University Press.
Staschen, S. (2010) Regulatory Impact Assessment in Microfinance: A Theoretical Framework and its Application to Uganda, Working Paper, London: London School of Economics.
United Nations (2013) Financing for Sustainable Development in the Global Partnership beyond 2015, New York: United Nations.
Wisor, S. (2015) ‘On the structure of development goals’, Journal of Global Ethics 11: 280–7 <http://dx.doi.org/10.1080/17449626.2015.1010656>.
AFI (2015) Financial Inclusion Strategies: State of Practice 2015, Washington, DC: Alliance for Financial Inclusion.
Armendáriz, B. and Morduch, J. (2010) The Economics of Microfinance, 2nd edn, Cambridge, MA: MIT Press.
Barr, M., Kumar, A. and Litan, R. (2007) Building Inclusive Financial Systems, Washington, DC: Brookings Institution Press.
Bateman, M. (2010) Why Doesn’t Microfinance Work? The Destructive Rise of Local Neoliberalism, London: Zed Books.
Beck, T., Demirgüç-Kunt, A. and Levine, R. (2007) ‘Finance, inequality, and the poor’, Journal of Economic Growth 12: 27–49 <http://dx.doi.org/10.1007/s10887-007-9010-6>.
CGAP (2014) Focus Note: Financial Inclusion and Development, Washington, DC: Consultative Group to Assist the Poor.
CGAP (2016) ‘2014 Global Findex’ [online] <www.cgap.org/blog/series/2014-global-findex> [accessed 20 December 2016].
Demirgüç-Kunt, A. and Levine, R. (2009) ‘Finance and inequality: theory and evidence’, Annual Review of Financial Economics 1: 287–318 <http://dx.doi.org/10.1146/annurev.financial.050808.114334>.
Demirgüç-Kunt, A., Klapper, L., Singer, D. and Van Oudheusden, P. (2014) Measuring Financial Inclusion Around the World: The Global Findex Database, Policy Research Working Paper 7255, Washington, DC: World Bank.
Dupas, P. and Robinson, J. (2013) ‘Savings constraints and microenterprise development: evidence from a field experiment in Kenya’, American Economic Journal – Applied Economics 5: 163–92 <http://dx.doi.org/10.3386/w14693>.
ECOSOC (2001) Report of the Twenty-Fifth Session, 23 April–11 May 2001, Poverty and the International Covenant on Economic, Social and Cultural Rights, E/C.12/2001/10, Geneva: UN.
Economist Intelligence Unit (EIU) (2015) The Global Microscope 2015: The Enabling Environment for Financial Inclusion, New York: EIU.
GPFI (2011) Global Standard Setting Bodies and Financial Inclusion. Insights and Lessons from Five Countries: Brazil, Kenya, Mexico, the Philippines, and South Africa, Washington, DC: Global Partnership for Financial Inclusion.
Hulme, D. and Maitrot, M. (2014) Has Microfinance Lost its Moral Compass? Working Papers, Manchester, UK: Brooks World Poverty Institute.
Kelly, S. and Rhyne, E. (2015) By the Numbers: Benchmarking Progress Toward Financial Inclusion, Washington, DC: Center for Financial Inclusion (CFI)/ACCION.
Ledgerwood, J., Earne, J. and Candance, N. (2013) The New Microfinance Handbook: A System Perspective, Washington, DC: World Bank.
Miller, M.J. (ed.) (2003) Credit Reporting Systems and the International Economy, Cambridge, MA: MIT Press.
Porter, B. (2016) ‘A means to an end: The post-2015 future of financial inclusion’ [blog], New York: UNCDF <http://uncdf.org/en/means-end-post-2015-future-financial-inclusion> [accessed 20 December 2016].
Portocarrero, F., Tarazona, A. and Westley, G. (2006) How Should Microfinance Institutions Best Fund Themselves? Sustainable Development Department, Best Practices Series, Washington, DC: Inter-American Development Bank.
Prina, S. (2012) Do basic savings accounts help the poor to save? Evidence from a field experiment in Nepal’, Mimeo, Cleveland, OH: Case Western Reserve University.
Satz, D. (2010) Why Some Things Should Not Be for Sale: The Moral Limits of Markets, New York: Oxford University Press.
Sen, A. (1992) Inequality Re-examined, Oxford, UK: Clarendon Press.
Sen, A. (1999) Development as Freedom, New York: Knopf.
Sherrat, L. (2015) Can Microfinance Work? How to Improve its Ethical Balance and Effectiveness, New York: Cambridge University Press.
Staschen, S. (2010) Regulatory Impact Assessment in Microfinance: A Theoretical Framework and its Application to Uganda, Working Paper, London: London School of Economics.
United Nations (2013) Financing for Sustainable Development in the Global Partnership beyond 2015, New York: United Nations.
Wisor, S. (2015) ‘On the structure of development goals’, Journal of Global Ethics 11: 280–7 <http://dx.doi.org/10.1080/17449626.2015.1010656>.
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