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>.
The digital transformation of microfinance institutions: an empirical analysis
Dorfleitner, Gregor
Forcella, Davide
Nguyen, Quynh Anh
Journal of Applied Accounting Research, Vol. 23 (2022), Iss. 2 P.454
https://doi.org/10.1108/JAAR-02-2021-0041 [Citations: 21]Importance of artificial intelligence in achieving sustainable development goals through financial inclusion
Fazal, Anam
Ahmed, Alia
Abbas, Sagheer
(2024)
https://doi.org/10.1108/QRFM-04-2023-0098 [Citations: 0]Pesos or Plastic?
Financial Inclusion and the Middle of the Pyramid, a New Public Revenue Strategy for the Twenty-First Century
Mitchell, Ken
Scott, Robert H.
2019
https://doi.org/10.1007/978-3-030-14876-8_1 [Citations: 0]Fintech and Sustainability
Fintech, Financial Inclusion, and Social Challenges: The Role of Financial Technology in Social Inequality
Cosma, Simona
Rimo, Giuseppe
2023
https://doi.org/10.1007/978-3-031-40647-8_6 [Citations: 4]Pathways to women’s empowerment in Bangladesh
Zafarullah, Habib
Nawaz, Faraha
Asian Education and Development Studies, Vol. 8 (2019), Iss. 4 P.387
https://doi.org/10.1108/AEDS-11-2018-0168 [Citations: 21]Responsible Design, Implementation and Use of Information and Communication Technology
Experimental Application of Machine Learning on Financial Inclusion Data for Governance in Eswatini
Akinnuwesi, Boluwaji A.
Fashoto, Stephen G.
Metfula, Andile S.
Akinnuwesi, Adetutu N.
2020
https://doi.org/10.1007/978-3-030-45002-1_36 [Citations: 6]Role of Islamic Microfinance Institutions for Sustainable Development Goals in Bangladesh
Uddin, Md Nazim
(2020) P.1
https://doi.org/10.37227/jibm-2020-64 [Citations: 7]Fintech, financial inclusion, and sustainable development in the African region
Tidjani, Chemseddine
Madouri, Abderazak
Frontiers in Applied Mathematics and Statistics, Vol. 10 (2024), Iss.
https://doi.org/10.3389/fams.2024.1276218 [Citations: 1]Exploring the potential contribution of green microfinance in transformations to sustainability
Huybrechs, Frédéric
Bastiaensen, Johan
Van Hecken, Gert
Current Opinion in Environmental Sustainability, Vol. 41 (2019), Iss. P.85
https://doi.org/10.1016/j.cosust.2019.11.001 [Citations: 19]A systematic conceptual review of financial access
Birkenmaier, Julie
Huang, Jin
Journal of Consumer Affairs, Vol. 58 (2024), Iss. 2 P.367
https://doi.org/10.1111/joca.12574 [Citations: 1]Sustainable Development Goals for Society Vol. 1
Conclusion and Recommendations: Challenges and Opportunities in SDGs Localisation and Implementation
Dube, Kaitano
Nhamo, Godwell
Togo, Muchaiteyi
2021
https://doi.org/10.1007/978-3-030-70948-8_19 [Citations: 2]Fintech use, digital divide and financial inclusion
Odei-Appiah, Solomon
Wiredu, Gamel
Adjei, Joseph Kwame
Digital Policy, Regulation and Governance, Vol. 24 (2022), Iss. 5 P.435
https://doi.org/10.1108/DPRG-09-2021-0111 [Citations: 16]The Role of Financial Inclusion for Reaching Sustainable Development Goals
Sustainable Financial Inclusion
Ozili, Peterson K.
2024
https://doi.org/10.4018/979-8-3693-0522-5.ch002 [Citations: 0]- Value chain financing: evidence from Zambia on smallholder access to finance for mechanization
- Developing agro-pastoral entrepreneurship: bundling blended finance and technology
- Building frontline market facilitators' capacity: the case of the ‘Integrating Very Poor Producers into Value Chains Field Guide’
- Boosting financial inclusion through social assistance reform: evidence-based approach in selecting a payment system
- Impact of COVID-19 on livestock exports from Somalia and the Horn of Africa
Browse our other journals
