Title

Leftist Politics and the Limits of Microcredit in Argentina

SMC Author

Ron Ahnen

SMC Affiliated Work

1

Author Role

Author

Status

Faculty

School

School of Liberal Arts

Department

Politics

Document Type

Article

Publication Date

8-2017

Publication Title

Journal of Politics in Latin America

Description/Abstract

La politica izquierdista y los limites del microcredito en Argentina Introduction Latin America is well into its second decade of major growth in microcredit financing. While many microcredit and microfinance [...] The success of microcredit lending programs depends in part on the regulatory framework that policymakers create to support them. A fact that many microcredit analyses often ignore or overlook is that this framework is shaped by both ideological and partisan political considerations of policymakers. In Argentina, the Peronist governments of Nestor and Cristina Kirchner launched and supported a state-centered microcredit program characterized by strict loan conditions and direct state grants for capital and operational costs to existing non-profit organizations that were largely supportive of Peronism. Provinces and municipalities governed by anti-Peronists refused to participate. As a result, the National Microcredit Program has come to mimic past patronage based policies to a significant extent, engendering dependency on government resources, and thereby threatening its long-term viability. This article explores the impact of the left's ideological and political project on microcredit policy, implementation, and outcomes in Argentina. * Manuscript received 24 May 2016; accepted 9 June 2017 Keywords: Argentina, microcredit policy, leftist politics, microfinance, Kirchnerismo El exito de los programas de prestamos de microcredito depende, en parte, del marco regulatorio que los disenadores de politicas crean para apoyarlos. Un hecho que muchos analisis de microcredito frecuentemente ignoran es que este marco esta formado por consideraciones ideologicas y politicas partidistas de lideres politicos. En Argentina, los gobiernos peronistas de Nestor y Cristina Kirchner lanzaron y apoyaron un programa de microcredito centrado en el Estado caracterizado por condiciones estrictas de prestamos y subvenciones estatales directas para el capital y los costos operativos a organizaciones sin fines de lucro que apoyaban en gran medida al peronismo. Provincias y municipios gobernados por anti-peronistas se negaron a participar. Como resultado, el Programa Nacional de Microcredito ha llegado a mimetizar en gran medida politicas de patrocinio pasadas, generando dependencia de los recursos gubernamentales y amenazando asi su viabilidad a largo plazo. Este articulo explora el impacto del proyecto ideologico y politico de la izquierda en la politica, implementacion y resultados del microcredito en Argentina. Palabras clave: Argentina, politica de microcredito, politica izquierdista, microfinanzas, Kirchnerismo

Keywords

Microfinance -- Political aspects, Liberalism -- Economic aspects

Volume

9

Issue

2

First Page

41

Last Page

62

Disciplines

Political Science

Original Citation

Ahnen, Ronald. “Leftist Politics and the Limits of Microcredit in Argentina.” 9(2), 41-62. Journal of Politics in Latin America. 2017.

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