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COVID‐19 and the Unequalizing Infrastructures of Financial Inclusion in Tamil Nadu

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  • Isabelle Guérin
  • Vincent Guermond
  • Nithya Joseph
  • Nithya Natarajan
  • Govindan Venkatasubramanian

Abstract

This article discusses the impact of the COVID‐19 pandemic on microfinance borrowers in Tamil Nadu, India. Through an examination of the social and financial infrastructures underpinning inclusive finance, the article demonstrates how the COVID‐19 pandemic exposes the limits and exclusionary tendencies of the for‐profit financial inclusion industry. The unequalizing breakdown of financial inclusion infrastructures during the pandemic prioritizes future revenue extraction over current livelihood needs, throwing hard‐hit borrowers back on hierarchical informal financial and social infrastructures to cope with COVID‐19‐induced risk. Tracing the experiences of poor microfinance borrowers in Tamil Nadu, this article examines how COVID‐19 is reshaping inclusive financial infrastructures in ways that reveal the dynamics of exclusion at the heart of financial inclusion.

Suggested Citation

  • Isabelle Guérin & Vincent Guermond & Nithya Joseph & Nithya Natarajan & Govindan Venkatasubramanian, 2021. "COVID‐19 and the Unequalizing Infrastructures of Financial Inclusion in Tamil Nadu," Development and Change, International Institute of Social Studies, vol. 52(4), pages 927-951, July.
    • Handle: RePEc:bla:devchg:v:52:y:2021:i:4:p:927-951
    DOI: 10.1111/dech.12674
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    References listed on IDEAS

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    1. Meagher, Kate, 2015. "Leaving no-one behind? Informal economies, economic inclusion, and Islamic extremism in Nigeria," LSE Research Online Documents on Economics 62140, London School of Economics and Political Science, LSE Library.
    2. Isabelle Guérin & Govindan Venkatasubramanian & Santosh Kumar, 2020. "Rethinking saving: Indian ceremonial gifts as relational and reproductive saving," Journal of Cultural Economy, Taylor & Francis Journals, vol. 13(4), pages 387-401, July.
    3. Isabelle Guérin, 2014. "Juggling with debt, social ties, and values the everyday use of microcredit in rural South India," Post-Print ird-01471734, HAL.
    4. Charles Gore & Kate Meagher, 2015. "Leaving No One Behind?: Informal Economies, Economic Inclusion and Islamic Extremism in Nigeria," Journal of International Development, John Wiley & Sons, Ltd., vol. 27(6), pages 835-855, August.
    5. Nair, Tara, 2010. "Commercial Microfinance and Social Responsibility: A Critique," MPRA Paper 24412, University Library of Munich, Germany.
    6. Mosse, David, 2018. "Caste and development: Contemporary perspectives on a structure of discrimination and advantage," World Development, Elsevier, vol. 110(C), pages 422-436.
    7. Isabelle Guérin & Sébastien Michiels & Arnaud Natal & Christophe Jalil Nordman & Govindan Venkatasubramanian, 2020. "Surviving debt, survival debt in times of lockdown," Working Papers hal-02904484, HAL.
    8. Hadrien Saiag, 2020. "Financialization from the margins," Post-Print hal-02516543, HAL.
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