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Debt in Rural South India: Fragmentation, Social Regulation and Discrimination

Author

Listed:
  • Isabelle Gu�rin
  • Bert D'Espallier
  • Govindan Venkatasubramanian

Abstract

This micro-level study combines multivariate and qualitative analyses to highlight the fragmented nature of debt in southern Indian rural households. It finds that debt is socially regulated in the sense that social interactions shape the cost, use and access to debt. Caste, social class and location affect how individuals borrow varying amounts from distinct money providers, for varied purposes and at differing costs. Debt thus is not purely an economic but first and foremost a social transaction which inscribes debtors and creditors into local systems of hierarchies. Furthermore, we find that debt is an illustration and catalyst of broader socio-economic and political trends, namely a lack of social protection, persistent under-employment and rising consumerism. In terms of policy implications, the study highlights the ambiguities and illusions inherent to 'financial inclusion' policies aiming to eradicate informal debt.

Suggested Citation

  • Isabelle Gu�rin & Bert D'Espallier & Govindan Venkatasubramanian, 2013. "Debt in Rural South India: Fragmentation, Social Regulation and Discrimination," Journal of Development Studies, Taylor & Francis Journals, vol. 49(9), pages 1155-1171, September.
  • Handle: RePEc:taf:jdevst:v:49:y:2013:i:9:p:1155-1171
    DOI: 10.1080/00220388.2012.720365
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    Citations

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    Cited by:

    1. Lekh Nath Paudel, 2022. "Remittances and the reconfiguration of rural finance in Nepal (1900–1960)," Environment and Planning A, , vol. 54(4), pages 822-838, June.
    2. Isabelle Guérin, 2014. "Juggling with debt, social ties, and values the everyday use of microcredit in rural South India," Post-Print ird-01471734, HAL.
    3. Hilger, Anne & Nordman, Christophe Jalil, 2020. "The Determinants of Trust: Evidence from Rural South India," IZA Discussion Papers 13150, Institute of Labor Economics (IZA).
    4. Narayan Prasad Nagendra & Gopalakrishnan Narayanamurthy & Roger Moser, 2022. "Satellite big data analytics for ethical decision making in farmer’s insurance claim settlement: minimization of type-I and type-II errors," Annals of Operations Research, Springer, vol. 315(2), pages 1061-1082, August.
    5. López, Tania & Winkler, Adalbert, 2019. "Does financial inclusion mitigate credit boom-bust cycles?," Journal of Financial Stability, Elsevier, vol. 43(C), pages 116-129.
    6. Isabelle Guérin, 2018. "Pour une socioéconomie de la dette," Post-Print ird-02196925, HAL.
    7. Mary Di Santolo & Isabelle Guérin & Sébastien Michiels & Cécile Mouchel & Arnaud Natal & Christophe Jalil Nordman & Govindan Venkatasubramanian, 2024. "Ten Years in Tamil Nadu: Exploring Labour, Migration and Debt from Longitudinal Household Surveys in South India," Working Papers DT/2024/02, DIAL (Développement, Institutions et Mondialisation).
    8. Kennedy, Loraine & Robin, Kim & Zamuner, Diego, 2013. "Comparing State-level policy responses to economic reforms in India," Revue de la Régulation - Capitalisme, institutions, pouvoirs, Association Recherche et Régulation, vol. 13.
    9. Isabelle Guérin & Youna Lanos & Sébastien Michiels & Christophe Jalil Nordman & Govindan Venkatasubramanian, 2017. "Demonetisation, Social Networks and Social Protection: Insights from Rural Tamil Nadu," Working Papers DT/2017/10, DIAL (Développement, Institutions et Mondialisation).
    10. Supriya Garikipati & Isabelle Agier & Isabelle Guérin & Ariane Szafarz, 2017. "The Cost of Empowerment: Multiple Sources of Women’s Debt in Rural India," Journal of Development Studies, Taylor & Francis Journals, vol. 53(5), pages 700-722, May.
    11. Hadrien Saiag, 2020. "Financialization from the margins," Post-Print hal-02516543, HAL.
    12. Hadrien Saiag, 2020. "Consumer Credit and Debt," Post-Print halshs-03095993, HAL.
    13. Thereza Balliester Reis, 2022. "Socio‐economic determinants of financial inclusion: An evaluation with a microdata multidimensional index," Journal of International Development, John Wiley & Sons, Ltd., vol. 34(3), pages 587-611, April.
    14. Cyril Fouillet & Isabelle Guérin & Solène Morvant-Roux & Jean-Michel Servet, 2016. "De gré ou de force : le microcrédit comme dispositif néolibéral," Revue Tiers-Monde, Armand Colin, vol. 0(1), pages 21-48.
    15. Drori, Israel & Manos, Ronny & Santacreu-Vasut, Estefania & Shoham, Amir, 2020. "How does the global microfinance industry determine its targeting strategy across cultures with differing gender values?," Journal of World Business, Elsevier, vol. 55(5).
    16. Reboul, E. & Guérin, I. & Nordman, C.J., 2021. "The gender of debt and credit: Insights from rural Tamil Nadu," World Development, Elsevier, vol. 142(C).
    17. Isabelle Guérin & Christophe Nordman & Elena Reboul, 2019. "The gender of debt and the financialisation of development. Insights from rural southern India," Working Papers CEB 19-016, ULB -- Universite Libre de Bruxelles.

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