IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/42374.html
   My bibliography  Save this paper

Uganda's microfinance policy regime: An exploratio through a political-economy framework

Author

Listed:
  • Schmidt, Oliver

Abstract

In 2005, Uganda’ government fundamentally shifted the direction of its microfinance (MF) policy. Hitherto it had focused on integrating MF institutions into the financial sector, allowing them to take deposits. Since 2005, it focuses on savings and credit cooperatives (SACCOs); with government funding of and ostensibly interfering in the SACCOs’ operations. This paper explores the reversal of policy direction, drawing on public choice theory. It finds that the shift of policy direction served the objectives of Uganda’s politicians to maintain political power, as it offered them an avenue to create loyalty through patronage. MF special interest groups – particularly development agencies – had chosen a strategy based on information and financial contributions that failed to incite politicians and to maintain univocal support from technocrats and MF practitioners.

Suggested Citation

  • Schmidt, Oliver, 2012. "Uganda's microfinance policy regime: An exploratio through a political-economy framework," MPRA Paper 42374, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:42374
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/42374/1/MPRA_paper_42374.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. George A. Akerlof, 2009. "How Human Psychology Drives the Economy and Why It Matters," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1175-1175.
    2. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    3. Mueller,Dennis C. (ed.), 1997. "Perspectives on Public Choice," Cambridge Books, Cambridge University Press, number 9780521553773, December.
    4. Marguerite S. Robinson, 2001. "The Microfinance Revolution," World Bank Publications - Books, The World Bank Group, number 28956.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sekabira, Haruna, 2013. "Capital Structure and Its Role on Performance of Microfinance Institutions: The Ugandan Case," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 2(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Vaughan Dickson & Weiqiu Yu, 2000. "Revenue Structures, The Perceived Price of Government Output, and Public Expenditures," Public Finance Review, , vol. 28(1), pages 48-65, January.
    2. Yun‐chien Chang, 2009. "Empire Building and Fiscal Illusion? An Empirical Study of Government Official Behaviors in Takings," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 6(3), pages 541-584, September.
    3. Venetoklis, Takis, 2001. "Business Subsidies and Bureaucratic Behaviour," Research Reports 79, VATT Institute for Economic Research.
    4. Fearon, Gervan & Busch, Lutz-Alexander, 2006. "Auditing and competitive bidding in the public sector," Journal of Public Economics, Elsevier, vol. 90(4-5), pages 657-678, May.
    5. Ana Rodríguez Alvarez & Javier Suárez-Pandiello, 2003. "Organizaciones burocráticas e ineficiencia X: Una revisión de modelos," Hacienda Pública Española / Review of Public Economics, IEF, vol. 164(1), pages 83-107, march.
    6. Sandra van Thiel, 2004. "Trends in the Public Sector," Journal of Theoretical Politics, , vol. 16(2), pages 175-201, April.
    7. Venetoklis, Takis, 2001. "Business Subsidies and Bureaucratic Behaviour - A Revised Approach," Research Reports 83, VATT Institute for Economic Research.
    8. Christoph Gwosć & Gregor Van Der Beek, 2003. "Principles for a European Union's Public Debt," Constitutional Political Economy, Springer, vol. 14(1), pages 23-37, March.
    9. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    10. Thomas A. Garrett & Russell S. Sobel, 2004. "State Lottery Revenue: The Importance of Game Characteristics," Public Finance Review, , vol. 32(3), pages 313-330, May.
    11. Stern, Nicholas, 2018. "Public economics as if time matters: Climate change and the dynamics of policy," Journal of Public Economics, Elsevier, vol. 162(C), pages 4-17.
    12. Jang, Tae-Seok & Sacht, Stephen, 2017. "Modeling consumer confidence and its role for expectation formation: A horse race," Economics Working Papers 2017-04, Christian-Albrechts-University of Kiel, Department of Economics.
    13. Guglielmo Maria Caporale & Alex Plastun, 2019. "Price overreactions in the cryptocurrency market," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(5), pages 1137-1155, August.
    14. Giovanni Trovato & Marco Alfó, 2006. "Credit rationing and the financial structure of Italian small and medium enterprises," Journal of Applied Economics, Universidad del CEMA, vol. 9, pages 167-184, May.
    15. François Facchini, 1993. "Pour une critique du modèle technocratique -savoir-marché politique et production de la loi," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01350618, HAL.
    16. Gabriella Montinola & Ramon Moreno, 2001. "The political economy of foreign bank entry and its impact: theory and a case study," Pacific Basin Working Paper Series 2001-11, Federal Reserve Bank of San Francisco.
    17. Roy, Saktinil & Kemme, David M., 2012. "Causes of banking crises: Deregulation, credit booms and asset bubbles, then and now," International Review of Economics & Finance, Elsevier, vol. 24(C), pages 270-294.
    18. Klodt, Henning & Lehment, Harmen (ed.), 2009. "The Crisis and Beyond," Kiel E-Books, Kiel Institute for the World Economy (IfW Kiel), number 60981.
    19. Deller, Steven C. & Hinds, David G. & Hinman, Donald L., 2001. "Local Public Services In Wisconsin: Alternatives For Municipalities With A Focus On Privatization," Staff Papers 12658, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    20. Matthias Dahm & Nicolás Porteiro, 2008. "Informational lobbying under the shadow of political pressure," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 30(4), pages 531-559, May.

    More about this item

    Keywords

    Political Economics; Microfinance; Policy; Uganda; Regulation; Policy Making; Economic Develoopment;
    All these keywords.

    JEL classification:

    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:42374. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.