Open AccessGlobal recession and microfinance risk governance in developing countries
Author(s) -
Roberto Moro Visconti
Publication year - 2011
Publication title -
risk governance and control: financial markets and institutions
Language(s) - English
Resource type - Journals
eISSN - 2077-4303
pISSN - 2077-429X
DOI - 10.22495/rgcv1i3art2
Subject(s) - recession , corporate governance , microfinance , unrest , economics , global recession , development economics , investment (military) , developing country , psychological resilience , financial crisis , great recession , resilience (materials science) , financial system , business , finance , economic growth , political science , labour economics , macroeconomics , psychology , physics , politics , law , psychotherapist , thermodynamics
Global recession, started in 2008, is still proving an unresolved perfect storm and the financial crisis has affected also the real economy, creating widespread social unrest. Microfinance institutions (MFIs) in developing countries seem however less affected by the worldwide turmoil, due to their segmentation and resilience to external shocks. Recession has a big impact on governance mechanisms, altering the equilibriums among different stakeholders and increasing the risk of investment returns; any governance improvement is highly welcome and recommended. No governance, no money for growth or bare survival. In the confused phase we are living in, at the moment there are not evident winners, but the underbanked poorest, unless properly supported, onceagain risk being the ultimate losers.