Financialization through payment infrastructure

Abstract

The work of mega-foundations marks the evolution of capitalism and the neoliberal development model by helping to reinforce and expand its financialization process. To illustrate this point, this chapter presents the case of the Mastercard Foundation (MF), which was created in 2006 by Mastercard International with the mission to advance education and financial inclusion as a catalyst for prosperity in developing countries. The MF presents the distinctive characteristics of two trends affecting development practices that deserve attention: philanthrocapitalism, which characterizes foundations that use the vocabulary, vision and market tools to solve societal or environmental problems, and strategic philanthropy, put forward by firms that do not conceive their philanthropic work alongside their productive operations, but rather as a commercial strategy in its own right. Based on a content analysis of documents posted on the foundation’s website, tax reports on its donation activities, and various documents produced by Mastercard, this chapter analyzes the foundation’s practices and the links that connect its financial inclusion agenda with Mastercard’s strategic interests based on the expansion of the global digital payment system. We argue that the MF contributes to the financialization of development through an Africa-centered program of action to maximize the economic participation of African youth through financialized solutions, particularly via the use of digital payment. Through various programs and partnerships, the foundation is thus helping to build new platforms for the inclusion of the poor in financial circuits and the flow of resources from developing economies to the centers of accumulation.