The case of Kiva and Grameen: Towards a Marxist feminist critique of ‘smart economics’

Abstract

‘Smart Economics’ is no epiphenomenon. It is an instrument of exploitation at the heart of neoliberalism. The global neoliberal agenda has co-opted feminism, creating what Roberts calls ‘transnational business feminism’. With the promotion of entrepreneurialism, women in the Global South are targeted for exploitation in an attempt to introduce them into the formal markets. Female empowerment has become the new fetish for capital accumulation through the indebtedness of women in the Global South and the subsequent reproduction of capitalism. This reproduction of capital is possible due to the newfound access to the financial markets that is introduced through bringing women’s purchasing power into the fold. Microfinance institutions are the spearhead of ‘Smart Economics’ in the Global South, while arguing to alleviate poverty in rural areas. Microfinance institutions such as the Grameen Bank and kiva.org are examples of this. These organisations target women with a patriarchal agenda, which reinforces the gender relations in the Global South.