The Microfinance Contagion Scenario
Harvard Business Review
JUNE 10, 2011
So far, the Andhra Pradesh (AP) microfinance crisis has largely been viewed as a local issue, with relatively little impact beyond AP or India's borders. Other microfinance crises, in Bolivia, Nicaragua, Nigeria, and Bosnia, have not spread beyond the borders of a particular country. But as information trickles out about how bad the repayment situation in AP is, a plausible global contagion scenario is emerging.