Key features a deeply personal story written by a microfinance insider who was once tapped as an anonymous source for a new york times expose reveals the shocking truth of the industry once hailed as the miraculous solution to world poverty profiles the few shining exceptions to industry-wide corruption and offers solutions to clean up the rest about the book: confessions of a microfinance heretic offering inspiring success stories, the microfinance industry depends on the faith of investors that small loans can transform the lives of the poor. But as hugh sinclair points out, very little solid evidence exists that microloans make a dent in long-term poverty. Evidence does exist for negligence, corruption, and methods that border on extortion. Part expose, part memoir, and part financial detective story, this is the account of a one-time true believer whose decade in the industry turned him into a heretic. Sinclair worked with several microfinance institutions and funds as he traveled from mexico to mongolia, with nigeria, holland, and mozambique in between. He couldn't help but notice that even with a booming 70 usd billion industry on their side, the poor didn't seem any better off in practice. Exorbitant interest rates led borrowers into never-ending debt spirals, and aggressive collection practices resulted in cases of forced prostitution, child labor, suicide, and nationwide revolts against the microfinance community. With characteristic intelligence and biting wit, sinclair weaves a shocking tale of a system increasingly focused on maximizing profits. The situation worsened when large banks, attracted by the high repayment rates of overpriced loans, hijacked the sector and created a microfinance bubble. - from Amzon