Access to Justice in Microfinance (eBook)

An Analytical Framework for Peru

Yasmin Olteanu (Autor)

eBook Download: PDF

2018 | 1st ed. 2018
XXI, 322 Seiten
Springer International Publishing (Verlag)
978-3-319-95324-3 (ISBN)

Infos

This book analyzes the whole path to justice: from the decision to enter the path to justice until justice is achieved and applies a mixed-methods approach using quantitative and qualitative data. It deliberately takes the consumer's perspective and, beyond the scope of existing studies, does not only take into account the existence of mechanisms and forums to claim justice, but their appropriateness for vulnerable target groups. The book sheds more light on microfinance and other vulnerable clients who, due to existing barriers, cannot access grievance, redress or complaint mechanisms. Eliminating these access barriers would cater to the achievement of the 16th Sustainable Development Goal by increasing vulnerable consumers' Access to Justice.  This book will be of interest to academics researching access to justice, researchers focusing on consumer protection issues in developing countries,  and practitioners working in financial inclusion.

Yasmin Olteanu completed her PhD at the Institute for Latin American Studies of Free University Berlin, Germany, with magna cum laude. Her doctoral project focused on the empowerment of vulnerable financial consumers. As scientific coordinator of the University Meets Microfinance project at the Free University Berlin she developed seminars on Bachelor's and Master's level and taught them in several European universities, while also being responsible for the project's publications and workshops. As well as her academic achievements, Yasmin has significant operational experience in Africa and Latin America, especially in Nigeria and Madagascar where she founded new microfinance banks for LFS Financial Systems, in Rwanda where she introduced solar microleasing for SOLARKIOSK, and in Peru as Microfinance Investment Officer for Triple Jump.

Inhalt

Acknowledgements 6
Contents 8
Acronyms 11
List of Figures 13
List of Tables 16
Chapter 1 Introduction 21
1.1 Background to the Research Problem 22
1.2 Research Objectives 24
1.3 Research Question 25
1.4 Significance of the Study 25
1.5 Structure of the Study 26
References 27
Chapter 2 Theoretical Concepts 29
2.1 Defining Access to Justice 29
2.1.1 Philosophical Approach 29
2.1.2 Legal Approach 30
2.1.3 Sociological Approach 30
2.1.4 Public Management Approach 31
2.1.5 How This Research Study Defines Access to Justice 32
2.2 Access to Justice and Poverty Alleviation 33
2.2.1 Defining Poverty 33
2.2.2 Lacking Rule of Law Fosters Poverty 34
2.2.3 Access to Justice: A Capability 35
2.3 Access to Justice and Welfare Costs 36
2.3.1 Welfare and the Role of the Public Sector 36
2.3.2 Market Failure in the Neoclassical Framework 37
2.3.2.1 Externalities 37
2.3.2.2 Imperfect Competition 38
2.3.2.3 Information Asymmetries 40
2.3.2.4 The Role of Transaction Costs for Market Failure 42
2.3.3 The Behavioral Market Failure 43
2.3.3.1 Inertia and Procrastination 44
2.3.3.2 Framing and Presentation 45
2.3.3.3 Social Influences 46
2.3.3.4 Faulty Assessment of Probabilities 46
2.3.3.5 Behavioral Market Failures and Paternalistic Consumer Protection 47
2.4 Consumer Vulnerability 48
2.4.1 Defining the Consumer 48
2.4.2 Defining Consumer Vulnerability 49
2.4.3 The Vulnerable Consumer in Economic Theory 50
2.4.4 The Vulnerable Consumer on Financial Markets 52
2.4.4.1 Information Vulnerability 52
2.4.4.2 Pressure Vulnerability 52
2.4.4.3 Supply Vulnerability 53
2.4.4.4 Impact Vulnerability 53
2.4.4.5 Redress Vulnerability 53
2.5 Consumer Complaining Behavior 54
2.5.1 Oliver: The Disconfirmation Paradigm 54
2.5.2 Hirschman: Exit, Voice and Loyalty 55
2.5.3 Singh: Taxonomy of Consumer Complaining Behavior Responses 57
2.5.4 Day and Landon: Complaining Behavior Taxonomy 58
2.5.5 Other Contributions to Consumer Complaining Behavior Theory 60
2.6 Chapter Conclusion 60
References 63
Chapter 3 Literature Survey 74
3.1 Analytical Frameworks for the Analysis of Access to Justice 74
3.1.1 Barendrecht, Mulder and Giesen’s Path to Justice 74
3.1.2 Bahdi’s Three-Component Analytical Framework 75
3.1.3 Bedner and Vel’s Process-Oriented Analytical Framework 77
3.2 Relevant Findings on Consumer Complaining Behavior 79
3.2.1 Factors Related to the Consumer Herself 79
3.2.1.1 Socioeconomic Indicators 80
3.2.1.2 The Attitude Toward Complaining 80
3.2.1.3 The Prior Complaining Experience 81
3.2.1.4 The Frequency of Purchase 81
3.2.2 Factors Related to the Market and the Company 81
3.2.2.1 Marketplace Factors 82
3.2.2.2 The Consumer’s Attributions 82
3.2.2.3 The Perceived Approachability of the Company 83
3.2.3 Situational Factors 84
3.2.3.1 The Type of the Product or Problem Encountered 84
3.2.3.2 The Dimension of the Problem 85
3.2.3.3 The Grade of Dissatisfaction 85
3.2.3.4 The Perceived Justice 85
3.3 Particular Access Barriers for Vulnerable Consumer Groups 87
3.3.1 Social Access Barriers 87
3.3.2 Cost-Related Access Barriers 87
3.3.3 Cultural Access Barriers 88
3.4 Chapter Conclusion 89
References 91
Chapter 4 Methodology and Data 97
4.1 Philosophical and Methodological Considerations 97
4.2 Case Study Design and Case Selection 100
4.2.1 Strengths and Limitations of Single Case Studies 100
4.2.2 Case Selection: Peru as a Critical Case 102
4.2.3 Analytical Framework 103
4.3 Data Collection and Analysis 104
4.3.1 Quantitative Data and Analysis 104
4.3.1.1 Population and Sample 104
4.3.1.2 Instrumentation 106
4.3.1.3 Analysis 108
4.3.1.4 Reliability and Validity 109
4.3.2 Qualitative Data and Analysis 111
4.3.2.1 Participants 111
4.3.2.2 Instrumentation 112
4.3.2.3 Analysis 113
4.3.2.4 Trustworthiness and Authenticity 113
4.3.3 Integration of Qualitative and Quantitative Data 115
4.4 Ethical Considerations 116
4.5 A Closer Look at the Data: Descriptive Statistics 117
4.5.1 Describing the Quantitative Data 118
4.5.2 Describing the Qualitative Data 122
4.6 Chapter Conclusion 124
References 126
Chapter 5 Development of the Analytical Framework 128
5.1 The Path to Justice 129
5.2 Defining the Levels of Analysis 130
5.2.1 The Macro Level of Analysis 131
5.2.2 The Meso Level of Analysis 131
5.2.3 The Micro Level of Analysis 132
5.3 The Operationalization of the Micro Level of Analysis 134
5.3.1 Socioeconomic Indicators 134
5.3.2 The Attitude Toward Complaining 135
5.3.3 Market Characteristics 136
5.3.4 Awareness of Rights 138
5.3.5 Problem Typology 138
5.3.6 Knowledge of Options 140
5.3.7 Perceived Access Barriers 141
5.3.8 Expected Justice 143
5.4 Chapter Conclusion: The Analytical Framework to Evaluate the Access to Justice of Vulnerable Consumers 143
References 146
Chapter 6 The Context: Peru 150
6.1 Country Overview 150
6.1.1 The Peruvian Geography, Demography, Government and Economy 150
6.1.2 A Historical Perspective on the Peruvian Political and Economic Situation 152
6.1.3 Microenterprises in the Peruvian Economy 153
6.1.4 A Definition of the Vulnerable Financial Consumer for Peru 154
6.2 The Microfinance Sector 155
6.2.1 The Broader Picture: Microfinance in Latin America 155
6.2.1.1 The History of Microfinance in Latin America 155
6.2.1.2 Characteristics that Coin Latin American Microfinance 158
Putting the Focus on the Financial Performance 158
Targeting the Economically Active Poor 158
Operating in Urban Settings 159
Using the Individual Lending Approach 159
Tapping National and International Financial Markets and Collecting Savings 160
Well-Developed Regulatory and Legal Framework 161
6.2.2 The Development of the Microfinance Sector in Peru 161
6.2.3 The Peruvian Microfinance Sector Today 164
6.2.3.1 A Definition of Microfinance for Peru 164
6.2.3.2 The Peruvian Microfinance Landscape 165
6.3 The State of Financial Inclusion 169
6.4 Financial Consumer Protection 170
6.5 Chapter Conclusion 171
References 174
Chapter 7 Application of the Analytical Framework 179
7.1 The Macro Level: Peruvian Law and Its Implementation 179
7.1.1 International Law and Treaties 180
7.1.2 National Law 181
7.1.3 The Internal Forum: The Complaints Book 184
7.1.3.1 Policy and Procedures of the Complaints Book 184
7.1.3.2 Access Barriers to the Complaints Book 187
7.1.4 Sector-Independent Third-Party Forums to Claim Justice 188
7.1.4.1 Consumer Associations 189
Policy and Procedures of Consumer Associations 189
Access Barriers to Consumer Associations 189
7.1.4.2 National Institute for the Protection of Competition and for the Protection of Intellectual Property 192
Policy and Procedures of the INDECOPI 192
Access Barriers to the INDECOPI 198
7.1.4.3 Judicial Process 202
Policy and Procedures of the Judicial Process 202
Access Barriers to the Judicial Process 203
7.1.5 Macro Level: Conclusion 205
7.2 The Meso Level: The Microfinance Sector 207
7.2.1 Sector-Specific Legal and Regulatory Framework 208
7.2.2 Sector-Specific Third-Party Forums to Claim Justice 210
7.2.2.1 The Consumer Platform of the SBS 210
Policy and Procedure of the Consumer Platform 210
Access Barriers to the Consumer Platform 212
7.2.2.2 AlóBanco of the Banking Association 213
Policy and Procedures of AlóBanco 213
Access Barriers to AlóBanco 215
7.2.2.3 Ombudsman of the Banking Association (DCF) 215
Policy and Procedures of the DCF 215
Access Barriers to the DCF 217
7.2.2.4 Ombudsman of the Insurance Association (DEFASEG) 217
Policies and Procedures of the DEFASEG 217
Access Barriers to the DEFASEG 218
7.2.3 Meso Level: Conclusion 219
7.2.4 Interim Chapter Conclusion: The Typical Path to Justice of a Vulnerable Financial Consumer in Peru 221
7.3 The Micro Level: Relevant Factors for the Decision to Seek Justice 226
7.3.1 The First Dimension: Socioeconomic Characteristics 228
7.3.2 The Second Dimension: The Attitude Toward Complaining 231
7.3.3 The Third Dimension: Market Characteristics 239
7.3.4 The Fourth Dimension: Awareness of Rights 241
7.3.5 The Fifth Dimension: Problem Typology 246
7.3.5.1 An Overview of the Problems Experienced by the Respondents 246
Problem Cluster 1: Problems Related to Perceived Unfair (but Legal) Practices 252
Problem Cluster 2: Problems Related to Credit Bureau, Guarantor and Collateral 253
Problem Cluster 3: Problems Related to the Interest 255
Problem Cluster 4: Problems Related to Fees and Credit Cards 255
Problem Cluster 5: Problems Related to Collection Practices 257
Problem Cluster 6: Problems Related to Lack of Information 258
7.3.5.2 Testing the Fifth Dimension’s Hypothesis 260
7.3.6 The Sixth Dimension: Knowledge of Options 262
7.3.7 The Seventh Dimension: Perceived Access Barriers 267
7.3.8 The Eighth Dimension: Expected Justice 269
7.3.8.1 An Overview of the Level of Expected Justice of the Respondents 269
7.3.8.2 Testing the Eighth Dimension’s Hypothesis 272
7.3.9 Using the Results to Predict Complaining Behavior 273
7.3.9.1 Calculation of the Logistic Regression 273
7.3.9.2 Interpretation of the Logistic Regression 276
Level of Education 278
Level of Self-Confidence 279
Expected Loss of Access 279
Level of Knowledge of Internal Complaint Mechanisms 280
Quality of the Model 280
7.3.9.3 Conclusion: Added Value of the Logistic Regression for the Analysis 283
7.3.10 Micro Level: Conclusion 284
7.4 Chapter Conclusion 285
7.4.1 Access Barriers Related to the Consumer Herself 287
7.4.2 Access Barriers Related to the Market or the Company 287
7.4.3 Situational Access Barriers 288
7.4.4 Social Access Barriers 288
7.4.5 Cost-Related Access Barriers 289
7.4.6 Cultural Access Barriers 289
References 292
Chapter 8 Discussion of the Findings 298
8.1 Access Barriers Related to the Consumer Herself 298
8.1.1 Level of Education 298
8.1.2 Attitude Toward Complaining 299
8.2 Access Barriers Related to the Market or the Company 300
8.2.1 Lack of Protection by Complaint Mechanisms 300
8.2.2 Expected Loss of Access to Finance 301
8.2.3 The Attribution of the Cause of the Problem 302
8.3 Situational Access Barriers 303
8.3.1 Expected Biased Treatment 303
8.4 Social Access Barriers 304
8.4.1 Lacking Awareness of the Right to Receive Clear Information 304
8.4.2 Lack of Knowledge of Internal Complaint Mechanisms 305
8.5 Cost-Related Access Barriers 306
8.5.1 Complexity of Complaint Mechanisms 306
8.5.2 Time Investment into a Complaint 307
8.5.3 Lack of Regional Presence of Some Third-Party Complaint Mechanisms 307
8.5.4 Occurrence of Opportunistic Consumer Associations 308
8.6 Cultural Access Barrier 310
8.6.1 Diverting Perspectives on Justice 310
8.7 Chapter Conclusion 311
8.7.1 This Study and Cartwright’s Dimensions of Vulnerability 311
8.7.2 This Study and Hirschman’s Framework of Exit, Voice and Loyalty 312
8.7.3 This Study and Neoclassical Market Failure 313
8.7.4 This Study and the Behavioral Market Failure 313
8.7.5 Implications for Welfare and Poverty 314
References 315
Chapter 9 Conclusion and Policy Recommendations 319
9.1 Main Conclusions 319
9.2 Original Contribution to Knowledge 321
9.3 Limitations of the Study 322
9.3.1 Limitations of the Developed Analytical Framework 322
9.3.2 Limitations of the Findings for the Case of Peru 323
9.4 Implications and Areas for Further Research 324
Index 331

Produkt-Details

• Erscheint lt. Verlag: 28.7.2018
• Reihe/Serie: Palgrave Studies in Impact Finance
• Reihe/Serie: Palgrave Studies in Impact Finance
• Zusatzinfo: XXI, 322 p. 39 illus.
• Verlagsort: Cham
• Sprache: englisch
• Themenwelt: Sozialwissenschaften ► Soziologie
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Finanzwissenschaft
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: Access to justice in Peru • Analytical framework for Access to Justice research • Appropriateness of grievance and redress mechanisms • Development Finance • Microfinance client protection • Voicing of complaints • Vulnerable financial consumers
• ISBN-10: 3-319-95324-9 / 3319953249
• ISBN-13: 978-3-319-95324-3 / 9783319953243