FINANCIAL INCLUSION

Dr. A. Graziosi has carried out an unusual analysis on the current financial inclusion approach and achieved innovative conclusions, combining both deskwork and lessons learned while managing and evaluating development projects over the past three decades. 


The Author has developed his ideas drawing on the recommendations emerging from G-20, 2015-Post Evaluation Analysis, Rio+20 meetings and the recent launch of Sustainable Development Goals. Within this background information he has worked out a proposal within the picture of a comprehensive, genuine and structured framework, having as a reference the Consultative Document on microfinance activities released within Basel III in 2010 and then updated in 2015, all of which has inspired his work. 


According to the Author, to understand the current approach to financial inclusion a preliminary step is to look into the microfinance trend, which is the main vehicle to expand financial products in favour of poor people. 


He claims that, over the years, microfinance activities have disclosed situations that have been in contradiction with the fundamentals of fair contractual terms, along with inappropriate assumptions and inconsistency of the methodological approach. 


Starting from this point, the Author has elaborated on Basel III document to restore a correct decision making process and, in so doing, reinstate the truthful significance of credit, which means confidence. He said that sustainable microfinance is the best way to create durable jobs and eradicate poverty.


On financial inclusion he has a pioneering position and has raised a word of caution on what he has called the easy way to digitalization of micro financial services; what is more, he claims that financial inclusion without economic inclusion could be a disillusion for the lender, an illusion for the client and a likely implosion for the community.


In this context, Dr. Graziosi provides an attractive approach, which is well synthesized in the book sub-title "Give people a job not a loan". With this declaration the Author has almost phased out the financial way to development and replaced it with the EMPLOYMENT-BASED WAY TO DEVELOPMENT, thus re-designing the entire architecture of the approach in favour of poor people.


He has investigated into the position of microfinance as a circuit of the global finance and therefore its trend to reproduce the ups and downs of the financial capitalism trend and its inadequacy to foster the emerging economies as well.


In addition, he has completed his viewpoint by investigating the contractual conditions of experts, consultants and practitioners working overseas with donor-funded programmes. On this matter, he has concluded that Practitioners/Experts/Developers employment status has implications for the quality of the outcome.