Olteanu Access to Justice in Microfinance

An Analytical Framework for Peru
1. Auflage 2018
ISBN: 978-3-319-95324-3
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 336 Seiten

Reihe: Progress in Mathematics

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.

Autoren/Hrsg.

Olteanu, Yasmin

Inhaltsverzeichnis

1;Acknowledgements;6
2;Contents;8
3;Acronyms;11
4;List of Figures;13
5;List of Tables;16
6;Chapter 1 Introduction;21
6.1;1.1 Background to the Research Problem;22
6.2;1.2 Research Objectives;24
6.3;1.3 Research Question;25
6.4;1.4 Significance of the Study;25
6.5;1.5 Structure of the Study;26
6.6;References;27
7;Chapter 2 Theoretical Concepts;29
7.1;2.1 Defining Access to Justice;29
7.1.1;2.1.1 Philosophical Approach;29
7.1.2;2.1.2 Legal Approach;30
7.1.3;2.1.3 Sociological Approach;30
7.1.4;2.1.4 Public Management Approach;31
7.1.5;2.1.5 How This Research Study Defines Access to Justice;32
7.2;2.2 Access to Justice and Poverty Alleviation;33
7.2.1;2.2.1 Defining Poverty;33
7.2.2;2.2.2 Lacking Rule of Law Fosters Poverty;34
7.2.3;2.2.3 Access to Justice: A Capability;35
7.3;2.3 Access to Justice and Welfare Costs;36
7.3.1;2.3.1 Welfare and the Role of the Public Sector;36
7.3.2;2.3.2 Market Failure in the Neoclassical Framework;37
7.3.2.1;2.3.2.1 Externalities;37
7.3.2.2;2.3.2.2 Imperfect Competition;38
7.3.2.3;2.3.2.3 Information Asymmetries;40
7.3.2.4;2.3.2.4 The Role of Transaction Costs for Market Failure;42
7.3.3;2.3.3 The Behavioral Market Failure;43
7.3.3.1;2.3.3.1 Inertia and Procrastination;44
7.3.3.2;2.3.3.2 Framing and Presentation;45
7.3.3.3;2.3.3.3 Social Influences;46
7.3.3.4;2.3.3.4 Faulty Assessment of Probabilities;46
7.3.3.5;2.3.3.5 Behavioral Market Failures and Paternalistic Consumer Protection;47
7.4;2.4 Consumer Vulnerability;48
7.4.1;2.4.1 Defining the Consumer;48
7.4.2;2.4.2 Defining Consumer Vulnerability;49
7.4.3;2.4.3 The Vulnerable Consumer in Economic Theory;50
7.4.4;2.4.4 The Vulnerable Consumer on Financial Markets;52
7.4.4.1;2.4.4.1 Information Vulnerability;52
7.4.4.2;2.4.4.2 Pressure Vulnerability;52
7.4.4.3;2.4.4.3 Supply Vulnerability;53
7.4.4.4;2.4.4.4 Impact Vulnerability;53
7.4.4.5;2.4.4.5 Redress Vulnerability;53
7.5;2.5 Consumer Complaining Behavior;54
7.5.1;2.5.1 Oliver: The Disconfirmation Paradigm;54
7.5.2;2.5.2 Hirschman: Exit, Voice and Loyalty;55
7.5.3;2.5.3 Singh: Taxonomy of Consumer Complaining Behavior Responses;57
7.5.4;2.5.4 Day and Landon: Complaining Behavior Taxonomy;58
7.5.5;2.5.5 Other Contributions to Consumer Complaining Behavior Theory;60
7.6;2.6 Chapter Conclusion;60
7.7;References;63
8;Chapter 3 Literature Survey;74
8.1;3.1 Analytical Frameworks for the Analysis of Access to Justice;74
8.1.1;3.1.1 Barendrecht, Mulder and Giesen’s Path to Justice;74
8.1.2;3.1.2 Bahdi’s Three-Component Analytical Framework;75
8.1.3;3.1.3 Bedner and Vel’s Process-Oriented Analytical Framework;77
8.2;3.2 Relevant Findings on Consumer Complaining Behavior;79
8.2.1;3.2.1 Factors Related to the Consumer Herself;79
8.2.1.1;3.2.1.1 Socioeconomic Indicators;80
8.2.1.2;3.2.1.2 The Attitude Toward Complaining;80
8.2.1.3;3.2.1.3 The Prior Complaining Experience;81
8.2.1.4;3.2.1.4 The Frequency of Purchase;81
8.2.2;3.2.2 Factors Related to the Market and the Company;81
8.2.2.1;3.2.2.1 Marketplace Factors;82
8.2.2.2;3.2.2.2 The Consumer’s Attributions;82
8.2.2.3;3.2.2.3 The Perceived Approachability of the Company;83
8.2.3;3.2.3 Situational Factors;84
8.2.3.1;3.2.3.1 The Type of the Product or Problem Encountered;84
8.2.3.2;3.2.3.2 The Dimension of the Problem;85
8.2.3.3;3.2.3.3 The Grade of Dissatisfaction;85
8.2.3.4;3.2.3.4 The Perceived Justice;85
8.3;3.3 Particular Access Barriers for Vulnerable Consumer Groups;87
8.3.1;3.3.1 Social Access Barriers;87
8.3.2;3.3.2 Cost-Related Access Barriers;87
8.3.3;3.3.3 Cultural Access Barriers;88
8.4;3.4 Chapter Conclusion;89
8.5;References;91
9;Chapter 4 Methodology and Data;97
9.1;4.1 Philosophical and Methodological Considerations;97
9.2;4.2 Case Study Design and Case Selection;100
9.2.1;4.2.1 Strengths and Limitations of Single Case Studies;100
9.2.2;4.2.2 Case Selection: Peru as a Critical Case;102
9.2.3;4.2.3 Analytical Framework;103
9.3;4.3 Data Collection and Analysis;104
9.3.1;4.3.1 Quantitative Data and Analysis;104
9.3.1.1;4.3.1.1 Population and Sample;104
9.3.1.2;4.3.1.2 Instrumentation;106
9.3.1.3;4.3.1.3 Analysis;108
9.3.1.4;4.3.1.4 Reliability and Validity;109
9.3.2;4.3.2 Qualitative Data and Analysis;111
9.3.2.1;4.3.2.1 Participants;111
9.3.2.2;4.3.2.2 Instrumentation;112
9.3.2.3;4.3.2.3 Analysis;113
9.3.2.4;4.3.2.4 Trustworthiness and Authenticity;113
9.3.3;4.3.3 Integration of Qualitative and Quantitative Data;115
9.4;4.4 Ethical Considerations;116
9.5;4.5 A Closer Look at the Data: Descriptive Statistics;117
9.5.1;4.5.1 Describing the Quantitative Data;118
9.5.2;4.5.2 Describing the Qualitative Data;122
9.6;4.6 Chapter Conclusion;124
9.7;References;126
10;Chapter 5 Development of the Analytical Framework;128
10.1;5.1 The Path to Justice;129
10.2;5.2 Defining the Levels of Analysis;130
10.2.1;5.2.1 The Macro Level of Analysis;131
10.2.2;5.2.2 The Meso Level of Analysis;131
10.2.3;5.2.3 The Micro Level of Analysis;132
10.3;5.3 The Operationalization of the Micro Level of Analysis;134
10.3.1;5.3.1 Socioeconomic Indicators;134
10.3.2;5.3.2 The Attitude Toward Complaining;135
10.3.3;5.3.3 Market Characteristics;136
10.3.4;5.3.4 Awareness of Rights;138
10.3.5;5.3.5 Problem Typology;138
10.3.6;5.3.6 Knowledge of Options;140
10.3.7;5.3.7 Perceived Access Barriers;141
10.3.8;5.3.8 Expected Justice;143
10.4;5.4 Chapter Conclusion: The Analytical Framework to Evaluate the Access to Justice of Vulnerable Consumers;143
10.5;References;146
11;Chapter 6 The Context: Peru;150
11.1;6.1 Country Overview;150
11.1.1;6.1.1 The Peruvian Geography, Demography, Government and Economy;150
11.1.2;6.1.2 A Historical Perspective on the Peruvian Political and Economic Situation;152
11.1.3;6.1.3 Microenterprises in the Peruvian Economy;153
11.1.4;6.1.4 A Definition of the Vulnerable Financial Consumer for Peru;154
11.2;6.2 The Microfinance Sector;155
11.2.1;6.2.1 The Broader Picture: Microfinance in Latin America;155
11.2.1.1;6.2.1.1 The History of Microfinance in Latin America;155
11.2.1.2;6.2.1.2 Characteristics that Coin Latin American Microfinance;158
11.2.1.2.1;Putting the Focus on the Financial Performance;158
11.2.1.2.2;Targeting the Economically Active Poor;158
11.2.1.2.3;Operating in Urban Settings;159
11.2.1.2.4;Using the Individual Lending Approach;159
11.2.1.2.5;Tapping National and International Financial Markets and Collecting Savings;160
11.2.1.2.6;Well-Developed Regulatory and Legal Framework;161
11.2.2;6.2.2 The Development of the Microfinance Sector in Peru;161
11.2.3;6.2.3 The Peruvian Microfinance Sector Today;164
11.2.3.1;6.2.3.1 A Definition of Microfinance for Peru;164
11.2.3.2;6.2.3.2 The Peruvian Microfinance Landscape;165
11.3;6.3 The State of Financial Inclusion;169
11.4;6.4 Financial Consumer Protection;170
11.5;6.5 Chapter Conclusion;171
11.6;References;174
12;Chapter 7 Application of the Analytical Framework;179
12.1;7.1 The Macro Level: Peruvian Law and Its Implementation;179
12.1.1;7.1.1 International Law and Treaties;180
12.1.2;7.1.2 National Law;181
12.1.3;7.1.3 The Internal Forum: The Complaints Book;184
12.1.3.1;7.1.3.1 Policy and Procedures of the Complaints Book;184
12.1.3.2;7.1.3.2 Access Barriers to the Complaints Book;187
12.1.4;7.1.4 Sector-Independent Third-Party Forums to Claim Justice;188
12.1.4.1;7.1.4.1 Consumer Associations;189
12.1.4.1.1;Policy and Procedures of Consumer Associations;189
12.1.4.1.2;Access Barriers to Consumer Associations;189
12.1.4.2;7.1.4.2 National Institute for the Protection of Competition and for the Protection of Intellectual Property;192
12.1.4.2.1;Policy and Procedures of the INDECOPI;192
12.1.4.2.2;Access Barriers to the INDECOPI;198
12.1.4.3;7.1.4.3 Judicial Process;202
12.1.4.3.1;Policy and Procedures of the Judicial Process;202
12.1.4.3.2;Access Barriers to the Judicial Process;203
12.1.5;7.1.5 Macro Level: Conclusion;205
12.2;7.2 The Meso Level: The Microfinance Sector;207
12.2.1;7.2.1 Sector-Specific Legal and Regulatory Framework;208
12.2.2;7.2.2 Sector-Specific Third-Party Forums to Claim Justice;210
12.2.2.1;7.2.2.1 The Consumer Platform of the SBS;210
12.2.2.1.1;Policy and Procedure of the Consumer Platform;210
12.2.2.1.2;Access Barriers to the Consumer Platform;212
12.2.2.2;7.2.2.2 AlóBanco of the Banking Association;213
12.2.2.2.1;Policy and Procedures of AlóBanco;213
12.2.2.2.2;Access Barriers to AlóBanco;215
12.2.2.3;7.2.2.3 Ombudsman of the Banking Association (DCF);215
12.2.2.3.1;Policy and Procedures of the DCF;215
12.2.2.3.2;Access Barriers to the DCF;217
12.2.2.4;7.2.2.4 Ombudsman of the Insurance Association (DEFASEG);217
12.2.2.4.1;Policies and Procedures of the DEFASEG;217
12.2.2.4.2;Access Barriers to the DEFASEG;218
12.2.3;7.2.3 Meso Level: Conclusion;219
12.2.4;7.2.4 Interim Chapter Conclusion: The Typical Path to Justice of a Vulnerable Financial Consumer in Peru;221
12.3;7.3 The Micro Level: Relevant Factors for the Decision to Seek Justice;226
12.3.1;7.3.1 The First Dimension: Socioeconomic Characteristics;228
12.3.2;7.3.2 The Second Dimension: The Attitude Toward Complaining;231
12.3.3;7.3.3 The Third Dimension: Market Characteristics;239
12.3.4;7.3.4 The Fourth Dimension: Awareness of Rights;241
12.3.5;7.3.5 The Fifth Dimension: Problem Typology;246
12.3.5.1;7.3.5.1 An Overview of the Problems Experienced by the Respondents;246
12.3.5.1.1;Problem Cluster 1: Problems Related to Perceived Unfair (but Legal) Practices;252
12.3.5.1.2;Problem Cluster 2: Problems Related to Credit Bureau, Guarantor and Collateral;253
12.3.5.1.3;Problem Cluster 3: Problems Related to the Interest;255
12.3.5.1.4;Problem Cluster 4: Problems Related to Fees and Credit Cards;255
12.3.5.1.5;Problem Cluster 5: Problems Related to Collection Practices;257
12.3.5.1.6;Problem Cluster 6: Problems Related to Lack of Information;258
12.3.5.2;7.3.5.2 Testing the Fifth Dimension’s Hypothesis;260
12.3.6;7.3.6 The Sixth Dimension: Knowledge of Options;262
12.3.7;7.3.7 The Seventh Dimension: Perceived Access Barriers;267
12.3.8;7.3.8 The Eighth Dimension: Expected Justice;269
12.3.8.1;7.3.8.1 An Overview of the Level of Expected Justice of the Respondents;269
12.3.8.2;7.3.8.2 Testing the Eighth Dimension’s Hypothesis;272
12.3.9;7.3.9 Using the Results to Predict Complaining Behavior;273
12.3.9.1;7.3.9.1 Calculation of the Logistic Regression;273
12.3.9.2;7.3.9.2 Interpretation of the Logistic Regression;276
12.3.9.2.1;Level of Education;278
12.3.9.2.2;Level of Self-Confidence;279
12.3.9.2.3;Expected Loss of Access;279
12.3.9.2.4;Level of Knowledge of Internal Complaint Mechanisms;280
12.3.9.2.5;Quality of the Model;280
12.3.9.3;7.3.9.3 Conclusion: Added Value of the Logistic Regression for the Analysis;283
12.3.10;7.3.10 Micro Level: Conclusion;284
12.4;7.4 Chapter Conclusion;285
12.4.1;7.4.1 Access Barriers Related to the Consumer Herself;287
12.4.2;7.4.2 Access Barriers Related to the Market or the Company;287
12.4.3;7.4.3 Situational Access Barriers;288
12.4.4;7.4.4 Social Access Barriers;288
12.4.5;7.4.5 Cost-Related Access Barriers;289
12.4.6;7.4.6 Cultural Access Barriers;289
12.5;References;292
13;Chapter 8 Discussion of the Findings;298
13.1;8.1 Access Barriers Related to the Consumer Herself;298
13.1.1;8.1.1 Level of Education;298
13.1.2;8.1.2 Attitude Toward Complaining;299
13.2;8.2 Access Barriers Related to the Market or the Company;300
13.2.1;8.2.1 Lack of Protection by Complaint Mechanisms;300
13.2.2;8.2.2 Expected Loss of Access to Finance;301
13.2.3;8.2.3 The Attribution of the Cause of the Problem;302
13.3;8.3 Situational Access Barriers;303
13.3.1;8.3.1 Expected Biased Treatment;303
13.4;8.4 Social Access Barriers;304
13.4.1;8.4.1 Lacking Awareness of the Right to Receive Clear Information;304
13.4.2;8.4.2 Lack of Knowledge of Internal Complaint Mechanisms;305
13.5;8.5 Cost-Related Access Barriers;306
13.5.1;8.5.1 Complexity of Complaint Mechanisms;306
13.5.2;8.5.2 Time Investment into a Complaint;307
13.5.3;8.5.3 Lack of Regional Presence of Some Third-Party Complaint Mechanisms;307
13.5.4;8.5.4 Occurrence of Opportunistic Consumer Associations;308
13.6;8.6 Cultural Access Barrier;310
13.6.1;8.6.1 Diverting Perspectives on Justice;310
13.7;8.7 Chapter Conclusion;311
13.7.1;8.7.1 This Study and Cartwright’s Dimensions of Vulnerability;311
13.7.2;8.7.2 This Study and Hirschman’s Framework of Exit, Voice and Loyalty;312
13.7.3;8.7.3 This Study and Neoclassical Market Failure;313
13.7.4;8.7.4 This Study and the Behavioral Market Failure;313
13.7.5;8.7.5 Implications for Welfare and Poverty;314
13.8;References;315
14;Chapter 9 Conclusion and Policy Recommendations;319
14.1;9.1 Main Conclusions;319
14.2;9.2 Original Contribution to Knowledge;321
14.3;9.3 Limitations of the Study;322
14.3.1;9.3.1 Limitations of the Developed Analytical Framework;322
14.3.2;9.3.2 Limitations of the Findings for the Case of Peru;323
14.4;9.4 Implications and Areas for Further Research;324
15;Index;331