Rethinking Financial Inclusion: Designing an Equitable Financial System with Public Policy

Roosevelt Institute, April 2020

UC Irvine School of Law Research Paper No. 2021-48

27 Pages Posted: 13 Sep 2021

See all articles by Mehrsa Baradaran

Mehrsa Baradaran

University of California, Irvine School of Law

Date Written: September 8, 2021

Abstract

Remedies for financial inclusion have been rooted in mistaken assumptions about credit markets. Inclusion and “access to credit” are viewed as ancillary, gap-filling, or as a subsidized add-on to credit markets for those who are left out. This paper proposes a different understanding of financial inclusion, which situates the problem as one rooted in the design of the financial system. Achieving financial inclusion requires structural changes to the “normal” financial system, secured through democratic means and policymaking rather than as a result of innovative companies and products. The design of credit markets is an a priori choice that determines who has access to credit. Instead of financial inclusion, this paper proposes to reframe the problem as a matter of financial redesign.

Suggested Citation

Baradaran, Mehrsa, Rethinking Financial Inclusion: Designing an Equitable Financial System with Public Policy (September 8, 2021). Roosevelt Institute, April 2020, UC Irvine School of Law Research Paper No. 2021-48, Available at SSRN: https://ssrn.com/abstract=3919988

Mehrsa Baradaran (Contact Author)

University of California, Irvine School of Law ( email )

401 E. Peltason Dr.
Ste. 1000
Irvine, CA 92697-1000
United States

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