Law, Social Justice, Economic Development, and Modern Banking Sector Legal Reform: Taking in the 'Excluded'

Abstract

This chapter examines a critical banking reform issue in developing countries – the equitable inclusion of individuals effectively excluded from mainstream banking/financial sectors of their respective countries. The author sets forth the proposition that the equitable and accessible provision of banking services has never been considered a core component to modern banking sector legal reform and assessment in the developing world. After more than two decades of study and practical involvement with financial sector reform in developing, transitioning and emerging economies, the author has the general view that the future banking/financial sector legal policy and infrastructure reform process for International Financial Institutions and others in the economic development arena should be coordinated, on the policy, implementation and assessment levels, with the broader economic development objectives and policies of the particular developing country.

Additional topics addressed in this chapter include banking sector legal reform efforts as to developing countries over the past decade and a half, selective recent efforts of the World Bank in addressing the access and equity issues respecting the banking sector, the rise of microfinancing and the efforts to engage private industry cooperative efforts. The author also provides some concluding reflections on the importance of the legal infrastructural, institutional and policy reorientation dimensions of such reform efforts.