THE DEMOCRATIZATION OF FINANCE ? PROMISES, OUTCOME AND CONDITIONS
Download| Volume 2 Issue 1 2006 | |
|---|---|
| Author(s): |
Ismail Erturk
Julie Froud
Sukdev Johal
Adam Leaver
Karel Williams
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| Abstract | This paper analyzes the 'democratization of finance' or the promise that all households can make money and/or manage risk by buying appropriate financial services products. It develops a distinctive cultural economy perspective by focusing first on the visions which encourage and rationalize broader and deeper relations between households and the capital market before then exploring the reasons for discrepancy between what is promised and what can be delivered. Our analysis starts from the economic promises and political pitches for the democratization of finance since the early 1990s and the corollary emphasis on promoting mass financial literacy. The article then identifies three key social preconditions which must be satisfied before the promise is delivered and presents evidence and argument which suggests that these conditions are not met because the context is confusing, individuals lackcalculative competence and products are opaque. Under these conditions felicitous outcomes are uncertain for existing middle class savers and very unlikely for lower income groups. |
| Keywords | Risk Management, Asset Portfolio, Capital Market, Financial Literacy |
| Year | 2006 |
| Volume | 2 |
| Issue | 1 |
| Type | Research paper, manuscript, article |
| Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | https://doi.org/10.46745/ILMA.jbs.2006.21.01 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/2.1/1.%20The%20Democratization%20of%20Finance,%20Promises,%20Outcomes%20and%20Conditions.pdf |