Microfinance Control Fraud in Latin America

Over the past three decades, the global microfinance industry has witnessed phenomenal growth in terms of the numbers of borrowers and the total gross loan portfolio outstanding. An application of the criminologists' perspective and Black's theory of control fraud to the global microfinance industry reveals a high degree of overlap between the common characteristics of control frauds and the characteristics of the microfinance industry and suggests that the sector provides a criminogenic environment suitable to Ponzi-type dynamics, including an imperative of growth, misrepresentation of financial and operating performance, a reputation for integrity and innovativeness, concentration in unregulated markets and areas most conducive to accounting fraud, non-transparency and secrecy, dubious accounting methods, lobbying in favor of deregulation, attempts to suborn controls such as accountants, lawyers, regulators, and rating agencies, executive use of the company for personal gain, excessive risk taking at the expense of investors' capital, warnings raised but ignored, and, finally, inevitable collapse. Regulatory interventions are needed to prevent predatory lending and over-indebtedness of poor microfinance borrowers in Latin America and elsewhere. Such regulation, while necessary to protect the poor, is not well liked by the investment community as it places microfinance institutions under local scrutiny, reduces the profitability of the sector, and limits opportunities for control fraud.     

Technology roadmaps for transition management: The case of hydrogen energy

Technology roadmaps are increasingly used by governments to inform and promote technological transitions, such as a transition to a hydrogen energy system. This paper develops a framework for understanding how current roadmapping practice relates to emerging theories of the governance of systems innovation. In applying this framework to a case study of hydrogen roadmaps, the paper finds that roadmapping for transitions needs to place greater emphasis on ensuring good quality and transparent analytic and participatory procedures. To be most useful, roadmaps should be embedded within institutional structures that enable the incorporation of learning and re-evaluation, but in practice most transition roadmaps are one-off exercises.