Abstract
Using Côte d'Ivoire as an example, this paper analyses the evolution of the microfinance sector and its impact on local development. Once centered on social and solidarity-based values, microfinance is now seen, with the support of international development agencies, as an instrument of financial inclusion, promoting market logics driven by the hegemony of private microfinance organizations. However, the financialization of microfinance is not without consequences for local development dynamics. This process of financialization seems to have (negative) effects on local development in terms of internal competition within the private sector, limiting individual and collective projects for the creation of activities, competition between the private and public sectors, as well as on the local development objectives originally pursued by microfinance. The research aims to understand the extent to which these financialization processes are in line with local development objectives by adopting an institutionalist approach focusing on community governance. Based mainly on the initiatives of Village Savings and Credit Associations (VSCAs) developed in rural areas of the Ivory Coast, the study highlights self-governing, democratic and solidarity-based practices that meet both the individual and collective needs of the members of these communities. Through bonds of proximity and solidarity, members act collectively in the common interest. By using a mixed methods approach to data collection and analyzing the impact of financial services for disadvantaged populations in Côte d'Ivoire, this research contributes to a better understanding of local development dynamics and promotes a more inclusive and community-based approach to microfinance. The impact of this research is significant. They will provide important answers to the major challenges of development strategies identified by the international institutions responsible for combating poverty and promoting inclusive, sustainable growth. Theoretically, the contributions are part of a global framework that combines concepts from geography and economics to take into account the multidimensional nature of local development in the context of microfinance. Despite the relevance of the results obtained, it is important to recognize the methodological limitations inherent in this work. These limitations prevent the author from claiming strong transferability. In order to deepen the research and improve the generalizability of the findings, it is suggested that further research be carried out using econometric, longitudinal and other appropriate methodologies.