Microfinance relates to the provision, by specialized microfinance institutions (MFIs), of small-scale financial services - such as credit, savings, and insurance - to the poorer sections of the population. These sections have traditionally been excluded by the financial system. Microfinance is viewed as a system put into place in order to overcome market failures that are created by banks and that are omnipresent in the developing world. In development policy, microfinance has received considerable attention during the last twenty years, and the industry has grown substantially. Interestingly, the sector has been more successful in reaching out to people in some countries than in others. The sector has also developed in an unequal way within countries. The reasons why this happened are not directly apparent. This doctoral dissertation addresses the uneven development of the microfinance sector and aims at identifying factors that explain it. The dissertation consists of three main parts. The first part, which consists of two papers, combines different datasets on the outreach of MFIs to assess in which countries MFIs have developed most. The papers indicate that the microfinance sector is more present in the richer countries of the developing world. It also reaches more clients in countries that receive more international aid. Population density also plays a stimulating role, which partially explains why the sector is still underdeveloped in rural areas. The second part of the dissertation, which exists of one paper, explores in more depth the relationship between traditional financial sector development and microfinance institutions. The paper, co-authored with Bert D’Espallier, shows that MFIs reach more clients and are more profitable in countries where access to the traditional financial system is low. This is in line with the market-failure hypothesis. Along the same line, we find that MFIs serve poorer people in countries with well-developed financial systems. This observation is an important element to take into account in the debate on mission drift of the sector, where it is feared that MFIs drift away from serving the poor. The paper shows that MFIs in countries with well-developed banking sectors have less space to move up market and consequently to drift from the sector’s general mission. The third and final part of the dissertation is a quantitative study on the spread and expansion process of MFIs in one Latin American country, Peru. The roles that district characteristics play in the decision to open an MFI branch are scrutinized. The paper finds that MFIs mainly increase financial access in districts with higher levels of development. Districts where banks are already present also have a higher probability that MFIs will open a branch there. This demonstrates that the two kinds of institutions co-exist in several districts, but most probably serve another clientele. Overall, although strategies differ between different types of Peruvian MFIs, the paper finds that they do not seem to be driven by a pure developmental logic that would push them towards the poorest or totally unbanked regions of the country. On the whole, the main conclusions of the dissertation can be summarized as follows. First, the dissertation demonstrates that the outreach of the microfinance sector is influenced by a number of macro factors. Consequently, country-specific and macro-economic factors should be taken into account when evaluating MFI performance. Second, the dissertation shows that MFIs substitute the traditional banking sector. MFIs thus fulfill an important part of their mission, i.e. they have helped to increase financial access in the developing world. However, the study also suggests that MFIs still fail to serve a significant number of poor people. This leads to a third important observation, namely that MFIs may in fact not strive to serve the poor as such. Rather, it seems that they are currently focusing on the un-served market in general. The observation indicates that there is a need for a more thorough investigation on the issue of whom the unbanked in the developing countries are and whom MFIs actually strive to serve. Finally, since the outreach and performance of MFIs is dependent on the presence of a stimulating macro-environment, it remains a challenge to serve the financially excluded in the more remote areas of the developing countries and the people in the poorest ones.

Despite many economic and state reforms in South America, no comparable changes have taken place with regard to civil-military relations: Neither do the armed forces have a clearly defined mission of their own nor are they adequately democratically controlled. The article looks at the present civil-military relations from various angles and explicitly deals with examples from Argentina, Bolivia, Chile and Peru. It presents the reasons for the lack of civilian control over the military and discusses the resulting consequences for domestic and foreign politics.

The military in Mexico started out as a revolutionary army that secured the regime of the governmental party PRI. The article discusses the change of this army into a national and hemispheric police force under the influence of the USA. Today, the functions of the Mexican army are a mix of fighting against drugs, organized delinquency, terrorism and counterinsurgency and cooperating with US as well as other Latin American forces.

The United States, despite impressive efforts, have not reduced Colombian drug supplies over the recent years. Policy ineffectiveness results from problems in Colombia, including poverty, strong non-state actors, as well as a weak state and society. On the US side, ineffectiveness results from a geographically selective approach, a reliance on coercion, and bilateralism. The US has exacerbated human rights violations, environmental destruction, the displacement of the drug industry within Colombia, and the spread of Colombian problems to neighbouring countries.

The international community criticises the unilateral actions of the US in Iraq. As a reaction, the United States tries to extend their sphere of influence in other regions. The Brazilian author warns that Brazil in particular could be exposed to this increasing pressure. Therefore Brazil has to take the following five measures: strengthening of Mercosur, a Free Trade Area between the Andean Community and Mercosur, a cooperation agreement with the EU, cooperation with other NICs, and lobbying inside the US.

Rezensierte Literatur: Bieber, Christoph (2003): Das Internet als Präsentations- oder Repräsentationsraum. Kommunikation in politischen Online-Versammlungen, in: Gellner/Strohmeier (Hrsg), S. 139-153. Gellner, Winand/Strohmeier, Gerd (Hrsg.) (2003): Repräsentation und Präsentation in der Mediengesellschaft, PIN-Jahrbuch 2003, Baden-Baden: Nomos Verlagsgesellschaft. Herzog, Roland/Hoffmann, Bert/Schulz, Markus (2002): Internet und Politik in Lateinamerika. Einleitung und Vergleichende Betrachtung, Band 1 der Reihe Internet und Politik in Lateinamerika: Regulierung und Nutzung der neuen Informations- und Kommunikationstechnologien im Kontext der politischen und wirtschaftlichen Transformation, Frankfurt am Main: Vervuert Verlag Hoffmann, Bert (2002): Internet und Politik in Lateinamerika. Costa Rica, Band 2 der Reihe Internet und Politik in Lateinamerika: Regulierung und Nutzung der neuen Informations- und Kommunikationstechnologien im Kontext der politischen und wirtschaftlichen Transformation, Frankfurt am Main: Vervuert Verlag. Mai, Manfred (2003): Das Parlament in der Mediengesellschaft. Parlamentarische Debatte oder Talk-Show, in: Gellner/Strohmeier (Hrsg.), S. 13-27. Schaper-Rinkel, Petra (2003): Die europäische Informationsgesellschaft. Technologische und politische Integration in der europäischen Politik, Münster: Verlag Westfälisches Dampfboot.

Paraguays vast natural resources, especially water, are a source of geopolitical wealth – and trouble. This articleshows how the interests of the USA in this region put Paraguay in a difficult position and turn the country into a playground for international powers. The need to regain national power and real-life influence by the Paraguayan people is especially emphasized. Even though the article concentrates on Paraguay, it also makes clear that this country is part of an US-masterplan for a new order on the American continent.

Organized drug trafficking and transnationally networked terrorism are transnational threats in Latin America. Security experts see the first as the paramount problem, but regard the second as a mere potential security risk. Latin America’s specific conditions allow limited options for containing non-military threats. Should actors and instruments for containing crime and terrorism be organized on a subregional level, in the Latin American or in the Inter-American context? The author documents promising subregional approaches, especially in the extended Mercosur.

The ideological change within the Chilean military before and after the coup in 1973 is the central issue of this article. Before the developments in the early 1970s, the cardinal mindset of the military leaders was one of a state-run evolution of society. After the coup, this thinking changed rapidly into a neoliberal kind. How could this happen? Which explanations have been and which should be discussed? These questions are answered and it is shown that the military itself played a bigger role than previously thought.

Kurz vor der Wahl am 1. Juli steht Mexiko vor großen Turbulenzen: Parteien beschuldigen sich gegenseitig, Mitglieder oder -läufer der organisierten Kriminalität zu sein. Der Krieg gegen die Drogen, der zuvor noch nationale Einheit heraufbeschwor, wird jetzt zum Instrument der Verleumdung des politischen Gegners. Wie kann angesichts brüchiger Staatlichkeit eine sichere Wahl gewährleistet werden?