Does microfinance promote world peace?

In International Relations, the theory of complex interdependence posits that as interdependence (political, economic, and socio/cultural) increases, likelihood of war decreases. As an example, since the end of World War II, the US and Japan have become increasingly intertwined. Economically, they share one of the largest bilateral trade relationships and invest heavily in each others’ economies. Socio-cultural memes pass between Japan and the US fluidly, in spite of the language barrier, so that everyone in the US knows what sushi, sumo, and sake are and everyone in Japan knows who Tom Cruise and Tom Hanks are. Politically, Japan has modeled its democracy, in part, on the US system. With all of these interconnections, how conceivable is a war between these two states?

So let’s assume for a minute that we buy into the theory of complex interdependence. If that’s the case, then the development of microfinance over the last 30 years is certainly increasing interdependence. And more importantly, it is fostering healthy interdependence. For microfinance establishes relationships of equity between individuals in highly industrialized nations and individuals in underdeveloped nations, rather than the paternalistic relationships of colonialism.

In short, (and since its a Friday and I’m ready to enjoy the weekend), microfinance, inasmuch as it fosters interdependence, contributes to world peace.