“Neither Much Nor for Everyone”: The Moral Economy of gota a gota

Abstract

This article focuses on the moral economy of informal moneylenders known in Colombia as gota a gota. The main argument is that these loans operate within a social and economic framework that, although illegal, is deeply embedded in the cultural practices and material needs of impoverished communities. It argues that the lack of access to formal credit and adverse economic conditions have fostered the proliferation of gota a gota lenders, who—despite their often-coercive methods—provide a service that the formal financial system fails to adequately offer. The research is based on an ethnographic approach, using empirical data gathered through interviews and direct observations with moneylenders and debtors in Palmira, a Colombian city with high levels of violence. This methodology includes the analysis of specific cases of informal moneylenders to illustrate the dynamics and moral justifications that underlie their operations.