An agenda for reinvention and reincarnation
By Narayan Ramachandran & M.S. Sriram
Microfinance in India, as we know it, is dead.
However, unlike mere mortals, organizations, ideas and concepts never really die. Like Hindu philosophy, which talks about the mortality of the body and immortality of the soul, we need to understand that the idea of microfinance will survive this crisis. As long as poverty is not banished to museums and the dream of Grameen Bank founder Muhammad Yunus is not realized, there is always scope for us to reinvent and redraw the architecture in which the soul could find a new abode. Read more on Live Mint
MFI Bill introduced in AP Assembly
Legislative affairs minister D Sridhar Babu on Saturday introduced the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Bill, 2010 in the Assembly.
This would replace the Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Ordinance that the state government brought out in October this year after the state witnessed a spate of suicides by the borrowers. Read more on Business Standard
In India, Size Does Matter
I have been meaning to get a post up about the crisis in Indian microfinance since this blog started in September. That week, I took a brief break from the MDG Summit, which was my major focus at the time, to jet across town for an afternoon at the Clinton Global Initiative. Most of what I saw was a bit stale, but I remember vividly a heated discussion between microfinance’s father, Dr. Muhammad Yunus, responsible for nonprofit Grameen Bank in Bangladesh and its replica projects in other countries; and Vikram Akula, of India microfinance giant SKS, backed by billionaire Vinod Khosla and leading an alternative private-sector approach to microlending that now accounts for 80% of the country’s microloans. Read more on Forbes
No good deed goes unpunished: India’s microcredit crisis
The crisis exploded in the Indian state of Andhra Pradesh in early October after tragic casualties from suicides of microcredit users hit the epicenter of microfinance in India. The crisis has since fueled allegations against microfinancers across the country and globally. As events continue to unfold in Andhra Pradesh, important questions have been raised about the evolution of microfinance markets more broadly. Read more on Daily News