Regulation in India's microfinance sector aims to address feckless borrowing and reckless lending – but will the new restrictions entrench poverty, rather than end it? One of the many crushing burdens for India's poor bear is debt; unable to make ends meet, they turn to traditional moneylenders. They are willing to extend credit, but at unconscionably high rates – sometimes exceeding 80%, and keeping borrowers in lifelong penury. Popular cinema and...

The microcredit revolution has been celebrated for helping poor women in developing countries start small businesses. By borrowing money for purchases such as a buffalo or sewing machine, the women were able to help lift their families out of poverty. But critics say the microcredit model has been perverted by commercial greed in India, with reports of abusive collection methods and sky-high interest rates. "What began as a simple, innovative model...

Economic liberalization since the 1990s has helped Dalits in Uttar Pradesh (UP) overcome caste inequalities, according to a research paper that argues against the view that reforms have exacerbated such disparities. The study by Devesh Kapur, Chandra Bhan Prasad, Lant Pritchett and Shyam Babu titled “Rethinking Inequality: Dalits in Uttar Pradesh in the Market Reform Era”, and excerpted last week in the Economic and Political Weekly, finds significant changes in patterns...

Sunita Laxman Jadhav is a door-to-door saleswoman who sells waiting. She sweeps along muddy village lanes in her nurse’s white sari, calling on newly married couples with an unblushing proposition: Wait two years before getting pregnant, and the government will thank you. It also will pay you. “I want to tell you about our honeymoon package,” began Ms. Jadhav, an auxiliary nurse, during a recent house call on a new bride in...

In India, where traditionally boys have been preferred over girls, a village in backward Bihar state has been setting an example by planting trees to celebrate the birth of a girl child. In Dharhara village, Bhagalpur district, families plant a minimum of 10 trees whenever a girl child is born. And this practice is paying off. Nikah Kumari, 19, is all set to get married in early June. The would-be...