Even though the Central Government agreed to link the wages paid under MG-NREGA to the Consumer Price Index for Agricultural Labourers (CPIAL), it shied away from paying statutory minimum wages in various states of India. Their logic for this: Lack of clarity on who will bear the extra financial burden—the Centre or the states? A letter from the Prime Minister Manmohan Singh to UPA and NAC Chairperson Sonia Gandhi dated 31...

Microcredit is losing its halo in many developing countries. Microcredit was once extolled by world leaders like Bill Clinton and Tony Blair as a powerful tool that could help eliminate poverty, through loans as small as $50 to cowherds, basket weavers and other poor people for starting or expanding businesses. But now microloans have prompted political hostility in Bangladesh, India, Nicaragua and other developing countries. In December, the prime minister of...

South Asia in general and India in particular have the dubious distinction of standing out for wrong reasons every time a new global poverty report is released. We not only have the largest number of underweight children, a very high maternal mortality rate and the world’s highest number of out of school children but we also top the global malnutrition chart. (See links below for more details)  However the 2011 United...

Despite the fact that over 350 million rural people have escaped poverty over the past ten years, the bulk of the world’s poor are still found in rural areas, says a new United Nations report, which calls for greater investment in agriculture and efforts to boost livelihoods. The Rural Poverty Report 2011, released today by the UN International Fund for Agricultural Development (IFAD), found an overall decline of extreme poverty –...

India’s rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India’s largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor. The crisis has been building for weeks, but has now reached a critical stage. Indian banks, which put up about 80 percent of the money that the companies...