Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest...

At BANCON (annual bankers' conference) 2011 in Chennai, financial institutions explored avenues for greater participation in agriculture and rural development. There are a few areas in need of additional attention and investment. Green Revolution technologies are scale-neutral but not resource-neutral. Inputs are needed for output; therefore market-purchased inputs become important in providing soil and plant healthcare for higher yields. Social scientists point out that small and marginal farmers will be excluded...

Less than half the funds allocated to the rural development ministry in the current fiscal year for programmes, including the rural job guarantee plan, have been utilized. This is slower than last year, but the government contends tighter monitoring has prevented misuse of funds. The ministry has released Rs.30,846 crore to states in the first six months of the year, or 42% of the Rs.74,100 crore that has been allocated to...

-EPW   The media noise shed little light on the important issues involved in deciding the coverage of welfare programmes. The context for the Planning Commission’s (PC) affidavit on the official poverty line was the deliberation in the Supreme Court on how many people could be covered by the public distribution system (PDS). But while the sound and fury over the poverty line – Rs 32 per capita per day in the urban...

-The Hindu   Expresses concern over implementation of scheme in Maharashtra Union Minister for Rural Development Jairam Ramesh has asserted that the Union government would initiate action against States where there is deliberate “misappropriation/embezzlement” of funds earmarked for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The Minister expressed concern over the “disappointing nature” of implementation of MGNREGS in Maharashtra and said he had addressed a letter to Chief Minister Prithviraj Chavan in...