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...

Mai-baap. That is how poor Indians referred to the state ever since independence. The benign provider looking after its subjects like the rajas of yore. But, today, the people have started demanding accountability from the mai-baap. Why? Because a clutch of new laws, like the Right To Information Act (RTI) and the National Rural Employment Guarantee Act (NREGA), are moving the government's developmental promises beyond "the realm of a privilege that...

The village bureaucrat shifted from foot to foot, hands clasped behind his back, beads of sweat forming on his balding head. The eyes of hundreds of wiry village laborers, clad in dusty lungis, were fixed upon him. A group of auditors, themselves villagers, read their findings. A signature had been forged for the delivery of soil to rehabilitate farmland. The soil had never arrived, and about $4,000 was missing. The...

The case of the Food Security Bill gets curiouser and curiouser.  What started off as a fight between universalization and targeting has ended (or so it would seem) in a complete victory in the National Advisory Council, Government of India (NAC) for targeting through universalization (if such a thing was possible), with the honourable exception of Prof Jean Dreze, who has to be commended for his ‘note of disagreement’. On...

NAC’s retrograde proposals fall short of creating a meaningful vision of food entitlement in the country The National Advisory Council (NAC) has finally come out with its proposals for the National Food Security Act. After months of deliberations within itself and with various government departments, the proposals will form the basis of the Act to be introduced in Parliament. However, a quick perusal of the proposals suggests that not only has NAC...