The year 2010 was a tumultuous one for micro-finance institutions (MFIs) in India. It began with the highly successful SKS Microfinance public issue, which prompted other prominent MFIs to announce similar plans. It ended with the tumult in Andhra Pradesh which was marked by the state’s legislation to regulate the sector, severely impairing its ability to survive. MFI recoveries are down and they, in turn, have fallen behind in their...

There is a suggestion circulating in the corridors of our apex monetary regulatory authority, the Reserve Bank of India, that food inflation is beginning to look more ‘structural’ than ‘seasonal’, and it can only be tackled by addressing the supply side. We need to address both demand and supply sides simultaneously to tackle food inflation. While we must be happy that more and more poor eat fruits and cook vegetables...

On December 15, the Andhra Pradesh legislative assembly cleared a bill to regulate microfinance institutions (MFIs) in the state. The bill replaces an ordinance issued in October following 54 suicide deaths allegedly due to coercive methods of loan recovery by MFIs (see ‘Death by Default’, Down To Earth, November 30, 2010). The bill mandates MFIs to be registered with the district authority to collect installments at the panchayat office and restricts...

The only economic or social variable that has not moved since 1991 in India is our 93% informal employment in the informal sector. So, while we have smartly and substantially moved the needle on everything from foreign exchange reserves, infant mortality, school enrolment, market capitalisation, foreign investment, and pregnancy deaths, 9 out of 10 of our workers do not work in organised employment. Informal employment—what President Alan Garcia of Peru...

There has been a gross simplification of the issues involved in the exposures in the Radia tapes on the lack of integrity among mediapersons. In order to understand how exactly journalists really function it is necessary to understand the overall context in which they operate and clarify some of the persistent myths about what the profession is all about. Four myths in particular need to be dissected: That it enjoins...