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...

The Union government recently indexed the wages of workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) to the consumer price index for agricultural labour (CPI-AL). The step, aimed at boosting the purchasing power of workers, came in the midst of a controversy over the government not linking wages under MGNREGS to the minimum wage under the Minimum Wages Act, 1948. The wage hike, ranging from 17-30%, is likely...

Over five crore Mahatma Gandhi NREGA workers across the country will enjoy a 17 to 30 per cent rise in wages with their wage rate being linked with the Consumer Price Index for Agricultural Labour(CPIAL) with immediate effect. The Ministry of Rural Development issued the notification in compliance with the directives of Prime Minister Manmohan Singh who had, however, differed with NAC chairperson Sonia Gandhi's recommendation for a hike in statutory...

Prime Minister Manmohan Singh has asked the rural development ministry to develop an index for fixing and revising wages under rural job scheme NREGA. The move follows a letter from Sonia Gandhi requesting Singh to find a way to ensure workers under the scheme are paid the minimum wages across the country. The minimum wages in several states, such as Rajasthan, Andhra Pradesh, Chhattisgarh, Jharkhand, Bihar and Karnataka, are now higher than...

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...