Regulation in India's microfinance sector aims to address feckless borrowing and reckless lending – but will the new restrictions entrench poverty, rather than end it? One of the many crushing burdens for India's poor bear is debt; unable to make ends meet, they turn to traditional moneylenders. They are willing to extend credit, but at unconscionably high rates – sometimes exceeding 80%, and keeping borrowers in lifelong penury. Popular cinema and...

The law providing 100 days of wage employment has been heard more for its abuse than its benefits in the five years of its existence. However, we take a look at some positive examples of district authorities experimenting with the National Rural Employment Guarantee Act (NREGA). Except in the case of Sikkim, the examples show the law being implemented entirely by the district authorities rather than the local Panchayat. In...

The late Rajiv Gandhi famously, or infamously, once claimed that only 15 per cent of the funds allocated to welfare programmes ever reached the intended beneficiaries. The rest leaked enroute, entering the pockets of an assortment of intermediaries. This is a thought that the Union finance minister must always remember, especially when he sits down to allocate funds for an assortment of subsidies and some of the high-profile spending programme...

JANAKI KNOWS well that it is hard for her to rear more than four children. Yet she is not willing to go to the sterilisation camp. Her husband would be of no help in taking such a decision. “He drinks heavily, beats me up every day,” she says. Janaki is not able to express her fears in clear terms, but it is difficult to imagine her summoning up the courage...

Bihar chief minister Nitish Kumar has done what his counterparts in other states failed to do. He convinced the Centre that its policy on disbursement of funds for implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) was flawed and needed correction. At a meeting with Plan Panel deputy chairman Montek Singh Ahluwalia, Kumar pointed out the anomaly, which the government acknowledged and was quick to react. This resulted in...