An empirical analysis of the microfinance industry shows that the recommendations of the Malegam committee would have significantly more detrimental consequences than have been anticipated in the report. The microfinance exchange (www.mixmarket.org) is the most comprehensive data source for MFIs across the world. Table 1 displays the information on several parameters of Indian MFI performance for 2009. Column 2 displays the average values of performance parameters across 88 Indian MFIs....

Tensions run high within the Christian community in Thachur village, and the government has adopted a hands-off approach for now. THE wrinkles on S. Royappan's face are a result of advancing age, but the ridges and furrows in them tell a story of humiliation of this Dalit Christian, as also others like him. Royappan, 82, was a bonded labourer, or padiyaal, in Thachur village in Tamil Nadu's Kancheepuram district, but...

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...

It is time for us to take a hard look at our agricultural system. We are not yet reliving the food crisis of 2007-08 , but food prices are surging, with global prices for wheat and maize rising by 75% and 60%, respectively, from June to December 2010. Meanwhile, nearly 1 billion people worldwide are going hungry. The obvious solution to many of our food-related ills is to accelerate agricultural growth....

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...