Recent events in south Asia have led to an unexpected reversal in the narrative of microfinance, long presented as a development success. Despite charges of poor treatment of clients, exaggeration of the impact on the poorest as well as the risks of credit bubbles, the sector can play a non-negligible role in reaching financial services to low-income households. In regulating the sector, there is need for caution in setting interest...

Planning Commission deputy chairman Montek Singh Ahluwalia did a U-turn on the highly controversial Rs 32 per day poverty line, informing Prime Minister and plan panel chairman Manmohan Singh that caps on number of beneficiaries of schemes with central subsidies will be done away with. The about-turn comes after Ahluwalia's earlier letter to attorney general Goolam E Vahanvati in October defending the "artificial" cap Planning Commission imposes on beneficiaries of various...

Special schools will be set up for mentally challenged children in Japanese Encephalitis (JE) affected areas while fixed monthly compensation will be given to families below the poverty line having children with disability due to JE. A group of ministers (GoM) formed to handle India's JE outbreak which included Ghulam Nabi Azad, Jairam Ramesh, Krishna Tirath and Mukul Wasnik met for the first time on Monday to finalize a new strategy....

My attention was drawn to “An Open Letter to the Chief Minister of West Bengal” which was signed by thirty members of the civil society of Kolkata and Delhi. What disturbed me was the tone and tenor of the language used in the letter in denouncing Ms Mamata Banerjee’s bold initiative in inviting the Maoists of Junglemahal for a dialogue after “ceasefire”. May I ask with all humility who among the...

The anti-corruption movement has enabled the Indian middle class to feel smug about itself. Its members have gone through a vast range of emotions during the last two decades, from self-hatred to self-righteousness. Liberalisation of the economy has created for this class an excitement of many kinds. It has meant the freedom to pursue the quest for wealth without guilt and, at the same time, it has meant feeling set...