Microcredit lifted 10 million Bangladeshis out of poverty between 1990 and 2008, according to a report. The work of Grameen Bank and others helped many families to raise their income above $1.25 a day, said the US-based Microcredit Summit Campaign. The study follows recent criticism of microfinance, which works by providing small loans to people to invest in generating their own incomes. Some experts argue the report may have missed the bigger picture. They...

Action plan should be finalised to end scourge before March 2012 A plan of action should be finalised within a month or so with the target of ending the pernicious practice of manual scavenging within the 11th Plan period that ends in March 2012, sources in the Social Justice Ministry said. This was the key outcome of a two-day consultation meeting which concluded here on Tuesday. Jointly organised by the Ministries of Social...

Union rural development and panchayati raj minister C P Joshi on Wednesday suggested that the re c o rd s maintained under the M a h at m a Gandhi National Rural Employment Guarantee Scheme could be used to identify the poor to prepare the BPL census 2011. Emphasising the need for a one-dimensional reference for surveying the BPL families, Joshi said that identifying the ‘real’ poor was getting tougher in...

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...

Confusion continues to reign in the debate on microfinance that has unfolded following the promulgation of the Andhra ordinance, soon to be replaced by Andhra Pradesh Micro Finance Institutions (Regulation of Money Lending) Act, 2010. A key confusion has been that microfinance is a major instrument of Poverty Alleviation. Going by the available scientific evidence and agreement among scholars, to-date, there exists no compelling study linking the expansion of microfinance to...