Comments on: Microfinance – the next big thing? http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/ Silence. Eloquence. Everything in between. Fri, 23 Dec 2011 13:19:10 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Silent Eloquence » Microfinance : What can we do? http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/comment-page-1/#comment-271 Silent Eloquence » Microfinance : What can we do? Thu, 30 Jun 2005 17:24:17 +0000 http://silenteloquence.suryaonline.org/?p=57#comment-271 [...] d educate. If you are not convinced that you should support mF, read some of my arguments here. Or better still, imagine yourself in the shoes of a less [...] [...] d educate. If you are not convinced that you should support mF, read some of my arguments here. Or better still, imagine yourself in the shoes of a less [...]

]]> By: Pramod http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/comment-page-1/#comment-112 Pramod Wed, 30 Nov -0001 00:00:00 +0000 http://silenteloquence.suryaonline.org/?p=57#comment-112 Microfinance is a very interesting area. In one sense we have had this in India for a long time - one of the most exploited systems ever - the local money lender. That's what in effect microfinance is. <BR/><BR/>The big change that is happening now is the institutionalisation of that activity and thus brining in some amount of accountability and responsibility.<BR/><BR/>I am looking forward to seeing how it develops.<BR/><BR/>Here is an interview with Muhammad Yunus of Gramin Bank of Bangladesh, who is in someways credited with popularising this new identity of Microfinance: http://www.pramod.ch/?p=30 Microfinance is a very interesting area. In one sense we have had this in India for a long time – one of the most exploited systems ever – the local money lender. That’s what in effect microfinance is.

The big change that is happening now is the institutionalisation of that activity and thus brining in some amount of accountability and responsibility.

I am looking forward to seeing how it develops.

Here is an interview with Muhammad Yunus of Gramin Bank of Bangladesh, who is in someways credited with popularising this new identity of Microfinance: http://www.pramod.ch/?p=30

]]> By: Surya http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/comment-page-1/#comment-113 Surya Wed, 30 Nov -0001 00:00:00 +0000 http://silenteloquence.suryaonline.org/?p=57#comment-113 Yes, India has always had a good tradition of microfinance - not just the money lenders, but the socially responsible "sahakarana" banks too. But the trend is make its first impacts in many countries in the Africas and other parts of Asia. <BR/><BR/>Thanks for the link. Nice read. Yes, India has always had a good tradition of microfinance – not just the money lenders, but the socially responsible “sahakarana” banks too. But the trend is make its first impacts in many countries in the Africas and other parts of Asia.

Thanks for the link. Nice read.

]]> By: surreal reality http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/comment-page-1/#comment-114 surreal reality Wed, 30 Nov -0001 00:00:00 +0000 http://silenteloquence.suryaonline.org/?p=57#comment-114 <span class="deleted-comment">This post has been removed by the author.</span> This post has been removed by the author.

]]> By: surreal reality http://silenteloquence.suryaonline.org/2005/04/05/microfinance-the-next-big-thing/comment-page-1/#comment-115 surreal reality Wed, 30 Nov -0001 00:00:00 +0000 http://silenteloquence.suryaonline.org/?p=57#comment-115 I think the Jeffrey Sachs approach epitomizes the problems with microfinancing and poverty alleviation. "If you can't get rid of poverty in one village, a macro approach to Africa is futile". <BR/><BR/>The "fishing rod" example is congruent with giving the locals mosquito nets to control the outbreak of malaria in a village in Kenya. The idea was that if the disease could be irradicated it would automatically increase productivity and improve quality of life. Unfortunately, the locals sold their nets to neighbouring villages and bought food that lasted them 2 days with it. Currently, the Earth Institute is distributing 2 nets per household, one to use, the other to sell.<BR/><BR/>Most NGO's are dubbed an "institutional fallacy" so accountability is still the highest mountain to climb. There are a myriad papers from top economists on how to make the aid accountable. In a state with bad governance and corrupt bureaucracy, the problem is worse.<BR/><BR/>Greater civil participation in governance... one possible solution.. ? I think the Jeffrey Sachs approach epitomizes the problems with microfinancing and poverty alleviation. “If you can’t get rid of poverty in one village, a macro approach to Africa is futile”.

The “fishing rod” example is congruent with giving the locals mosquito nets to control the outbreak of malaria in a village in Kenya. The idea was that if the disease could be irradicated it would automatically increase productivity and improve quality of life. Unfortunately, the locals sold their nets to neighbouring villages and bought food that lasted them 2 days with it. Currently, the Earth Institute is distributing 2 nets per household, one to use, the other to sell.

Most NGO’s are dubbed an “institutional fallacy” so accountability is still the highest mountain to climb. There are a myriad papers from top economists on how to make the aid accountable. In a state with bad governance and corrupt bureaucracy, the problem is worse.

Greater civil participation in governance… one possible solution.. ?

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