The development laboratory

Last year, Congress chief minister Digvijay Singh lost the Madhya Pradesh (MP) state elections. Two years before, the Communist-led coalition lost in Kerala. Since both governments had fervently promoted decentralisation, questions naturally come to the fore: Was their defeat a vote against the move towards local governance and devolution of power? Further, if decentralisation does not bring electoral benefits, will politicians invest in this idea in the future? What went wrong in MP?

Letters

MANAS SHOWS SIGNS OF RECOVERY

Breach of trust

A documentary by Danish journalist Tom Heinemann has cast aspersions on Bangladesh’s much feted Grameen Bank.

Reaching for the sun

Two bone-rattling kilometres on a brick-cobbled road, beyond the market and the grid, past the flooded paddy fields lit intermittently by fireflies in the twilight is where the three Chowdhury brothers live, their homes awash in the white radiance of CFL bulbs. This is solar country, on the island of Mehindiganj in south Bangladesh.

Rs 3,300 crore to counter Naxalites

THE Centre has approved Rs 3,300 crore grants for infrastructural development in 60 Naxalite-affected districts of the country. The scheme Integrated Action Plan for Selected Tribal and Backward Districts was passed on November 26.

Letters

WHAT WILL DEER EAT?

science & Technology - Briefs

Atmospheric sciences Earth glows as chorus plays

Rise And Rise Of MFIs

The total demand for micro-credit in the country has been estimated at Rs 50,000 crore. The Reserve Bank of India (RBI) estimates that in 256 of India’s 626 districts the credit gap is at least 95 per cent or more. Most mfis are concentrated in these districts, including two of the country’s largest—Spandana Spoorthy Innovative Financial Services Limited and Swayam Krishi Sangam (SKS) Microfinance.

The Grameen model

Started as a project in 1976, became a bank in 1983 under a special law. Extends uncollateralised, income-generating micro-loans (‘credit is a human right’) repayable weekly or bi-weekly.

Finally, regulation for MFIs

Faced with 54 suicide deaths due to alleged harassment by MFI agents, the Andhra Pradesh government brought in an ordinance in October imposing regulation and transparency on MFI money lending. The ordinance calls for registration of MFIs with the district authority, regulates multiple lending and bans coercion in recovery. Even before news of the ordinance reached people, it polarised them and those involved in microfinance trade in the state.