By Suranjana Nabar-Bhaduri
One of the central elements in the development of any country is the creation of economic activities that transform the production structure by significantly increasing labor productivity, or the amount of production per worker. By helping to absorb more people into quality employment, the creation of such activities helps to generate a more inclusive and sustainable path of long-run economic growth. While economists and policy-makers accept the necessity of this transformation, there are differing views on the policies that developing countries should follow to achieve this transformation.
Many Western countries and institutions, such as the International Monetary Fund (IMF) and the World Bank, argue that minimizing the role of the State in economic activity, and opening up the economy to external markets is vital to achieving this transformation. But other economists (e.g., Prebisch 1959, Cimoli and Correa 2002, and Ocampo 2005) stress that active industrial and employment generation policies are also essential ingredients for this transformation, and that it is necessary to complement liberalization with such policies.
Read the rest here.
Friday, May 11, 2012
Free Trade and Inclusive Development
Thursday, April 7, 2011
Dev't Battle: Jagdish Bhagwati v Muhammad Yunus
[NOTE: This is the first of two posts reflecting on the ouster of Muhammad Yunus from Grameen as demanded by the Bangladeshi government.] Here is a clash of the titans from the Indian subcontinent if there ever was one. On one side we have Jagdish Bhagwati, arguably the most influential international economist of his generation. On the other side we have Muhammad Yunus, Nobel Peace Prize winner and the man recognized by most for having popularized microfinance.
I make these qualifiers about Yunus and microfinance for a reason: Apparently, his fame has not gone down so well with a number of economic commentators--including Bhagwati. To wit, the venerable Professor Bhagwati highlights four criticisms of Yunus in a recent op-ed in Al Jazeera:
1. It wasn't Muhammad Yunus who invented microfinance but rather Ela Bhatt who founded the Self-Employed Women's Association (SEWA) in April 1974--two years before the former made his start in Jobram Bangladesh;
2. Yunus has relied on periodic inflows of foreign cash to keep Grameen afloat, whereas SEWA has never been reliant on foreign donors;
3. What is more, SEWA has been regulated by Indian authorities practically since its inception, while the same doesn't hold true for Grameen which resists such regulation;
4. Microfinance does not promote large-scale development.
There are interesting points which Muhammad Yunus would probably be better served rebutting himself. However, I can offer some counterpoints and suggestions here:
1. Yunus' innovation was perhaps more a case of marketing; that much is true. Prior to him, the term "microfinance" had barely entered the lexicon and was certainly not widespread worldwide. That said, why begin with SEWA? Those who've worked in development studies for any period of time are familiar with the Rotating Savings and Credit Association (ROSCA) which has similar features of credit pooling and turn-based lending among a small group. As far back as 1962, the famous anthropologist Clifford Geertz had already written about "The Rotating Credit Association: A 'Middle Rung' in Development." It's hardly an obscure work since Google claims it has 397 citations. ROSCA was already operative long before Geertz described it, so the origin of ROSCA certainly predates SEWA by an even more considerable margin. But if neither the ROSCA nor the SEWA folks coined the term "microfinance" despite having essentially similar mechanics, then I'll give Yunus the nod for doing so.
2. It would of course be good if Bhagwati came up with evidence to back his claim that could be very damaging to Yunus' operation not being self-sustaining by relying on periodic cash infusions from abroad.
3. It is incorrect to say that Bangladeshi microfinance institutions (MFIs) do not face banking regulation. Instead, they have a separate banking regulator in the Microcredit Regulatory Authority (MRA) which oversees their operations and has the power to impose sanctions. Instead of saying Grameen gets by with lax regulation, it would have been better if Bhagwati could explain why microfinance and conventional banking are similar enough to warrant coming under the same regulatory body (such as the Reserve Bank of India). Given India's own woes with allegedly usurious interest rates, the specificities of microfinance may warrant having a separate regulator as Bangladesh has decided to do. Yunus, after all, has been instrumental in creating a microfinance monitoring body in Bangladesh and calls for one in India as well:
“We have been lobbying for a regulatory authority in Bangladesh and as a result created the microcredit regulatory authority in Bangladesh,” Yunus said. “That’s what I have been recommending for India also.”Speaking of which, Bhagwati should note this provision of Bangladesh's MRA:
MFIs should not be permitted to accept deposits from the non-member/ general public.4. Alike many other things in development--remittances come to mind, personally--it is unlikely that microfinance is the "magic bullet" to development. Although some folks do a disservice as styling it as such, perhaps Yunus is even culpable to an extent. I personally think Clifford Geertz suggested as much since he termed ROSCA as a "middle rung" in development long before the chattering classes arrived on the scene. Microfinance is an intermediate stage in the development of financial institutions. That is, habituating folks climbing up the income ladder in the disciplines of borrowing, investment, and repayment is certainly not a bad thing when it comes to administering credit. Certainly the Americans--its government, states, municipalities and citizens--do not have a firm grip on such fundamentals given the parlous state of their finances at virtually every level of society.
It's interesting times for Grameen,to say the least.
Sunday, April 3, 2011
India charges ex-minister in telecom graft scandal
Thursday, March 31, 2011
Indian PM vows closer Pakistan ties
Monday, March 28, 2011
India, Pakistan talk extremism and peace
Saturday, March 26, 2011
India Shining: Rupee Symbol Now in MS Windows
Always one to play the foil, let me say that contrary to conventional wisdom among the self-styled digerati, I see no reason to chuck Windows 7 for OS X. Not only is the range of programmes for the former vast, but a smidgen of diligence means you can avoid catching viruses and malware. Yes, you can run software that allows you to run Windows software on a Mac, but it makes little sense to pay extra to run stuff more slowly on a Mac. What is more, ever since Apple switched to Intel from Motorola (PowerPC) processors, the hardware used by both contending operating systems is virtually identical--but Apple charges you significantly more in most instances. Colour me sceptical, and give me Windows 7 over OS X any day. Heck, I run Vista on my four-year-old machine and have had no substantive complaints.
This introduction brings me to further proof that India has arrived on the world stage. Typically, developing markets are not prime Microsoft targets. Among the typical reasons you'll hear are...
- the market is too small;
- where there are Windows users, they typically use pirated software;
- this is because intellectual property laws are not strongly enforced
Microsoft has released an update to all supported versions of Windows designed to introduce support for the new currency symbol that will be used from now on for the Indian Rupee. Customers can download variants of KB 2496898 and install the refresh in accordance with the operating system they’re running.If the Redmond giant takes the Indian market seriously enough to issue a separate update, then I guess we should all take heed of its prospects. You may think it a minor development, but think of the wider ramifications of Microsoft's eagerness to please this particular market. Indian shining, indeed!
According to the software giant, following the installation of the update, the new currency symbol for the Indian Rupee (which can be seen in the image accompanying this article) will be available in Windows 7 SP1 and RTM, Windows Server 2008 R2 SP1 and RTM, as well as Windows Vista and Windows Server 2008...
Of course, the refresh is not limited at introducing the new symbol for the Rupee. The Redmond company revealed that “this update includes font support, locale changes, and keyboard support.” Before the new symbol was adopted by India for its currency, the Rupee was abbreviated as either Rs or Re, although Indian language alternatives also existed.
The Indian government announced a contest for a new currency symbol back in the first half of 2009, and over a year later the winning design was selected. The official Rupee symbol was created by Udaya Kumar Dharmalingam, who based the design on the Devanagari letter र, to which he added an extra horizontal line.
The new Rupee symbol is already a part of Unicode version 6.0, and it only makes sense for Microsoft to also integrate it into copies of the Windows operating system. Take a good long look at the Rupee symbol above, as it will be used to represent India’s currency just as the case for the US Dollar ($), the Japanese Yen (¥), or the Euro (€).
Friday, March 25, 2011
Anti-nuclear protesters march in Indian capital
Indian protesters belonging to the Anti-Nuclear Struggles Solidarity Forum hold placards and chant slogans during anti-nuclear protest, in New Delhi. -- PHOTO: AP
Wednesday, March 23, 2011
Monday, March 21, 2011
Moammar, Italy & BRICs: The Battle for Libyan Oil
A few days ago, we had former UNDP head Mark Malloch Brown talk impressively about global events, especially goings-on at the UN in relation to the Middle East/North Africa. One of the things he pointed out was that perhaps an even worse humanitarian disaster is occurring in Cote d'Ivoire. While this is sadly and undoubtedly true, I'll take the crude Marxist route of economic determinism and suggest the difference boils down to energy. Possessed of the finest grades of petroleum reserves--light, sweet crude that is easy to refine--Libya will remain a prize far greater than the Ivory Coast. Tis the way of the world: I am afraid and ashamed of in equal measure.
Arguably, two of the countries that have pressed hardest for a no-fly zone over Libya are those with the most commercial interests there. Perhaps it's a matter of saving face. Remember that prior to leading the current international effort to penalize the Gadhafi regime, Nicolas Sarkozy was telling everyone not too long ago that it was OK to sell arms to Libya. Given its imperial history, Italy has invested in Libya and has in turn attracted investment by Libyan powers-that-be. However, the head of Italy's largest petroleum company ENI (formerly Agip), has been thinking ahead about the future implications of sanctions should Gadhafi remain in control--or at least of the key oil-producing regions. From the WSJ:
The head of Italian oil giant Eni SpA called for Europe to drop sanctions against Libya, saying it was "shooting itself in the foot" and endangering its energy security by punishing the Gadhafi regime.Indeed, it's by no means certain that the West will not eventually forgive and forget as it has done in the past. ENI thinking is simple: if the West offends Gadhafi sufficiently but he is not dislodged from power, then there are others who would certainly welcome the opportunity to take its place:
Eni Chief Executive Paolo Scaroni's comments come against a background of threats and warnings by Col. Moammar Gadhafi against foreign oil companies, especially those from countries that have backed the opposition rebels and called for a no-fly zone above Libya...Foreign companies such as Eni, which suspended production and evacuated staff when the violence erupted, are keen to resume operations in a country that holds the largest oil reserves in Africa and has long been considered one of the great unexplored frontiers of the global energy industry.
But they face a dilemma. Libya is likely to face an era of deep international isolation, with a new round of sanctions that could affect foreign oil companies. Those from states that called for Col. Gadhafi's ouster, like France and Italy, may be singled out for punishment by the leader and his inner circle.
And those that try to rekindle their relationship with a reviled regime face grave risk to their reputations in Western markets. "Companies that go grovelling back to Gadhafi are not going to look great in the eyes of Western public opinion," said Samuel Ciszuk, a North Africa energy expert at IHS Global Insight. "It's going to be a very uncertain environment for them."
In interviews published this week, Col. Gadhafi indicated that contracts with Western oil companies could come under review. He told the Italian daily Il Giornale he felt "betrayed" by Italian Prime Minister Silvio Berlusconi, who had previously courted the Libyan leader but called for him to step down after the uprising broke out...Italy has suspended its 2008 "friendship treaty" with Libya and frozen Libyan investments in the Italian economy, including large stakes in defense contractor Finmeccanica SpA and lender UniCredit SpA.Now for more on the BRICS--all of which declined to cast their vote. Permanent security members China and Russia unsurprisingly did not vote on the resolution implementing the no-fly zone. While Russia being attracted to Libya's energy supplies is indeed like bringing coals to Newcastle as the saying goes, the Chinese would certainly welcome the opportunity to expand its access to such supplies. Are they currying favour just in case? In addition to abstaining, both countries now express "regret" over military action.
Asked whether Libya might reconsider its contracts with Eni, the Libyan strongman said he "believes and hopes" that the "Libyan people" would reconsider their economic, financial and security ties with the West. Speaking to Russia Today, the pro-Kremlin channel, Col. Gadhafi said Libya can "no longer trust the West...That is why we would like to invite companies from Russia, China and India to invest in our oil production and construction industries," he added.
Other officials in Libya have said they are eager to have Western companies back. Shokri Ghanem, head of Libya's National Oil Corp., or NOC, and the country's de facto oil minister, said last week that Libya would respect all contracts and wanted its current partners to return to work as soon as possible.
Speaking on the sidelines of a parliamentary hearing on Italy's energy ties to Libya, Mr. Scaroni said imposing sanctions was "shooting ourselves in the foot," because not taking Libyan gas would undermine Italy's energy security. Eni has been in Libya since 1955 and is the largest single foreign investor there; in 2007 it signed a $28 billion deal to extend its Libyan oil contracts to 2042. But sanctions have forced Eni to suspend shipments of the oil it produces there, which account for about a quarter of Italy's oil supply. It also shut down the Greenstream pipeline which supplies 10% of Italy's natural gas.
With Libya's political future still uncertain, Mr. Scaroni appeared to hedge on where Eni's allegiances lie. "Whatever political system there is in the future, it will have its own NOC, which will have contracts and relations with us," he said. "I don't see any reason that these ties should be compromised."
Meanwhile, non-permanent security council members Brazil and India did the same. (Remember, there are five permanent security council members and ten rotating ones--which Brazil and India happened to be at the time of the vote.) Brazil does not lack for energy resources, but India could certainly stand to gain in the aftermath if Gadhafi manages to cling to power. Gadhafi has already suggested as much.
Although I suspect these major emerging economies are more concerned with keeping the principle of non-interference intact, you cannot rule out the possibility of some--particularly China and India--hedging their energy bets. Energy realpolitik--if the Italians can't do without it, imagine how countries many time its size keep it in mind.
Ultimately, it hinges on whether Moammar Gadhafi remains in power or nor. Insofar as Western enforcers of the no-fly zone are reluctant to launch a ground effort lest another protracted counterinsurgency-type challenge appear (as Gadhafi warns), there are any number countries and companies jockeying for position in anticipation of ever after.
Sunday, March 20, 2011
India 'regrets' air strikes on Libya
Thursday, March 10, 2011
Tamil Tiger rebels training in India
Tuesday, March 1, 2011
Police probe 63 in India telecoms scandal
Nobody has yet been charged in the case but the scandal over the sale of telecom licences has already brought down former telecoms minister A. Raja (above), who is under arrest in a New Delhi jail. -- PHOTO: AFP
Friday, February 11, 2011
Nobel laureates demand Indian activist's release
Shipbreaking, A Dirty But Necessary Industry
A Bangladeshi colleague pointed out to me that a report he prepared for the World Bank has now come out in print form. There are probably few tasks in this world that are as "3D" (dirty, difficult, and dangerous) as shipbreaking. It involves dismantling disused vessels for scrap--usually in Bangladesh, Pakistan, and India. The costs are generally well-known: environmental pollution, injury or even loss of life figure large in this largely unregulated trade. In 2009, the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted that confronted a number of relevant issues. While most stakeholders thought it was a move forward, some NGOs complained that it was actually a step backward from the preexisting 1989 Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal. (Which the United States hasn't ratified, unsurprisingly.) Their main beef is that responsibility is placed on the flag carrier as opposed to shipping companies, allowing the loophole of reassigning ships on their final voyages to be placed under flags of convenience that are hard to call to account.
At any rate, this World Bank-commissioned report focusses more on the environmental considerations at hand in shipbreaking. Given that shipbreakers on the Indian subcontinent are not the most stable and organized of enterprises, there are considerable difficulties to surmount in identifying potentially toxic materials and hence enhance worker safety. What follows is the executive summary which offers a taster of what's in the report--certainly a must-read for those concerned with global environmental or trade and environment issues:
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The ship breaking and recycling industry (SBRI) converts end-of-life ships into steel and other recyclable items. Ship recycling offers the most environmentally sustainable way of disposing of old vessels, with virtually every part of the hull and machine complex being reused or recycled as scrap metal. Although the industry is beneficial from a life-cycle assessment point of view, over the years it has gravitated toward countries with low labor costs, weak regulations on occupational safety, and limited environmental enforcement. The “global shift” in the industry to countries with comparatively weaker regulatory systems is of particular concern as ships contain many hazards that can have significant detrimental effects on humans and the environment if not dealt with properly.
Currently, the global center of the ship breaking and recycling industry is located in South Asia, specifically Bangladesh, India, and Pakistan. These three countries account for 70–80 percent of the international market for ship breaking of ocean-going vessels, with China and Turkey accounting for most of the rest. Only about 5 percent of the global volume of such vessels is scrapped outside these five countries. This study focuses on the SBRI in Bangladesh and Pakistan to get a better understanding of the economics of the industry and the environmental impacts arising out of such activity and to explore possible ways in which such environmental effects may be mitigated.
The ship breaking and recycling industry plays a significant economic role in Bangladesh and Pakistan, supplying a substantial quantity of re-rollable scrap steel for the iron and steel industries. SBRI provides more than half of Bangladesh’s steel supply, for example, making it a strategic industry in that country. The industry also creates hundreds of thousands of direct and indirect jobs for some of the poorest and most marginalized segments of the population in those countries. The work force in each country varies with the volume of ship breaking but may range from 8,000–22,000 workers in the ship recycling yards to 200,000 in the supply chain, shops, and re-rolling mills—with dependents in extended families estimated to reach over 500,000 in Bangladesh, although fewer in Pakistan.
The SBRI also has a major social impact in that region. Most workers in the ship breaking yards are migrant workers from poorer regions of each country. The percentage of such migrant labor is higher in Bangladesh compared to Pakistan. A major reason for employment of migrant labor is the hazardous nature of the job as well as variations in employment levels depending on the extent of ship breaking work being done.
Working conditions have historically been poor for the majority of these workers, with limited use of personal protective equipment, frequent exposure to hazardous materials, and unsafe conditions. Accidents causing fatalities and injuries are frequently reported in the local media. A wealth of reports from nongovernmental organizations, academia, and other interested entities complement the limited monitoring data from the relevant authorities. Mechanization of some of the hazardous works may minimize such accidents. Among the three countries, Pakistan uses the highest degree of mechanization in the yards.
Environmental protection is limited in most yards and the sound management of asbestos, polychlorinated biphenyls (PCBs), ozone-depleting substances (ODS), and a range of heavy metals is virtually nonexistent. Of late, some efforts at minimizing the release of such pollutants in the environment are emerging in Bangladesh due to intervention by the courts. Similar interest in improving the industry’s performance is also developing in Pakistan.
Recognizing the need for coordinated action on the issue, the International Convention for the Safe and Environmentally Sound Recycling of Ships was adopted by a diplomatic conference under the auspices of the International Maritime Organization in Hong Kong, China, in May 2009. The Hong Kong Convention (HKC) is expected to enter into force in 2015.
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Despite the generally unpleasant nature of these tasks, it is understandable that the industry will not disappear anytime soon. Indeed, given the skyrocketing prices of raw materials in this day and age, buying up disposed vessels at bargain prices for scrap looks set to thrive. Developed countries that have more knowledge about safe practices tend to avoid this trade given its irregular nature, but perhaps knowledge can still be imparted. How do you regulate a loosely regulated trade run by loosely affiliated networks? It's an interesting global governance problematique to say the least that would benefit from coordination that's presently absent to a large degree
Saturday, February 5, 2011
North-east India rebels announce peace talks
Indian Kashmiris protest student's killing by army
Thursday, January 27, 2011
Climate Apartheid? The India-Bangladesh Superfence
My friend came to me, with sadness in his eyes
He told me that he wanted help
Before his country dies
And so begin the lyrics to "Bangla Desh" from George Harrison's Concert for Bangla Desh held on 1 August 1971 in Madison Square Garden. Well before we had Sir Bono and Sir Bob Geldof, Live Aid and Live 8, we had the late, great Beatle setting the template for all there was to follow. This forerunner of all benefit concerts was held to support the victims of the 12 November 1970 Bhola cyclone in which an estimated 300,000 lost their lives in the region then called East Pakistan--today's Bangladesh. Just as Pakistan emerged from India, so did Bangladesh in turn emerge from Pakistan, declaring independence on 26 March 1971. It was a very difficult time for Bangladesh to say the least as it faced both the aftermath of a devastating natural calamity and the teething woes of becoming a nation--hence the lyrics above.
Now, politics on the Indian subcontinent are usually as contentious as they are interesting. Back then, Pakistan tried hard to keep Bangladesh from becoming a country, and India offered support. Among other things, India opened its border with East Pakistan to help refugees from the disaster cope. Unfortunately, environmental pressures on Bangladesh have hardly ebbed in the intervening years. Obviously, it hasn't gained any elevation while global warming has taken further effect. What more if sea levels continue to rise? With a population of over 160 million, Bangladesh is far from a tiny country population-wise.
The Commonwealth Secretariat has a new publication called Global: the international briefing that looks at global policy issues from the perspective of member states in the British Commonwealth. I highly recommend Robin Cohen's essay on why migration is a boon to globalization, though there are obviously strong interests opposed to it. In particular, the border between Bangladesh and India has become more fractious. To those following migration issues, such episodes are unsurprising given that about half of migration is, contrary to popular perception, South-South or between developing countries. I was thus struck by Cohen's description of a massive fence India is putting up:
As for South–South migration, there remain many tensions and important fault lines. The data are disputed, but there are probably about 3.5 million people born in Bangladesh living in India, with 1 million born in India and living in Bangladesh. With the Ganges Delta prone to periodic flooding, further population movements from Bangladesh to India are likely, but are inhibited by an Indian-built fence, stretching for nearly 4,100 km.2011 is 40 years after 1971, and let's just say that the Indians are no longer as welcoming of Bangladeshis pouring over their borders. Moreover, even the effects of a major cyclone are time-bound, while permanently higher sea levels aren't. It's a security issue, they say. Aside from preventing those affected by flooding to seek refuge in neighbouring India, Brad Adams of Human Rights Watch asserts that Indian border guards have been overzealous while this massive fenestration project has become underway:
Do good fences make good neighbours? Not along the India-Bangladesh border. Here, India has almost finished building a 2,000km fence. Where once people on both sides were part of a greater Bengal, now India has put up a "keep out" sign to stop illegal immigration, smuggling and infiltration by anti-government militants.It gives one reason to pause about the consequences of global warming if the threats identified are real. Not being a climate change denier (or a deficit denier for that matter; these paleolithic tendencies tend to run together), the prospect is scary indeed. It pits higher-lying areas against adjacent lower-lying ones in a manner that seems not to build on the goodwill evident in past times, like say 1971. While the Guardian op-ed may overstate shootings on the border, the likelihood of rising sea levels and the continuing construction of this fence do not bode well for relations on the Indian subcontinent concerning borders. Also consider the economic effects of artificial separation.
This might seem unexceptional in a world increasingly hostile to migration. But to police the border, India's Border Security Force (BSF), has carried out a shoot-to-kill policy – even on unarmed local villagers. The toll has been huge. Over the past 10 years Indian security forces have killed almost 1,000 people, mostly Bangladeshis, turning the border area into a south Asian killing fields. No one has been prosecuted for any of these killings, in spite of evidence in many cases that makes it clear the killings were in cold blood against unarmed and defenceless local residents.
Shockingly, some Indian officials endorse shooting people who attempt to cross the border illegally, even if they are unarmed. Almost as shocking is the lack of interest in these killings by foreign governments who claim to be concerned with human rights. A single killing by US law enforcement along the Mexican border makes headlines. The killing of large numbers of villagers by Indian forces has been almost entirely ignored.
Since George Harrison is no longer with us, perhaps it's up to his forebears to draw attention to a worthy cause. Is it climate apartheid, then? If migration restrictions increase further, I doubt whether this instance will be an isolated one, sadly.
Friday, January 7, 2011
Pakistan bans road, rail onion exports to India
Pakistan this week banned overland onion exports to chief rival India. -- PHOTO: AP
Thursday, January 6, 2011
Max Interest Rate Microlenders Should Charge Is...
By now, I'm sure you've read all about the controversies over suicides attributed to microlending in Andra Pradesh state in India and government attempts to regulate such lending. Now, a bigwig has waded into the controversy, claiming that many commercial lenders there have not really been faithful to the original vision of microlending. Any number of issues have cropped up that negatively affect a microborrower's ability to pay:
- lenders offering more loans to microborrowers who already have existing ones with other lenders;
- microborrowers taking on a multiplicity of loans given fast growth in this area (or even from loan sharks);
- commercially-oriented borrowers charging "what the market will bear" as opposed to having any overt social mission that bears on setting interest rates.
Yunus says he’s not against making a profit. But he denounces firms that seek windfalls and pervert the original intent of microfinance: helping the poor. The rule of thumb for a loan should be the cost of funds plus 10 percent, he says [my emphasis].
“Commercialization is the wrong direction,” Yunus says, speaking in a telephone interview from Bangladesh’s capital of Dhaka. “An initial public offering is the triggering point for making a lot of money personally as well as for the company and shareholders.”
Indian microlenders themselves borrow from banks at 13 percent or more on average and extend credit to the poor. They charge interest rates that can rise to 36 percent, says Alok Prasad, chief executive officer of the Microfinance Institutions Network, which represents 44 microlenders. He says all 44 firms are registered with the Reserve Bank. SKS Microfinance gets funds at about 12 percent interest and lends at 24.52 percent in Andhra Pradesh, spokesman Atul Takle says.
In Bangladesh, Grameen Bank got a banking license in 1983, which allowed it to take deposits. It charges 5 percent for education loans and 8 percent for housing loans. Beggars can borrow for free, and interest on major loans is capped at 20 percent, Yunus says. “Microfinance has been abused and distorted,” he says. “I feel so sad because that’s not the microcredit I have created.”
Sunday, December 26, 2010
Fog hit flights, trains in N. India
People walk on a railway line in dense fog in New Delhi. -- PHOTO: AFP
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