Monday, November 29, 2010

India's microfinance crisis (2)

Some more info about India's microfinance crisis (see earlier post here). David Roodman at the Center for Global Development is writing a book about the history and impact of microfinance. He offers a summary of his views on the crisis today, and a long and excellent interview with B. Rajsekhar, the CEO of the Society for the Elimination of Rural Poverty yesterday. Both are well worth reading.

It is worth noting that not the entire microfinance sector of India is in crisis. About 10 days ago, the Times of India reported on the awarding of the "prestigious Microfinance India Award 2010" to the Shri Kshethra Dharmasthala Rural Development Project (SKDRDP). This organization is apparently well-known for its low interest rates, which are comparable to commercial bank rates. It is also quite good on transparency: annual reports for 2008-2009 and 2009-2010 are easily found online.

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