Thursday, November 25, 2010

Profit from poor.

Dear All,

Please click the following link to read this reality piece on Microfinance companies and the devastating acts they are doing. The situation is same in Odisha too.

Thanks and regards,


Water Initiatives Odisha: Fighting water woes, combating climate change... more than two decades now !

Profit from the poor
Author(s): Richard Mahapatra, Arnab Pratim Dutta
Source: Down To Earth, Issue: Nov 30, 2010
Fifty-four suicides in Andhra Pradesh have blown the lid off the social posturing by microfinance companies. Before the news of the deaths sank in, the country feted Vikram Akula, head of SKS Micro-finance, as the new messiah of microcredit. A 273 per cent growth in loan disbursement and returns to investors made him a national hero. India’s micro-finance institutions claim they followed the fabled Grameen Bank model of Bangla desh. In reality, they went against its principles. And the government did not do enough; regulations are fleeting and they don’t touch where it hurts most: the high interest rates.

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