The Hindu, 10/09/05: Strengthen rural cooperative
credit structure, says Manmohan Singh
... The financial revival package (of Rs. 15,000
crores) for revitalising cooperatives would have to be
shared among the Centre, the States and cooperative
credit institutions. "States unable to provide their
share may be allowed to raise resources through market
borrowings or similar sources." ...
... Union Finance Minister P. Chidambaram said there
was a consensus on three of the eight major
recommendations: minimum capital requirement,
technical assistance and the implementation mechanism.
However, States had to amend their Cooperative
Societies Act to improve the situation.
Agriculture Minister Sharad Pawar said the
re-capitalisation formula would lead to certain
cooperative institutions being excluded but would not
close the door to a fresh institution being organised
or to amalgamation and mergers at the grass roots
http://www.hindu.com/2005/09/10/stories/2005091006651200.htm
PIB, 09/09/05: PM?s remarks at the interactive session
with state governments on revival of co-operative
credit structure:
http://pib.nic.in/release/release.asp?relid=11888
Indian Express, Front Page, 10/10/05:
INDIA EMPOWERED TO ME IS Building world class
infrastructure, both social and physical
KV KAMATH, MANAGING DIRECTOR & CEO, ICICI BANK
... We must engage many more of our people in the
economic mainstream, by giving them access to the
tools they need to participate in the nation?s
development. A key element of this process is access
to financial services for the under-served segments of
the population in both rural and urban areas...
http://www.indianexpress.com/full_story.php?content_id=77871
(KV Kamath was at the party thrown for Bill Clinton by
Mulayam Singh Yadav)
--- on 31/08/05
--- Gita Dewan Verma <mpisgplanner@xxxxxxxxx> wrote:
> --- ratnam@xxxxxxxxxx wrote:
>
> > This bandwagon started with..self-help groups
> > (SHGs), usually involving low-income women. ...
> > federations of SHGs...Corporates began tying up...
> > outsourcing some part of production activities to
> > them, and also saw them as good markets for
> > low-priced consumer products. ...
> > (MFIs) park their funds in banks... began
> borrowing
> > from banks, making them happier still. So now,
> > international financial institutions and capital
> > markets smell an opportunity to lend, recover and
> > profit...
> > The question is: what and where are these
> > microenterprises that support these elaborate
> > financial structures? What goods and services do
> > they make which the corporate sector is not
> already
> > doing? Is it all just a financial bubble with very
> > little productive activity at the core? Or is it
> > hiding a very exploitative structure where the
> > actual producers are getting very little returns
> for
> > their labour, exploited by the providers of credit
> > and buyers of their goods and services? ...
>
> re the ET report poonam posted
> A capital market for the poor
>
http://economictimes.indiatimes.com/articleshow/msid-1212804,curpg-1.cms
> along with another
> Govt allocates Rs 40,000 cr for social schemes
>
http://economictimes.indiatimes.com/articleshow/1212455.cms
>
> So. govt puts in 40,000 cr into *social sector
> schemes*. that presumably indicates expected surplus
> spared at household level. USA foundation sees 30 -
> 60,000 cr potential for micro-mini loans. to me,
> that
> looks like hope of mopping-up!!
>
> what I find very interesting is the desperate
> insistence on *demand* for microfinance. the
> capital-market item tells us that till 2004 end MF
> *industry* had touched measly 1600 cr. they have
> been
> industriously at it for quarter century, which is
> long
> enough for actual demand to express itself even
> without cajoling! and they have been at it with
> donor
> investments and SJSRY type investments and sundry
> other investments that insist saving-&-credit groups
> empower women / communities; I was told SEWA even
> enrolled while routing earthquake relief in Gujrat!
> yet chaps commissioned by the USA foundation
> estimate
> potential demand of 20 to 40 times - on basis, it
> seems, of keenness to service it!!
>
> By way of demand side assessment, the item refers to
> some poverty (or rather purchase power) estimate to
> convey that 80% of Indian families are poor and
> needy,
> and says it is *now widely acknowledged* (must mean
> that a couple of commissioned studies and Standing
> Committee Report on SJSRY and what the PM ordered,
> etc, have concluded on the right note that has been
> intoned at a couple of seminars!) that MF *has
> enabled
> numerous families to lift themselves out of poverty*
> (to which I say oh-really?show-me! I posit,
> especially
> for the urban situation, that MF is incapable of
> enabling lift-out-of-poverty and is not even
> providing
> safety-net type succour in times of distress and is
> exacerbating poverty at household level by wasteful
> investments (go see Sewa Nagar where hawkers are
> being
> made to take MF for designer kiosks called
> rehdis-without-wheels to which designer wheels are
> now
> being welded that may well be demolished; or recall
> any of the many MF-ed in-situ enterprises that got
> demolished in slum clearance) and at policy level
> diverting attention from anti-poverty equity (rather
> than new-fangled inclusivity) imperatives).
>
> On shaky need-n-demand foundation is constructed a
> tenuous line of argument that goes: (a) there is
> huge
> demand for MF *services*; (b) this cannot be met by
> traditional sources (which presumably include the
> till-lately celebrated donor and state funded MF);
> (c)
> MF *industry is transforming rapidly. Professionally
> managed, profitable leaders are emerging from a
> fragmented marketplace of thousands of MFIs* (the
> four
> partners of the USA foundation are named!); (d)
> unspecified *evidence* shows these *poverty-focused*
> MFIs are *high growth* and *cost-efficient* and
> *highest portfolio in sector* (usual I-am-so-g-o-o-d
> hard-sell); (e) Yet these *leading* MFIs in India
> are
> having to *struggle* due to a lack of capital (how
> unfair! how uncaring India! how naughty thousands of
> MFIs making leading ones struggle!); (f) so banks
> should stop retailing finance to the poor and
> wholesale it to MFIs (leaders, not proles, among
> MFIs); and (g) domestic capital market should
> participate (noblesse-oblige?), to *facilitate*
> which
> the USA Foundation has set up a Capital Markets
> Group
> in February 2005 (Aha! *that* explains the sudden
> downpour of studies on micro-mini-monies this year!)
>
>
> The 40,000 cr committed to *social-schemes* is down
> the drain anyway since there is no worthwhile scheme
> to absorb it (eg, rejecting the suggestion for
> routing
> education funds including 2% cess to common school
> system required by law in Delhi, MoHRD has submitted
> in court that all that moolah is for other things).
> A
> Freudian slip in the social-schemes item /
> press-release reveals intent of *maintaining* the
> problem, on which is predicated the success of MFI
> expansion to 30-60000 cr industry (with likely
> multipliers in anti-social rather than social
> sectors,
> considering that trade in debt-security is also on
> the
> cards!)
>
> Opportunities appear to arise now for the employment
> guarantee bill (for which Ms Gandhi is currently
> poster-girl with all congressis feeling obliged to
> shout thankyou-madam on ugly hoardings all over the
> place that urban-aesthetics walahs are not
> fuss-making
> about). They could commission more tripe to figure
> out
> how to make MFIs and ancillary *industry* and also
> other intermediation *industry* labour-intensive!
>
> ---
> I am not economist / economist-planner. but I am
> qualified planner specialised in housing and the
> urban-poverty circus was born out of distorting
> low-income housing interventions at the time I was
> Senior Fellow in HSMI/HUDCO handling that research
> and
> training area. The particular distortion was very
> central to my reasons for quitting the purportedly
> premier urban R&T institution that had begun to
> endorse rather than inform policy. And I have seen
> SHGs up close through quick-and-dirty qualitative as
> well as good old quantitative research methods (I am
> qualified researcher), and nit-picked SHG
> show-casings
> in my training workshops (I am qualified trainer).
>
>
>
>
>
>
>
> ____________________________________________________
> Start your day with Yahoo! - make it your home page
> http://www.yahoo.com/r/hs
>
> _______________________________________________
> mpisgmedia mailing list
> mpisgmedia@xxxxxxxxxxxxxxxxx
>
http://mail.architexturez.net/mailman/listinfo/mpisgmedia
>
______________________________________________________
Click here to donate to the Hurricane Katrina relief effort.
http://store.yahoo.com/redcross-donate3/
credit structure, says Manmohan Singh
... The financial revival package (of Rs. 15,000
crores) for revitalising cooperatives would have to be
shared among the Centre, the States and cooperative
credit institutions. "States unable to provide their
share may be allowed to raise resources through market
borrowings or similar sources." ...
... Union Finance Minister P. Chidambaram said there
was a consensus on three of the eight major
recommendations: minimum capital requirement,
technical assistance and the implementation mechanism.
However, States had to amend their Cooperative
Societies Act to improve the situation.
Agriculture Minister Sharad Pawar said the
re-capitalisation formula would lead to certain
cooperative institutions being excluded but would not
close the door to a fresh institution being organised
or to amalgamation and mergers at the grass roots
http://www.hindu.com/2005/09/10/stories/2005091006651200.htm
PIB, 09/09/05: PM?s remarks at the interactive session
with state governments on revival of co-operative
credit structure:
http://pib.nic.in/release/release.asp?relid=11888
Indian Express, Front Page, 10/10/05:
INDIA EMPOWERED TO ME IS Building world class
infrastructure, both social and physical
KV KAMATH, MANAGING DIRECTOR & CEO, ICICI BANK
... We must engage many more of our people in the
economic mainstream, by giving them access to the
tools they need to participate in the nation?s
development. A key element of this process is access
to financial services for the under-served segments of
the population in both rural and urban areas...
http://www.indianexpress.com/full_story.php?content_id=77871
(KV Kamath was at the party thrown for Bill Clinton by
Mulayam Singh Yadav)
--- on 31/08/05
--- Gita Dewan Verma <mpisgplanner@xxxxxxxxx> wrote:
> --- ratnam@xxxxxxxxxx wrote:
>
> > This bandwagon started with..self-help groups
> > (SHGs), usually involving low-income women. ...
> > federations of SHGs...Corporates began tying up...
> > outsourcing some part of production activities to
> > them, and also saw them as good markets for
> > low-priced consumer products. ...
> > (MFIs) park their funds in banks... began
> borrowing
> > from banks, making them happier still. So now,
> > international financial institutions and capital
> > markets smell an opportunity to lend, recover and
> > profit...
> > The question is: what and where are these
> > microenterprises that support these elaborate
> > financial structures? What goods and services do
> > they make which the corporate sector is not
> already
> > doing? Is it all just a financial bubble with very
> > little productive activity at the core? Or is it
> > hiding a very exploitative structure where the
> > actual producers are getting very little returns
> for
> > their labour, exploited by the providers of credit
> > and buyers of their goods and services? ...
>
> re the ET report poonam posted
> A capital market for the poor
>
http://economictimes.indiatimes.com/articleshow/msid-1212804,curpg-1.cms
> along with another
> Govt allocates Rs 40,000 cr for social schemes
>
http://economictimes.indiatimes.com/articleshow/1212455.cms
>
> So. govt puts in 40,000 cr into *social sector
> schemes*. that presumably indicates expected surplus
> spared at household level. USA foundation sees 30 -
> 60,000 cr potential for micro-mini loans. to me,
> that
> looks like hope of mopping-up!!
>
> what I find very interesting is the desperate
> insistence on *demand* for microfinance. the
> capital-market item tells us that till 2004 end MF
> *industry* had touched measly 1600 cr. they have
> been
> industriously at it for quarter century, which is
> long
> enough for actual demand to express itself even
> without cajoling! and they have been at it with
> donor
> investments and SJSRY type investments and sundry
> other investments that insist saving-&-credit groups
> empower women / communities; I was told SEWA even
> enrolled while routing earthquake relief in Gujrat!
> yet chaps commissioned by the USA foundation
> estimate
> potential demand of 20 to 40 times - on basis, it
> seems, of keenness to service it!!
>
> By way of demand side assessment, the item refers to
> some poverty (or rather purchase power) estimate to
> convey that 80% of Indian families are poor and
> needy,
> and says it is *now widely acknowledged* (must mean
> that a couple of commissioned studies and Standing
> Committee Report on SJSRY and what the PM ordered,
> etc, have concluded on the right note that has been
> intoned at a couple of seminars!) that MF *has
> enabled
> numerous families to lift themselves out of poverty*
> (to which I say oh-really?show-me! I posit,
> especially
> for the urban situation, that MF is incapable of
> enabling lift-out-of-poverty and is not even
> providing
> safety-net type succour in times of distress and is
> exacerbating poverty at household level by wasteful
> investments (go see Sewa Nagar where hawkers are
> being
> made to take MF for designer kiosks called
> rehdis-without-wheels to which designer wheels are
> now
> being welded that may well be demolished; or recall
> any of the many MF-ed in-situ enterprises that got
> demolished in slum clearance) and at policy level
> diverting attention from anti-poverty equity (rather
> than new-fangled inclusivity) imperatives).
>
> On shaky need-n-demand foundation is constructed a
> tenuous line of argument that goes: (a) there is
> huge
> demand for MF *services*; (b) this cannot be met by
> traditional sources (which presumably include the
> till-lately celebrated donor and state funded MF);
> (c)
> MF *industry is transforming rapidly. Professionally
> managed, profitable leaders are emerging from a
> fragmented marketplace of thousands of MFIs* (the
> four
> partners of the USA foundation are named!); (d)
> unspecified *evidence* shows these *poverty-focused*
> MFIs are *high growth* and *cost-efficient* and
> *highest portfolio in sector* (usual I-am-so-g-o-o-d
> hard-sell); (e) Yet these *leading* MFIs in India
> are
> having to *struggle* due to a lack of capital (how
> unfair! how uncaring India! how naughty thousands of
> MFIs making leading ones struggle!); (f) so banks
> should stop retailing finance to the poor and
> wholesale it to MFIs (leaders, not proles, among
> MFIs); and (g) domestic capital market should
> participate (noblesse-oblige?), to *facilitate*
> which
> the USA Foundation has set up a Capital Markets
> Group
> in February 2005 (Aha! *that* explains the sudden
> downpour of studies on micro-mini-monies this year!)
>
>
> The 40,000 cr committed to *social-schemes* is down
> the drain anyway since there is no worthwhile scheme
> to absorb it (eg, rejecting the suggestion for
> routing
> education funds including 2% cess to common school
> system required by law in Delhi, MoHRD has submitted
> in court that all that moolah is for other things).
> A
> Freudian slip in the social-schemes item /
> press-release reveals intent of *maintaining* the
> problem, on which is predicated the success of MFI
> expansion to 30-60000 cr industry (with likely
> multipliers in anti-social rather than social
> sectors,
> considering that trade in debt-security is also on
> the
> cards!)
>
> Opportunities appear to arise now for the employment
> guarantee bill (for which Ms Gandhi is currently
> poster-girl with all congressis feeling obliged to
> shout thankyou-madam on ugly hoardings all over the
> place that urban-aesthetics walahs are not
> fuss-making
> about). They could commission more tripe to figure
> out
> how to make MFIs and ancillary *industry* and also
> other intermediation *industry* labour-intensive!
>
> ---
> I am not economist / economist-planner. but I am
> qualified planner specialised in housing and the
> urban-poverty circus was born out of distorting
> low-income housing interventions at the time I was
> Senior Fellow in HSMI/HUDCO handling that research
> and
> training area. The particular distortion was very
> central to my reasons for quitting the purportedly
> premier urban R&T institution that had begun to
> endorse rather than inform policy. And I have seen
> SHGs up close through quick-and-dirty qualitative as
> well as good old quantitative research methods (I am
> qualified researcher), and nit-picked SHG
> show-casings
> in my training workshops (I am qualified trainer).
>
>
>
>
>
>
>
> ____________________________________________________
> Start your day with Yahoo! - make it your home page
> http://www.yahoo.com/r/hs
>
> _______________________________________________
> mpisgmedia mailing list
> mpisgmedia@xxxxxxxxxxxxxxxxx
>
http://mail.architexturez.net/mailman/listinfo/mpisgmedia
>
______________________________________________________
Click here to donate to the Hurricane Katrina relief effort.
http://store.yahoo.com/redcross-donate3/