In chapter 6, I liken the old argument between Mark Pitt and Jonathan Morduch over the meaning of Pitt and Khandker's paper on the impact of microcredit to "a debate between two nuclear physicists over obscure properties of uranium isotopes." Then, I'm just realizing now, I mix my metaphors: "And not even the litigants could fully explain what was going on because each used his own methods and did not, or could not, reconcile his results with the other’s." I'll fix the mix
CGD Policy Blogs
Given the microfinance crises in various countries in the last few years, I've been wondering which place might be next. Partly inspired by the format of Daniel Rozas's analysis of Andhra Pradesh a couple of years ago, I made scatter plots of some indicators of potential danger, such as number of microloans outstanding per adult (someone 15--64 years old) and the rate of growth in number of loans.
Siddhartha Chowdri of Accion in India reports on the Reserve Bank of India's new rules on microfinance:
Although more details on the regulation are to be released later this week, the RBI did make some significant and welcome changes in the regulations, including:
Like the jurors after the OJ trial, members of the committee to investigate the Grameen Bank are talking to the media. And they are doing some of it in English, which is giving those of us who don't read Bengali more insight into the panel's deliberations.
The report of the committee appointed to investigate the Grameen Bank is now public, thanks to what is obviously a friendly leak to bdnews24.com. That's the organization that launched the controversy in Bangladesh with its headline, Yunus 'siphoned Tk 7bn aid for poor'. Unfortunately, the report is in Bengali, so I can't read it. You probably can't either.
Something called IRIN, a news service of the U.N. Office for the Coordination of Humanitarian Affairs, ran this headline last week: "Microfinance institutions pushed loans, admits major NGO." The "admission" came from Shameran Abed, head of BRAC's microfinance program in Bangladesh and son of BRAC founder Fazle Abed.