Microfinance is no economic miracle | Business Line

Microfinance is no economic miracle | Business Line


refers to the article “Microfinance is no economic miracle”(May 9). Generally,
we find such analyses taking a view from the common man’s perspective, either
in political speeches or submissions by research scholars. In the anxiety to
reach out to more people, which is not a bad idea in a country with a
population of 1.25 billion, many of our plans, projects and schemes overlook
the end-use and ultimate objective.
the overenthusiasm to cover more numbers, give a feeling that policies are
motivated by the anxiety to sustain a low-income population which is
perennially willing to remain at ‘above starvation level’ with an ulterior eye
on cheap labour. At some stage, government will have to think in terms of
poverty elimination by ensuring adequate job opportunities, living wages,
reasonable level of social security for the aged and the ‘challenged’ and make
economic development more participative.
pointed out in the article, if poverty alleviation is the objective, the
present system where lenders and entrepreneurs are protected at the cost of
workforce which has a role in value addition, is defective.  Those who are willing to work will have to be
given opportunities for asset creation and savings which will help them meet
their minimum needs relating to nutrition, shelter, healthcare and education of
children, as also securing a decent post-job life.
M G Warrier,


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