ECONOMY & NATION


William Gamble William Gamble 19 December 2011
Reforming laws and policies could be an enormous stimulus for any economy, but changing them is almost impossible. Every law creates systems of economic winners and losers. So without real reform, a global recovery is nowhere in sight The world is moving slowly into another recession. Europe is...

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Ramesh S Arunachalam Ramesh S Arunachalam 16 December 2011
Two crucial aspects in microfinance—client origination/targeting and loan appraisal—have been neglected in favour of unprecedented growth (caused by a desire to fully commercialise microfinance and rapidly enhance access/outreach of such services) and this has resulted in the present crisis

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Ramesh S Arunachalam Ramesh S Arunachalam 15 December 2011
While there are many contradictions, inconsistencies and subjective interpretations in the CoC assessments which seem to draw the attention away from the real issues, we hope the sponsors and developers of the SIDBI-World Bank COCA tool recognize the fact that it far from being a reliable and...

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Ramesh S Arunachalam Ramesh S Arunachalam 15 December 2011
It is meaningless that the COCA tool rewards mere existence of policy and/or management statements of policy implementation when it should be really looking at solid evidence in support of implementation of the voluntary codes of conduct on the ground An earlier Moneylife article (Have...

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Veeresh Malik Veeresh Malik 15 December 2011
Indian firms have been quick to beat the Chinese brands, finds Veeresh Malik The good thing about living in the national capital region (NCR) (Delhi) is that while the centre of automobile R&D as well as manufacturing is shifting closer to the seaports, the testing as well as service...

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Ramesh S Arunachalam Ramesh S Arunachalam 14 December 2011
For better credit reporting and the credit bureau to work, ‘the boards of MFIs’ must be able to re-orient their organizational vision to one of responsible finance—this means they will have to move away from their desire for ‘super fast’ unnatural growth to balanced natural growth and normal...

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Moneylife Digital Team 14 December 2011
Indian rice millers with established overseas buyers and prudent working capital management practices can expect a windfall rice season at hand The next 12 months augur well for India’s rice millers. Expectation of a bumper rice crop in India in the October 2011-September 2012 season,...

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Ramesh S Arunachalam Ramesh S Arunachalam 14 December 2011
The establishment and use of a credit bureau in an emerging market like India a very challenging task. If serious efforts are made, it could take several years from initial discussions to regular use of the credit bureau—one that produces reliable and valid credit information reports in a...

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Ramesh S Arunachalam Ramesh S Arunachalam 12 December 2011
The hype of the moment in microfinance is undoubtedly to subscribe to all kinds of code of conducts, client protection principles, social performance and other self-regulating initiatives. To set the record straight, had all the stakeholders really subscribed to these in the first place,...

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Moneylife Digital Team 12 December 2011
Retail giant, which wanted to enter the retail space in India, is investigating possible bribe to foreign officials Global giant Walmart, which has been lobbying for entering organised retail in India, has begun an internal investigation about executives possibly having bribed foreign...

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Moneylife Digital Team 12 December 2011
Industrial output actually shrunk by 5.1% in October—a contraction which is the worst since March 2009, when the world was hit by a global slowdown India’s industrial output shrunk by 5.1% in October, mainly on account of the sharp contraction in the manufacturing and dismal performance of...

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William Gamble William Gamble 12 December 2011
 This desire to punish rather than co-operate ensures that the ongoing crisis continues and continues to get worse. Credit remains tight, capital flight from the Eurozone is becoming a real problem and Standard and Poor’s will most likely downgrade several member states Like most investors I...

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Ramesh S Arunachalam Ramesh S Arunachalam 12 December 2011
 It is very easy to talk high flying concepts at conferences and also publicly claim that the same is being applied in practice. In reality, however, much of the intended strategies do not get implemented in microfinance and that is something that conference organizers, industry associations,...

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Ramesh S Arunachalam Ramesh S Arunachalam 11 December 2011
Beyond all the buzz, when can we embed social performance within practice? Social performance is the ‘in’ thing in micro-finance and an entire session is devoted at the Micro-Finance India summit towards the same and a special social performance report is also to be released at the...

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Ramesh S Arunachalam Ramesh S Arunachalam 10 December 2011
The two-day summit is expected to analyze and introspect on the issues that have led to the erosion of trust with/in the sector. Additionally, the summit is to attempt and build consensus on how the sector can move forward Come November-December and it is microfinance tourism time across...

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Ramesh S Arunachalam Ramesh S Arunachalam 09 December 2011
The RBI must ensure that informal collateral and/or abusive collateral substitutes do not contaminate microfinance in the future. It should also seriously think on incentives/disincentives that can be set up to eliminate use of informal collateral and/or abusive collateral substitutes, where...

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Moneylife Digital Team 09 December 2011
Group buying sites, a PE-funded mania, are about to die as fast they came up. Taggle.com has shut down and group offers for spa and beauty treatment have no takers Taggle.com, the group-buying site launched in June last year has closed down citing adverse market conditions and price war among...

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Ramesh S Arunachalam Ramesh S Arunachalam 08 December 2011
If the concerned RBI departments could not monitor five of the top 13 NBFC-MFIs that were supposed systemically (very) important, then, how can they be expected to set up supervisory mechanisms for several hundred MFIs as per the proposed Microfinance bill? If equity was in some ways...

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Moneylife Digital Team 07 December 2011
The face saving act by the Manmohan Singh-led UPA government and the show of strength by the opposition seems to have defeated and denied consumers a chance to buy good quality items at reasonable rates The deadlock in Parliament created on the issue of allowing 51% foreign direct investment...

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Moneylife Digital Team 07 December 2011
Europe, with its tens of religions, hundreds of mutually exclusive cultures and millennia of hatred, was at the centre stage of the bloodshed that took place during the first two World Wars. Will history repeat itself if the Euro breaks? UBS hints at it The Eurozone debt problem is turning...

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