The 'Micro Credit' Business Model

Today's Hindustan Times Op-ed has an article by Sujata Anandan around Vidarbha farmer suicides etc. It throws light on how misuse of credit by people compounds the situation created by poor rains and lack of proper irrigation. I quote:

My sister spotted a vegetable vendor at the local market who had been defaulting in payment for months. When she swooped on her, the lady brazenly told my sister she had taken the loan not to buy a stall, as stated in her application, but to marry off her daughter. "Mera kaam ho gaya. Muzhe ab zaroorat nahin. (My purpose has been served. I do not need you now)," she said.

Most of the money borrowed by farmers goes not into seeds or crop but into paying off their debts to moneylenders, the dowries of daughters or gambling dues...

Moneylenders were big business in Andhra Pradesh's villages, too, but then the state government came up with a scheme to settle with those bloodsuckers and banned their return to the villages. Suicide rates in Andhra have been on a noticeable decline since then.

I wonder how micro-credit agencies, which are created more from the intent of welfare than profit making are able to circumvent problems such as above.

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Vikramaditya - Myth or Reality

A statue of Vikramaditya at Vikramaditya ka Tila / Vikramaditya's Singhasan Battisi On a recent visit to Ujjain, I found myself drawn to the city's extraordinary blend of history, mythology, and spirituality. As I stood before the Mahakaleshwar Jyotirlinga, I reflected on its significance as one of India’s most revered shrines. Yet, amidst these sacred surroundings, I encountered narratives of Vikramaditya - the legendary king of Ujjain, celebrated for his valor and wisdom, who's name resonates from the folklore of locals to every part of India. Every time we celebrate a festival in India, it is marked with a tithi i.e. date as per the Indian calendar - which is called the Vikram Samvat calendar, attributed to being founded by Vikramaditya of Ujjaini (the then name of Ujjain). What struck me, however, was the curious fact that despite Vikramaditya’s pivotal place in Indian cultural memory, his existence as a historical figure lacks definitive evidence. My exploration l...

Ekla Chalo re

Watched "Bose- The forgotten Hero" on Saturday. Gem of a movie and probably the best of Shyam Benegal. Subhash Chandra Bose has always been an inspiring character in the history for the youth. This post however is not about the movie, its about the lead song 'Tanha Rahee' which is based on the poem 'Ekla Chalo Re' by Gurudev Rabindranath Tagore. I had pasted the English translation of this poem on my blog earlier. http://the-complete-man.blogspot.com/2004/12/tsunami-times_30.html However, yesterday I found the original bengali text of the poem and found that the meaning in the above translation was not exact. So I have endeavourer (with the help of Shubham ) to re-translate it into English and Hindi by myself. Here is the output of my work: Bengali Jodi Tor Dak Soone Keu Na Asse Tobe Ekla Chalo re Ekla Chalo Ekla Chalo Ekla Chalore Jodi Keu Katha Na Kai Ore Ore O Abhaga Jodi Sabai Thake Mukh Firae Sabai Kare Bhay Tabe Paran Khule O Tui Mukh Fute Tor Maner Kath...

Of Business Ethic and Ethics

Cover of book on Mr. Ratan Tata The chairman of Tata Trusts and former chairman of Tata Sons, Mr. Ratan Tata, passed away on the 10th of October. The last two days have been filled with coverage of Mr. Tata's contributions to the country, the economy, and the global business world. Numerous articles and reports highlight his contribution primarily as a great philanthropist who worked for the cause of ethical business, which the Tata Group has been known for over the last 100+ years. While narrating how Mr. Tata's contribution was acknowledged in her school, even my daughter told me that they were told Mr. Tata was a great philanthropist. I have been a little taken aback because most media and people have focused on his philanthropy and not his business achievements or entrepreneurship-related activities. This got me thinking about how I view the transformation that Mr. Tata brought about during his tenure as chairman of Tata Sons, where his contribution was far more pronounc...

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