Madhu

Proposal to review MFI policies and experience

The main aim of microfinance is to provide financial products and services to the poor providing them tools they need for a dignified route out of poverty. Microfinance has apparently caught the imagination of many in the development community in varieties of ways. Some observers see micro credit as a community building tool that can empower disadvantaged individuals; some see it as a poverty eradication weapon that enables “transition” of individuals across  several  barriers. On the whole the strategic use of  use of MFIs can be summarized as under

An economic tool for reducing income inequality (Macro and Micro) A strategic tool for poverty alleviation A tool for gender equality & women empowerment A tool for Integrated social development MFI & A tool to overcome the deprivations of Health rights and fight HIV/AIDS A social equity tool to overcome caste, class and racial barriers A tool for disaster management

I would request the estimed  readers to  share their  experineces  and  case  studies of  MFIs, which fall  into above categiries and  if some  other  categiories  can be added  interms of MFIs  use. This would help in advocating towards the  efficacy  of MFIs in  a more concerted  manner

Secondaly In Asia and the Pacific, a ADB study found a variety of approaches to microfinance, reflecting the fact that microfinance has evolved differently in different  countries. Each country provides special context in terms of policy environment, regulatory mechanisms as well as social scenario, which may include  the degree  and depth of poverty, the role and participation of women. Successful microfinance interventions in these countries need to be closely studied, strategically documented and  disseminated  through distance  education. Reflecting on the reasons for the success of some of these micro credit programs has tremendous scope to impart learning lessons and improve the functioning of MFIs. Thus I Would request  readers to share the Journey of MFI Policies  in their counteries.