I'm rather surprised to see no mention of SGs, which are in at least 75 countries and cover more than 20 million people – without a sou of outside capital and with community-based shareholding. I'm also quite struck that unless there's someone from the formal sector hovering on the periphery, they are not considered to offer 'inclusion.' Time´, perhaps, for a new definition, and a recognition that inclusion often means bedfellows, seeking to maximise shareholder return, whose interests are often diametrically opposed to those of self-managed alternatives. When 'inclusion' can offer 20% return on investment, instant loan processing, zero operational costs and loan loss rates less than 1%, maybe the unincluded will get to be interested.
I don't see SGs as a total solution, and certainly not for emerging entrepreneurs who need debt more than they need to save, but I also don't see linkages of community groups to formal institutions as conferring legitimacy-by-definition, or a track to the sunlit uplands.
Best wishes
Hugh
From: MicrofinancePractice@yahoogroups.com <MicrofinancePractice@yahoogroups.com>
Sent: 22 July 2020 20:10
To: MicrofinancePractice@yahoogroups.com
Subject: Re: [MFP] fyi thoughts on this anyone?
Agree with Malcolm. We have a pretty diversified Microfinance industry, with institutional forms ranging from SHGs and JLGs, to MFIs, Small Finance Banks, and refinance schemes for the SHG and MFI models.
Cooperatives are rapidly losing ground to.producer companies. And collectives are rapidly losing ground to investor led company Non Banking Finance Companies.
It would be more efficient and effective to attend to the many policy needs of the current institutions than revamp the structure.
Especially in COVID 19 times, MF sector needs support, not an overhaul.
Regards,
Smita
On Wed, Jul 22, 2020, 8:36 PM MALCOLM HARPER malcolm.harper@btinternet.com [MicrofinancePractice] <MicrofinancePractice@yahoogroups.com> wrote:
Hmmmm, interesting, but India is rather better at launching politically popular high profile anti-poverty innovations than at working steadily to improve what's there already. Many Indian MFIs are becoming banks, maybe better to accelerate and facilitate that process (without politicising or weakening the fundamental strengths of what's there already) than to make bold new initiatives.
On Wednesday, 22 July 2020, 13:59:06 BST, Jami Solli jamisolli@gmail.com [MicrofinancePractice] <microfinancepractice@yahoogroups.com> wrote:
Posted by: <hugh@vsla.net>
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