Video of December 9 Panel on India Microcredit Crisis

December 9, 2010

The largest crisis in the history of microfinance is now unfolding in India. After five years of growth so fast it has been described as “indescribable,” and after a lucrative initial public offering (IPO) by the leading firm, the government of the state of Andhra Pradesh has cracked down. Amid reports of microcredit-linked suicides, the state has urged borrowers to stop repaying, and millions have heeded the call. Bankruptcies of some of the world’s largest microcreditors are now a realistic possibility.

What is the reality of microcredit in India? Is the backlash an engineered campaign to protect a government-run (and World Bank–financed) finance program from private-sector competition? Or has the fast growth in credit ensnared the poor in debt? Some of each?

And what lessons does the crisis hold for actors worldwide, including microfinance institutions and investors ranging from the World Bank to Kiva users? When is microcredit—and investment in it—too much of a good thing?

Featuring

David Roodman
Senior Fellow, Center for Global Development

Stephen Rasmussen
Technology Program Manager, CGAP, World Bank

Swaminathan Aiyar
Consulting Editor, Economic Times
Contributor, Times of India
Research Fellow, Cato Institute

Liliana Rojas-Suarez
Senior Fellow, Center for Global Development

Beth Rhyne
Managing Director, Center for Financial Inclusion, ACCION International

Moderated by
Lawrence MacDonald
Vice President of Communications & Outreach, Center for Global Development

Possibly Related Posts

• Event: The Global Implications of India’s Microcredit Crisis
• Understanding India’s Microcredit Crisis
• India Dispatch

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1. S G Anil Kumar Says:
   December 10th, 2010 at 2:19 am

   Hi David,

   Wonderful articulation of the current situation…how do we get to see the entire video? I am keen to listen to what Steve, Mr. Aiyer and Ms.Rhyne had to say…

2. David Roodman Says:
   December 10th, 2010 at 1:37 pm

   I think they are all in the video.

3. Rajan Alexander Says:
   December 12th, 2010 at 5:34 am

   Castrate the for-profit MFIs to Recast the Sector!

   The die has been cast with the introduction of the Andhra Pradesh Micro-Finance Regulatory Bill in the State Assembly yesterday. The Bill to replace the ordinance passed by the government in October 15th is scheduled to be discussed this coming Tuesday and passed as an Act by Wednesday, tightening the noose around MFIs.

   So where is the future policy environment going?

   MFI Watch
   http://devconsultgroup.blogspo.....ecast.html