> Posted by Jon Pattee
The Andhra Pradesh crisis has jolted the international media into watchdog mode, and the Center for Financial Inclusion is working to keep the facts in focus.
First, The New York Times on November 25th published a letter to the editor by the center’s managing director, Beth Rhyne. Her analysis appears under the headline “Microfinance in India,” and includes:
“The blame for this unfortunate situation [in Andhra Pradesh] falls most squarely on the microfinance institutions, or MFIs, that failed to restrain aggressive growth even as the market became increasingly saturated. Microfinance leaders in India are now working intensively to put measures in place that would hold back multiple lending.”
Second, Amy Kazim’s December 1st Financial Times article on the crisis, “Microfinance: Small loan, big snag,” (subscription required), quotes Rhyne:
“India is so big and dynamic, and international eyes are on it so much, so it will have an impact on investors,” says Elisabeth Rhyne, of the Washington-based Centre for Financial Inclusion, a proponent of commercial microlending.
“It changes the image of microfinance. Everybody wants to make sure if they are putting their money into microfinance institutions, they can trust their clients are not being harmed.”
Third, Bloomberg TV’s Margaret Brennan interviewed Rhyne about what the latest developments mean for microfinance. A video of the Dec 2nd interview will be posted here soon.