
Ziv on the India Development Blog makes the case:
While having MFIs hold deposits may be too drastic of a change to their business model for now, and it would introduce too much risk too soon, allowing them to offer a basic BC [business correspondent] service is an easy step that would have a large positive impact. As for accountability concerns, banks can use their discretion in selecting MFIs as BCs, working only with those having good track-records on process control. NBFCs are already entrusted with handling a large amount of bank cash through the SHG linkage framework, and misconduct has not emerged as a major interference.
Also see a related post on the PSD Blog about the efforts of the Gates Foundation to solve the microfinance savings riddle....

Since the establishment of the Grameen Bank in Bangladesh in 1976, microfinance has boomed. As of December 31, 2007, 3,552 microcredit institutions had reached 154 million clients worldwide, about 106.6 million of whom were among the poorest when they took their first loan. Such expansion can be at least partly attributed to the widely adopted practice of group lending in microfinance programs. In contrast to individual lending, group lending (or joint liability) grants a loan to a group of borrowers, and the whole group is liable for the debt of any individual member in the group.
Innovations in rural and agriculture finance
Innovations in...
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India has nearly 90 million farm households. More than 80 percent of these farmers operate on a small or marginal scale, farming less than two hectares of land. They also usually have one or two buffaloes or cows, reared for milk and dung. Most of these small and marginal farmers fall below the poverty line. To reduce overall poverty in India, it is important to enhance the incomes of small and marginal farmers.
Innovations in rural and agriculture finance
Innovations in Insuring the Poor
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Most rural households lack access to reliable and affordable finance for agriculture and other livelihood activities. Many small farmers live in remote areas where retail banking is limited and production risks are high. The recent financial crisis has made the provision of credit even tighter and the need to explore innovative approaches to rural and agricultural finance even more urgent.
Innovations in rural and agriculture finance: Overview
Financial literacy
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Rural banking in Africa...
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The WSJ reports on the troubles that seasonal rains have brought to northern India. The federal government had previously bought up large quantities of local wheat and rice, and now has no place to store it, so seasonal rains are washing the rice away or causing it to rot. One New Delhi-based think tank says that the solution is simply to bring in the private sector:
It is gross mismanagement and negligence...If only you had handed over the grain to the private sector, not a grain would have been lost. But now, it is nobody's grain.
Unfortunately, it is not quite as simple as that. The process for private firms to build warehouses in India is far from straightforward. The Doing Business indicator for Dealing with Construction Permits measures the procedures,...
Child Development, vol. 81, no. 4 (July/August 2010) [contents]- Includes a special focus on disasters and their impact on child development; a number of the preprint versions of these articles are available in the documents section of the Society for Research in Child Development web site, including "Defining Best Practice in Care and Protection of Children in Crisis-Affected Settings: A Delphi Study."Diversity in Health and Care, vol. 7, no. 2 (June 2010) [contents]- Mix of articles; includes "Social support and health: immigrants' and refugees' perspectives" and "Improving reach: promoting engagement by building bridges between refugee women and the voluntary sector."Global Responsibility to Protect, vol. 2, no. 3 (June 2010) [contents]- Focus is on R2P and international law.Refugee...

cover of the IWA survey on corruption in Afghanistan
The findings (summarized in this NYT story) of a recent Integrity Watch Afghanistan (IWA) survey on corruption attitudes are interesting if not unsurprising: corruption is widespread, bribe amounts have increased over the years, and corruption is perceived as a normal part of dealings with the state.
Perhaps, the most startling statistic is that average bribes among those who paid them (28% of Afghan households have paid bribes at least once last year) amount to about 30% of per capita income (!!!). If that’s not enough to convince you of the magnitude of the problem, consider this – the amount of bribes more than doubled in the period between 2007 and 2009, reaching $1 billion. And, coinciding with trends in other...

This paper assesses long-term impacts of vegetable and polyculture fish production technologies on a variety of measures of household and individual well-being in Bangladesh. In 1996–1997, households were surveyed in three sites where nongovernmental organizations and extension programs were disseminating agricultural technologies—about two to six years after the technologies were first introduced. The same households were reinterviewed in 2006–2007.
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Kakuma News Reflector (June 2010) [full-text]- Mix of articles in this blog-format news service from Kakuma refugee camp, Kenya.Refugee Survey Quarterly, vol. 28, nos. 2-3 (2009) [selected full-text]- UNRWA has made three articles available in full-text from RSQ's special issue on "UNRWA and the Palestinian Refugees 60 Years Later."Refugee Voices (Spring 2010) [full-text]- From the Helsinki Citizens' Assembly. Lead article focuses on refugee community interpreters.Refugee Watch Online [full-text]- This is the online counterpart to the print version of Refugee Watch, published by the Mahanirban Calcutta Research Group. To commemorate World Refugee Day, the electronic edition posted a number of articles from writers across South Asia that reflect on the displacement situation in a range...

Historically, corporate boards in many countries have been comprised mainly of men. A number of European market regulators are considering imposing quotas of women on the boards of publicly traded companies as a requirement in the new Code of Corporate Governance, and this is likely to compel business to consider gender diversity of corporate boards.
A report published by the Institute for Employment Studies notes that, “Despite long-standing anti-discrimination legislation in the US, UK and across Europe, women still remain under-represented in many occupations, most noticeably in high-level posts. This phenomenon is seen at its most extreme when the composition of company boards is considered. In the USA, women constitute on average 14.7 per cent of board members on Fortune 500...

This paper explores the long-term effects of a set of development interventions within the life trajectories of people in rural Bangladesh, using findings from 293 life-history interviews and an accompanying set of focus group discussions conducted in 2007. The paper uses various methods to address the challenge of assessing the long-term impact of development interventions. It then goes on to discuss what was learned about the impact of microfinance, educational transfer, and agricultural technology development programs from the life-history narratives.
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As the conflict in Afghanistan has dragged on, concern has grown over the slow development of democratic governance in the country. Although some improvements have been made, public services remain inadequate. Government policies are lacking or, when put in place, often confusing or contradictory. And above all, corruption is pervasive and pernicious. Transparency International ranks Afghanistan 179th of 180 countries.
The Afghanistan Research and Evaluation Unit recently released a report on corruption in Afghanistan which raises some crucial issues in the efforts to build good governance in the country. The report is a qualitative report based on 400 individual interviews and 25 focus group discussions conducted throughout Afghanistan. It provides valuable insight in support of...

This paper examines European Union (E.U.) demand for chilled fish fillets assuming product heterogeneity due to country of origin and assesses the structural adjustment in demand as indicated by the increase in imports from Sri Lanka since the tsunami in December 2004. The primary objective of this research is to assess how Sri Lanka’s fish exports affected fish exports from Kenya, Tanzania, and Uganda (Lake Victoria region).
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Location:
Pan Pacific Sonargaon Hotel
Dhaka, Bangladesh
Hosted by the Government of the People's Republic of Bangladesh
Sponsored by:
On the conference blog
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Facilitated......

Over the past four years, CIPE Pakistan’s technical assistance reached over 100 business associations across the country. This initiative has had significant impact on such organizations, particularly in the area of policy advocacy. Business associations are now relying on advocating change through a consultative process rather than one-on-one lobbying.
In early March this year, CIPE Pakistan facilitated a Rawalpindi Chamber of Commerce & Industry project that brought together for the first time ever 22 Presidents from leading chambers across Pakistan. Participants overviewed the systematic policy advocacy approach during the conference; and afterward they agreed to work together on the key issue of controlling Pakistan’s Value Added Tax:
The government must not impose VAT...

This paper investigates the long-term impact of Bangladesh’s Primary Education Stipend (PES) program on a range of individual and household welfare measures using a unique longitudinal study spanning the years 2000 to 2006. Using covariate and propensity score matching and difference-in-difference methods, the program is shown to have negligible impacts on school enrollments, household expenditures, calorie consumption, and protein consumption.
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Asia,
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South Asia

The policy of mandated representation (reservation) for disadvantaged social groups in Indian village councils or Gram Panchayats has been the subject of numerous studies. The implicit, and often unstated, assumption that underlies most of these studies is that the president of the council is the only one who wields effective power. However, the Gram Panchayat is comprised of several elected representatives, each of whom represents a village; and, in principle, a voting mechanism governs decision making within the Gram Panchayat.
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Afghan perceptions of the local economy. (CIPE/Charney Research)
On May 6, CIPE released the findings of its Survey of Afghan Businessmen conducted in December/January 2010. The sample surveyed over seven hundred businesses across Afghanistan, focusing on the needs and policy views of mostly small businesses in manufacturing, construction, services, and retail. The news was largely good in terms of Afghan views of their business prospects. Thirty eight percent said their businesses had increased over the past year, and thirty seven percent reported hiring more employees during that time. This seems to fit with an earlier ABC poll from last January which indicated that people were finding work — altogether calling into question many of the negative stories otherwise emanating...

Large-scale social safety net programs such as India’s National Rural Employment Guarantee Act (NREGA) are difficult to implement due to governance challenges related to elite capture, leakages, and corruption. The ability to identify how the governance challenges of program implementation can be met requires detailed insights into the actual process of program implementation, with clear views on the source of leakage and mismanagement, the sensitivity of program implementation to the influence of different actors, local power structures and informal bureaucratic processes.
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Large-scale social safety net programs such as India’s National Rural Employment Guarantee Act (NREGA) are difficult to implement due to governance challenges related to elite capture, leakages, and corruption. The ability to identify how the governance challenges of program implementation can be met requires detailed insights into the actual process of program implementation, with clear views on the source of leakage and mismanagement, the sensitivity of program implementation to the influence of different actors, local power structures and informal bureaucratic processes.
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GRP-37,
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Process-Influence-Map,
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Development Strategy and Governance,
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Asia,
India,
IFPRI-1,
English,
South Asia

It is a generally accepted fact that good socioeconomic conditions can certainly help reduce corruption. People living in countries with acceptable living conditions, higher literacy rates, nurtured democratic systems and good governance are less poised to indulge in corruption. But corruption is not just linked with socioeconomic situation of a country. It also creates and reinforces a vicious cycle of bad governance. Therefore, it undermines democracy, not just the economic welfare. An article published in The News suggests:
“Corruption in the public and private sectors both has greatly damaged the social and economic conditions of our nation. Corruption is not just a threat to the economic well being of individuals; it also affects democracy in an adverse manner.”...

Natural disasters have particularly devastating impacts on economic growth in developing countries because they impede the accumulation of capital. The resilience of labor markets is crucial especially for the poor who rely only on labor to diversify their income portfolio and buffer against risk. Such a risk management strategy may become more challenging as global climate change increases the frequency of natural disasters. We use the Bangladesh Flood Impact panel household survey to evaluate how the 1998 “flood of the century” affected wages in Bangladesh.
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migration costs,
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PHND,
disasters,
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English,
South Asia

Women in developing countries worldwide wish for many things – equality, education, safe communities, businesses, clean water… This week, the Vital Voices Global Partnership is honoring an extraordinary Pakistani woman for her leadership in bringing many women from wishing to working. Roshaneh Zafar has spent the last 15 years working to develop the Kashf Foundation, modeled on the Grameen Bank in Bangladesh. Although Kashf, which means miracle, focuses on providing microfinance to women in Pakistan, it offers much more than just financial services and enterprise development. The Kashf Foundation provides women in Pakistan the opportunity for legitimacy.
In Pakistan, a significant number of women are not registered at birth. Without a national identity card (NIC), women...

Shabnam is a student at Zinab Kobra High School who by the age of 19 had picked up skills such as netting, sewing, tailoring, and beading. Wahida is a student at Ferdowsy High School who has always dreamed of being a tailor. Nayla is another student at Ferdowsy who spent her spare time under the Taliban learning how to net beads and make necklaces and rings for herself and her friends, but there were no opportunities to sell her wares. These three young women are part of the estimated three percent of students who have gone on to start their own businesses after taking an entrepreneurship class at their high school as part of CIPE’s Tashabos program. In the U.S., by comparison, 0.29 percent of the adult population starts a business in a given year.
Shabnam had already been...

Kashif Shabbir, President of the Rawalpindi Chamber of Commerce and Industry, delivers a joint declaration from the All Pakistan Chamber President's conference.
After four years of efforts to bring them together, this week, through CIPE’s assistance, 20 leading chambers from across Pakistan including representation from Federation of Pakistan Chambers of Commerce & Industry (FPCCI) spent two days at a conference to discuss economic challenges faced by Pakistani businesses, and business readiness to meet the challenges of economic recovery.
There are forty city chambers in Pakistan. Historically, these chambers were over politicized and biased to lobby for individual gains rather than serving the business community at large. Same was the case with the FPCCI, the only umbrella...

Reporting from a closed country such as Burma can be a life-or-death business. Yet, despite great personal risk, a group of brave citizens defied the odds to bring the images of their society’s struggles to the outside world. Acclaimed filmmaker Anders Østergaard tells their story in his powerful documentary Burma VJ, screened earlier this week at the National Endowment for Democracy. Winner of over 40 international awards, the film traces the work of Burmese video journalists who, using small handycams and cell phone cameras, have provided invaluable footage of crucial events in Burma to the world. That unique on-the-ground source was particularly invaluable during the information blockade accompanying massive protests of Buddhist monks in 2007. See the trailer here:...

David Roodman of the Center for Global Development has written an excellent blog on the woes at Grameen Bank, asking whether Grameen has been fueling a microfinance bubble. Many households in Bangladesh are overindulging in microfinance loans:
Multiple borrowing is widespread in Bangladesh now, and it has raised concerns that some Bangladeshis are juggling microcredit loans the way some Americans juggle credit card debt, in a merry-go-round that must one day stop. The worry, in other words, is that there is a microcredit bubble. In 2007, Shafiqual Haque Choudhury, founder and head of ASA, which is known as the most commercially savvy of the big three, worried aloud about a “train crash.” And that was before the global financial crisis, which has probably been transmitted into poor...

CIPE often hears from its partner organizations in the field how difficult it can be to get the local business community to support their work monetarily. This is a particular problem for groups that work to bring more people into the business community, focusing on encouraging youth and women to become entrepreneurs. One of CIPE’s partners in Nepal, Samriddhi, The Prosperity Foundation, found a simple and cheap way to start raising money within their local community for their work with youth, while at the same time building a brand for the organization.
Samriddhi’s logo is a pot. It was an image pulled from the local Buddhist practices, symbolizing prosperity. When Samriddhi had trouble getting the business community involved in its projects with youth entrepreneurs,...

The search for an estimate of the optimal stock of public foodgrain has been a constant and intense demand from donors and policymakers in Bangladesh. The meaning of optimality has, however, remained different to different persons. A general perception in these debates is that there may be a precise figure that represents the optimal level of public stock. Optimality implies minimization of cost or maximization of net gains in achieving an objective.
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