ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Indian Microfinance: Lessons from Bangladesh

While Grameen II, launched by Bangladesh's Grameen Bank in 2000, tailors the terms of microcredit to the diverse requirements of its borrowers, in India, despite prompt repayments, 78.7 per cent of self-help groups who were previously financed by mainstream banks did not receive additional credit in 2005-06. This article traces the fundamental differences in the provision of microcredit between Indian mainstream banks and the Grameen Bank.

Discrimination in Ethnically Fragmented Localities

This paper presents an empirical investigation that examines the role of ethnicity along with the caste dimension in influencing local government spending on public goods like education, lighting, drainage, health and public works in municipalities in West Bengal. The study suggests that higher ethnic diversity is associated with lower local government spending on all types of public goods under both cross sectional and panel data analysis. Though the role of higher ethnicity is not robust for lower local government spending on all types of public goods, such an ethnic differentiation based on caste lines might lead to greater inequality in status and opportunities, deeper tensions and rivalries, more social conflict and political instability between different caste groups in the region in the future, which, in turn, may be a strong impediment to economic development and growth.
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