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

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Micro-Credit and Rural Poverty

This paper reviews empirical evidence on NGO-led micro-credit programmes in several developing countries, and compares them with state-led poverty alleviation schemes in India. The study shows that micro-credit programmes have been able to bring about a marginal improvement in the beneficiaries' income. However, the beneficiaries have not gained much by way of technological improvements, given the emphasis on 'survival skill'. Also, in Bangladesh the practice of repayment of Grameen Bank loans by making fresh loans from moneylenders has resulted in the creation of 'debt cycles'.

Russia vs Paris Club:Default on Debt Repayment

Russia, in the beginning of 2001, finds itself in danger of defaulting on its debt repayments to the Paris Club. One opinion believes that the Russian economy is in dire straits and in no position to repay. On the contrary, the west - including Russia's main creditor, Germany and other influential economists and rating agencies believe that the issue has been mismanaged by the Russian authorities. Not only is there lack of coordination among different branches of the Russian government, it has also been unable to contain capital flight and money laundering of funds that are desperately needed for ecnomic development.
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