Letters: Utilise MFI funds better

This refers to the report “Microfinance is in danger zone: Ramesh” (November 28). Jairam Ramesh’s statement that microfinance does not provide a panacea for alleviating poverty is exemplary. Foreign and local donors who support the microfinance sector in the name of poverty reduction should take that seriously. Instead, microfinance funds could be used more productively in alternative investment opportunities, including rural infrastructure (through food-for-work programmes) and agricultural research. Rural infrastructure includes an array of options – from roads to energy – essential for reaping the benefits of agricultural research. Studies have shown that the rate of return of these investments can be as much as at least 300 per cent.

 

Chandrashekhar G Ranade, Virginia

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