M S Sriram: What Malegam cannot do

Putting rules in place is one thing, mandating patient governance is quite another

There are several recommendations (including mine) floating around for the Malegam committee on how to fix microfinance. However, when we reflect on the current crisis, we find that no recommendation or regulation could have prevented the current mess. There is no way in which one can mandate a business to operate in a certain manner. One can lay the rules and framework, but cannot mandate patience, compassion, integrity and satisfaction in a business. If microfinance has to succeed, it has to be a patient business. Any business with a long-term view has to engage with clients; the ...