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Re: Grameen Bank Query



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Please help make the Manifesto better, or accept it, and propagate it!
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On Tue, 26 Dec 2000 spghanekar@123india.com wrote:
 rural banks do such work but the infrastructure and the personnel are so
 poor that they have been mostly ineffective except for few cases. One
 rural bank I have seen in Maharashtra has one room with a safe, one
 person who acts as a manager,peon,clerk, cashier and also collector on
 the bazar day.

I suppose you meant this example for the exceptional rural bank. The local
money-lender is a great institution to be emulated. The problem is the
lack of competition which gives him/her monopoly and brings in harmful
power-relations into play. If a public sector bank could almost duplicate
the money-lender institution (as in the example you mention) well what
more can we ask.
 
 Another reason for it not being successful are the intervention of local
 politicians forcing the managers to give loans to only people sent by them. 
 How do we solve this problem?

Depending on who is *more* corrupt [the manager or the local politician]
this might be a good or a bad. When it's an intervention by the State, it
is necessary that the local political representative be thoroughly
involved in the process. For the most part, State measures can and are
rule-based, or atleast should be. You can blanket-claim the politician to
be a hindrance. We do have an understanding of the whys and hows of the
corruptible politician and the corruptible bureaucrasy (banker here).

Padmanabha


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