Over confidence on meek financial capability of sequestered micro credit for the given task in poverty sector has led to unpalatable events such as moral deterioration of the actors and unethical market environ shaken by some recent micro finance crisis in many developing countries despite warning signals in the supply front. At the same time persistent vulnerability and deprivation, inequitably distributed even in poverty pyramid on the other in the demand side is evident. Both these factors primarily have caused a major ‘inclusive’ development concern at global level.
In the given backdrop, the scope of the book is to critically probe in detail the gap between the Micro Finance principles and practice. Further it broadly covers theoretical facts on financing the poor at household level and critical events that acted as drivers leading to moral deterioration in this industry. An attempt has also been made to look at Micro Finance through Amartya Sen’s lens from development perspectives. As a way forward with a new approach, an attempt has been made to suggest ethically coded ‘Ten commandments’ for the Micro Finance industry personnel for rejuvenating this industry from moral crisis and sustaining the graduation of the bottom with more accountability. For the benefit of Micro Finance community and academia, the book is so designed sequentially with the subjects for discerning both theory and applied sides of Micro Finance and presented in two parts. Part -1 delves the principles of Micro Finance from ethical perspectives covered in 6 chapters while Part-2 demonstrates new framework for future approach in the applied side for a responsible financing to the poor in the form of ten commandments for micro finance community spread over in 11 chapters. Appendix includes ethical codes for Micro Finance, pilot innovative Micro Finance projects and references.
Dr V. Rengarajan received Doctorate from Pondicherry Central University. M Phil from university of Madras. Served as researcher in Economics Department in University of Madras for 10 years, and in Madras Institute of Development Studies (MIDS) for 2 years. As a senior economist, in charge of Economic Research dept in a nationalized bank (Indian Overseas Bank) formulated District Credit Plans at micro level and conducted a number of research and evaluation studies pertaining to financing for rural area development and micro financing for poverty reduction programmes for 25 years. As a professional international consultant in Micro Finance for APRACA (Asia Pacific Rural and Agricultural Credit Association) Consultancy Services, Jakarta, Indonesia, IFAD and Agricultural Finance Corporation Ltd, (AFC) Mumbai, India as state consultant, conducted evaluation and research studies connected to microfinance in many Asian countries. . Advisor to a national NGO for research and evaluation on Micro financing and SHG programmes in Tamil Nadu and Jharkhand states. Invited for guest lectures in national and international universities and as resource person for international workshops. Presented about 70 technical papers on rural banking and micro financing in national and international conferences /seminar/workshops/. Publication includes six books and about 50 papers in technical journals also acted as visiting professor to Mrs. Helena Kaushik women’s PG College in Rajasthan.