Bureaucrats Fight Back in Battle to Help the Poor

Friday, October 29, 2010

Some microlenders and analysts in the southern state of Andhra Pradesh say that the backlash against the microlending industry is being partly fueled by branches of government that have not been as successful as the private sector at helping the poor.

Even N. Chandrababu Naidu, who was considered one of the most business-friendly leaders in India when he was chief minister of the state, has joined that band wagon and lashing out against the microlending industry.

His party, The Telugu Desam Party is even calling on borrowers to stop making payments on their microloans. Cynics say he is hoping to gain some votes by bashing the microlenders in the hopes of getting the TDP back into power.

A party spokesman said the TDP is still business-friendly. It just wants the state government to pay off the microloans.

Source: The Wall Street Journal - India RealTime (link opens in a new window)