January - March 2013 - National Institute of Rural Development

98 Book ReviewsIn Chapter-VI on ‘Policy Environment andRegulation – Sign of Reign,’ the author hasstressed that there is a need for closeinteraction between banks and MFIs. Banksneed to realise their social obligation andchoose all channels available to fulfill theirobligations, which include lending to MFIs foron-lending to marginalised sections of society.The enforcement of new regulations and theconcerted efforts of MFIs in complying withthe regulatory and client protection norms andbank continued patronage will go a long wayfor sustainable growth of the microfinancesector.In Chapter-VII on ‘National RuralLivelihood Mission’, the author has highlightedthat NRLM seeks to promote inclusive growthby mobilising the rural poor and enabling themto save, build productive assets andenterprises, access financial livelihood,educational, health and nutrition services andentitlements, negotiate better terms for theirproducts and services and provide rural youthwith skills and opportunities to secure jobs inmainstream economy.In Chapter-VIII on ‘Investment Climate –Faltering, but Hope Remains’, the author ishopeful to state that with the positiveresponses from the sector in terms of animproved regulatory environment andresponsible financing by the MFIs, the equityflow is expected to be encouraging for all andmore particularly to smaller and medium sizedMFIs, hence hope remains, despite flatteringperformances. Even MFIs have turned theirattention with new found rigour to new formsof capital flows including securitisations, NCDsand qualified institutional placements.In Chapter-IX on ‘Global Trends inMicrofinance’, the author agreed that the globalscenario is not promising for the MFI industry,though some economies have booked betterportfolio. The author has suggested that anumber of initiatives like values ofresponsibility, corporate ethics and socialperformance management are to beaddressed to face the key challenges of thissector. Indeed, MFIs have to adopt newstrategies to bring back their clients as well asto reduce their operating and administrativeexpenses.The tenth and the final chapter on‘Future – Forward Looking’, reminded that aslong as ultimate focus of microfinanceinitiatives are towards the poor and theirlivelihood improvement, microfinance willsurvive, sustain and grow. The only relevantexpectation is that it should strive to meet therequirement of the vulnerable customers.The report is a comprehensive referencefor those who want to review the performanceof the microfinance sector as well as interestedto know the status of various policy decisionstaken by the Government of India and otheragencies in facilitating the growth anddevelopment of microcredit in backwardregions of India. The author should be highlyappreciated as the report handles difficult andcontentious issues in a most comprehensivemanner and highlights the microfinance sectorin a most fascinating manner. Finally, a smallremark that though some critical aspects likethe ‘Repayment Crisis in the MicrofinanceSector’ has been given scant attention in thereport, that does not drag attention from thebroad contents and database as vividlypresented in the report.– Dr. B.K. SwainDynamics of Rural Poverty in Bihar:Determinants and Strategies by Dr. RashmiPrasad, Janaki Prakashan Publishers, Patna2012, Price : ` 995.The book on “Dynamics of Rural Povertyin Bihar : Determinants and Strategies” seeksto explore the link between growth andpoverty, between agricultural growth andJournal of Rural Development, Vol. 32, No. 1, January - March : 2013JRD 2 (1)