Opinion | The microfinance mess
Capping interest rates on microfinance will lead to the same perverse outcomes that inevitably follow any price controls
The Royal Swedish Academic of Sciences, the institution behind the Nobel Prize, held its 2019 award ceremony on Sunday. The winners in economics for the year, as declared earlier, are Michael Kremer and the husband-wife duo of Abhijit Banerjee and Esther Duflo. The trio won the Nobel for their experimental approach to alleviating global poverty. Duflo, in her lecture at the ceremony in Stockholm, spoke on micro credit in India. Her slide presentation during her 33-minute long speech carried a reference to a 26 October, 2010 article in Mint written by the newspaper’s former executive editor Niranjan Rajadhyaksha. The article, titled ‘The Microfinance Mess’, is posted below.