Anatomy of recurring crises in inclusive finance: Dr. M S Sriram

Every few years, microfinance is hit by the same crisis, the effects of which include – too much lending, coercive collections, and soaring defaults. The same cycle repeats. But why?

According to Dr. M S Sriram, the problem isn’t just bad actors or political shocks, but the ineffectiveness baked into the nature of the model. He pens his thoughts and observations for Economic & Political Weekly (EPW) in his piece ‘Where Medicine Is Poison’.