Search This Blog

Sunday, December 17, 2006


Often the MBA classroom lectures deal with the same common theme - the "process of value creation". Today was a day when I could feel a very different system of value creation...

N, R and myself had a trip to a place called Karim Nagar which is around 3 hours drive from Hyderabad.

We met some microfinance institutes and various self help groups, who seem to have benefited from the presence of these micro finance institutes. On the surface, the concepts of micro finance look so simple, yet they are such great discoveries....or shall I say inventions...the complete system of group lending and micro credit.

So many poor, uneducated people have benefited from this system…and yet there exists tremendous scope to create wealth in this process…thus adding value to all the stake holders involved. These so called poor and uneducated people even possess the wisdom to humble the so called more educated people.

One of my friends kept on questioning the methodology followed by the micro finance institutes in India…..and why our success rate is not as noticeable as that in Bangladesh….blah blah… and kept on pestering the fact that India should replicate exactly the same model as that followed in Bangladesh.
I was really amazed when one of the persons from these groups responded back in broken English “Saab…This India….Bangladesh different country…..not possible do same in India…their government different”. This person seems to have better outlook than MBA students from one of the most sought after schools of the country… Again... made me think the correlation that MBA education shares with the very basic common sense. Sometimes in the process of learning complex jargons and devising structural thinking, we just forget this common sense, which often is the most important ingredient towards developing a sensible solution.

I don’t have great passion for micro finance, yet I realize that there is something very powerful within this concept.

No comments: