MICROCAPITAL BRIEF: Wall Street Journal Publishes “India Journal: Linking Health and Microfinance” By Somen Soha of Indian Institute of Public Health, Marcia Metcalfe of Freedom From Hunger

Mr Somen Saha, senior lecturer at the Indian Institute of Public Health in the state of Gujarat, and Ms Marcia Metcalfe, director of microfinance and health protection at California-based international development nonprofit Freedom from Hunger, recently co-authored an article that was published on the website of US-based newspaper The Wall Street Journal wherein they argue for the integration of health care with microfinance in India. In the wake of the recent turmoil in the microfinance industry in the Indian state of Andhra Pradesh, the authors remark that, “Blaming the entire sector will not only affect the lives of millions of poor served by the industry but also impede the tremendous potential that microfinance holds for allied causes like advancing universal health coverage in India.”

The authors state that out-of-pocket health expenditures increase poverty in India by as much as 3.6 percent in rural areas and 2.9 percent in urban centers, adding that about one quarter of Indian microfinance institutions (MFIs) offer some form of health services. The authors argue that these figures indicate significant potential for MFIs to dovetail services such as health care financing and health education with microfinance and recommend the following three strategies: (1) establishing a platform for MFIs, health practitioners, researchers and policy makers to collectively develop a roadmap; (2) implementing projects that could be taken to scale; and (3) instituting advocacy centers for advancing the practice.

By Jacqueline Foelster, Research Associate

Source and Additional Resources:

[1] The Wall Street Journal, April 26, 2011, “India Journal: Linking Health and Microfinance”, http://blogs.wsj.com/indiarealtime/2011/04/26/india-journal-linking-health-and-microfinance/

MicroCapital.org Brief, March 29, 2011, “Freedom from Hunger Staff Co-author ‘Integrating microfinance and health strategies: examining the evidence to inform policy and practice’”, https://www.microcapital.org/microcapital-brief-freedom-from-hunger-staff-co-author-integrating-microfinance-and-health-strategies-examining-the-evidence-to-inform-policy-and-practice/

MicroCapital.org Brief, February 21, 2011, “Freedom from Hunger Microfinance and Health Protection (MAHP) Initiative Reaches Peru, Vietnam, Cambodia; Expands in India”, https://www.microcapital.org/microcapital-brief-freedom-from-hunger-microfinance-and-health-protection-mahp-initiative-reaches-peru-vietnam-cambodia-expands-in-india/

MicroCapital.org Brief, November 9, 2010, “Payment Strike Hits India’s Andhra Pradesh State As Local Governments Urge Microfinance Borrowers Not to Repay”, https://www.microcapital.org/microcapital-brief-payment-strike-hits-india%E2%80%99s-andhra-pradesh-state-as-local-governments-urge-microfinance-borrowers-not-to-repay/

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