January, 2011 From the compiler I have pleasure in sending the first missive of the New Year with best wishes to you all for a very productive 2011. The success of SKILLS2010 conference - a landmark initiative of REEDS, by dint of support and cooperation from many quarters, has given us a fair idea of the road map ahead in this area. We have witnessed good traction and interest from various stakeholders in the arena. We are very excited and keen with commitment in furthering the dialogue towards exploring opportunities to engage relevant players in developing actionable collaborative training initiatives in addressing the massive challenge in the area of skills development in India. Following the conference, we have had purposeful visits and discussions with various agencies involved in skills and vocational educational development - nationally and internationally, on opportunities for collaboration with regards to Vocational Education, Training, best practice in delivery and information sharing. We are confident that with all the encouragement and support forthcoming, we would be able develop a strategy and act decisively in a very short turnaround to roll out a pilot to improve skills with focus on informal and unorganized sector and test their suitability in addressing Indian Skills sector gaps - just not from quantitative perspective but qualitatively too. Now we look forward to your continued support. Ravi K Reddy, - February 20, 2011 "Arise! Awake! And stop not till the goal is reached" "Strength is life, Weakness is death" - Swami Vivekananda - born on 12th January 1863 In focus Financial Inclusion & Micro Financing Our economic success and the boom in banking notwithstanding, one of the contemporary critical challenges for India is financial inclusion of its population especially that of underprivileged sections, who remain cut off from formal sources of finance. Microfinance programs holds greater promise to further the agenda of financial inclusion as the main aim of micro financing was to provide easy access to credit to the poor people who lack access in the formal financial system. It is interesting to note that Self Employed Women's Association (SEWA) of Gujarat is the first to initiate such process in an organized manner way back in 1973. Dr Muhammad Younus formed Grameen Bank at Bangladesh only in 1983. However, the success of Grameen Bank has stimulated the formation of several other microfinance institutions world-wide. Andhra Pradesh is the pioneer and the motherland of Indian microfinance. Government establishing the Self-Help-Groups and Banks linkage in the late 1980s enabled to build up a robust microfinance portfolio. However, over the last two decades, many lenders that began as non-profit organizations have transformed into commercial microfinance institutions and have posted unprecedented and stupendous growth rates. SKS Microfinance, the leader for example, had 5.8 million borrowers in 2010. The circumstances of the recent crisis in Andhra Pradesh spawn discussion about whether and how commercialization of microfinance can be done responsibly. Indian microcredit industry, the largest in the world and was expected to fill the gap in the financial service needs of the poor what the governments could not do in the past 60 years is now in serious peril. Towards reforming microfinance for the financial inclusion, the industry and policy makers, perhaps, as Elisabeth Rhyne, Managing Director of Center for Financial Inclusion said, "to think more deeply about the role of MFIs in the financial sector". The delivery model for financial services for the poor must evolve to support healthy outreach and the growth of a broad range of products that poor people need. Water in future! Based on the current trends, about 90% of the global population will use improved drinking water sources by 2015 while the total population without improved sanitation in 2015 will decrease only slightly, from 2.5 billion to 2.4 billion. Water scarcity may limit food production putting pressure on food prices as 70% of all freshwater withdrawals go to irrigated agriculture. An estimated 90% of the 3 billion people who are expected to be added to the population by 2050 will be in developing countries, many of these regions that are already experiencing stress with limited access to safe drinking water and adequate sanitation facilities International Energy Agency predicts that the world will need 60% more energy in 2030 than in 2020. Since Water is needed for the production of energy of all types, expansion of energy supply will affect water resources. Source: 3rd UN World Water Development Report, 2009 Support the cause REEDS welcome support and participation in any manner that suit one’s convenience. All the monitory contributions to REEDS qualify for deduction under section 80 G of the Indian Income Tax Act, 1961. Forward this to a friend or if you want someone who would like to add to the REEDS NEWS readership, please let us know at inforeeds@gmail.com You are receiving this newsletter because your email reflects in our database. We hope you will enjoy reading it and, if possible, send us your suggestions and observations. If you do not wish to receive this newsletter, you can unsubscribe at this link Unsubscribe. Contact: C-206, Vijaya Hills, 11-4-646, AC Guards, Hyderabad. Telephone: (91) 40 2339 7141 Telefax: (91) 40 2339 2221 mail : inforeeds@gmail.com, web site: www.reeds.in This edition of REEDS NEWS is sponsored by: www.abcspl.in