Impact of Microfinance on Developing Countries Literature review

Impact of Microfinance on Developing Countries - Literature review Example With no access to financial systems, the poor have to define new informal ways through which they have to guarantee their financial survival while at the same time obtaining seed capital for development. Such informal community based institutions are meant to meet their daily and long-term financial needs, a gap that is perfectly filled by the micro financial institutions (Jegede, Kehinde & Hamed, 2011). Consequently, micro financial institutions are organizations developed towards promoting economic activities among the poor and low-income earners, where formal financial institutions have not offered similar services. To these people, banking services are impossible or almost impossible and they have to get a new way of bridging the gap left by the banks, which makes micro financial institutions prominent in poor countries particularly in the African continent. Micro financial institutions will lend small amounts of capital to members and other poor individuals in the locality towar ds poverty eradication, in addition to providing the poor communities the same services that are available in banks, and which are enjoyed by the rich (Jegede Kehinde & Hamed, 2011). In fact, microfinance institutions do not only provide capital for the poor but will go an extra mile to alleviate poverty from the basic individual level and at the community level (Anyanwu, 2004). Consequently, as Anyanu asserts, in Africa and other developing countries, microfinance institutions are considered the main source of funding for the poor towards creating projects that alleviate poverty and educate the poor on wealth creation. Due to the important role played by these institutions in poverty eradication, the government of Nigeria adopted micro financial institutions as the main route towards poverty eradication with the central Bank of Nigeria developing the necessary policies to facilitate operations of these institutions. This is despite the fact that the number of people benefiting from these institutions is still lower than required, with more people targeted through expansion of microfinancial institutions throughout the rural areas in the country. More than 70% of Nigerians live below the poverty line with microfinance banks serving about one million clients across the country that has a population of more than 140 million people (Irobi, 2008). Considering these facts, it is important to investigate how microfinance institutions affect the poor in developing countries with a close focus on Nigeria. Microfinance institutions have a role to correct an imperfect market in answering the various shortcomings of imperfections in the credit market (Armendariz & Murdoch, 2010). Making it easy for people to obtain capital has been shown as the best way to increase output, profits and net income among the poor, which improves their individual and communal welfare. However, the borrowing capacity is mostly dependent on the amount of information in the market, the vulnerab ility of the business being funded and the amounts of uncertainties in the business setup (Duvendack et al, 2011). Moreover, credit facilities continue to be used for gender empowerment among the poor where microfinance institutions targeting women have continued to sprout. Such credit facilities and education on members are aimed at promoting the status of women in the society and empowering them to handle more roles in the society and their families in general (Duvendack et al, 2011). There is a general simplified assumption that credit is an exogenous mode of treatment on borrowers that represent the wellbeing of the affected individuals through changing their livelihoods and other relations between individuals (Duvendack et al,

Starbucks against Vietnamese coffee culture

Starbucks against Vietnamese coffee culture Starbucks brand name is one of most admired famous global business in the world (Moore, 2006, p.7). Moreover, in terms of marketing, Starbucks always is the case study for discussing about it successful marketing and branding strategies. Because of the fall of the economy, it was forced to close 700 stores that were unable to make enough profit and cut thousands of jobs in America, UK, and Australia after a drop in sales in 2008. The brand was also facing the issue of their customers choosing a cheaper option over their higher coffee prices. Starbucks then was applauded for their handling of crisis situations. This report will apply relevant theory and practice of strategic marketing management to explore the situation, contributing factors and management of marketing strategies in the financial crisis sector, reflecting the happenings and identifying recommendations relevant to Starbucks International Coffee. OVERVIEW OF STARBUCKS COFFEE The Seattle-based Starbucks Corporation, which founded in 1971, is nowadays a multinational coffee and coffee house chain with over 15,000 stores in in all 50 states and 43 countries outside of the United States (Pham, 2008, p.8). Serving consumers everywhere (Moore, 2006, p.12.), the aim of Starbucks is to establish and leverage its powerhouse premium specialty coffee through rapid expansion of retail operations, new distribution channels and successful make it coffee a global product for millions customers. Appendix 1 At Starbucks Coffee, the mission is [] to inspire and nurture the human spirit one person, one cup, and one neighbourhood at a time. (Clampitt, 2009). Starbucks has been and always be proud of their commitment to maintaining quality, integrity, and great taste of coffee through the course of its growth and the high value placed on the employees/partners worldwide (LeFort, 2008) . Appendix 2,3 Store Expansion Strategy of Starbucks Throughout the 1990s, Starbucks had started developed a three-year geographic expansion strategy (Clampitt, 2009) then Starbucks store launches grew more successful in revenue (Creamer, 2007). Not just selling the coffee, Starbucks model with opening new stores next to doors and inside shopping malls caused them to increase in value than all other competitors (Cebrzynski, 2007) In 2004, Starbucks announced to analysts that it had a very aggressive target to double its rate of expansion. Their stated goal was to grow to 15,000 stores in the US. According to the report in an article, Starbucks has more than 13,000 locations around the world, and has overstretched itself with the long-term goal of 40,000 stores worldwide (Woodward, 2007, Clark, 2008). Appendix 4, 5, 6 There is a raised question that whether it is a bad business decision for coffee chain Starbucks to expand its brand too quick. (Cebrzynski, 2007) is also suspicious that has Starbucks lost its Starbucks experience by growing that big? (Business: Trouble brewing, 2007) FINANCIAL CRISIS AND COMMODITIZATION OF THE BRAND A crisis, according to (Brown, 2003) is a decisive moment, a turning point, a time of great difficulty, then marketing cannot possibly be in crisis. Mr Schultz, Starbuckss CEO, saw the crisis coming. He had discovered the problem of their own development strategies: Stores no longer have the experienced soul with the warm feeling of a neighbourhood store. At the beginning of 2007, he did warned about the commoditisation of the brand that the expansion from 1,000 to more than 13,000 shops over the past ten years, in order to achieve the growth, development, has led to a series of decisions that make a watering down of the Starbucks experience. (Businessweek. 2007). The decline of Starbucks is the result of over expanding previous years, has been criticized by those who oppose globalization such as ( Klein, 2009): Instead of opening giant stores on the outskirts of town, Starbucks chooses locations right in the range of the inner area already full with all kinds of coffee house. This s trategy relies heavily on the cost reduction by purchasing multiple quantities at wholesale prices like Wal-Mar, however, affected more by the competitors The rapid growth has obviously caused Starbucks some problems. For the first time in its 37-year- history Starbucks lost customers and profits collapsed 97% (Jagger, 2008) during the fourth quarter of 2007 after the ubiquitous coffee chain was forced to absorb the effect of weakening demand. The footfall had declined in the UK, where it has two other big coffee retailer: Whitbreads Costa and Caffà ¨ Nero as well, -$6.7 million after tax, compared with a $158 million profit for the same quarter last year. (Lee, 2008). Although company officials still do not believe growth is an issue (Cebrzynski, 2007), first time in five years, Starbucks was knocked out of first place in the coffee-and-doughnuts category by Dunkin Donuts (Creamer, 2007). And it was the biggest faller in the index by 7 points to 42 out of a possible 100. (Leroux, 2008) Issue Reasons As (Schindehutte et al., 2008) argues that [] something is clearly affecting the ability of firms and business units to sustain performance ), suffering from a rough economy and its own strategic missteps, Starbucks had to admit their own mistakes, much of which is self-inflicted (Ignatius, 2010) In current economy, as a classic dilemma of any big business, while trying to expand, Starbucks not only have to deal with other factors like competitors and the mortgage crisis, they also competing with themselves. Size may have brought success to Starbucks, but it has also led to issues of brand depersonalisation. In the rush to open more stores, Starbucks is experiencing what all successful brands do when they move from being a small, niche firm to a global entity (Golding,2009). Moreover, there are some extra affections from the environment, such as: The brands bottom line has been hit by the rising costs of raw materials. [] now Starbucks isnt for some people said Howard Schultz, CEO of Starbucks (Not enough froth Starbucks, 2008). Fancy Starbucks coffee has also struggled to compete with cut-price rivals such as McDonalds and Dunkin Donuts, as these traditionally food-focused outlets have begun to sell their own premium and reasonable coffee offer (Clark, 2008). As the financial crisis has spread to the real economy, a perfect storm of negative factors affecting the consumer (Cebrzynski, 2007). The flagging economy and soaring gas prices are responsible too (Leroux, 2008). Consumers are worried of rising gas prices, energy bills, declining home values, the weak dollar, tighter credit, therefore giving hard consideration to how they spend their money. They even already scale back on restaurant dining that made restaurants are slowly creeping out of their thoughts. STRATEGIC MARKETING MANAGEMENT TO SOLVE PROBLEMS Crisis management is much more than coping with a crisis, it is identifying, studying, forecasting, stopping and avoiding crisis as well. (Clampitt, 2009) Continuous improvement and monitoring in business operation can detect and prevent an upcoming crisis (Rhee Valdez, 2009). Effective marketing can contribute to a firms growth through better anticipation of market opportunities, calibration of risks, a tighter linkage of technological possibilities with market concepts, and faster adjustment to shifting market needs and competitive moves. (Day, 2003) For their part, market-driving firms such as Starbucks is demonstrating how business model innovation results in sustainable advantage and superior long-term performance in a wide range of industries. (Schindehutte et al., 2008). When a crisis or disaster strikes, companies must analyze and choose from many strategic plans. One way they do this is by using a SWOT analysis a strategic planning tool used to evaluate Strengths, Weakness es, Opportunities, and Threats. The goal of a SWOT analysis is to identify key internal and external factors that affect the desired outcome. Strengths and weaknesses are internal to the company and include things like wage/benefits, corporate culture, leadership, marketing, and operations. Opportunities and threats are external to the company and include things like government regulations, competition, and economic and social forces. (Clampitt, 2009) The focus for the strategic management to understand the market and industry processes of Starbucks and must be able to integrate valid and reliable SWOT analysis so as to determine future strategies for business development and growth in the global market. SWOT Analysis The SWOT analysis will provide enough awareness for the Starbucks and its business management and operations with regards to their strategic management implying relevant points for their resources as well as market approaches and processes in order to stay in shape and in control of their business environment. Applying a SWOT analysis to Starbucks global expansion strategy shows why they have been successful overcome the crisis. Appendix 7 The business strategy of Starbucks is identical to the corporate level strategy, focusing on coffee-related products as the premier purveyor of the finest coffee in the world and maintenance of great environment for every staff member in its retail stores. Continual quality improvement is crucial to competitive success and the perfect symbol for the dilemma that faces world trade (Schindehutte et al., 2008). Therefore, it is typical to give the promises to improve service, reduce growth and expand marketing efforts for responding to a decline in customer traffic (Business: Trouble Brewing, 2007). Equally as important, company should not lose sight of their brand heritage (Cebrzynski, 2007). A long term business strategy built upon the hundreds of little things on a daily basis which is the key to customer relationships in the future (Cannon, 2002). Re-energizing Starbucks Process When a decline in customer traffic happens to any chains like Starbucks, its a signal that the company should re-examine their positions (Cebrzynski, 2007). It is the market that provides signals both to the entrepreneur and marketer regarding what value is needed, when it is needed, and how it should be delivered (Schindehutte et al., 2008). Starbucks needs to go back to its roots (Cebrzynski, 2007) and make its brand special again. Company brought back the original CEO, Howard Schultz to restore the companys shine. Starbucks knows it needs to do something new (Skenazy, 2008). Re-structure: Back to basics Chairman Howard Schultz take back the reins from ousted CEO James Donald, not only closed 100 unspecified, underperforming locations with weak sales but also closed most stores across the US simultaneously in order to retrain to improve customer experience at American stores and to get back to the core (Creamer, 2007). Besides, Geoff Vuleta, CEO of New York innovation consultancy Fahrenheit 212, had a radical solution that open a chain of microstores devoted solely to making coffee. No travel cups, no music, no machines, just amazing beans and a narrow range of the best-in-the-world coffee drinks,, just moving brand back to the basics. Resource-led Strategy: Focus on service quality experience Everyone should know that nothing is better for a business than a satisfied customer who can talk to others about their experience with our service (Cannon, 2002). First of all, Starbucks really needs to refocus on the luxury coffee experience; the smells, the sounds. They also gained customers positive experience in stores by well-trained staffs who were knowledgeable about the companys products, who eagerly communicated the companys passion for coffee, and who had the skills and personality to deliver consistently pleasing customer service (Whats Brewing at Starbucks, 2011). Starbucks wanted to turn all Starbucks employees into partners, give them a chance to share in the success of the company and make clear the connection between their contributions and the companys market value (Thompson Strickland, 2009). From its founding, Starbucks set out to be a third place to spend time, in addition to home and work.(Business: Trouble Brewing, 2007) To remedy that, the company plans to improve its service. Field managers will spend more time in the stores to make sure service really does get better, and new baristas will receive additional training. (Cebrzynski, 2007). New breakfast line, featuring a proprietary baked and chilled food program was unveiled in September. Howard Schultz said the smell of the sandwiches overpowered the aroma of coffee, one of the chains signature features (Jennings, 2008). Following the lead of other coffee chains, Starbucks will also be offering a customer loyalty card for the first time. (Ahmed Walsh, 2008) In an attempt to rvetain loyalty in the UK, Starbucks has introduced free coffee refills for anyone buying a hot drink and has ramped up its hitherto negligible marketing activity (Lee, 2008).  · Market-led Strategy: Reputation management can take a while for a bad reputation to hit your bottom line, or a good one to increase profit (Cannon, 2002). As word-of-mouth is a primary marketing tool, Brian Collins, chief creative officer of New Yorks Collins design research firm, suggested company should better use its digital resources to learn the tastes of regular customers and reach target audience by creating social networking tools like Facebook or Twitter and blog page. They also used it both as a way to stay interacted, involved with their current customers and look for new ones. According to TNS Media Intelligence, Starbucks spent $40 million in the first nine months of 2007 (York, 2008), launched its first national TV campaign to defend its ownership of the coffee segment from encroachment by McDonalds, Dunkin Donuts and other chains (Cebrzynski, 2007). They also created the site My Starbucks Idea (http://mystarbucksidea.force.com/), which gives consumers the opportunity to post ideas, suggestions, to vote and discuss about what they want to see from Starbucks. If they gain support, these ideas may be chosen to carry out to change the company in its business process, product development, experience development, and store design.(Jarvis 2008) Change will not happen overnight, Mr. Schultz said. It will evolve over time, but I ensure you a positive change will occur. I, along with our dedicated partners, will strive to exceed the expectations of our customers every day. (York 2008) RECOMMENDATIONS FOR FUTURE STRATEGY As the company expands, the culture and corporate strategy must be maintained for success (Jennings, 2008). For the recommendation, Starbucks should be able to sustain the companys growth and make the business become strong global brand. What could Starbucks do to make its stores an even more elegant milieu that welcomes rewards and give surprises to customers? What new products and new experiences could the company provide that would belong to and be associated with Starbucks? And how could Starbucks reach people who were not coffee drinkers? Starbucks must continue the fixed-price purchase commitments in order to secure an adequate supply of quality green coffee beans and to limit its exposure to fluctuating coffee prices in upcoming periods. (ThompsonStickland, 2009) Some experts therefore believe its unbranded stores initiative is not only logical, but necessary. It needs to focus on the inherent values of being local; it needs to employ local staff; it needs to be suitably different from Starbucks corporate image.It is a phenomenally successful company that started off as a local brand but grew incredibly quickly, he says. The brand was originally loved and respected by everyone, but the corporate world decided it had become too big. However, David Anderson, director of Cada Design Group, argues that most consumers dont have issues with the brand. Consumers are looking for a home away from home, and want it in an environment that isnt so heavily corporate branded. They think customers are brand loyal or product loyal, but they are not. It comes down to convenience and providing a space people want to be in. It wants to regain a community personality and the image of the neighbourhood coffee shop.(Golding, 2009) CONCLUSION Starbucks Coffees heyday was back when the corporation announced the business results in the first quarter this year reached U.S. $ 2.7 billion, with net profit of 242 million dollars (nearly 300% increase compared to same period in 2009). This is also the result of efforts to revive the brand had been likened to a giant. From the case of Starbucks, what is the lesson for business? Because development needs, the business diversified products and services is perhaps natural. A long time, Starbucks has gone with their own race shop system extension. This group has become the pride of American business people. The market strategy of Starbucks is a classic lesson in the textbook business. More services they desire to acquire a lot of customers. In fact, they have plummeted, but in time to edit. So go in-depth development (product quality, service key) to get a solid foundation for expanding business. But do not be too ambitious expansion width, expansion, missing the core. Marketing once again demonstrated its magic to bring Starbucks back to the track. The results of consumer research shows that of Starbucks, the main indicators in the business achieved a high level of satisfaction over a year ago. Although Starbucks enjoyed success in the past few years, there are a few obstacles looming. Since the popularity of the coffee house idea has grown, some cities wish to issue regulations on the coffeehouses due to complaints of late night patrons becoming uncontrollable. In conclusion therefore, Starbucks was the only company with anything close to national market coverage. The companys efforts to greatly increase its sphere of strategic interest via its joint ventures and the move to sell coffee in supermarkets that represents such ongoing drive in order to continually reinvent the way Starbucks operate its business. (Thompson Stickland, 2009) Amidst the environmental, social, and economic challenges and changes for Starbucks, its chairman, president, and chief executive officer, Howard Schultz, pledges Even during this time of change for our company, one thing that will never change is our long-standing commitment to conducting business in a responsible and ethical manner. Going forward, we will only deepen our approach by continuing to integrate social and environmental responsibility in every aspect of our business. With its various and numerous awards in Best Business, Most Admired Company, 100 Best Corporate Citizens, to name a few, Starbucks is becoming one of the most respected brands in the world. (Clampitt, 2009)

Condoleezza Rice Essay -- Politics Political

Condoleezza Rice   Ã‚  Ã‚  Ã‚  Ã‚  At this point in time the name and image of Condoleezza Rice is commonplace among the majority of informed Americans. As the first female to serve as the National Security Advisor to the President of the United States, Dr. Rice was propelled even further into the spotlight following the attacks on America on September 11th 2001. I too, like most Americans, saw a lot more of Condi, as she is known by her many friends and colleagues, after September 11. Clearly she was intelligent and always remained calm and poised in the face of adversity and standing before the cameras. I also noticed and appreciated her articulation and was even moved by what seemed like her stoic yet compassionate presentation. It was not until I read Dr. Rice’s biography, Condi, by Antonia Felix, however that she gained my utmost respect. By the 21st century a black successful black female is not as uncommon as it was fifty years ago. Black women had fought their way to the top in many arenas, including political such as the U.S. Senate. What is truly amazing about Condi’s story is speed and finesse with which she ascended to the top of everything she took on. An endearing friendship and mutual loyalty with both of the George Bushes surely did not hurt her. Condi’s  Ã‚  Ã‚  Ã‚  Ã‚   success was hardly limited to the world of politics. She approached music, fitness, academics, sports, religion, and family with the same decisiveness, consistency, and determination that she brought to the public sector. Condi is also no stranger to controversy. Now more than ever she faces a host of critics, especially regarding her supposed knowledge of possible terrorist threats before they came to pass on September 11. Her Republican politics made her less than popular among African Americans although she maintains a more liberal perspective on social issues and remains pro-choice. In spite of her ups and downs it is ultimately her unfaltering character to which sh e can attribute her success as well as her status as what many call the most powerful woman in politics.   Ã‚  Ã‚  Ã‚  Ã‚  The high academic pursuits of the Rice family did not exactly begin with Condoleezza and her generation. The foundation of this idea can be seen in chapter 2 of her autobiography in which the author begins the chronological record with a look at Julia Head Rice. Julia was born into slavery, albeit house slavery which was h... ...onsibilities were never ending and she approached them with the same grace and drive as she does everything in her life. Although the book end its documentation in 2002, shortly after 9/11, Condi’s duties have become no less urgent. Since that time she has had to defend her Administration against suggestions that the attacks could have been prevented and has done so quite well. The 2004 elections have just been completed and George W. Bush is returning to the White House for another term. Former Secretary of State Colin Powell has submitted his resignation and Condoleezza Rice has been nominated as a predictable replacement. If she survives the Senate approval hearings she will become the first black female and second female to fill the role. While I have full faith in her abilities I am concerned with the fact that without Powell in the National Security Council there will be no dissenting opinions. The proposed administration is politically homogenous. Surely Dr. Rice wo uld understand this concern as she herself is quoted in the opening lines of chapter 8 of her biography as saying â€Å"If you find yourself in the company of people who agree with you, you’re in the wrong company.†

Ambrose Bierce’s World

American Literature has had many different and dynamic styles of writing throughout its relatively short history. It seems though that we remember the writers who style and world intrigued us the most. The ones who people never really knew what the author was thinking or why he was writing what he was. The writers who wrote the gothic and almost scary stories of the late 19th century stick out in many peoples mind. Many people recall Edgar Allen Poe, but the other Author that may not get as much attention is Ambrose Bierce.He has a very distinct style to create an even more distinct world for his stories. The world that Ambrose Bierce creates is one of despair and uncertainty, where his characters always seem to have a fate that they would rather not fulfill. His characters always seem to have a bad outcome and a hopeless end. â€Å"An Arrest† is a short story that Ambrose Bierce wrote that falls into his world of despair perfectly. The first sentence of this short story goes as follows, â€Å"Having murdered his brother-in-law, Orrin Brower of Kentucky was a fugitive from justice†.Already after the first sentence Bierce shows you that the character is already doomed. Also Bierce shows us with this first sentence that Orrin was trying to avoid his fate. Ambrose goes on to explain that the fugitive escaped the county jail by hitting a guard with an iron pipe. He also tells us why Orrin had escaped the jail; he escaped because he was awaiting trial. By Bierce telling the reader that Orrin was awaiting trial for murder and escapes, he is showing us that he is desperate and trying to escape his fate.It does not take Bierce long to create his world and he knows very well how to do it. A second story that demonstrates Ambrose Bierce’s world is â€Å"A Wireless Message†. This story really outlines the uncertainty and confusion that lives in the writing world of Ambrose. The story opens up with Bierce telling us that William Holt, the main c haracter, has just recently moved to New York from Chicago in the last year. The main reason why William has moved was that him and his wife where having troubles.It’s not a bad reason but the way Bierce tells us this is how he starts to create his world. Ambrose simply just tells us â€Å"Mr. Holt had had trouble with his wife†. He uses this line to start to create his world by only giving us a little bit of information; he leaves us confused and uncertain. Bierce hadn’t told us how much his wife meant to him or what kind of troubles they were having, all he does is leave us with questions to be asked. Ambrose Bierce is good at creating confusion and uncertainty in his world and stories.The examples from the short stories of Ambrose Bierce are only the tip of the iceberg in how he creates his world as a writer. His world is always one that has despair or some sort of confusion and a great style that makes his stories very successful. Ambrose Bierce also always seems to have an awful and hopeless ending for his characters. As American Literature continues to be studied so will the authors who’s styles interest us the most and Bierce is just one of those many great Authors.

Science was born and survives only by questions. Essay

Science was born and survives only by questions. The whole foundation of science is questioning. And as parents and teachers well know, children are the source of unending questions. Hence, ‘child is the first scientist’. It is very important for every parent to be willing to make the effort to guide children to be good human beings – enlightened and hardworking. The teacher, the child’s window to learning and knowledge, has to play the role model in generating creativity in the child. This triangle is indeed the real role model I can think of. I would even go to the extent of saying that if parents and teachers show the required dedication to shape the lives of the young, India would get a new life. As it is said: Behind the parents stands the school, and behind the teacher the home. A proper education would help nurture a sense of dignity and self-respect among our youth. These are qualities no law can enforce – they have to be nurtured ourselves. A nation’s wealth is the young generation of the country. When they grow up, who can be the role models? Mother, father and elementary school teachers play a very important part as role models. When the child grows up, the role models will be national leaders of quality and integrity in every field including the science, technology and industry. I hope that e-techno teachers who teach and inspire the young students will continue their unmatched and noble services in the years to come, thus ensuring the march of Indian brilliance in every field. Role of students in removing illiteracy In our country is by far the most serious problem. We all recognize that illiteracy is bed, that it prevents the cultural growth of a people. But illiteracy in our country continues to exist on an appalling scale. Even today among ten in India about five are illiterate. Nor is there any organized effort to do away with this deplorable state of backlog. We tinker at the problem instead of tackling it thoroughly. We made experiments. The States have ambitious programmes of setting up primary schools in every village, but these are yet in the cold shade of neglect. But illiteracy can be removed and that quickly, if concerted efforts are made both by private organizations and the states. Within a decade, the Russians got rid of ignorance as colossal as ours; and now the Chinese have also achieved it. They took at once a total war against illiteracy for which the services of all educated men and women were conscripted. Gurudev Rabindranath also praised efforts of the Russians. For this, education must be made free and compulsory at least upto the age of fourteen. That is the plain directive of our Constitution. Recently a bill was adopted in the Parliament of India to make primary education a fundamental right. But even where education is free in India, it is not compulsory; and it is free only at the lower primary stage here and there. The result is that most of those who give up learning after this stage, are the drop-outs, lapse back, into ignorance. Of course, making elementary education compulsory demands money. Children of workers and peasants have to think of earning before they can think of learning. Mahatma Gandhi recognized this basic difficulty and he suggested a scheme by which children would begin to earn while they were learning. In that scheme, known as basic Education scheme, it is not only craft-centered, but the crafts are so chosen as to have a profit basis. The scheme however did not make much headway in free India.