In December 2010 the Government of Andhra Pradesh passed a law (the “AP Act”) which effectively shut down private
ector microfi nance in the State. The AP Government stated that its goal was to protect the poor. Now, 15 months
ater, the impact of the AP Act is clear: rather than protecting the poor in AP, it has had the opposite effect and
ndeed harmed the poor by starving them of access to credit and basic fi nancial services.