Brice Bognet -Chady

Ghnatios -Anais Barasinski

Francoise Masson

Francisco Chinesta
email: francisco.chinesta@ec-nantes.fr

Adrien Leygue

Arnaud Poitou

Composites manufacturing processes Towards an advanced simulation

Keywords: Composites, Procédés de mise en forme, Modélisation avancée, Reduction de modèles Composites, Manufacturing processes, Advanced modeling, Model reduction

La modélisation avancée des procédés de mise en forme de composites est confrontée à de nombreux verrous malgré les avancées récentes en matière de modélisation mécanique, analyse numérique, stratégies de discrétisation et capacité de calcul. La mise en forme de composites nécessite la prise en compte des multiples échelles en espace et temps, des comportements non-linéaires anisotropes et fortement couplés, définis dans des géométries très complexes. L'optimisation des procédés ainsi que l'indentification inverse, ou encore le controle des procédés nécessite plusieurs résolutions. Dans ce contexte les techniques de réduction de modèles offrent de nouvelles possibilités, permettant d'accélérer les calculs de quelques ordres de grandeur, et même de résoudre des modèles jamais résolus jusqu'à présent.

ABSTRACT. Efficient simulation of composites manufacturing processes remains today a challenging issue despite the impressive progresses reached in mechanical modeling, numerical analysis, discretization techniques and computer science during the last decade. Composites manufacturing involve multiscale models in space and time, highly non-linear and anisotropic behaviors, strongly coupled multiphysics and complex geometries. Moreover, optimization (shape and process optimization), inverse analysis (parameter identification, non destructive testing, ...) or process control need the solution of many direct problems, as fast and accurately as possible. In this context, model reduction techniques constitute an appealing simulation choice, accelerating the computations of several orders of magnitude, and even, enabling the solution of models never until now solved.

Introduction

Composites manufacturing processes involve many different physics. All these coupled physics coexist and exhibit multiscale and localized behaviors in space and time. Because the multiscale description micro-macro modeling is mandatory, and appropriate inter-scale bridges, other than classical homogenization, must be defined. Another important issue concerns the nature of the macroscopic models defined in plate or shell domains characterized by having a dimension (the thickness) several orders of magnitude lower than the other representative in-plane dimensions. This fact, even if it is not a major conceptual issue, is a real nightmare for simulation purposes. This situation is not new, plate and shell theories were successfully developed many years ago and still are ; they were also intensively used in structural mechanics. These theories make use of some kinematic and static hypotheses to reduce the 3D nature of mechanical models to 2D reduced models defined in the shell or plate middle surface. In the case of elastic behaviors the derivation of such reduced models is quite simple and it constitutes the foundations of classical plate and shell theories. Today, most commercial codes for structural mechanics applications propose different types of plate and shell finite elements, even in the case of multilayered plates or shells composites.

However, in composites manufacturing processes the physics encountered in such multilayered plate or shell domains is much more rich, because as previously indicated it involves chemical reactions, crystallization and strongly coupled thermomechanical behaviors. The complexity of the involved physics makes the introduction of pertinent hypotheses to reduce the dimensionality of the model from 3D to 2D impossible. In that case a full 3D modeling is compulsory, and because the richness of the thickness' description (many coupled physics and many plies differently oriented) the approximation of the fields involved in the model needs thousands of nodes distributed along the thickness direction. Thus, full 3D descriptions involve thousands of millions of degrees of freedom that should be solved many times because of the history dependent thermomechanical behavior. Moreover, when we are considering optimization or inverse identification, many direct problems have to be solved in order to reach the minimum of a certain cost function. In the case of inverse analysis such cost function is the difference between the predicted and measured fields.

An other important issue encountered in the simulation of composites manufacturing is the one related to the process control and optimization. In general, optimization implies the definition of a cost function and the search of the optimum process parameters defining the minimum of that cost function. The process starts by choosing a tentative set of process parameters. Then the process is simulated by discretizing the associated model. The solution of the process model is the most costly step of the optimization procedure. As soon as the solution is available, the cost function can be evaluated and its optimality checked. If the chosen parameters do not define a minimum (at least local) of the cost function, the process parameters should be updated and the solution recomputed. The procedure continues until reaching the minimum of the cost function. Obviously, nothing ensures that such minimum is global, so more sophisticated procedures exist in order to explore the domain defined by the parameters to escape to local minimums traps. The parameters updating is carried out in a way ensuring the highest variation of the cost function, i.e. in order to move along the direction of the cost function gradient. However, to identify the direction of the gradient one should compute not only the fields involved in the process model but also the derivatives of such fields with respect to the different process parameters. The evaluation of these derivatives is not in general an easy task. Conceptually, one could imagine that by perturbing slightly only one of the parameters involved in the process optimization and then solving the resulting model, one could estimate by using a finite difference formula, the derivative of the cost function with respect to the perturbed parameter. By perturbing sequentially all the parameters we could have access to the derivatives of the cost function with respect to all the process parameters (also known as sensibilities) and then defining the cost function gradient direction, on which the new trial set of parameters should be chosen. There are many strategies for updating the set of process parameters and the interested reader can find most of them in the books focusing on optimization procedures. Our interest here is not a discussion on optimization strategies, but only evidence the necessity to reduce the number of direct solutions of the process model. As we discussed in the previous paragraphs, the solution of the process model is a tricky task that demands important computational resources and usually implies extremely large computing times. Usual optimization procedures are inapplicable because they need numerous solutions of the problem defining the model of the process, one for each trial set of process parameters. The same issues are encountered when dealing with inverse analysis in which material or process parameters are expected to be identified from numerical simulation, by looking for the unknown parameters such that computed fields agree in minute with the ones measured experimentally.

Until now the getaway consisted in using the more and more powerful computing platforms (parallel and distributed computing architectures, the use of GPUs, the acceleration techniques based on the preconditioning of the algebraic systems obtained after discretization, the use of multigrid techniques or the ones making use of multidomains, among many others). But the verdict is implacable : all these techniques are not enough, neither today nor in the next decade, when the complexity of models approach the ones of industrial interest. The brute force approach is no more a valuable alternative and consequently new proposals are urgently needed.

One of these alternatives lies in the use of model reduction strategies. Model reduction is based on the fact that the solutions of many models contain much less information that the one a priori assumed when the discrete model was built.The solution of some models usually encountered in computational engineering and science only involves a reduced amount of information that can be extracted by applying the so-called Proper Orthogonal Decomposition -POD-. The main drawback in using such a strategy lies in the fact that some a priori knowledge is compulsory in order to define the reduced model that could then be applied for solving "similar" problems. However, because the POD leads to a separated representation of the problem's solution, this separated description could be postulated "a pirori" and then the functions involved in such decomposition calculated. This idea is the heart of the so-called Proper Generalized Decomposition -PGD-that we revisit in Section 2. Then, PGD will be applied to solve different problems encountered in composite structures manufacturing : process optimization, on-line process control and high resolution solutions of models defined in degenerated domains, that is, in plate or shell geometries.

Illustrating the Proper Generalized Decomposition of a generic parametric model

Imagine for example that you are interested in solving the heat equation but that you do not know the material's thermal conductivity, because it has a stochastic nature or simply because prior to solve the thermal model you should measure it. You have three possibilities : (i) you wait to know the conductivity before solving the heat equation (a conservative solution !) ; (ii) you solve the equation for many values of the conductivity (a sort of Monte Carlo) and then the work is done (a sort of brute force approach !) ; or (iii) you solve the heat equation only once for any value of the conductivity (the cleverest alternative !). Obviously the third alternative is the most exciting one. To compute this "magic" solution it suffices to introduce the conductivity as an extra coordinate, playing the same role than the standard space and time coordinates, even if there are no derivatives concerning this extra-coordinate. This procedure runs, very well, and can be extended to introduce many other extra-coordinates : the source term, initial condition, etc. It is easy to understand that after performing this type of calculations, a posteriori inverse identification or optimization can be easily handled, but we will come back to these potential applications later.

In what follows, we illustrate the construction of the Proper Generalized Decomposition [START_REF] Ladeveze | Nonlinear computational structural mechanics[END_REF][START_REF] Ammar | A new family of solvers for some classes of multidimensional partial differential equations encountered in kinetic theory modeling of complex fluids[END_REF][START_REF] Ammar | A new family of solvers for some classes of multidimensional partial differential equations encountered in kinetic theory modeling of complex fluids. Part II : transient simulation using space-time separated representations[END_REF] of the solution by considering the following simple parametric heat transfer equation :

∂u ∂t -kΔu -f = 0 [1]
where (x, t, k) ∈ Ω × I × , and for the sake of simplicity the source term is assumed to be constant, i.e. f = constant. Because the conductivity is considered unknown, it is assumed to be a new coordinate defined in the interval . Thus, instead of solving the thermal model for different values of the conductivity parameter we are introducing it as a new coordinate. Therefore, we solve a more general problem, but obviously the price to pay is the increase of the model's dimensionality. However, as the complexity of PGD scales only linearly (and not exponentially) with the space dimension, as we prove later, the consideration of the conductivity as a new coordinate still allows to obtain a fast and cheap solution. Thus, in this case, the solution of equation [1] is searched under the form :

u (x, t, k) ≈ i=N i=1 X i (x) • T i (t) • K i (k) [2]
To describe the PGD algorithm, we assume that the approximation at iteration n is already known :

u n (x, t, k) = i=n i=1 X i (x) • T i (t) • K i (k) [3]
and that at the present iteration we look for the next functional product X n+1 (x) • T n+1 (t) • K n+1 (k) that, to alleviate the notation, will be denoted by R (x) • S (t) • W (k). Before solving the resulting non linear model related to the calculation of these three functions, a model linearization is performed. The simplest choice consists in using an alternating-directions fixed-point algorithm. First of all, we proceed by assuming S (t) and W (k) given at the previous iteration of the non-linear solver and then computing R (x). From the just updated R (x) and the previously used W (k) we can update S (t). Finally from the just computed R (x) and S (t) we update W (k).

The procedure continues until reaching convergence. The converged functions R (x), S (t) and W (k) allow us to define all the needed functions :

X n+1 (x) = R (x), T n+1 (t) = S (t) and K n+1 (k) = W (k).
The interested reader can refer to [START_REF] Chinesta | Recent advances in the use of the Proper Generalized Decomposition for solving multidimensional models[END_REF] and the references therein for more details on the functional constructor.

Discussion

The construction of each term in Equation [2] needs a certain number of iterations because of the non-linearity of the problem related with the approximation given by Equation [2]. Denoting by m i the number of iterations needed to compute the i-th sum in Equation 2], let m = i=N i=1 m i be the total number of iterations involved in the construction of the separated approximation, Equation [2]. It is easy to note that the solution procedure involves the solution of m 3D problems related to the construction of the space functions X i (x), i = 1, • • • , N ; m 1D ordinary differential equations related to the construction of functions T i (t) and, finally, m diagonal linear systems related to the definition of functions K i (k). In general m rarely exceeds ten. On the other hand, the number N of sums needed to approximate the solution of a given problem depends on the solution's regularity itself, but all the experiments carried out until now reveal that this number ranges from a few tens to slightly more than one hundred. Thus, we can conclude that the complexity of the solution procedure is of some tens of 3D solutions (the cost related to the one dimensional problems being negligible in respect to the one related to the 3D problems). On the contrary, if we follow a classical approach, we should solve a 3D problem at each time step and for each value of the parameter k. In usual applications, the complexity can easily reach millions of 3D solutions. The CPU time saving, by applying the PGD, can be of several orders of magnitude.

Note also that another possibility exists :it consists in the separation of the threedimensional physical space into a sequence of one-dimensional ones :

u (x, t, k) ≈ i=N i=1 X i (x) • Y i (y) • Z i (z) • T i (t) • K i (k) [4]
This possibility reduces drastically the complexity mentioned before, allowing to solve models involving hundreds of dimensions and the equivalent of 10 300 degrees of freedom (Ammaret al., 2007) in a few minutes using a standard laptop. Techniques to cope in this framework with non-paralelepipedic domains have been analyzed in Gonzalez et al. (2010).

The models involving moving discontinuities or hyperbolic equations could involve non-separable solutions. In that case the procedure just described converges towards the full tensor product of the bases considered in each space, that is, to the solution that would be computed by using a standard mesh based strategy. In these cases the use of the PGD technology doesn't represent nay advantage.

Application to processes optimization

Off-line construction of the parametric solutions

In what follows we consider a generic model involving the space and time coordinates (x, t) ∈ Ω × I, Ω ⊂ R 3 and I ⊂ R :

L(u(x, t)) = F [5]
where the unknown fields depend of a set of parameters

p 1 , • • • p M .
Optimizing the model consists of determining the best set of parameters able to minimize a certain physically derived cost function. To perform such optimization one could consider different values of the parameters and then solve the resulting model. However, optimization or inverse identification needs many solutions, and then when the number of the parameters involved in the model increases, standard approaches fail to compute optimal solutions in a reasonable computing time. In this case defining "on-line" optimization or inverse analysis is a challenging issue and in all cases real time remains unreachable.

Our proposal is to introduce all the process parameters p 1 , • • • p M as extra coordinates, and then to compute the field u at each point and time and for any possible value of the model parameters, u(x, t, p 1 , • • • p M ). As soon as this multidimensional solution is available, we could try to particularize it for any value of the process parameters without the necessity of further solutions. Thus, optimization procedures can proceed from the only knowledge of an "off-line" pre-computed parametric solution.

To circumvent the curse of dimensionality related to the high dimensional space in which the solution u(x, t, p 1 , • • • p M ) is defined we consider a separated representation of that field :

u(x, t, p 1 , • • • p M ) ≈ i=N i=1 X i (x) • T i (t) • P 1i (p 1 ) • • • P M i (p M ) [6]
where all the functions involved in such separated representation are computed by applying the Proper Generalized Decomposition technique widely described in Section 2.

From "off-line" optimization to "on-line" control strategies

Optimization procedures look for optimal parameters minimizing an appropriate single or multi objective cost function (sometimes subjected to many constraints). In this work we consider a simple scenario, in which the cost function reads :

C(p 1 , • • • , p M ) = 1 2 i=Q i=1 (u (x i , t i , p 1 , • • • , p M ) -ũi ) 2 [7]
Now, the optimal process parameters p op 1 , • • • , p op M must be calculated by minimizing the cost function. There exist many techniques to look for such minimization, the interested reader can refer to any book on optimization. Many of them proceed by evaluating the gradient of the cost function and then moving on that direction. The gradient computation involves the necessity of performing first derivatives of the cost function with respect to the process parameters. Other techniques need computing second derivatives.

When using separated representations involving the process parameters as extracoordinates, this task is quite simple because as the solution depends explicitly on the parameters, its derivation is straightforward :

∂u(x, t, p 1 , • • • p M ) ∂p j ≈ i=N i=1 X i (x) • T i (t)• •P 1i (p 1 ) • • • P j-1 i (p j-1 ) ∂P j i (p j ) ∂p j • P j+1 i (p j+1 ) • • • P M i (p M ) [8]
and similarly for the second derivatives. The calculation of the solution's derivatives is a tricky point when proceeding from standard discretization techniques because the parametric dependency of the solution on the parameters is not explicit.

By computing off-line the parametric solution, and then minimizing on-line cost functions, one could control real time processes. In this section we consider the tape placement process. The process consists in considering two initial plies whose interface is heated by using a heat source that moves along the interface while a heated roller moving with the heat source press both plies ensuring the adhesion. After welding both plies, the process is repeated to add a third ply and so on until applying all the plies composing the laminate.

Thus, the process involves different thermal cycles. In practice between two consecutive cycles the temperature reaches the ambient one, fact that allows to decouple the different thermal cycles. Thus, the computation of the thermal history requires solving the different scenarios depicted in Figure 1.

If we denote by θ i the orientation of ply i and by R i the contact thermal resistance due to an imperfect adhesion of the plies, one could compute off-line the parametric solutions related to each laminate consisting of L plies, with N ≥ L > 1 :

u(x, t, θ 1 , • • • , θ L ; R 1 , • • • , R L-1 ), L = 2, • • • , N [9]
The solution for a particular orientation of the different plies can be obtained by particularizing the above solution. Thus, a single multidimensional solution suffices to cover all the possible laminates.

The thermal history at a certain position x results from the superposition of the contributions related to each laminate L = 2, • • • , N. Knowing the thermal history, we could compute the thermal induced stress σ 0 (x) that will be introduced as an initial stress field to solve the mechanical model at the structure level. The efficient 3D solution of the resulting mechanical modeling is addressed in the next section.

Mechanical structural analysis

In this section, we apply the PGD to the simulation of the thermomechanical models defined in plates-shaped domains. The PGD method allows us to separately search for the in-plane and the out-of-plane contributions to the full 3D solution, allowing significant savings in computing time and memory resources.

In an attempt of solving full 3D models keeping a 2D complexity in regard to the computing cost, we use the Proper Generalized Decomposition -PGD -widely described in previous sections, by assuming a separated representation of the displacement field where u xy (x, y), v xy (x, y) and w xy (x, y) are functions of the in-plane coordinates whereas u z (z), v z (z) and w z (z) are functions involving the thickness coordinate.

Because neither the number of terms in the separated representation of the displacement field nor the dependence on z of functions u i z (z), v i z (z) and w i z (z) are assumed a priori, the approximation is flexible enough to represent the full 3D solution, being obviously more general than the classical plate theories that assume particular a priori behaviors in the thickness direction.

The separated representation solution converges towards the solution obtained by using a full tensor product of the approximation bases defined by the in-plane and thickness approximation basis, similar to a full 3D finite element discretization, enabling fast and accurate solutions of problems unapproachable in practice by using the more experienced finite element method.

Conclusions

The simulation of composites manufacturing processes remains today a challenging issue despite the recent impressive progresses in computational resources. The simulation of processes of industrial interest needs the proposal of advanced numerical strategies, radically different to the ones until now widely used, usually based on finite element, finite difference or finite volumes discretizations.

In this work we explored the potentiality of techniques based on model reduction, and in particular those making use of the so-called Proper Generalized Decomposition.

Figure 1 .

 1 Figure 1. Tape placement : illustration of the different thermal cycles experienced at a certain position

  (x, y) • u i z (z) v i xy (x, y) • v i z (z) w i xy (x, y) • w i z (z)

This technique allows circumventing the curse of dimensionality when addressing models defined in high dimensional spaces. We proved that it could constitute a real breakthrough for addressing shape or process optimization as well as inverse analysis.

On the other hand thanks to the separated representation that the PGD uses, full 3D solutions in plate domains could be achieved by separating the in-plane and out-ofplane (thickness) coordinates. Thus full 3D solutions could be computed by keeping a 2D computational complexity.

Thanks to this novel approach we solved models never until now solved, without the necessity of using powerful computing platforms. Many solutions can be achieved by using Matlab and a laptop, and even light computing devices, as for example smartphones.

Model reduction strategies open new promises in the field of simulation of composites manufacturing processes. It is too early to define the possibilities and the limitations of such an approach. In any case, the first balance seems very positive and it encourages further developments.

The comparison between numerical predictions and the experimental industrial data is a work in progress.


Tara Nair

Addressing Financial Exclusion in France and India: A Review of Strategies and Institutions

Keywords: India, France, financial exclusion, banks, microcredit, indebtedness

Despite the significant differences with respect to coverage of bank accounts, India and France have experienced exclusion of large sections of the population from banking and financial services. While India has been trying to accelerate the pace of coverage of bank accounts through several initiatives, France has been fighting to bridge the gap between extensive coverage of bank accounts and limited access to banking services with the help of institutional arrangements within and outside the banking sector. In India the recent policies have opened up avenues for players like MFIs and technology-driven businesses to be part of the mainstream financial inclusion drive. The drive towards greater private participation in financial activities is visible in France too, despite the country's rich history of solidarity based approaches to social inclusion and constitutional right granted to its citizens to hold bank accounts. The experience of France clearly shows that ensuring the right to have bank accounts by itself will not lead to inclusive banking or increased financial capability of individuals, especially, the economically vulnerable.

Les Working Papers et les Position Papers de la Fondation Maison des sciences de l'homme ont pour objectif la diffusion ouverte des travaux en train de se faire dans le cadre des diverses activités scientifiques de la Fondation : Le Collège d' études mondiales, Bourses Fernand Braudel-IFER, Programmes scientifiques, hébergement à la Maison Suger, Séminaires et Centres associés, Directeurs d'études associés... Les opinions exprimées dans cet article n' engagent que leur auteur et ne reflètent pas nécessairement les positions institutionnelles de la Fondation MSH.

The Working Papers and Position Papers of the FMSH are produced in the course of the scientific activities of the FMSH: the chairs of the Institute for Global Studies, Fernand Braudel-IFER grants, the Foundation's scientific programmes, or the scholars hosted at the Maison Suger or as associate research directors. Working Papers may also be produced in partnership with affiliated institutions.

The views expressed in this paper are the author's own and do not necessarily reflect institutional positions from the Foundation MSH.

S'attaquer à l'exclusion financière en France et en Inde : Une étude des stratégies et des institutions

Résumé

Malgré les différences importantes quant à la couverture des comptes bancaires, l'Inde et la France ont été victimes de l' exclusion de larges segments de la population des services bancaires et financiers. Alors que l'Inde tente d'accélérer le rythme de couverture des comptes bancaires par le biais de plusieurs initiatives, la France s' efforce de combler le fossé entre la couverture étendue des comptes bancaires et l'accès limité aux services bancaires grâce à des arrangements institutionnels au sein et en dehors du secteur bancaire. En Inde, les politiques récentes ont ouvert des voies aux acteurs de la microfinance et aux entreprises axées sur la technologie pour faire partie de la campagne d'intégration financière. La tendance à une plus grande participation du secteur privé aux activités financières est également visible en France, en dépit de la riche histoire des approches solidaires de l'inclusion sociale et du droit constitutionnel accordé à ses citoyens de détenir des comptes bancaires. L' expérience de la France montre clairement qu'assurer le droit d'avoir des comptes bancaires personnels ne conduira pas à un système bancaire inclusif ou à une capacité financière accrue des individus, en particulier des personnes économiquement vulnérables.

Mots-clefs

Inde, France, exclusion financière, banques, microcrédit, endettement A Review of Strategies and Institutions

5/22

Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017 T he modern development theories consider imperfections in financial markets as major factor that influences human development and labour market outcomes. The ability of poor households to invest in human capital augmenting activities like schooling of children or making medical treatment available to earning members depends on their ability to mobilize financial resources timely and at affordable costs. Similarly, access to finance critically influences the capacity of entrepreneurial individuals from these households to initiate micro enterprises or income generating activities. In other words, financial development is important not only from the point of view of efficient economy-wide resource allocation, but also from the angle of ensuring comparative economic opportunities for individuals (The World Bank, 2008). This indeed is a departure from the earlier belief that some degree of inequality is inevitable for growth and, hence, a trade-off between growth and social justice, especially, in the initial stages of development is almost inevitable [START_REF] Kuznets | Economic Growth and Income Inequality[END_REF]. Growth requires substantial investment resources that are generated out of the savings of the rich, who have a higher marginal propensity to save than the poor. Growth-centric economic policies necessarily spur social inequality, which necessitate governments' intervention in designing appropriate redistributive public policies to counter the negative effects of wealth concentration.

The more recent theories have put access to financial services at the core of the development process. They have argued that well-functioning financial systems can be inclusive in that they can offer savings, payments, and risk-management products to a variety of households and enterprises including that of the poor. Also, good growth opportunities are available at every stratum of the economic pyramid and financial resources only need to seek them out. Departing significantly from the earlier wisdom of an inherently iniquitous financial market spurring growth, these theories have argued that the major cause of the perpetuation of inequalities is lack of access financial markets for all. [START_REF] Galor | Income Distribution and Macroeconomics[END_REF] showed that in the presence of credit market imperfections and indivisibilities in investment in human capital, the initial distribution of wealth affects aggregate output and investment in short and long terms. Due to frictions in the financial market poor people cannot invest in their education despite their high marginal productivity of investment.

Studies by [START_REF] Banerjee | Occupational Choice and the Process of Development[END_REF] and [START_REF] Aghion | A Trickle-Down Theory of Growth and Development with Debt Overhang[END_REF] also pointed to the exclusionary impact of credit constraints in the presence of informational asymmetries. In such situations credit constraints become particularly binding on the poor who lack the necessary endowments -equity, collateral, or social capital -to set up their own projects by accessing bank credit. The constraints in the credit market not only are exclusionary in an ethical sense, they also arrest the course of economic growth "by keeping capital from flowing to its highest value use, a poorly functioning financial system will also produce higher income inequality by disproportionately keeping capital from flowing to "wealthdeficient" entrepreneurs" [START_REF] Levine | Finance and Growth: Theory and Evidence[END_REF]. [START_REF] Haber | The Politics of Property Rights: Political Instability, Credible Commitments, and Economic Growth in Mexico, 1876-1929[END_REF] and Rajan and Zingales (2003), among others, also established that well-functioning financial systems can be inclusive in that they broad-base access to financial services rather than patronise 'entrenched incumbents'. The crux of the process, according them, lies in ameliorating information and transactions costs.

Experience the world over, however, shows that financial market development more often than not benefits major economic actors, mostly large firms, wealthy households and the state apparatus. The disadvantaged segments including poor households, micro enterprises, and socially marginalized communities tend to be bypassed by the developments in the financial markets because of cultural factors, information deficit on the part of the excluded segments, and inadequate capacity on the part of financial institutions to deliver products and services appropriate to these segments. Hence, in order to converge the goals of financial sector development and financial inclusion it is important that special strategies are designed to address the question of access to financial services for the poor and low-income population.

Several European countries have experimented with innovative approaches to include the poor and disadvantaged sections in their financial sector development agenda. These efforts have ranged from building partnerships with non-government organizations to establishing postal banks, setting up credit guarantee funds for microenterprises and recognizing the right to a bank account of all citizens. The lessons from these experiments can immensely inform the bank-led financial inclusion phase that is steadily unfolding in India. It is true that strategies of financial inclusion developed to suit the peculiar contextual factors in distinct countries may not easily be transplanted to others. However, national strategies could build on the lessons learned in other country contexts and the resulting considerations of good practices.

In this paper an attempt is made to analyse in a comparative perspective the nature and extent of financial exclusion in India and France and review the institutions, policies and practices developed in both the countries to redress the phenomenon. The paper is divided into 4 sections. Section 1 presents an overview of the definition financial inclusion followed in India and France as also the broad indicators. In sections 2 and 3, respectively, the cases of India and France are discussed in detail, with specific focus on the extent of financial exclusion and the major institutional initiatives that have been evolved to counter it. Some conclusions based on the experiences of the countries are provided in section 4.

Defining Financial Inclusion

In one of the earliest attempts to describe financial exclusion Leyshon and Thrist (1995) defined it as "those processes that prevent poor and disadvantaged social groups from gaining access to financial system. It has important implications for uneven development because it amplifies geographical differences in levels of income and economic development" (p.312). According to the European Commission (2008), financial exclusion refers to 'a process whereby people encounter difficulties accessing and/or using financial services and products in the mainstream market that are appropriate to their needs and enable them to lead a normal social life in the society in which they belong (p 9). Lack of access to mainstream financial services and the existence of barriers to their effective use define the phenomenon of financial exclusion according to these definitions.

The Reserve Bank of India (RBI) has defined financial inclusion as the "Process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular, at an affordable cost in a fair and transparent manner by regulated, mainstream institutional players" [START_REF] Chakrabarty | Financial Inclusion in India: Journey So Far and Way Forward[END_REF]. This definition emphasises that only the mainstream, regulated financial players are capable of bringing about meaningful financial inclusion as they have the ability to make the necessary investment in the build-up phase, to cross-subsidize the services in the initial stages till they become self-sustaining and to offer the entire suite of products to facilitate meaningful financial inclusion.

The Global Findex database 1 provides comparative statistics relating to different indicators of financial inclusion for India and France. As evident from Table 1, almost half of the adult population (above 15 years of age) India does not have bank accounts and, hence, are unable to engage in formal financial transactions involving banks. In the case of France, the percentage of population without bank account is only 3 per cent. Even among the poorest 40 per cent of the population, as high as 94 per cent have accounts in France. In India only 44 per cent of the bottom poorest population has bank accounts. Importantly, between 2011 and 2014, India has dramatically improved the share of population with bank accounts -from 35 per cent to 53 per cent. In the case of France there has been marginal decline in this percentage.

There is virtually no gender difference in account holding in France, while in India the difference is significant. Women with accounts form about 43 per cent as against 63 per cent men. However, the gender gap has come down perceptibly between 2011 and 2014 for India and increased marginally for France.

As regards borrowings, it is interesting to note that in France, the country that has almost universalized bank accounts, only 15 per cent of the population has borrowed from a financial institution. Moreover, between 2011 and 2014 this percentage has declined by close to 4 percentage points. The decline is more pronounced in the case of males. In India with much lower bank account penetration, 6 per cent of the population had borrowings from a financial institution 1. The Global Financial Inclusion Database provides 800 country-level indicators of financial inclusion summarized for all adults and disaggregated by key demographic characteristics-gender, age, education, income, and rural residence. Covering more than 140 economies, the indicators of financial inclusion measure how people save, borrow, make payments and manage risk.

Case of India

Financial Exclusion: Nature and Extent

Several estimates have shown that the access to banking by adult population in the country is far from satisfactory. The Census of India provides some idea about the percentage of households that avail banking service. A comparison of 2001 and 2011 data suggests that the share of banked households increased from 36 per cent to 59 per cent over the decade (Table 2). The increase in the share was more in the case of rural householdsfrom 30 per cent to 54 per cent -as compared to urban households (from 49 per cent to 68 per cent). Bank, 2014;[START_REF] Demirguc-Kunt | The Global Findex Database 2014: Measuring Financial Inclusion around the World[END_REF]. With high dormancy rate of 43 per cent, the country is home to about 42 per cent of all dormant accounts in the world. The gender gap in account holding is also significant; only 43 percent of the women have bank accounts as against 63 per cent men. Apart from regional dimension, distribution of banking resources also has sectoral dimension. There has been a general crisis in formal rural credit to livelihood activities relevant to small producers (small and marginal farmers, micro producers) despite the general expansion of overall business of commercial banks in the country.

Institutional Initiatives to Address Financial Exclusion

Financial exclusion has been an important 'development concern' in India since the late 1960s. Since them banks have been directed to assume a 'social banking approach' by extending progressively to rural areas as also support the fiscal system in delivering directed credit-subsidy programmes to the designated target groups. Several initiatives followed through the 1980s, 1990s and 2000s.

The approach to financial inclusion until 1990 stressed the involvement of the formal financial sector, which was translated into measures such as bank nationalization (1969,1980), introduction of lead bank scheme (1969) and service area approach (1989), incorporation of regional rural banks (1975), setting up of specialised apex agencies (AFC [1968], NABARD [1982], SIDBI [1990] etc.), and recapitalisation of cooperative banks to make them stay afloat. Since the early 1990s (the time when banking reforms ushered), the approach changed somewhat to foster growth of an informal institutional system within the financial sector. The SHG bank linkage model and support to microfinance institutions could be seen as exemplifying this approach. Since the mid-2000s, the state directed programme of bank linked financial inclusion has come to be the official financial inclusion approach of India.

The bank nationalization in the 1960s and 1980s helped broad-base the banking network in the country, especially, among the rural populations. But the banking reform measures introduced from around the early 1990s somewhat arrested the pace of advance of branch-led social banking phase (Nair and Tankha, 2015). The self-help group (SHG)-bank linkage programme generated considerable hype in the 1990s, but it largely concerned women and their groups. Since the objective of the programme was to help the poor to collectively build their savings, which could then be leveraged for bank credit, individual banking engagement was not considered a priority. Even when the programme expanded its reach to several regions, only a minuscule proportion of ordinary women members got the opportunity to directly deal with commercial banks or learn about commercial banking.

Innovation in Pro-poor Banking -Microcredit Initiatives

A distinct phase of financial inclusion was ushered around the early 1990s in the midst of significant changes in the policy outlook regarding banking. The subsequent decade and half have witnessed the emergence of several innovative institutional arrangements in the financial services sphere, especially, in rural areas, guided by the imperatives of economic liberalization (Nair, 2015). These innovations mainly aimed at externalizing the economic burden of extending outreach that the banks have been made to internalize during the previous decade. The major approach to achieving this has included linking banks up with informal institutions such as SHGs and MFIs, who mobilise poor households, aggregate small demands and manage timely repayment.

The documentation done by NABARD in the late 1980s of groups that work on the principle of self-help summarised their key attributes of success as homogeneity of members in terms of caste and economic activity, trust-based lending, informality in working, democratic decision making based on deliberation and collective consensus, creation of common funds out of savings, internal lending, small loan size, provision of loans in successive dozes and small amounts, exclusive women membership and involvement in development agencies in formation and promotion of groups (NABARD, 1989). The SHG bank linkage programme (SBLP) anchored by NABARD generated considerable momentum since the mid-1990s as a hybrid credit delivery strategy to serve the needs of the rural poor, which combines 'the flexibility, sensitivity and responsiveness of the informal credit system with the strength of technical and administrative capabilities and financial resources of the formal credit institutions' 2 . The objective of the programme as envisaged in the guidelines is to help the poor to collectively build their savings, which could then be leveraged for bank credit. The pace of SBLP particularly The progress of SBLP has remained significantly skewed towards the southern states, which are better-off in terms of banking resources endowment and income per capita, whereas the states that have higher proportion of poor population have made slow progress in bank linkage of SHGs. It may be noted that spread of banking has historically been lopsided with the states in southern, northern and western regions accounting for most of the bank branches as compared to those in the north-eastern, central and eastern regions. This disparity had worsened since the mid-1990s [START_REF] Kumar | Bank Penetration and SHG-Bank Linkage Programme: A Critique[END_REF].

SBLP being a group-based approach to bank linkage, individual banking engagement was not considered a priority within the programme.

Even as the programme expanded its reach to several regions, only a minuscule proportion of ordinary women members got the opportunity to directly deal with commercial banks or learn about commercial banking. This has eventually led to a situation where thousands of women SHG members have been counted out of the financial inclusion calculus as they do not own individual bank accounts. This is despite the fact that the small thrifts of these women have made their way to the banks in the form of collective savings of SHGs. For most of the bankers, poor women's savings kept with them come handy when a group defaults on loan repayment. In other words, for them these savings function as security deposits that reduce lending risk.

Parallel to the SBLP, the microfinance institutions model or MFI model has also been in operation since the early 1990s. The early stage MFIs were all non-profits. Starting from early 2000s, most of them have transformed into for-profit non-banking finance companies (NBFC) mainly to diversity and expand capital base to achieve faster growth. These MFIs did grow at dramatic rates through the first half of 2000s expanding their client base across several states, though southern India remained their major bastion. Despite a slew of crises mainly in the state of Andhra Pradesh that nearly damaged their pro-poor image, MFIs could continue their growth story, thanks to the collective efforts of sector networks and continued bureaucratic patronage. The RBI recognized NBFC-MFIs as a special class of nonbanking companies in 2011 and granted banking license to one of the largest MFIs -Bandhan -in 2014. In 2015 the apex bank extended inprinciple license to eight more MFIs to transform to small finance banks, the niche bank category introduced in 2014. Thus unlike the SBLP, through definite policy measures, commercial microfinance model has been co-opted into the larger institutional canvas of financial inclusion.

Bank-led Financial Inclusion

Mission: Role of the Government and the Central Bank It was around the mid-2000s that bank-cantered financial inclusion became a focused and structured project led by banks and actively supported by the state. In terms of design and approach the financial inclusion drive started around the mid-2000s and accelerated towards the end of the decade has been significantly different from the social banking phase that lasted till the early 1990s. While the central government took initiatives to spatially reach out to un-banked and under-banked regions, the RBI, on its part, focused on expanding the scope of competition in the banking space to accelerate financial inclusion 3 .

Government Strategy

In 2006 the central government appointed the Committee on Financial Inclusion (Chairman: C. Rangarajan) to suggest strategy to deal with financial exclusion after studying the patterns of exclusion from financial services of vulnerable sections of population and the barriers they confront to accessing credit and financial services. It was also asked to draw some lessons from international experiences (GoI, 2008). The Committee defined financial inclusion as "the process of ensuring access to financial services and timely and adequate credit where needed by vulnerable groups such as weaker sections and low income groups at an affordable cost" (ibid: 3). Its recommendations were founded on the position that banking services are in the nature of public good and, hence, financial inclusion should be viewed as availability of banking and payment services

RBI Strategy

As mentioned earlier, the central bank's approach to financial inclusion has come to rest predominantly on enhancing banking competition among public and private sector banks rather than branch expansion of existing ones. In 2009 the Committee on Financial Sector Reforms (2009; Chairman: Raghuram Rajan) suggested the setting up of small finance banks in the private sector to cater to the small-sized and excluded segments by providing them with both savings and credit products (GoI, 2009). RBI brought out a discussion paper in 2013, titled 'Banking Structure in India -The Way Forward' wherein the idea of small banks was underscored and their potential role in accelerating financial inclusion, reemphasized. The paper indicated that overall a differentiated banking system with distinct tiers of banking institutions -international, national, regional, and local -would serve the purpose of financial inclusion more effectively. Financial Services for Small Businesses and Low Income Households (2014; Chairman: Nachiket Mor), which provided plausible designs of a differentiated banking system in its report (RBI, 2014). The Committee identified a few designs as relevant in the Indian context for the provision of payment/savings services as also provision of credit. For the former, the recommended banking designs included national banks operating through branches or through agents, regional Banks, payment network operators (PNO), and payment banks. On the credit front, national banks operating as branch-based lenders or working through agents, wholesale banks, consumer banks, and regional banks operating through branches have been recommended.

These recommendations substantively informed the vision of the central bank for initiating the movement towards a differentiated banking structure and formed the basis for a set of guidelines issued by the RBI in November 2014 for setting up of two new classes of banks: payments banks and small finance banks. The primary objective of small banks (with minimum paid-up equity capital of Rs. 1 billion) is to further financial inclusion by (i) provision of savings vehicles primarily to unserved and underserved population sections, and (ii) supply of credit to small business units, small and marginal farmers, micro and small industries, and other unorganised sector entities, through high technology-low cost operations. As for the payment banks, they would be required to provide payments and/or remittance services to migrant labour workforce, low income households, small businesses and other unorganised sector entities 6 . Both small and payments banks are expected to develop operational models that are high on technology and low on costs.

In August 2015 'in-principle approvals' were granted to 11 out of the 41 applicants to set up payment banks. This was followed by granting approval to 10 applicants (out of 72) to establish small finance banks in September At the same time, credit flow to small economic players might improve significantly as the small banks evolved out of MFIs start their lending operations 8 .

The above measures have ushered a phase of transformation in Indian banking system in line with the recommendations of experts and advocates of market-led financial sector development and differentiated banking structure. How in reality these reforms would pan out as inclusive banking strategies will be a subject matter of close and systematic scrutiny in the coming years.

Financial Inclusion and Distribution of Entitlements

The agenda of direct transfer of subsidies to beneficiaries of government schemes has become the mainstay of bank-led financial inclusion. It may be noted that since 2008 the central government, followed by several state governments, has been experimenting with linking of social safety net programmes (NREGS wages, scholarships, pensions, health benefits and other types of income support) to banks in an effort to ensure that benefits and payments flow transparently to the right targets without wastage, duplication and leakages 9 . The identification infrastructure of Aadhar and the electronic fund transfer technology together were to form the backbone of the basic architecture of the direct benefit transfer (DBT) system (Government of India, 2012 solution framework for the direct transfer of subsidies to beneficiaries, and made specific recommendations for household fuel and fertilizer subsidies. "Just as a real-time transfer of funds takes place when people top up their mobile talk time, the Government, through the CSMS will transfer the cash component of subsidies directly and in real-time to the bank accounts of beneficiaries.

Beneficiaries may then access these funds through various banking channels such as bank branches, ATMs, business correspondents, internet, and mobile banking. Achieving full financial inclusion is crucial for direct transfer of subsidies" 10 .

The current approach to financial inclusion has come to rest almost singularly on the platform of 'JAM number trinity'-Jan Dhan, Aadhaar, Mobile -which it considers would offer "exciting possibilities to effectively target public resources"…"allow prices to be liberated to perform their role of efficiently allocating resources and boosting long-run growth" (Government of India, 2016: 21). The philosophy of growth that underlies this conviction is all too evident. As the Economic Survey of 2015 puts it, "Economic growth is good for the poor, both directly because it raises incomes and because it generates resources to invest in the public services and social safety nets that the poor need. Growthand the prospects and opportunities that it brings -also encourages individuals to invest in their own human capital…However, growth must be complemented with effective state-delivered programs that raise the living standards of the most vulnerable in society. To be successful, antipoverty programs must recognise that policies shape the incentives of individuals and firms, and also acknowledge the limited implementation capacity of the state to target and deliver public services to the poor" (p.22).

The squarely placed on the rather mundane details of technical and managerial solutions, the politically informed debates around the deep-rooted structural bottlenecks perpetuating marginalization and exclusion of regions and populations in social and economic spheres seem to have lost their salience.

As per the data presented in 2016 Economic Survey (Government of India, 2016), a fifth of the country's population received some cash transfer into their bank accounts in 2014-15. A total of Rs. 440,350 million has thus been transferred to 296 million individual accounts. MGNREGA constituted 41 per cent of these transfers, followed by LPG subsidy (37 per cent) and National Social Assistance Programme (14 per cent). The 29 scholarship programmes formed 7 percent of the cash transfer. Bank linked benefit transfers, to a large extent, have helped the state address problems of leakage and corruption rampant at the level of delivery and access.

Progress of Bank-led Financial Inclusion

An overall review of the progress of bankled financial inclusion reveals that the parameters of spread in banking have indeed changed over 2010-15 due to the concerted efforts of the state and the banking sector (Table 4). The progress made in spreading banking infrastructure has been highly impressive relative to the status in 2010. The expansion in rural coverage has largely been through branchless mode. The total number of outlets including ATMs and kiosks rose by about 470,000 over 2010-15. About 325 million Basic Savings Bank Deposit Accounts were added over this period, 54 per cent of them through business correspondents. The matter of concern, however, is the apparent low utilization of these facilities. This is reflected in the low volumes of actual transactions in the accounts created.

Case of France

Overview of Financial Exclusion

The According to the Manifesto, while vast majority of the population in the county has a bank account and 'modern' means of payment, there is considerable inequality in the use of banking products and services. The state claimed that it had achieved banking accessibility by 2010 in a ministerial report 14 , based solely on the statistics relating to issuance of accounts 15 . Thus it may appear that the country's position is ideal with 99 per cent poor households had deposit accounts. However, the more critical fact is that only 81 per cent had access to any payment cards compared to 93 per cent in the population. In terms of usage, a quarter of the poor households still made payments in cash (as against 8 per cent overall population) and another quarter had never used cards.

More importantly, the Manifeso noted that nearly 1.7 million individuals were banned from banking in the country as in 2010 as their debt levels were high. The repayment due from them amounted to $2.5 million. The number of cases of over-indebtedness filed annually with the Bank of France increased steadily since the 1990s, averaging about 200,000 in 2010. At the end of September 2010, more than 780,000 households were in the process of getting deleveraged. Importantly, 82 per cent of indebtedness cases reported in 2010 involved revolving credits. Some of the recent research has expressed anxiety over the imminent emergence of new facets of social insecurity in France thanks mainly to the efforts at restructuring the economy (Caisses d'Epargne, 2011). The proposal to reform labour laws has become a major source of anxiety and disaffection among a section for its anticipated negative impact on labour security y. It is argued that the general rise in inflation and the ever increasing cost of living has already made survival difficult for people with modest means. New categories of vulnerable individuals have emerged including young people, elderly, and poor workers, who require the services of social service organisations. They are added to the ranks of non-bankable eventually.

In its study exploring the causes of over-indebtedness in the country, Banque de France ( 2014) reconfirmed 'the multi-causal nature of over indebtedness, which combines -in variable proportions according to the profiles identifiedvulnerability factors linked to the personal and professional circumstances of the persons in question and behavioural factors relating to the management of household income and expenditure and the use of credit' (p.11). The study also emphasised the impact of external shocks resulting from unexpected life events (loss of the borrower's or spouse's job, illness or accident of the borrower or a related person). More often than not over-indebted households run with constrained budgets and unpredictable events contribute to the deterioration of their existing vulnerability.

The study has profiled the over-indebted households with several parameters (Table 5). The paradox of access and use of banking services clearly show that only access criteria are not sufficient to measure the level of banking inclusion as the possibility of having a bank account, a payment option, or credit line is not enough to enable an individual to lead a normal life in society with dignity. Over-indebtedness and nonuse of bank accounts are important aspects of exclusion, which cannot be examined in isolation.

Measures to Counter Banking Exclusion

The publication of the Manifesto was succeeded by several initiatives aimed at reducing social and banking exclusion. The Manifesto was also instrumental in the creation of the 'Observatory of Banking Inclusion' (OIB) as part of the Law of 26 July 2013 with the mission to follow the practices of credit institutions in banking inclusion, especially, with regard to people in financial fragility 16 . Chaired by the Governor of the Banque de France, the observatory brings together representatives of governments, credit institutions and consumer associations to fight against exclusion. The Government enacted La loi Consommation (the Law of Consumption) in March 2014 that protects financially fragile consumers and ensure them access to information to make proper choices 17 . Further, in June 2014 the French President launched a special drive 'La France s' engage' ('France Commits'), which is an experimental fund to finance social and solidarity economy initiatives 18 . One of the 15 initiatives identified is l'Appui ('the Support'), an advisory and banking support platform created by la Banque Postale (the postal bank) for the benefit of financially fragile clients. The objectives of l'Appui are to help customers of la Banque Postale to manage recurring financial difficulties and improve their capability to prevent such situations.

The above measures to address exclusion are going to be implemented as part of a larger framework of economic revival being crafted by the government, called the Responsibility and Solidarity Pact. The Pact includes goals like revitalizing companies, SMEs, very small companies, crafts and retailing sector. Paradoxically, it hopes to achieve these goals, among other things, by lowering labour costs and simplifying administrative procedures 19 .

Helping the Excluded to Access Credit: Microcredit Models A recent study by [START_REF] Kpmg | Synthèse de l'étude Retour social sur investissement (SROI) de l'Adie 2016[END_REF] shows that ADIE's professional microcredit activity generates an income of € 45.3 million against an investment of € 24.4 million and prevents social costs amounting to € 16.7 million. This means that the social return on investments of the association is € 2.38.

Conclusion

The concept of 'inclusion' as different from the concepts of integration or mainstreaming acknowledges and accepts diversity. It conveys the ability of the system to change in order to meet the needs of all citizens which includes forging new relationships. The role of the government and the central bank is to help build relationship between financial institutions and people before the latter are encouraged to enter the system including institutional arrangements to ensure bank accounts as a fundamental right of citizens and a comprehensive financial inclusion policy. Awareness on the part of the citizens about their entitlements is the other major prerequisite. And this is fundamentally different from the process of integration. While integration addresses needs of special citizens, inclusion recognizes rights of all. Integration refers to changing remedying gaps in customer contracts; inclusion refers to changing the system per se and benefits all. Informal support and extension of expertise from mainstream bankers is central to making inclusion possible.

In short, financial inclusion means good banking for all. All individuals, despite having small credit/saving needs, must be banked by the same institutions that deal with 'bankable' individuals.

All should be able to bank in the normal environs of the banking institutions and have access to the necessary support measures that ensure active participation and opportunities for meaningful interactions with banks and financial institutions. These are difficult goals that underscore the transformational nature of inclusion. They also convey that inclusion cannot be achieved in a short time span. Appropriate institutions including laws and policies need to evolve and mature.

The players need to experiment, learn from each other and consolidate their learnings.

Despite the significant differences with respect to coverage of bank accounts, India and France have experienced exclusion of large sections of the population from banking and financial services.

While India has been trying to accelerate the pace of coverage of bank accounts through several initiatives, France has been fighting to bridge the gap between extensive coverage of bank accounts and limited access to banking services. The experience of France clearly shows that ensuring the right to have bank accounts by itself will not lead to inclusive banking or increased financial capability of individuals, especially, the economically vulnerable. Stability of income and security of livelihood are critical to achieving inclusion. Both India and France face the prospect of rise in livelihood insecurity of the working class in the face of economic restructuring. This has serious implications for the banking behaviour of the poorer sections of population, which cannot be addressed by sheer extension of coverage of modern banking facilities. Along with effective labour market strategies, social safety measures need to be strengthened to benefit those sections of population who are economically vulnerable and, hence, cannot negotiate the market for financial services to make benefits.

It is also important to recognize that within economically dynamic settings, there are pockets of exclusion created by institutional infirmities or sheer gaps that characterize informality. The micro entrepreneur in an urban slum in India has a buoyant business to fall back on in case she applies for a bank loan. But her business is not 'formal' and hence risky for the lender. Or a farmer group may be capable enough to organise their production collectively and face up to market challenges, but they cannot borrow from a formal institution as the latter has no instruments to appraise them. Similarly there are migrant workers who are forced to get trapped in illegal money transfer corridors, despite their willingness to pay, as there is no easily accessible legal alternative. The discourse on financial inclusion must concentrate on these aberrations -regulatory failures, institutional fissures, and capacity differentials -as having caused pools of exclusion within 'growing' economies.

The renewed interpretation of financial inclusion, no doubt, has expanded the scope of action and ideation by a host of financial market players. New players have emerged in both India and France, especially, who can combine technological prowess with knowledge of the financial system. It is increasingly emphasised that no single programme or strategy is adequate to achieve the task of financial inclusion. In India, whereas the recent policies have opened up avenues for players like MFIs and technology-driven businesses to be part of the mainstream financial inclusion drive, whole-hearted and innovative efforts are yet to be made to leverage the un-utilised capacities of the vast network of grass-root level organisations that work as solidarity-based collectives such as primary co-operative societies and self-help groups.

The drive towards greater private participation in financial activities is visible in France too, despite the country's rich history of solidarity based approaches to social inclusion. What is critically lacking in both the countries is a national policy on financial inclusion which integrates the roles of diverse institutional resources and operational models -old and new, pro market and community centric -and spells out unambiguously the links between such inclusion and inclusive social development.

Fondation

  Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017 in 2014 -women fared somewhat worse than men. There was a marginal decline in the overall percentage too between 2011 and 2014.

  2016 Economic Survey has simplified the problem of financial exclusion by deconstructing it into three straightforward challenges: the challenge of identification, transfer and access. The solutions too are straightforward -use technology to replace human discretion, open bank account for every individual beneficiary and deepen mobile penetration and agent network along with creation of new banking entities. As per the Survey the spread of JAM is limited only by problems in establishing bank-beneficiary connections. With the focus of inclusion discourse 10. CSMS refers to Core Subsidy Management System.

  14. In Ministère des Solidarités et de la Cohésion Sociale, Décembre 2010, Rapport au parlement-Suivi de l' objectif de baisse d'un tiers de la pauvreté en cinq ans -Synthèse. 15. Based on a study by Credoc (February 2010), 'Rapport réalisé pour le Comité Consultatif du Secteur Financier, les conditions d'accès aux services bancaires des ménages vivant sous le seuil de pauvreté'. Addressing Financial Exclusion in France and India: A Review of Strategies and Institutions 15/22 Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017

  For one, a platform was created in 2012, L'Initiative contre l' exclusion bancaire (The initiative against banking exclusion) to bring together the different actors in the social and voluntary sector who wish to develop new initiatives against banking and financial exclusion. The members include ADIE or Association pour le droit à l'initiative économique, L'Armée du salut (Salvation Army), L'Association Nationale des Directeurs de Missions Locales (National Association of the Directors of Local Mission), ATD Quart Monde, La Banque Postale (the Postal Bank), Crésus, la Croix-rouge française (Red Cross of France), Emmaüs France, Habitat et Humanisme, les Restos du coeur, Secours catholique, le Secours populaire, Soliha et l'UNCCAS.

  16. http://www.economie.gouv.fr/installation-de-l-observatoire-de-l-inclusion-bancaire 17. http://www.economie.gouv.fr/loi-consommation Source: Banque de France (2014).Addressing Financial Exclusion in France andIndia: A Review of Strategies and Institutions 16/22 Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017

Table 1 Access to Finance: India and France Compared Source: Global

 1

Findex (Global Financial Inclusion Database), http://databank.worldbank.org/data/reports.aspx?-source=1228#

Table 2 Banking Access by Households: 2001 and 2011 Source: http

 2

	://financialservices.gov.in/Banking/Overvie-wofefforts.pdf
	Measures of financial inclusion based on house-holds obviously hide some important dimensions of exclusion of banking resources like gender inequality in access to bank services. Moreover, as mentioned earlier, the commonly understood definition of financial inclusion focuses on formal bank accounts held by individuals. As shown in Table 1, the Global Findex (2014) survey of the World Bank reported that 53 per cent of adults in the country have a formal account (as against 35 per cent in 2011), whereas only 15 per cent use an account to make or receive payment, which is the lowest among BRICS countries (The World

Table 3 Regional Variation in Access to Banks and Bank Accounts Source: CRISIL (2015)

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	Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France
	http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017

  The number of bank linked SHGs increased from 81,780 in 1999-2000 to 620,109 in 2005-06, while the amount of bank loan sanctioned to these groups went up fromRs. 114,775 to Rs. 2,238,565.

2. NABARD, 'Guidelines for the Pilot

Project for Linking Banks with Self Help Groups', Ref. No. NB.DPD. FS.4631/92-A/91-92 Circular No. DPD/104, 26 February 1992. Addressing Financial Exclusion in France and India: A Review of Strategies and Institutions 9/22 Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017 accelerated in the late 1990s.

  licenses in April 2014 to Infrastructure Development Finance Corporation or IDFC Limited and Bandhan Financial Services (one of the largest MFIs in India then) to set up new banks in the private sector. With the largest MFI transforming to a universal bank and eight large MFIs gearing up to becoming SFBs, the outreach of the microfinance sector might shrink by about a third of its size in the coming years.

	2015, eight of which are NBFC-MFIs, who, collectively account for about 40 per cent of the gross loan portfolio as of March 2015 7 . The RBI has already granted

6. RBI, 'Guidelines for Licensing of "Small Finance Banks" in the Private Sector', November 27, 2014, https://rbidocs. rbi.org.in/rdocs/Content/PDFs/SMFGU271114.pdf; 'Guidelines for Licensing of "Payments Banks", November 27, 2014, https://rbidocs.rbi.org.in/rdocs/Content/PDFs/PAY-MENT271114.pdf (both accessed on 14 August 2015). 7. 'Cross-Market Analysis', http://www.mixmarket.org two preliminary

Table 4 Change in Financial Inclusion Parameters: 2010-15 Source

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	to basic banking services. It also guarantees that credit institutions operating in the country faci-litates banking mobility for the benefit of and on request from their retail customers. Individuals or organisations who have been refused an account by the banks can appeal to the Banque de France, which will designate a credit institution to pro-vide basic, free banking services to them. The BF spearheads several specific tasks aimed at preven-ting over-indebtedness and promoting financial inclusion. It manages three large registers -the Central Cheque Register (FCC), the Natio-nal Database on Household Credit Repayment Incidents (FICP), and the National Register of Irregular Cheques (FNCI). The FICP records payment incidents related to loans awarded to individuals as well as methods for resolving over-granting of legal right to bank account. bank accounts in France can be attributed to the indebtedness. The near universal ownership of	to bank accounts and lack access to financial ser-vices. This contradiction is clearly evident in the Global Findex data presented in Table 2. The manifesto prepared by under the joint author-ship of le Secours Catholique, la Croix Rouge and l'Union nationale des centres communaux (Manifeste pour l'inclusion bancaire en France des populations fragiles or the manifesto for banking inclusion of fragile populations) called for wider public consultations involving citizens, sector associations, banking professionals, academic actors, think tanks, government, parliamentarians, regional collectives, governments, major state ser-vices and political parties to craft concrete solu-tions and mutually agreeable measures to address latent banking exclusio as a latent from of social exclusion and an impending social crisis.
	Further, France has a robust social security pro-gramme, which covers the elderly, people wit-hout a minimum level of subsistence income and the differently abled 12 . The solidarity allowance for the elderly (Allocation de solidarité aux per-sonnes âgées or ASPA) depends on depends on resources of the individual and family status (single or couple). Revenu de solidarité active (Income from Active Solidarity or RSA) pro-vides resources to people without a minimum level of variable income depending on the com-position of the household. RSA is open, under certain conditions, to persons at least 25 years old and those 18 to 24 years if they are single parents or justify a certain period of professional activity. The allowance for disabled adults (Allocation aux adultes handicapés or AAH) is a financial aid that ensures a minimum income. This aid is granted subject to compliance with four criteria: disability, age, nationality and resources 13 .
	However, starting from 2011 many development organisations have been voicing concerns about a growing contradiction between universal access
	12. As Debeauf et al (2014) point out previous research has shown that financial exclusion is closely linked to low income. The financially excluded typically consists of people who were not in paid work and households without any

:

RBI (2014RBI ( , 2015))

.

Note: KCC -Kisan (Farmer) Credit Card; GCC -General Credit Card.

Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017 wage earning members like the unemployed, old parents living alone and disabled individuals. In terms of age it has been found that very young and very old people are more likely to face financial exclusion compared to others. Financial exclusion is found to be correlated with age with low education levels and migrant status. 13. https://www.service-public.fr

Table 5 Distribution of Over-indebted Households in France, 2013

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La Caisse d'épargne, Ile-de-France

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	A Review of Strategies and Institutions A Review of Strategies and Institutions
	The microcredit in Europe has been developed within the frameworks of the Lisbon Strategy (2000) 20 and the growth strategy for the sub-sequent decade, Europe 2020. If the goal of Lis-bon Strategy was to promote an economy based on knowledge, services and new technologies, Europe 2020 talks about building a smart, sus-tainable and inclusive economy for the EU that delivers high levels of employment, productivity and social cohesion (EC, 2010). In implemen-ting the Lisbon Strategy for growth and jobs, development micro credit (loans less than € 25 000) in Europe was seen as very critical as it pro-motes transition from unemployment to self-employment 21 . Such credit can support micro-enterprises (enterprises employing fewer than 10 people) and disadvantaged persons (unem-ployed or inactive people, those receiving social assistance, immigrants, etc.) who wish to go into self-employment, but do not have access to tra-ditional banking services. In order to develop the market for microcredit, the EU proposed many 18. http://www.gouvernement.fr/en/la-france-s-engage-project-the-first-15-initiatives-identified 19. http://www.gouvernement.fr/en/savings-plan-detailed-measures 20. The Lisbon Strategy (known also as the Lisbon Agenda or Lisbon Process) was devised in 2000 to guide the deve-lopment planning of the European Union economy during 2000-10. 21. htt p://eur-lex.europa.eu/legal-content/EN/ ALL/?uri=URISERV:n26115 La Caisse d' épargne Ile-de-France, the French Savings Banks, has a special arrangement to assist individuals in debt (and hence unbankable) to access formal financial support. By creating the network of associations Parcours Confiance and Créa-Sol, the Caisses d'Epargne built a ser-vice platform based on the combination of rein-forced banking support, suitable products, and concrete educational support through the setting up of Finances and Pédagogie, an association specialized in financial education. Relying on the expertise of trained and specialised microcredit advisors, the Caisses d' épargne reach 90 per cent of the French territory. They also rely on the ser-vices of 800 partners (associations, local autho-rities, and social businesses) in order to offer the most comprehensive support possible to their borrowers. In 2009, Caisses d' épargne financed 40 per cent of the personal microloans distribu-ted in France (la Caisse d' épargne, 2011). The business model of Caisse d' épargne has been tailor-made to suit the needs of over-indebted persons or persons whose incomes do not match their liabilities. The French law defines over-indebtedness as a situation characterised by "the manifest impossibility of the debtor meeting, in good faith, all his non-business debts due and falling due and the commitment that he gave to guarantee to pay off the debt of an individual entrepreneur or company where he was not, in law or de facto, a manger of that company" 22 . The normal loan appraisal processes are not fol-lowed by Caisse d' épargne while working with fragile borrowers. Such individuals are refer-red by banks to Caisse d'Epargne (or Parcours Confiance), which counsels each as a distinct case and offers customised advice. For this purpose it enlists the support of volunteers -individuals and associations -to prepare loan application documentation, which is reviewed by the inter-nal credit committee. The committee members have to unanimously agree on the merit of the demand for it to be forwarded to partner banks. The typical demands are for housing and related amenities. Loans are extended usually for a maxi-mum period of 4 years and carry an interest rate of about 4 per cent. 22. Quoted in Gloukoviezoff (2007). 2016, Paris. 25. Personal Interview with Mr. Berangere, Manager, 2 May 24. Ibid. been rescheduled several times as the borrowers Even with such liberal terms many loans have legal advice and taxation 25 . administrative procedures, business development, sonal training in areas as diverse as management, also offers support in the form of group and per-enterprises, apart from loans (up to € 10,000), it both social and professional microcredit. For the financing needs are not covered by banks. It offers rity benefits, and the precarious workers whose unemployed and the beneficiaries of social secu-tors who do not have access to bank credit, the tion Act of 1901) working to help business crea-credit association (registered under the Associa-gladesh Grameen Bank. It is a non-profit micro Set up in 1989, ADIE was inspired by the Ban-ADIE to extending social microcredit. increasing fatigue on part of banks with respect on the already fragile individuals and the latter, reflection of the weakening economic condition ser number of applicants. The former could be a microloans and banks extend support to even les-number of individuals now approach CMP for to 78 per cent 24 . These figures suggest that lesser port by banks also came down from 82 per cent this the proportion of proposals accepted for sup-and 2015 from 800 to about 600. Along with the number of loan applications between 2014 ted that there has been an absolute reduction in tions for microloans is quite revealing. It is repor-The experience of CMP with respect to applica-the Municipality of Paris. The activity is targe-ted at individuals who have a specific project to be financed (vehicle purchase, training, housing, health, legal fees for a divorce, etc.) and have the ability to repay, but have no access to bank loans. Loan amount varies from € 300 to € 3,000 and the loan duration, from 6 to 36 months. The interest rate is about 4 per cent. Any individual who wishes to avail personal microcredit has to approach the CMP or any of its partner organi-zations (or social workers in the case of recipients of social benefits) who help them prepare the loan documents. The applications are reviewed by a committee and submitted to any of the four partner banks -la Banque Postale, le Cré-dit Coopératif, BNP PF and la Caisse d' épargne, Ile-de-France).	initiatives such as improving the legal and ins-titutional environment in the Member States, changing the climate in favour of entrepreneur-ship and promoting the spread of best practices, particularly in relation to training. Two types of microcredit products are available to the banking excluded in France. The first is 'personal or social microcredit' targeted at finan-cially fragile persons whose resources are insuf-ficient to claim a credit for consumption like youth in vulnerable circumstances, workers with precarious contracts, single women with children, single parents, elderly persons without support etc. The loan amount is generally below € 3,000. The second is personal microcredit which is offe-red to individuals to finance personal projects that enable them to find employment (learning skills, for instance) or to finance the purchase of uti-lity goods and services mainly related to transport (mobility), housing, and education. Professional microcredit, typically below €25,000, is available to individuals who wish to create or take over a business but whose resources are insufficient to qualify for a conventional loan either because of its small size or absence of a formal business plan. To avail such credit, the borrower must be guaranteed by a specialized and competent sup-port network such as France Active and France Initiative. It may be noted that the concept of microcredit was defined officially for the first time in France in 2010 thanks to the consumer credit reforms law No. 2010-737 of July 2010 (Caisses d' épargne, 2011). The law has delineated the features of microcredit as advances made to people excluded from consumer credit due to low income or other difficulties, to finance purchasing of goods intended to facilitate her social integration or job placement, partially guaranteed by the Fonds de Cohésion Sociale and supported by associations and local authorities. It was stipulated that the quantum of credit must be compatible with the target borrowers' ability to repay. We will discuss below three different institutional arrangements that work with the concept of per-sonal and professional microcredit in Paris and surrounding areas -La Caisses d' épargne, Credit Municipal, Paris and ADIE -especially to help financially fragile persons. Aellig and Marie Mouche, Caisses d' épargne, Paris, 4th May, 2016. 23. Personal Interview with Emmanuelle Maury, Veronique find it difficult to service them regularly 23 . Given this challenge, the officials of the institution try to keep very close relationship with their clients. Despite the policy empathy towards those who are excluded or in excessive debt, banks still hesi-tate to extend loans to such clients. Out of about 1000 loan proposals presented to banks in 2015, only 230 received positive response. The idea of a specific institutional set up to deal with indebted households is noteworthy. These are households whose creditworthiness has been eroded, but who are in dire need of financial resources to carry on with their lives and busi-nesses. It may appear a difficult proposition to initiate a similar institution in India given more widespread poverty. However, one cannot but decentralised financial structures like the Regio-nal Rural Banks (RRBs) and cooperative banks in India may help reduce the distress of indeb-ted households, like, for instance, agrarian house-holds, that have witnessed primary earners taking their lives in despair. Crédit Municipal de Paris Crédit Municipal de Paris is one of the oldest French financial institutions started off as a pawn broking establishment. Its history goes as far back as to the first half of the 17th century. Over its life that spans close to 400 years, the ins-titution has undergone several functional transi-tions under diverse systems of governance, until 2004, when it was bifurcated into two establish-ments. While Crédit Municipal de Paris retai-ned the original activity of pawn broking along with solidarity savings and personal microcredit, the lending activity was delegated to its subsi-diary, CMP-Banque. The pawn broking activity of CMP has been thriving over the years, whe-reas the economic model of CMP-Banque came under severe strain as competition from big pri-vate institutions increased. It finally stopped its business in September 2015. The personal microcredit function of CMP offers support for over-indebted people and those who nistration of the activity is met by grants from fight against banking exclusion. The cost of admi-1984. Another major reorganization happened in it became a full bank under the Banking Act of observe that such an arrangement tied to the ADIE also offers insurance service in partner-ship with AXA (a leading private insurance com-pany) and la Macif insurance mutual) and covers risks such as professional liability, business pre-mises, inventories and equipment, and financial protection in the event of stoppage of business. Personal microcredit (up to € 5,000) is extended to salaried workers and to unemployed who wish to return to paid employment. It usually finances driver's licenses, trainings, vehicles (or repair), etc. The majority of the loans (about 80 per cent) fall in the professional (or business) microcredit category, and the rest personal microcredit 26 . The professional microcredit is guaranteed up to 50 per cent by the Fonds de Cohésion Sociale or the Social Cohesion Fund through France Activ.

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  26. Personal Interview with Mr. Berangere, Manager, 2 May 2016, Paris.

	Addressing Financial Exclusion in France and India:	19/22
	A Review of Strategies and Institutions

Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017

Addressing Financial Exclusion in France and India: A Review of Strategies and Institutions 20/22 Fondation Maison des sciences de l'homme -190 avenue de France -75013 Paris -France http://www.fmsh.fr -FMSH-WP-2017-124 -février 2017

April-May 2016, when I was a visiting exchange scholar in France under the India-France Cultural Exchange Programme jointly administered by the Indian Council of Social Science Research (ICSSR), New Delhi and the