Microfinance and India

Poverty alleviation and Micro finance: Indian context 

“Money , says the proverb makes money. When you have got a little ,it is often easy to get more. The great difficulty is to get that little .”Adams Smith.

Today India is facing major problem in reducing poverty. About 25 million people in India are under below poverty line. With low per capita income ,heavy population pressure , prevalence of massive unemployment and underemployment , low rate of capital formation , misdistribution of wealth and assets , prevalence of low technology and poor economics organization and instability of output of agriculture production and related sectors have made India one of the poor countries of the world.

 Present Scenario of India: India falls under low income class according to world bank. It is second populated country in the world and around 70 % of its population live in rural area. 60% of people depend on agriculture , as a result there is chronic underemployment and per capita income is only $ 3262. This is not enough to provide food to more than one individual . The obvious result is abject poverty , low rate of education, low sex ratio, exploitation. The major factor account for high incidence of rural poverty is the low asset base. According to Reserve Bank of India, about 51 % of people house possess only 10% of the total asset of India .This has resulted low production capacity both in agriculture (which contribute around 22-25% of GDP ) and Manufacturing sector. Rural people have very low access to institutionalized credit( from commercial bank).

Poverty alleviation programmes and concepualisation of Microfinance: There has been continuous efforts of planners of India in addressing the poverty . They Have come up with development programmes like Integrated Rural Development progamme (IRDP), National Rural Employment Programme (NREP) , Rural Labour Employment Guarantee Programme (RLEGP) etc. But these progamme have not been able to create massive impact in poverty alleviation. The production oriented approach of planning without altering the mode of production could not but result of the gains of development by owners of instrument of production. The mode of production does remain same as the owner of the instrument have low access to credit which is the major factor of production. Thus in Nineties National bank for agriculture and rural development(NABARD) launches pilot projects of Microfinance to bridge the gap between demand and supply of funds in the lower rungs of rural economy. Microfinance . the buzzing word of this decade was meant to cure the illness of rural economy. With this concept of Self Reliance, Self Sufficiency and Self Help gained momentum. The Indian microfinance is dominated by Self Help Groups(SHGs) and their linkage to Banks.

Role of Microfinance: The micro credit of microfinance progamme was first initiated in the year 1976 in Bangladesh with promise of providing credit to the poor without collateral , alleviating poverty and unleashing human creativity and endeavor of the poor people. Microfinance impact studies have demonstrated that

Ø Microfinance helps poor households meet basic needs and protects them against risks.

 Ø The use of financial services by low-income households leads to improvements in household economic welfare and enterprise stability and growth.

 Ø By supporting womens economic participation, microfinance empowers women, thereby promoting gender-equity and improving household well being.

 Ø The level of impact relates to the length of time clients have had access to financial services.

Conclusion: After the pioneering efforts by Government, Banks, NGOs, etc the microfinance scene in India has reached in take off stage. An attempt could be initiated to promote a cader of new generation micro-credit leaders in order to strengthen the emergence of micro- finance institution (MFIs) so as to optimize their contribution towards the growth of the sector and poverty alleviation.

 Reference:

1. Dutt, Ruddar and Sundharam,K.P.M(2004): Indian economy S.Chand and Company publication, India .

 2. Soundarapandian, Dr. M.: Micro finance for rural entrepreneurs, Kuruskhetra, septembar,2006.

 3. www.sbp.org.pk/reports/quarterly/FY05/first/Special_2.pdf.(visited on 25th oct,2006.)

Day of Microfinance

Today is an excellent day for microfinance. The Nobel Peace Prize has been announced,
and it goes jointly to Muhammad Yunus and the microfinance bank Grameen, which
he founded. Muhammad Yunnis and the Grameen Bank have been awarded the 2006 Nobel Peace Prize
for thier efforts to create economic and social development from below. Yunus’ Grameen
Bank has successfully been loaning peasant farmers and others in Bangladesh and help them to develop their standard of living. Muhammad unus found the Grameen Bank in 1976. And the micro-credit model has been spread in Asia and many other places. In its press release, the Nobel Committee says  “Every single individual on earth has both the potential and the right to live a decent life. Across cultures and civilizations, Yunus and Grameen Bank have shown that even the poorest of the poor can work to bring about their own development. “

Musical evening in IIFM

How to begin ..how to describe..mesmorising,speechless,enchanting,unending.still the music is in the air, making the campus vibrant. Thats the power of Indian classical music.Nobody,not even a single person were able to keep his head still, eyes open. everybody at least have to close their eyes, have to nodge rather bend their heads just to feel this power.Actually we all were devoting ourselves in the worship of the power of Indian classical music.And look at the audience groups.Expect the faculty members,most of audience is in the age group of 20 to 30, the generation of Himesh Reshamiya,Madona,Shamur..so on. Still no body keep oneself not being wonder of the beauty of Indian music. Oh sorry I forget to tell the occasion .It was an musical evening in IIFM.An musical evening by Grammy  award winner Pandit Biswa Mohan Bhatt( the event was another virasat series of SPIC MACAY chapter of IIFM). Personally I was also spellbound by the music.This is first time im present in this kind of progamme. I had very bad rather hate kind opf feeling to this sort of things. but todays programme has opened my eyes. I will definitely attend this type of progamme whenevr I will get chance.

But I was little disappointed to see the reporters present in the occasion. Actually from childhood I had dreamt about reporters that they should be like this, like that, but seeing them in front of me was really  nothing special. they were very usual, like very normal human beings. i don’t love to see reporters to be very normal

My little thought

The room is well decorated. Made of  marbles, tiles. Having electric connection ,a fan, two Philips small tube light and over all an carriers air conditioner. Welcome you to a Darga , worship place for people belonging to Muslim community. if you think I have any objection with this decoration then I m sorry .coz my intention is not to decorate the room. Actually what I am trying to point out an astonishing fact that this room or rather worship room is not accessible for women folks.  They can only sit before the room .this is not permissible in Muslim religion. Why?Actually I do not know any thing abut Muslim religion and my intention is not to criticize Muslim religion. So what   I am  saying from just what I feel as I simple general   human point of view. The world has so much changed. The women r so advanced. No works r left untouched by women folks in today’s world. Still they are not given   permission to enter the worship room. Why?  What are the problems if they enter the room? Why the women folks are not saying anything about this? Why are they silent? What the wise people are saying?So many unanswered questions….. 

Back to Room in IIFM

Holiday is over.im back on my room in IIFM in room no 12.great feeling. little sad, again  will be able to see my parents and Rashidpur, friends in june last week(probably).but immediately after coming there was a party thrown by Avinav for his birthday. dancing and all the stuff. everyone want to get get rid of their home seek ness. This time train journey was great. coz in my compartment there was two child and I spent my all the boring time wth them wth playing them. they were really cute. may be in life I will not see them any more but one thing is sure that whenever I will travel in train I will remember them, rather I will miss them. Most importantly one the child’s name is Ria(?).i don’t want to explain more coz dear u know the reason. Dear can u tell me why the God is so cruel. i miss u dear so much and still he aggravated my pain by taking
ur name all the time in the train.  but if u look this other way that we are unseparateble. Whenever, wherever  I travel  im with u dear.Again back to routine life. have to deal nasal dose of CVRS and bear Rajrishi Ghosh .also have to submit CVRS assignment Tuesday.god know what wil happen. dear as long as u r dere wth me im nt frightened. u r my inspiration.

Durga Puja

Dugra puja over. as usual maa has gone to her husband home after staying in the world fr four days. this is myth. but beyond myth reality is the celebration .four day of fun ,happiness ,laughing, no sorrow, no tears. Really durga puja and bangaliana are synonymous .this year was lucky fr me that I have been able to see durga puja as dere was holiday in IIFM. It was unexpected as in admission letter is was clearly written that u will not been able to go home fr next six months.so when I was taking admission I thought that I will not been to see the puja .bt thank god pfm chairperson confusion and we got great relief of ten days. This was special fr me for one reason that I came home after 3 and half months (and that also from outside of West Bengal) . I spend the puja mostly on my mobile as well land phone. so many things to say to you dear. so much to talk to u. I wanted to say directly bt alas that did not happen, nevertheless I am not complaining u. it was expected. It was nice felling to see my old days friends.it was also great felling to talk with the BCKV friends. i never realized how much I used to miss my those bckv friends. But all well that ends well . so this puja also ends well.

Back to home

Home my sweet home! At last im in home fr 6 days holiday and that also in Durga puja.I dnt know hw to express my happiness. im on top of the world. U would nt believe hw much pleasure to see the bangle hoarding besides the street .Seeing the name of the station written in Bengali. its amazing. My pleasure was doubled when I was coming home by bus from station as the time was of Anjali (a special time to pray your worship to Maa Durga).The beautiful girls all wearing sari walking thru the street the roads were decorated wth light so happy happy feeling in the air.As if all saying welcome to me. I did not realize before hw much I love my Bengal or my native place bt staying in
Bhopal make me realize that. you may think me parochial but it is the fact and I donot nt protesting you. earlier I used to  hate my home place bt staying outside helps me to realize that u can not get pleasure unless u love 
ur own place. U mst have a root and u should be proud of that root. actually the root will not forget u.im  giving an example which strengthen my views. My real home(where my uncles and aunt live) is in remote village. the roads are kachha , muddy, narrow. nw one day when I was going dere by my bike(kinetic bajaj.. .its my love ) .there was cows in amidst of road.which is very natural in village side.so when I was going dere somehow my bike touched one of cows and I could not control my bike and fall in muddy paddy field. ,y legs were submerged and my bike also fall into the filed.real thing started now. almost all the peoples older as well as children came out of their house to see me,asking me whether I am hurted or not? One uncle with whom I hardly talk came forward to pull my bike from the field and he took all the initiative to clean the bike with water and after cleaning my bike he himself drive the bike upto the road where the road is free of cows as well as broad. from dere I drive my bike and he went back his home by walking. dear where will u see this cordialness ? The man whom I hardly talk do all the things. Is it possible outside
ur home place. can u expect same kind of behaviors in a city. My answer is no!  

ME AND MY BLOG

Me: hi

Blog: (no reply)

Me: ok u r very angry.u wll nt talk wth me.but dear why?

Blog: wht do u think urself.hw do u thnk thant I will nt b angry.soumik,im very simple and I love to b that way.wht I want is vry minimal frm u.bt cant I expect that? why?

Me: ok u r vry angry! Bt dear tell me wht happened?

Blog: wht happened? U r asking dis.where u been fr so many days.nt even one single posting!why?Even nt accessing me fr so many days.do u knw I dnt have anyone other than u.den hw could u do this?

Me: oh! Im very very sorry dear.i never think that way.ok again im sorry.

Blog: ok ok .vry smart .u knw hw much I depend on u nad if u say sorry to me then I will nt b angry anymore. bt this will nt continue fr so many days.keep dis mind.Me: ok dear im promising u that this will nt happened any more.

Blog: ok dnt be so much humble.nw tell me where u been dis days?

Me: thnk god u r nt angry any more.thats why I love u so much dear.i know u will nt b away frm me any more,any day.nw get back to ur question ok I was in iifm true,bt dear was very busy. first Saturday and Sunday I was busy wth field trip then again wth endterm again adventure.

Blog: u have gone fr field visit and dnt said to me abut dis anything?

Me: dear I wantd to say every thing to u bt believe me I hve nt get any time. ok im telling nw. actually we have two field visit.dear u will nt believe hw much it makes someone happy when u r close to nature. i hve nt realize that before. nt only we bt also the people working in the forest is vry happy. means they r happy in their mind.

Blog: why?

Me: one Saturday we visit Raisen, a forest area managed by Govt,JFM and others. this was a mix forest wth all kind of tree. the officials. stuffs, workers I suppose were vry happy.thats r my feeling. and we were too. we trek thru forest, climb hills .lot of fun.

Blog: great!

Me: yea.gr8.then we visit Betul. this was really an enjoyable and experienceable tour.i learnt some good things like paricle wood(making of woody products by using sugarcane baggase) then veeniar.we visited real forest based industry one is MP Veeniar Ltd. Blog: so real IIFM story.

Me: means?

Blog: are u r reading forestry mgmt.so both trips gave u forest based industry exposure.na?

Me: yea.u r absolutely right.actually I was very excited seeing the particle wood factory.i was thinking of establishing same thing in future.

Blog: are I hve forget to ask u abut
ur future plan. u were very confused abut development sector and environment na? what happened to that?

Me: oh dear my blog im very im been able to take my decision. after so much struggle withMyself I hve opted fr development sector. though environment sector specially green marketing draw much attaint ion bt dear its future seem nt vry bright to me initially, may be nt may be surely it will catch up in future. bt having a degrre on agriculture I thought and believed that development sector is my cup of tea. may be microfinance or livelihood management.i have started reading on this topics.

Blog: thats gr8 news. Wht ever field choose believe that is is made fr u and man go all out fr this. i knw u will b successful. remember u have to big fr someone (ur vry close one) also.

Me: yes.i hve to do something fr her.

Blog: dear u r in second term na? hw was
ur end term?

Me: sorry dear.my end term was pathetic. U cannt believe hw much deadly this internet is.are my internet gone in waste due to this internet..specially UB paper and Silviculture paper.u wiil nt believe that I was downloading songs fr whole night before UB paper.

Blog: pathetic.plse dnt do this.are this sort thing u can do other time also. remember good grade=good ot=good placement.so why u r doing this? Dnt repeat this second time. Hey hw was ur QT paper. hw do u tolerate
ur cvrs’s nasal dose?

Me: are great news I have passed in QT.more marks than midterm. this make me vry happy. so many have failed and dere I have passed.thats gr feeling.

Blog: congratulation.nw wht is the resolution fr second term?

Me: yes vry important question.i will be more organized at least trying to read every days paper.lets see wht happened?

Blog: whtever happened dnt frget me dear.

Me: are dnt b worried.i m wth u always and will remain wth u always.