Academic journal article International Journal of Education and Management Studies

Bottom of the Pyramid Inclusion in Processes of Financial Inclusion an SHG Mode over View of Rural Women's Empowerment

Academic journal article International Journal of Education and Management Studies

Bottom of the Pyramid Inclusion in Processes of Financial Inclusion an SHG Mode over View of Rural Women's Empowerment

Article excerpt

Financial liquidity, credit needs and rural poor

Most of the urgent and immediate credit needs ofthe rural masses in general and the rural poor in particular are most often met through the rural financial nexus markets consisting of commission agents, moneylenders, and landlords etc. The commercially ordained financial institutions have a very low penetration in the rural areas because of poor infrastructure and comparatively much lower profitability. This is accompanied by the constant hindrance of an unforeseen and higher degree of risk. Microfinance, therefore, has been proposed as a channel for conducting the maximum outreach to bring about the alleviation of poverty in these pockets of the rural poor and especially most the disadvantaged sections of society namely the women, small and marginal farmers, as also the landless farmers. Considering India's positions in terms of financial exclusion stands fourth having 135 million people who are persistently being excluded from accessing available financial services.

Poverty poses a massive challenge to all development efforts of India. A vast section of its population suffers from malnutrition, unemployment, comparatively negligible infrastructure for essential public health needs, education and health care. This is particularly an everyday reality in the case of four main weaker sections of society. These are:

* Women,

* Children,

* Scheduled Castes

* Scheduled Tribes.

In rural India, the high rates of illiteracy and low economic status of women emphasize the all encompassing need for increasing their earning. And this is achieved only through the provision of incomegenerating opportunities and avenues. Provision of employment opportunities to rural women has been recognized as the incremental pathway to improve their nutrition, health, education and social status. In most ofthe developing countries the maximum emphasis is being laid on the need for rural women focused development. This entails their active involvement in the main stream of development and especially the economy of the nation.

Since the magnitude of poverty challenges the very basis of any independent economic and political unit, policy planners have increasingly realized that development needs to be people centered and participation oriented across various interfaces. Poverty Alleviation has thus assumed a new thinking and new practices have emerged through integrated community participation of the poor. The basic precepts of development and progress have been recognized to be:

* Creation of employment opportunities

* Erasing inequality especially gender inequality

* Systematic Reduction and Consequent Eradication of debilitating poverty

The basic premise of the concept of micro finance is selforganization ofthe poor at the community level. The common thread is that they have to be driven by a burning desire to ameliorate their situation and they should also have an inherent will and capacity to improve their living conditions by themselves. Poverty as a global phenomenon has varied genesis, dimensions, and definitions. The definition of poverty is to be derived from a holistic approach to the multidimensional problem. While human poverty is generally interpreted variously based on motivation levels, income poverty is defined on the basis of minimum income levels required to meet basic consumption needs and amenities. In today's context the definition of poverty has to go beyond the age old accepted and utilized conventional interpretations. Poverty has emerged as an all encompassing cover that represents the successive deprivation of human dignity caused by vulnerability to social and cultural detrimental conditions of body and mind and ultimately resulting in a low quality of life.

The eradication of poverty has been an integral component of the strategy for economic development in India. 'Poverty line' which is recognized as the basic indicator of poverty according to the Planning Commission, is defined as "total consumption expenditure at which one can expect a person to be adequately nourished in the specific society under consideration". …

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