Top PDF NGOs, Micro-finance and Poverty Alleviation: Experience of the Rural Poor in Pakistan

NGOs, Micro-finance and Poverty Alleviation: Experience of the Rural Poor in Pakistan

NGOs, Micro-finance and Poverty Alleviation: Experience of the Rural Poor in Pakistan

All kind of fashions come in waves. However, some fashions are more favoured than other because of their convenience, affordability and popular appeal. The authors have taken up three of the most favoured offshoots of the trendy development economics of the contemporary post-regulationist era, namely, NGOs, micro credit and poverty alleviation. But in developing countries, unfortunately, the convenience, affordability and popular appeal of these three phenomena are not in their own right, rather they all owe their existence to the marked shift in the priorities of Western donors in favour of lesser government. It could be argued, rightly or wrongly, that NGOs is one of the most controversial phenomenon, specifically in the developing countries’ context. The most obvious and equally alarming aspect of NGOs in Pakistan is that too many of them have cropped up in the last two decades. But numerical advantage alone is not sufficient to justify institutions in the civil society, since proliferation is not a substitute of performance. And opportunity cost, once it has been paid, deprives the limited resources of their fundamental trait, namely, the alternative employment in a better use. This contradiction is specifically important in the context of the latest drive of the NGOs i.e., micro finance programmes. Many would agree that the latter has recently been given only the new clothing in that the ‘liquidity deficiency syndrome’ in the human society dates back to the times which reconcile the dogmatic and evolutionists’ controversy over the Genesis. The diagnosis and treatment, however, have varied both inter-temporally and inter-spatially, ranging from usurious to benevolent lending.
Show more

22 Read more

The Role of Micro credit and Micro Finance Institutions (MFIs) - Extent and Intensity of poverty, poverty alleviation and Outreach

The Role of Micro credit and Micro Finance Institutions (MFIs) - Extent and Intensity of poverty, poverty alleviation and Outreach

In Bangladesh about 80 percent of the people live in rural areas and more than 75 percent of it depends on agriculture .It is the seventh most popular country of the world. The performance of Bangladesh is also poor in terms of human development .The poverty situation deteriorated day by day due to increasing landlessness and slow growth of productive non-firm activities (Zahir, 2000). NGOs working innovation led to a concentration of efforts into small-scale, home-based income-generating activities such as cattle and poultry rearing, food processing, social forestry, apiculture and rural handicrafts, combined with the provision of micro credit, to which the landless had previously been denied. As the economy of the country is predominantly rural, the government of Bangladesh had been undertaking and implementing rural development and poverty reduction activities since long. Rural development program was given importance in all five-year plans in varying degrees to promote overall development of the rural poor.
Show more

20 Read more

Impact of Micro Credit on Livelihoods of  Rural Poor in the Punjab, Pakistan

Impact of Micro Credit on Livelihoods of Rural Poor in the Punjab, Pakistan

The data regarding profile of respondents on the basis of gender showed that a large majority (78.0%) of the respondents were female who used to get micro-credit facilities to improve their livelihood status. This showed that rural women were more inclined to get micro-credit as compared to men. The reason might be due to the limited availability of income generation activities for women in rural areas as compared to men. During focus group discussion, it was noted that the major purpose of lending micro-credit for majority of the rural women was purchase of livestock and poultry. They used income that they earned from that livestock and poultry on different household expenses. The findings of the present research are confirmed the results explained by [15]. The other reason of women’s more involvement/interest in getting is the high poverty rate among rural women. Women in rural areas of Pakistan are more vulnerable to poverty as compared to men [16]. Due to the presence of high poverty rate and under nourishment among rural women in Pakistan, micro-finance/micro-credit institu- tions are paying more attention and emphasis on disbursing micro-credit to women.
Show more

9 Read more

Contribution of Micro Finance on Poverty Alleviation in Bangladesh

Contribution of Micro Finance on Poverty Alleviation in Bangladesh

Microfinance is considered as an effective tool of poverty alleviation as stated above. Microfinance institutions work and their initiative towards removing the darkness of poverty, is growing up a noticeable rate especially in rural and remote areas of Bangladesh. Various data and information are collected and analyzed. In data analysis part it is shown that various activities of microfinance have gradually decreasing the poverty rate in Bangladesh. In spite of that, the various activities of Microfinance Institutions (MFIs) shown in the data analysis part can lead poverty reduction. Data analysis part shows that MFIs have been working in the rural areas of Bangladesh since inception %0f People in .Poverty % of Ultra poor addressing the poor, very poor and near poor people under their different programs both financial and social development includes remote areas and difficult terrains. Disbursement, outstanding loan and net savings of the borrowers of MFIs are satisfactory. The contribution of MFI‟s in remote areas is going in a rapid increase as well it reduces the condition of borrowers. From various analysis and calculation it is found that poverty is decreased around 6.2% in total by various activities of MFI‟s and others.
Show more

18 Read more

Role of Micro Finance Bank on Poverty Alleviation: A Case Study of Larkana

Role of Micro Finance Bank on Poverty Alleviation: A Case Study of Larkana

Literature review has shed light on the past work on this issue and helped us understand the impact of small loans on reducing poverty. In their study, Mayoux (2001 ) found that microfinance is a major influence and contributing positive towards women's empowerment, children's education, health facilities and other socioeconomic factors for the poor community. Chandarsekar & Parkash, (2011) In his report, Hossain (2012 ) concluded that the rates of poverty in Pakistan have been reduced by microfinance. It was noticed that after using the loan, people who borrowed the bank raised their incomes and expenses. Imai etal 2010) utilized information from 99 states to track the effect of microfinance on poverty rates through regression analysis. They found that microfinance reduces the level of poverty. Remenyi (1991) considered credit to be the most powerful tool to combat poverty. They concluded that small credits help the poor to ensure their economic independence. Similar results were also reached by Meyer (2002). His work on Asian countries suggested how microfinance in its entirety also has a favorable impact on poor families' education and income. Most studies have shown that the microfinance program has a good impact on the life of the poorest. Alhassan & Akudugu (2012) said that microcredit programs that reduce poverty but could not have major effects on the financial status of women due to special constraints that would not allow the structural basis of poverty to be transformed. Rahman (2010 ) stated that Pakistan does not care about the ethical and moral principles of all functioning MF institutions. Money usually is spent on borrowing for their needs like children's marriages and house repairs. Therefore, it is important to ensure that ethical and moral values are understood and that loans are also needed solely for income. The role of microfinance in reducing poverty and generation through regression and correlation methods has been investigated and empirically examined by Abbas (2005). scientific findings reveals that microfinance has had a beneficial effect on the efficient usage of income and consumption. In the society, microfinance is used in the most effective way to minimize poverty.
Show more

9 Read more

Ensuring the Role and Impact: Reaching the Poorest While Alleviating the Poverty by Micro Finance in Dera Ismail Khan KPK Pakistan

Ensuring the Role and Impact: Reaching the Poorest While Alleviating the Poverty by Micro Finance in Dera Ismail Khan KPK Pakistan

Micro Finance is used as one of the tools for poverty alleviation. Micro Financial Institutions provide small loans to poor people, farmers and small enterprises. It is the best solution of removing poverty. This research study provides an overview on Micro finance and poverty alleviation at D.I.Khan district KPK Pakistan.This study is based on both quantitative and qualitative methodologies in order to find out the feasible solution of thisresearch question:what are improvements achieved in the reduction of poverty in the fields of income, employment, education, communication, health care, children’s education and housing etc? Stratified random sampling techniques were used to get a total of 96 respondents. Data were collected through close ended questionnaires, semi structured interviews, observations and documentary reviews. Data analysis was based on descriptive statistics using various statistical tools like regression, correlation, t- test and ANNOVA with the help of tables. The Study findings show thatprovision of Micro-finance is very useful in poverty reduction. The result of the study also show that microfinance helps in poverty alleviation of different categories of poor people and has the positive significant impact on the dependent variable i.e. Poverty Reduction.
Show more

8 Read more

Micro-finance as a Tool for Financial Access, Poverty Alleviation and Women Empowerment in Bindura District, Zimbabwe

Micro-finance as a Tool for Financial Access, Poverty Alleviation and Women Empowerment in Bindura District, Zimbabwe

Microfinance is a set of financial services that targets the poor and the least well off. It includes but is not limited to microcredit, micro savings, micro insurance, and mobile banking. Microcredit continues to be the most popular microfinance product in many countries, including Pakistan. Throughout this chapter, the term microfinance will refer to formal microfinance activities, products and institutions. The focus on extreme poverty and the world’s poorest has sharpened at an unprecedented level since the 1990s (Morduch & Haley, 2002). Global development institutions, such as the United Nations Development Programme (UNDP), and international financial institutions (IFIs), particularly the World Bank, have elevated poverty alleviation to the policy forefront (World Bank, 2013). The debate on the best interventions to alleviate poverty has consequently heated up. At the same time, the development narrative seems to have converged on the idea that development should be about poverty reduction but also be mindful of “the voices of the poor” (Narayan-Parker, 2000). This last is a reference to the bottoms-up, participatory processes that allow for beneficiary involvement in the design, implementation and monitoring of the interventions that affect them (Rankin, 2002). In other words, successful interventions must reduce poverty and reduce inequality by empowering the marginalized, especially poor women.
Show more

18 Read more

Micro financing for sri lanka’s rural poverty alleviation; realities, challenges and opportunities

Micro financing for sri lanka’s rural poverty alleviation; realities, challenges and opportunities

Micro finance can be defined as varied fiscal or monetary products that microfinance institutions offer to their consumers. Micro financing is heterogeneous. It may be different in cases and it may be offered by way of micro loans, micro insurance schemes or micro savings. However, this is not new and the world saw its beginning in 1970’s with the practice of social businessmen lending money on a large scale to poor workers. At the same time the world also noted that poor workers are getting benefited in such practices of micro financing. For example, the year 2006 Nobel peace prize laureate professor MuhammedYunus demonstrated the ability of the poor people to pull themselves out of the poverty credited to micro finance. Further, in his rewarding work professor Yunus showed how productive those loans made available to poor working people are, if they utilized such financial capital properly in a structured manner. Contrary to popular fears that poor people are entrapped in such loan schemes, the outstanding work of professor Yunus evidently showed that working poor class has high potentials to pay back their loans and thus receiving the attention of profit seeking investors to invest on micro financing for mutually beneficial business( investopia,2010).
Show more

5 Read more

POLITICAL IMPACT OF MICRO FINANCE ON RURAL POOR IN ANDHRA PRADESH

POLITICAL IMPACT OF MICRO FINANCE ON RURAL POOR IN ANDHRA PRADESH

issues, which may be research questions to be analysed by future researchers in addition to this study. The MFIs associated micro financing is targeted to mostly women. The experience has shown that the economic activities have not been crossed beyond the micro scale. The women who have been taken up economic activities, hardly promoted to produce products of global importance. Why does this scale of operation confine to micro scale? Why does this programme target only women? Given that the poor constitute both men and women and suffer equally with lack of access to credit. Is it that targeting women alone will facilitate the market for products of external agencies, the multinational corporations; the products produced by MFIs may not share or capture the market of MNCs? Will this glorified movement sustain in the same spirit and vigour throughout? Whether long run stability is possible? In the long run, by growing to better scale of operations, the opportunity cost of devoting time on group activities may be high and in such context. Micro-Finance has been recognised and accepted as one of the new development paradigms for alleviating poverty through social and economic empowerment of the poor, with special emphasis on empowering women. Experiences of different anti-poverty and other welfare programmes within as well as outside the country as also by the International Organisations have shown that the key to success lies in the evolution and participation of community based organisations at the grassroots level. People’s participation in credit delivery and recovery and linking of formal credit institutions to borrowers through group approach have been recognised as a supplementary mechanism for providing credit support to the rural poor.
Show more

24 Read more

Poverty Alleviation and Beyond: A Perspective for the Poor in Bangladesh

Poverty Alleviation and Beyond: A Perspective for the Poor in Bangladesh

country’s relative world ranking. Export trade has been diversified in the recent past, easing reliance on ready made garments and through growth of industries such as pharmaceuticals and more recently, shipbuilding and electrical appliances. It is important to note however, that by and large the merits of these achievements are attributed to the fast growing private business sector. The resultant economic growth associated with the unprecedented strides made by a host of the non government organizations (NGOs) especially in rural Bangladesh have helped alleviate poverty over years. This is indicated as the proportion of people living below the poverty line fell over the last decade. This advancement of moving from below the poverty line to above the poverty line is well regarded by public and private policy bodies since this indicates an easing of the burden or sufferings of the extreme poor, also known as the poorest of the poor. However, the poverty alleviation or the easing of incidences of poverty in Bangladesh seems to be a suboptimal strategy in view of a number of concerns. Firstly, poverty line defined as $1.25 is used to identify the extreme poor people and not the poor in general. Given that a high majority of the population of the country is still poor, the poverty alleviation successes in a dynamic context may often convey misleading message as to what has been actually happening with the standard of living of the poor. This is so because many of the extreme poor who experience alleviated poverty fail to maintain the pace of improvement of their livelihood, and hence may face fluctuating living standards; in the worst case scenario of which they fall back below the poverty line for a short of prolonged span of time. There are a number of reasons why this may happen so. Secondly, poverty is often understood in terms of the money income of the poor and issues such as socio economic opportunities and the contexts in which the poor are exposed to are disregarded, although these aspects have been heavily emphasized by the group of economists led by Sen (1976, 1985, 1999). Thirdly, objectives of many of the rural advancement programmes including those promoting micro credit led by Grameen Bank could be often dubious or multifaceted. For example, micro credit programmes are known to have achieved both poverty alleviation and women empowerment in rural Bangladesh.
Show more

5 Read more

Impact of Micro Finance on Poverty Alleviation with special reference to Selected Rural Area at Karnataka

Impact of Micro Finance on Poverty Alleviation with special reference to Selected Rural Area at Karnataka

Micro-credit is objective the facility of small finances to micro enterprises, even as Microfinance goes outside that as has been clarified above. Micro credit provides the low income clients and highly in the form of small loans for micro enterprise and earnings making activities. The term 'microcredit' usage is often related with an inadequate amount of the rate of savings for the poor.

5 Read more

Tanzanian micro enterprises and micro finance: the role and impact for poor rural women.

Tanzanian micro enterprises and micro finance: the role and impact for poor rural women.

occupying an unfavourable position in a restrictive socio-economic structure. Schiller (2001) calls this “the restricted opportunity argument”. Ssewamala et al (2006) makes a similar argument and points out that in less developed countries, poverty alleviation has become a key challenge. Within the restricted opportunity argument, one particularly detrimental aspect of poverty has been the lack of access to credit. Mwenda and Muuka (2004) suggest that providing the poor with credit, giving them opportunities to create their own small-scale enterprises, and thereby help them support themselves and raise their standard of living is one of the strategies of the new development order. This notion of helping the poor to help themselves is rooted in the idea of micro-entrepreneurship. High levels of poverty combined with slow economic growth in the formal sector have forced a large part of the developing world’s population into self-employment and informal business activities. However, a critical issue is how to raise the ability of the self-employed, especially the rural poor, to sustain or improve their economic activities that are essential to their well being or even survival. If the poor can be helped, by extending modest loans, to be enabled to engage in profitable business, or self employment, the impact of poverty can be materially reduced. Micro and small enterprises (MSEs) thus play a crucial role in strengthening private sector development and overall economic transition. They may generate income and new employment opportunities, de-monopolize the industrial structure, improve the quality and quantity of production and services, and increase entrepreneurship and the movement to a market economy. Support for the development of micro and small enterprises is thus considered of fundamental importance. However, lack of funding remains one of the most important barriers to MSE development in developing countries (EBRD, 1997).
Show more

15 Read more

Microfinance and Rural Poverty Alleviation: A Reality?

Microfinance and Rural Poverty Alleviation: A Reality?

Despite the fact that microfinance has been used for decades as an important development tool and as a formidable programme for poverty alleviation, development practitioners still know little about the possible efficiency of microfinance activities in reducing poverty (Khandker, 2005). Consequently, little efforts have been advanced to study the effect of these programmes on the rural poor particularly in the study area of this research. This exercise will be the foremost study in this geographical area when an independent research will be conducted to study the impact of microfinance on the rural poor. The study is expected to spur the government policy directed to empower the poor with adequate credit facilities and necessary infrastructure for economic development. In this study, an attempt was made to appraise the content and performance of Micro- Finance Bank as a catalyst for enhancing economic growth, income redistribution and poverty eradication particularly in South-West Nigeria, having adjudged that Micro- Finance Banks have a key role to play in poverty alleviation programmes.
Show more

14 Read more

Micro finance and poverty alleviation in Sri Lanka

Micro finance and poverty alleviation in Sri Lanka

Microfinance services in Sri Lanka have a wide geographical outreach but the extent of outreach of private operators including NGOs and commercial banks in rural areas is rather limited although the poor and the poorest groups have been reached by these Institutions. Most of people prefer the MFI rather than the banks. Because, they can easily access the loans from MFI. The objective of this research is to provide further evidence on the contribution of micro finance for poverty alleviation in Sri Lanka. In this regards, a survey was conducted among the selected micro finance beneficiaries from Polonnaruwa District of North Central Province in Sri Lanka. The collected data were analyzed using statistical software and found that the micro finance programs significantly help to poor people to uplift their live which lead for the poverty alleviation in Sri Lanka. needed. Finally, it is noted that there is a significant relationship between the micro finance and poverty alleviation in a certain level of percentage.
Show more

7 Read more

Micro Finance: A Tool Towards Anti Poverty Alleviation for Rural India

Micro Finance: A Tool Towards Anti Poverty Alleviation for Rural India

The Indian economy at present is at a crucial juncture, on one hand, the optimists are talking of India being among the top 5 economies of the world by 2050 and on the other is the presence of 260 million poor forming 26 % of the total population. The enormity of the task can be gauged from the above numbers and if India is to stand among the comity of developed nations, there is no denying the fact that poverty alleviation & reduction of income inequalities has to be the top most priority. The impressive gains made by SHG-Bank linkage programme in coverage of rural population with financial services offers a ray of hope. The paper argues for mainstreaming of impact assessment and incorporation of local factors in service delivery to maximize impact of SHG –Bank linkage programme and other MFIs on achievement of reduction in poverty and getting this opportunity. REFERENCES
Show more

7 Read more

Role of Pakistan poverty alleviation fund's micro credit in poverty alleviation: a case of Pakistan

Role of Pakistan poverty alleviation fund's micro credit in poverty alleviation: a case of Pakistan

The poverty alleviation approach followed in Pakistan consists of sustaining a moderate rate of economic growth with an emphasis on equity in distribution and human resource development. Different strategies have been adopted for the purpose, which include special programs and short-term measures targeted towards improving the earning capacity of the masses in general and provision of social safety nets for the really poor in Pakistan. With a view to enhance the access of the low-income communities to socio- economic services of the Government, an independent professionally managed unit, the Pakistan Poverty Alleviation Fund (PPAF) was set up in 2000. This is in the form of a private, not-for-profit, limited company, with an aim to reach the poor communities through the NGOs and Community Based Organizations (CBOs). It also focuses on institutional and capacity building measures so as to enhance the outreach of the existing NGOs and social organizations, which would come under the purview of the PPAF as its partners on the basis of transparent criteria. In addition to Government of Pakistan, World Bank is the major contributor to the PPAF project.
Show more

14 Read more

Poverty Alleviation and Social Protection in Pakistan

Poverty Alleviation and Social Protection in Pakistan

The coverage of PP AF is currently limited, compared to the needs. That it did not so far had a significant impact on poverty alleviation in the areas of its operation appears to be supported by a study conducted by Gallup. Almost 60% of those surveyed did not experience any increase in their income. PPAF was established because of the encouraging experience of micro- enterprises loan of the World Bank distributed through Banker’s Equity Limited wherein loan was extended to successful ongoing enterprises. The extent to which PPAF can achieve such a primacy is difficult to determine. Micro credit is not generally targeted to the poor. However increased access to credit facilities for those with out collateral can serve as a powerful instrument for income generation and poverty alleviation, if lending rates are not inordinately high and entrepreneurial training is also included in the package. It may be of interest to note that the partner organizations of PPAF have not been able to cover all costs from interest income despite high interest rate charged from the borrowers.
Show more

26 Read more

Alleviating Poverty through Micro Finance: Nigerias Experience

Alleviating Poverty through Micro Finance: Nigerias Experience

Poverty is a global phenomenon, especially in the less developed countries like Nigeria and it has aroused the concern of people all over the world, including individuals, Non-Governmental Organizations (NGO’s), Multilateral Institutions such as the World Bank and the United Nations Development Programme (UNDP), as well as national governments. Microfinance is still a relatively new phenomenon in Nigeria as it was just employed as a strategy for poverty reduction in December 2005. The first Microfinance Bank can be traced back to 1976, when Muhammad Yunus set up the Grameen Bank, as an experiment, on the outskirts of Chittangong University campus in the village of Jobra, Bangladesh. Since the Microfinance policy was put in place in December 2005, the effect has rarely been felt; it hasn’t had the adequate trickle-down effect on the Nigerian citizenry because the gap between the rich and the poor is still on the increase. Poverty is a critical phenomenon that calls for an urgent attention and solution all over the world, especially in the underdeveloped nations of the world where it has eaten deep into the lives of many. The need to alleviate poverty arises in order to enhance the quality of life through the creation of favorable standards of living by effective production and distribution of consumer goods and services. This study seeks to determine the effect that Microfinance Institutions have had on reduction, or alleviation of poverty in Nigeria.
Show more

9 Read more

Integrating Zakah, Awqaf and IMF for Poverty Alleviation: Three Models of Islamıc Micro Finance

Integrating Zakah, Awqaf and IMF for Poverty Alleviation: Three Models of Islamıc Micro Finance

The main reason this model caters to the poor is the belief that the poor have the skills and knowledge but lack the financial aid and assistance to succeed in business ventures. When providing loans and extending credit, a group is formed in order to induce peer pressure. With pressure, recipients strive hard to succeed and hence create a positive environment for loans to be paid back. Interestingly, the entire group will be disqualified and will not be eligible for further loans, even if one member of the group becomes a defaulter (Fotabong, 2011). Because of Grameen‟s innovative program design, outreach to women, and poverty reduction potential, development practitioners are increasingly interested in learning more about its potential, constraints, and replicability. An early Grameen replication that sought to offer Sharī„ah-compliant microfinance is Amana Ikhtiar Malaysia (AIM).
Show more

19 Read more

Public private Partnerships in Micro finance: Should NGO Involvement be Restricted?

Public private Partnerships in Micro finance: Should NGO Involvement be Restricted?

The United Nations Interagency Committee on Integrated Rural Devel- opment for Asia and the Pacific (1992) (henceforth UNICIRDAP) provides a formal characterization of NGOs as organizations with six key features: they are voluntary, non-profit, service and development oriented, autonomous, highly motivated and committed, and operate under some form of formal reg- istration [see also Besley and Ghatak (1999) for an extensive list of features

15 Read more

Show all 10000 documents...