Growth of Rural Indebtedness in Punjab

2020 ◽  
pp. 336-341
Keyword(s):  
Financial Institutions ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Rural Households ◽  
Small Sample ◽  
Access To Health ◽  
Utilisation Pattern ◽  
Agricultural Labourers

The problem of indebtedness among the rural households of Punjab was become more serious in the last two decades. A large number of studies were carried out in India and abroad to look into the problem of rural indebtedness and its consequences but most of these studies are either based upon a very small sample of a few districts or cover the farmers only. The present study would be wider in scope as it was also included artisans, agricultural labourers (non- cultivators) along with the farmers (cultivators). This study analysed the situation of Punjab as a whole and district wise analysis was done. Therefore, in the present study, an attempt was made to analyse the growth of indebtedness among the rural households in Punjab and attempt was made to explain the utilisation pattern of loan used by rural households and tried to trace out how the situation of household indebtedness in the Punjab evolved and changed over the course of about ten years. The study will be helpful to planners, academicians, researchers as well as policymakers for solving the problem of indebtedness among rural households for the betterment of the society as a whole. It is suggested that encouragement should be given to subsidiary occupations, improvement in access to health at subsidised rate in rural areas to curb the indebtedness and to monitor the informal mechanism of credit by Government and financial institutions along with availability of the appropriate delivery of credit into the agricultural as well as non-agricultural sector of rural areas by eliminating costly sources of money lenders for the accurate functioning of the economy.

scholarly journals The Impact of Credit on Multidimensional Poverty in Rural Areas: A Case Study of the Indonesian Agricultural Sector

2021 ◽  
Vol 4 (1) ◽  
pp. 32-45
Author(s):  
Tegar Rismanuar Nuryitmawan
Keyword(s):  
Financial Institutions ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Agricultural Land ◽  
Scale Up ◽  
Estimation Method ◽  
Secondary Data ◽  
Multidimensional Poverty ◽  
Poor Farmer ◽  
The Impact

Poor farmer households are a vulnerable group in rural areas. Various poverty alleviation measures have been launched to help poor farmer groups become more prosperous. The policies launched were in the form of cash transfers, empowerment, and access to formal financial institutions. Policies for providing formal financial access continue to face many obstacles, one of which is credit risk and farmer literacy. The study aims to estimate the impact of credit on multidimensional poverty in poor farmer households in Indonesia. Secondary data were obtained from the Indonesian Family Life Survey (IFLS) batch 4 and 5. The impact estimation method used was propensity score matching combined with the difference in differences. The results showed that credit programs for poor farmers, initiated by official financial institutions, significantly helped farmers out of poverty, although the value was small. The addition of control variables such as education, ownership of household assets, and ownership of agricultural land actually made the credit program more modifiable at the policy level. Credit can be used as a complement to policies related to improving farmer education and knowledge in the form of agricultural modernization, as well as to scale-up of farmer household businesses.

scholarly journals Impact of Infrastructure and Agroclimate on the Location of Rural Bank Branches in Pakistan: A Preliminary Assessment

1996 ◽  
Vol 35 (4II) ◽  
pp. 899-909
Author(s):  
Kalbe Abbas ◽  
Musleh-Ud Din ◽  
Ejaz Ghani ◽  
Sarfraz Khan Qureshi
Keyword(s):  
Spatial Distribution ◽  
Commercial Bank ◽  
Financial Institutions ◽  
Rural Areas ◽  
Regional Differences ◽  
Agricultural Sector ◽  
Developing Economies ◽  
Geographic Location ◽  
Preliminary Assessment ◽  
Bank Branches

Rural financial institutions play an important role in development and growth of the agricultural sector. In developing economies some rural areas are adequately served by financial institutions, while others have little or no access to these institutions. This uneven pattern of geographic location of rural bank branches has been attributed largely to regional differences in agroclimatic conditions and infrastructural endowments. We have estimated several alternative specifications which can be helpful in understanding the spatial distribution of commercial bank branches across the rural areas. Our results indicate that the location of rural bank branches is significantly influenced by infrastructural endowments and agroclimatic environment.

scholarly journals LKMA Evaluation Formed from PUAP Program in Overcoming Farming Financing in Rural Areas (Case study: Magelang Regency)

2021 ◽  
Vol 232 ◽  
pp. 02002
Author(s):  
Valeriana Darwis ◽  
Ashari ◽  
Chairul Muslim
Keyword(s):  
Financial Institutions ◽  
Rural Areas ◽  
Agricultural Sector ◽  
Ranking Method ◽  
Limited Availability ◽  
Institutional Aspect ◽  
Capital Development ◽  
Office Employees ◽  
Monthly Salary

Rural Agribusiness Development (PUAP) is a program to provide capital for smallholder in the agricultural sector. The final goal of this program is to format Agribusiness Micro Credit Institutions (LKMA) in rural. In the implementation 6,887 LKMAs have been formed, including in Magelang Regency. The purpose of this paper is to evaluate the LKMA and its benefit for farmers’ capital fulfillment. The survey was conducted in July 2019 using the FGD method with administrators and interviews with the farmer using a questionnaire. The evaluation focused on the institutional, business, and capital development aspects. The data analyzed through the ranking method to determine the LKMA rank. Of the 9 LKMA, the best LKMA is Ngudi Luhur LKMA, with criteria (i) the institutional aspect is already incorporated, has an office, employees with a fixed monthly salary; (ii) business aspects: saving and loan business carried out based on SOP of financial institutions and (iii) of capital development have reached 3.3 billion. However, loans only cover less than 30% of farmers’ needs due to the limited availability of LKMA capital. Therefore, it is recommended to assist capital loan assistance to LKMA, which will then be transmitted to farmmers.

scholarly journals Assessing the Vulnerability of Rural Households to Floods at Pol-e Dokhtar Region in Iran

2022 ◽  
Vol 14 (2) ◽  
pp. 762
Author(s):  
Somayeh Ahmadi ◽  
Rezvan Ghanbari Movahed ◽  
Saeed Gholamrezaie ◽  
Mehdi Rahimian
Keyword(s):  
Rural Areas ◽  
Technical Assistance ◽  
Agricultural Sector ◽  
Rural Households ◽  
Policy Implications ◽  
Primary Data ◽  
Agricultural Insurance ◽  
Coping Capacity ◽  
Low Levels ◽  
The Government

The agricultural sector in rural areas is seriously affected by climate change, affecting agricultural production and farming communities. This paper investigates rural households’ vulnerability to floods in the seven agricultural-based regions of Pol-e Dokhtar, south of Lorestan Province, Iran. The primary data for the vulnerability indicators were collected from 322 households. Three main components of vulnerability, including exposure, sensitivity, and adaptive capacity, were measured using the obtained data. The weighting of indicators was done by the MSF method and using MATLAB software. The results showed that the social and economic characteristics of households affect their vulnerability to floods. The Jayder, Mamolan, and Afrineh regions, which were more exposed to floods, had less capacity for adaptation. The results showed that the most vulnerable communities could be described by characteristics such as low levels of agricultural insurance, limited access to credit, low levels of income diversification, high levels of unemployment, low levels of social capital, higher dependency ratios, and poor infrastructure. This research showed that diversified livelihoods have a significant effect on reducing farmers’ sensitivity to floods. The study proposes policy implications to increase resilience and reduce farmers’ vulnerability to floods. The government and other development partners should prioritize the most vulnerable areas by improving their access to finance and providing the technical assistance required for increasing their coping capacity.

scholarly journals Transformation of labor participation on off-farm diversification: insights from rural households in Indonesia

2021 ◽  
Vol 892 (1) ◽  
pp. 012015
Author(s):  
D N Asih
Keyword(s):  
Rural Areas ◽  
Agricultural Sector ◽  
Rural Households ◽  
Household Head ◽  
Economic Transformation ◽  
Crop Failure ◽  
Data Set ◽  
Income Source ◽  
Farm Work ◽  
Income Sources

Abstract This study analyses the rural transformation and the determinants of off-farm work diversification in Indonesia. Based on employment growth, the study explores the transformation of the labour sector to off-farm work as an alternative income source in mitigating the decreasing carrying capacity of the agricultural sector. Using a panel data set from rural households in Central Sulawesi, the study applied a random logit model to account for the determinants of off-farm participation and economic mobility over time. The results show that crop failure is a key driver of off-farm work diversification which is further compounded by several factors including asset holdings, the age and education level of the household head by 51.1%, 21.77%, 1.59% and 18.59% respectively. These results confirm that ‘these push’ factors are motivating the rural household on off-farm labour allocation, which indicate the implications of economic transformation through the diversification of income sources and labour allocation away from agriculture subsystems in rural areas in Indonesia.

scholarly journals COVID-19 lock-down socio-economic challenges faced by households in rural areas: A perspective from Vhembe district, South Africa

2020 ◽  
Vol 54 (3) ◽  
pp. 761-798
Author(s):  
Iwara Obaeko ◽  
Faith Musvipwa ◽  
Amaechi Ekene ◽  
Raymond Raselekoane
Keyword(s):  
South Africa ◽  
Rural Communities ◽  
Rural Areas ◽  
Rural Households ◽  
Economic Activities ◽  
Movement Restriction ◽  
Access To Health ◽  
Policy Measures ◽  
Vhembe District ◽  
Made In

National responses to the COVID-19 pandemic have varied from country to country. In South Africa, the response has included a compulsory 21-day lock-down entailing restrictions of social and economic activities among other things. This arguably helped the country to avoid further spread of the virus, especially in townships, informal settlements and rural communities, where access to health facilities is often difficult. However, it has also exposed rural households to unforeseen challenges. This paper explores these challenges in view of proffering policy measures to help such households during subsequent lock-down. University students living within such rural households were purposively sampled to solicit electronic data from heads of households in Vhembe district. Using a qualitative method to analyze the data gathered from 82 households, five major issues emerged which include access to basic needs such as groceries, whereas water and health items were some of the challenges. The situation in households is further compounded by 'limited source of income' due to retrenchments and shutdown of subsistence businesses. 'Depression and frustration' emanating from the fear of contracting the virus, spousal domestic abuse, inability to meet home obligations, family squabbles as well as boredom caused by movement restriction also constitute part of the challenges. The lack of needed information regarding the virus, and 'theft' were other two challenges. Based on these findings, the paper recommends thorough consideration of the identified challenges before the enforcement of such lock-down. It also encourages more improvement to be made in the area of service delivery in rural communities.

scholarly journals Desarrollo rural, migración internacional y escasez de mercados financieros en México

Revista Trace ◽  
2018 ◽  
pp. 45 ◽  
Author(s):  
Rafael G. Reyes-Morales ◽  
Alicia Sylvia Gijón-Cruz
Keyword(s):  
Rural Development ◽  
International Migration ◽  
Financial Institutions ◽  
Rural Areas ◽  
Rural Households ◽  
Household Size ◽  
Number Of Children ◽  
Migration Internationale ◽  
International Remittances ◽  
Regional Markets

En México las principales fuentes de liquidez de las áreas rurales son: los salarios, las remesas y los subsidios del gobierno. Por consiguiente, la participación de los campesinos en el mercado se lleva a cabo a través del consumo. La migración internacional está directamente correlacionada con el número de trabajadores asalariados en los hogares rurales. Cuando se consideran los mercados microrregionales, la migración se relaciona con el tamaño del hogar y número de hijos; con la edad, ocupación de campesino y condición de emigrante del jefe del hogar. Se observa que las remesas nacionales y los salarios hacen menos dependientes a las comunidades rurales de los mercados externos que las remesas internacionales. Finalmente, la principal restricción que enfrenta el desarrollo rural en las actuales condiciones, es la escasez de instituciones financieras rurales. Sin éstas no se pueden retener los flujos monetarios mediante el ahorro ni reciclarlos a través de créditos.Abstract: In Mexico the major sources of liquidity in rural areas are: salaries, remittances, and government subsidies. Consequently, peasants participate in the market by means of consumption. International migration is directly correlated with the number of wage workers in the rural households. When micro-regional markets are taken into account, migration is related to the household size and number of children; to household head’s age, peasant occupation and migrant condition. National remittances and salaries produce less community dependence on external markets than international remittances. Finally, the lack of rural financial institutions is one of the most important constraints on rural development. Without such institutions monetary in-flows cannot be accumulated or recycled as credits.Resumé : Au Mexique, les principales sources de liquidité dans les zones rurales sont : les salaires, les transferts d’argent et les allocations de gouvernement. Ainsi, c’est par la consommation que les paysans prennent part au marché. La migration internationale est directement liée au nombre de travailleurs salariés des foyers ruraux. Lorsque l’on examine les marchés micro-régionaux, on réalise que la migration est conditionnée par la taille du foyer et le nombre d’enfants, l’âge, les activités agricoles et la condition de migrant du chef de famille. On observe que les transferts d’argent nationaux et les salaires rendent les communautés rurales moins dépendantes des marchés extérieurs que les transferts d’argent internationaux. Finalement, le principal obstacle au développement rural, actuellement, est la rareté des institutions financières rurales ; sans elles, il n’est pas possible de retenir les flux financiers par l’épargne et de les recycler au travers du crédit.

The Relationship between the Development of Human Capital and the Agricultural Economy in Rural Areas

2020 ◽  
pp. 61-65
Author(s):  
B.A. Voronin ◽  
◽  
I.P. Chupina ◽  
Ya.V. Voronina ◽  
◽  
...  
Keyword(s):  
Human Capital ◽  
Rural Areas ◽  
Agricultural Production ◽  
Agricultural Sector ◽  
Real Life ◽  
Standard View ◽  
Household Factors ◽  
Economic Transformations ◽  
The Relationship

The article discusses a non-standard view of the formation of human capital for work in organizations of the agricultural sector of the economy, in the context of modern socio-economic transformations. In the classical sense, human capital for agriculture should be formed and developed in rural areas. But in real life, this is not always the case, because there are many factors that prevent the classical solution of this problem. First, the demographic factor affects, second, social and household factors, and third, in many rural areas there are no working agricultural organizations where qualified agricultural specialists can work. All these and other circumstances actualize the problem of the quality of human capital in rural areas in relation to the development of agricultural production.

Human potential in the system of social and economic development: problems and prospects of Vinnytsia region

2020 ◽  
pp. 71-80
Author(s):  
Olesya Tomchuk
Keyword(s):  
Economic Development ◽  
Human Development ◽  
Rural Areas ◽  
Structural Changes ◽  
Agricultural Sector ◽  
Positive Impact ◽  
Well Being ◽  
Human Potential ◽  
High Tech ◽  
Social And Economic Development

The article highlights the problems and prospects of human development, which is the basis for the long-term strategies of social and economic growth of different countries and regions at the present stage. Submitting strategies of this type provides an opportunity to focus on individual empowerment and to build a favorable environment for effective management decisions in the field of forming, maintaining, and restoring human potential. The analysis of the Vinnytsia region human potential dynamics in the regional system of social and economic development factors was carried out. Application of generalized assessment of the regional human development index components allowed the identification of the main trends that characterize the formation of human potential of the territory, including the reproduction of the population, social environment, comfort and quality of life, well-being, decent work, and education. The article emphasizes that despite some positive changes in the social and economic situation of the region and in assessing the parameters of its human development level relative to other regions of Ukraine, Vinnytsia region is now losing its human potential due to negative demographic situation and migration to other regions and countries. The main reason for such dynamics is proven to be related to the outdated structure of the region's economy, the predominance of the agricultural sector, the lack of progressive transformations in the development of high-tech fields of the economy. An important factor is the low level of urbanization of the region, which leads to the spread of less attractive working conditions and less comfortable living conditions. The key factors that cause the growth of urbanization in the region have been identified, including the significant positive impact of the transport and social infrastructure expansion, the lack of which in rural areas leads to a decrease in the level and comfort of life. Without progressive structural changes in the economy and the resettlement system, the loss of human potential will continue.

ANALYSIS OF THE STATE AND DEVELOPMENT OF THE MAIN INDICATORS OF THE AGRICULTURAL SECTOR OF THE ECONOMY OF THE TOKTOGUL REGION OF KYRGYZSTAN

2020 ◽  
Vol 2 (11) ◽  
pp. 71-73
Author(s):  
M. U. USUPOV ◽  
Keyword(s):  
Financial Institutions ◽  
Agricultural Sector ◽  
The State ◽  
Market Demand ◽  
Agricultural Producers ◽  
Money Markets ◽  
Agricultural Enterprises ◽  
State Of The Economy ◽  
The Subject ◽  
Production Losses

The article is devoted to the state of the economy of the subject of the agricultural sector – the Toktogul region of Kyrgyzstan, as well as the formation of a land division, which is impossible without an influx of investments and ensuring the availability of monetary resources for agricultural producers. In our time, innovation is becoming the main means of increasing the benefits of economic entities by better meeting market demand and reducing production losses compared to competitors. Despite repeated attempts by the country to create a system of lending to agricultural companies, only a small percentage of them use credit resources. Various state aid schemes support a competitive environment in the money markets and guarantee relatively equal access to them for financial institutions and agricultural enterprises.

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