Impact of Microfinance on Investment Decision and Consumption Smoothing

2018 ◽  
pp. 52-64
Author(s):  
Arundhati Mukherjee ◽  
Ramesh Chandra Das
Keyword(s):  
Investment Decision ◽  
Cost Effective ◽  
Financial Service ◽  
Consumption Smoothing ◽  
Rural Poor ◽  
The Poor ◽  
Poor Households ◽  
Consumption And Saving ◽  
Farming Households

Microfinance has emerged as a powerful tool for poverty alleviation in developing countries. The main objective of microfinance is to provide a cost-effective mechanism for providing financial service to the poor. This chapter attempts to highlight the effect of credit constraints on the productive investment decision of poor households and scope of microfinance in this respect. This chapter promotes the role of microfinance services in consumption smoothing and thus highlights the effect on investment decision of rural poor farming households. As an insured household is motivated to allocate a greater part of its resources away from consumption and saving in favor of investments, this chapter emphasizes the importance of insurance service in product basket of microfinance services.

Measuring Access of Microfinance on Poverty in India: Towards a Comprehensive Index

2015 ◽  
Vol 5 (1) ◽  
Author(s):  
Arindam Laha ◽  
Pravat Kumar Kuri
Keyword(s):  
Tamil Nadu ◽  
Andhra Pradesh ◽  
Composite Index ◽  
Well Being ◽  
The Poor ◽  
Comprehensive Index ◽  
Poor Households ◽  
Cross Country ◽  
Economic Well Being

The outreach of micro-finance programme is considered to be a means enhance the economic well-being among the member means to enhance households through poverty alleviation. A wide cross-country variation in the outreach of micro-finance programme to the poor households is observed in the world. Despite the significant growth of micro-finance institutions and its active borrowers, the penetration of micro-finance lending services to the poor households in India is observed to be limited. In addition, there is a wide inter-state disparity in the achievement of micro-finance outreach in India especially among the poor households. A composite index has been constructed using the penetration, availability and usage indicators of micro-finance outreach to examine the interstate variations in the level of its achievement. Subsequently, attempt has been made to analyse the role of micro-finance in alleviating poverty across the states of India. The result shows that out of 27 states and Union Territories, only in seven states (Kerala, Andhra Pradesh, Tamil Nadu, Goa, Himachal Pradesh, Tripura, and Karnataka) outreach of micro-finance programme has made a significant impact on the reduction of poverty.

Mobile Financial Services

2020 ◽  
pp. 96-119
Author(s):  
Alexander Maina Kimari ◽  
Eric Blanco Niyitunga
Keyword(s):  
Financial Services ◽  
Developing World ◽  
Service Providers ◽  
Customer Experience ◽  
Financial Service ◽  
Financial Inclusion ◽  
The Poor ◽  
Financial Exclusion ◽  
Mobile Financial Services

The chapter explores financial exclusion, its causes, and consequences in society. The chapter found that the existing discrepancy in financial inclusion between the developed and developing world is driven by financial exclusion that makes it difficult for financial service providers to expand outreach to the poor at affordable prices. The chapter aims to investigate the role of mobile financial service design and development in dealing with financial exclusion. It was found that mobile financial services are promoting financial inclusion in various markets. However, few studies have been undertaken on the benefits of mobile financial services in dealing with the high rates of financial exclusion. The chapter recommended that to achieve financial inclusion, there is need for mobile financial services providers to take into account customer experience through the ease of using the phone interface. The chapter concluded that there is need for scholars in the fields of finance and economics to conduct research in the areas of mobile financial services and their role in society.

How Environmental Degradation Impoverishes the Poor

2017 ◽  
Author(s):  
Edward B. Barbier
Keyword(s):  
Developing Countries ◽  
Agricultural Land ◽  
Global Markets ◽  
Rural Poor ◽  
Vicious Cycle ◽  
Remote Areas ◽  
The Poor ◽  
Poor Households ◽  
Agricultural Potential ◽  
Poor Soil

Globally, around 1.5 billion people in developing countries, or approximately 35% of the rural population, can be found on less-favored agricultural land (LFAL), which is susceptible to low productivity and degradation because the agricultural potential is constrained biophysically by terrain, poor soil quality, or limited rainfall. Around 323 million people in such areas also live in locations that are highly remote, and thus have limited access to infrastructure and markets. The households in such locations often face a vicious cycle of declining livelihoods, increased ecological degradation and loss of resource commons, and declining ecosystem services on which they depend. In short, these poor households are prone to a poverty-environment trap. Policies to eradicate poverty, therefore, need to be targeted to improve the economic livelihood, productivity, and income of the households located on remote LFAL. The specific elements of such a strategy include involving the poor in paying for ecosystem service schemes and other measures that enhance the environments on which the poor depend; targeting investments directly to improving the livelihoods of the rural poor, thus reducing their dependence on exploiting environmental resources; and tackling the lack of access by the rural poor in less-favored areas to well-functioning and affordable markets for credit, insurance, and land, as well as the high transportation and transaction costs that prohibit the poorest households in remote areas to engage in off-farm employment and limit smallholder participation in national and global markets.

scholarly journals PEMBERDAYAAN EKONOMI MASYARAKAT MISKIN BERBASIS UPKU PANCA USAHA DI DESA MOJORUNTUT KECAMATAN KREMBUNG

2016 ◽  
Vol 1 (2) ◽  
pp. 131
Author(s):  
Sekar Novi Prihatin ◽  
Luluk Fauziah
Keyword(s):  
Public Awareness ◽  
Business Management ◽  
Economic Empowerment ◽  
The Poor ◽  
Poor Households ◽  
Savings And Loan ◽  
District Government ◽  
Capital Services ◽  
Standard Service

This study is aimed to determine the role of finance and business management unit (UPKu) Panca Usaha and inhibiting and supporting factors the unit in the economic empowerment of the poor in Mojoruntut Village, Krembung Sub-district, Sidoarjo. The method used a qualitative research and the technique of collecting data through observation, interview as well as documentation. The results showed that the role of UPKu in economic empowerment of the poor is seen through the realization of Productive Economic Business Savings and Loan (UEP-SP), which provides easy, inexpensive and quick capital services to pioneer or develop a business for poor households and create Business activities of Real Sector (USR). The supporting factors included the support of provincial and district government, community participation, and the guidelines of Standard Operating Program (SOP) and Standard Service Program (SPP). While inhibiting factor were the lack of knowledge and Human Resources (HR) owned by poor households in managing a business, a consumer culture, and the low level of public awareness.

Exploring the Role of Microfinance in Emerging Nations

2021 ◽  
pp. 249-268
Author(s):  
Kijpokin Kasemsap
Keyword(s):  
Health Care ◽  
Interest Rates ◽  
Financial Institutions ◽  
Financial Services ◽  
Financial Resources ◽  
Rural Poor ◽  
Microfinance Institutions ◽  
Emerging Nations ◽  
Poor Households

This chapter explains the overview of microfinance; the efficiency of microfinance institutions (MFIs) and sustainability; microfinance and interest rates; microfinance and information technology (IT); microfinance, social capital, trust, and repayment rates; microfinance and health care; informal microfinance institutions (IMFIs) and tourism entrepreneurship; and the importance of microfinance in emerging nations. Financial services provide a method for people and businesses to obtain credit and manage available assets on a continuous basis. Microfinance has a significant role in bridging the gap between formal financial institutions and rural poor households. MFIs can access financial resources from banks and other financial institutions and provide financial services to poor households. The chapter argues that promoting microfinance has the potential to enhance financial performance and reach economic goals in emerging nations.

The effectiveness of zakat in alleviating poverty and inequalities

Humanomics ◽  
2015 ◽  
Vol 31 (3) ◽  
pp. 314-329 ◽  
Author(s):  
Naziruddin Abdullah ◽  
Alias Mat Derus ◽  
Husam-Aldin Nizar Al-Malkawi
Keyword(s):  
Government Expenditure ◽  
Basic Needs ◽  
Poor People ◽  
Content Type ◽  
Muslim Countries ◽  
The Poor ◽  
Poor Households ◽  
Poverty And Inequality ◽  
Main Determinants

Purpose – The purpose of this paper is to examine the role of zakat (the Islamic tax) in alleviating poverty and inequality in Pakistan using a newly developed index, namely, the Basic Needs Deficiency Index (BNDI). Design/methodology/approach – The study formulates an index (BNDI) to measure the deficiency and effectiveness of zakat as one of the different items of government expenditure/spending to alleviate poverty. In this paper, Pakistan is chosen as a case study for two reasons: the availability and accessibility of data required for computing BNDI; and, in the past, no index such as this had been used to measure poverty in Pakistan. Findings – The results obtained from the computation of the BNDI have been able to explain the effectiveness of zakat in alleviating poverty and inequality in Pakistan. Practical implications – The findings of the study can be used by policymakers to measure and improve the effectiveness of zakat in reducing poverty and inequality. Social implications – As the ultimate beneficiaries of zakat are the poor people, the outcome of this study may help improve their quality of life. Originality/value – The paper develops a new methodology to measure poverty alleviation in Pakistan, focusing on the poor households’ consumption/expenditure on basic needs, government spending in terms of zakat and the number of zakat recipients as the three main determinants. The index developed in the present study can be applied to measure the performance of all Muslim countries whose provision of zakat is embedded in the national agenda to alleviate poverty.

scholarly journals Understanding role of three ficus species in the management of skin diseases with respect to pittaj kushtha

2018 ◽  
Vol 6 (5th) ◽  
Author(s):  
Dhananjay Kulkarni ◽  
Dr.Ruchita Raghunath Kudale ◽  
Renuka Shahaji Pawar
Keyword(s):  
Food Habits ◽  
Skin Diseases ◽  
Modern Science ◽  
Cost Effective ◽  
Ficus Religiosa ◽  
Ficus Benghalensis ◽  
The Poor ◽  
Ficus Racemosa ◽  
Day By Day

Skin diseases are most common form of infections. Due to changes in lifestyle, food habits and different causative organisms; the occurrence of skin diseases is increasing day by day. While treating of skin diseases, with the help of modern science, success is mixed with lot of hazards. In Ayurveda, all skin diseases are described under the title-‘Kushtha’. Many medicinal plants are described in treatment of Kushtha according to its type. Nyagrodha (Ficus benghalensis), Ashvattha (Ficus religiosa) and Udumbara (Ficus racemosa) are the plants belonging to Moraceae family and Ficus species. These are classified under the Mishrak gana viz. - Panchvalkala Vruksh and Panchkshiri Vruksh, which are used for the treatment of Pittaj kushtha since ages. All these three drugs are in possession of Kashaya Rasa, Katu Vipaka and Sheeta Veerya along with Ruksha guna. Kashaya rasa is composed of Prithvi and Vayu mahabhuta and is responsible for Kledshoshak activity. Kashaya rasa and Sheeta veerya have Pittaghna and Stambhak action by which it reduces kleda which is one of the main Dushyas in Kushtha. Ruksha guna act as kled and strav shoshak. Use of Nyagrodha, Ashvattha and Udumbara may found beneficial in treatment of Pittaj Kushtha. As these drugs are easily available and cost effective; they may offer a helping hand for the poor patients suffering from skin diseases. This review reveals their role in Pittaj Kushtha.

scholarly journals Community-Based Tourism as a Strategy for Building Climate Resilience in Bhutan

2021 ◽  
pp. 387-398
Author(s):  
Ngawang Dendup ◽  
Kuenzang Tshering ◽  
Jamyang Choda
Keyword(s):  
Census Data ◽  
Rural Poor ◽  
Alternative Livelihoods ◽  
Climate Resilience ◽  
Alternative Livelihood ◽  
The Poor ◽  
Poor Households ◽  
Livelihood Options ◽  
Community Tourism ◽  
Resilient Communities

AbstractGovernments in developing countries are exploring numerous ways to respond to climate change and build resilient communities and in this chapter, we examine if community tourism can be one of the alternative livelihoods. We examine the benefit of community tourism on rural poor in Bhutan using household census data from 2017. We compare households from the sub-districts that received community tourism with the households from the sub-districts that did not. We use propensity score matching methods to make sure that other than the presence or absence of community tourism programs; these villages are similar in observed characteristics. The results show that households from the sub-districts that received the community tourism programmes are 10% more likely to have more than the average number of rooms in their homes (i.e. 4 rooms) and about 5% more likely to own a vehicle. Most of the tourism initiatives in Bhutan are promoted in protected areas, and thus, it is likely that households’ dependence on the natural environment (like forest and water bodies) may reduce. Further, based on this evidence, it is also likely that community tourism may not only help poor households in terms of enhancing household income, but it may also provide alternative livelihood options in the poor villages where opportunities are limited.

Social capital: mediator of financial literacy and financial inclusion in rural Uganda

2016 ◽  
Vol 26 (2) ◽  
pp. 291-312 ◽  
Author(s):  
George Okello Candiya Bongomin ◽  
Joseph Mpeera Ntayi ◽  
John C. Munene ◽  
Isaac Nkote Nabeta
Keyword(s):  
Social Capital ◽  
Financial Literacy ◽  
Financial Inclusion ◽  
Research Approach ◽  
Rural Poor ◽  
Content Type ◽  
Mediating Role ◽  
Poor Households ◽  
The Relationship

Purpose The purpose of this paper is to examine the mediating role of social capital in financial literacy and financial inclusion relationship in rural Uganda. The major aim is to establish the role of social capital in the relationship between financial literacy and financial inclusion. Design/methodology/approach The paper adopts and uses MedGraph programme (Excel version 3.0), Sobel and Kenny and Baron tests to test the mediation effect of social capital in the relationship between financial literacy and financial inclusion. Findings The results reveals that social capital is a significant mediator in the relationship between financial literacy and financial inclusion of rural poor in Uganda. Financial literacy did not have a direct effect on financial inclusion, but through full mediation of social capital. Existence of social capital into the relationship boosts the relationship between financial literacy and financial inclusion by 61.6 per cent among rural poor households in Uganda. Thus, the finding suggests that with the absence of social capital, financial literacy may fail to enhance the level of financial inclusion among rural poor households in Uganda. Research limitations/implications This study adopted only single research approach using a questionnaire. However, future research through interview may be of importance. Besides, for the purpose of triangulation, a study involving financial institutions’ staff may be viable. Moreover this study was limited by the fact that it was cross-sectional. Furthermore, a longitudinal study may be useful in future to investigate the mediating impact of social capital spanning over a long period of time. Practical implications Managers, policymakers and financial inclusion practitioners should advocate and embark on building social capital among rural communities, so as to improve on the level of financial inclusion. Originality/value While a large body of research has been carried out on financial literacy, this paper is the first to test the mediating role of social capital in the relationship between financial literacy and financial inclusion, especially in rural Uganda. This study generates evidence and contributes to the powerful influence of social capital in enhancing the level of financial inclusion based on financial literacy.

Households’ Risk Management and Coping Strategies: How do the Poor Respond to Various Idiosyncratic and Covariate Shocks in Pakistan?

2021 ◽  
pp. 002190962110386
Author(s):  
Neelum Nigar ◽  
Unbreen Qayyum
Keyword(s):  
Coping Strategies ◽  
Support Program ◽  
Financial Assets ◽  
Income Support ◽  
Negative Effects ◽  
Simultaneous Exposure ◽  
The Poor ◽  
Poor Households ◽  
And Coping

This study examines poor households’ vulnerability to idiosyncratic and covariate shocks in Pakistan. First, it observes households’ socioeconomic, demographic, and geographic factors that influence the incidence of shocks. Second, it examines households coping strategies adopted to mitigate the negative effects of these shocks. For this purpose, we have studied the shock patterns in poor households and examined the role of the Benazir Income Support Program (BISP) in protecting these households against various shocks. Results indicate simultaneous exposure of idiosyncratic and covariate shocks to the targeted households. Moreover, with a low level of physical and financial assets owned by these households, they resort to coping strategies which are further damaging in nature. We also analyzed shock coping strategies of the sampled households and found that informal coping mechanisms are more prevalent among the poor households when hit by shocks. We have concluded that BISP is ineffective in protecting households in times of shocks and it is thus suggested that the transfers under this program should be generous in size and responsive to shocks in order to be an effective coping strategy for the poor.

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