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Volume-48
Communicate Minds
30th October 2006 FORTNIGHTLY
In this Issue...
Editorial Nobel incentives MF Poverty Eradication Other BISWA News
The Link
Chief-Editor Debabrata Malick Editors Guru Prasad Nahak Kiranbala Acharya
Central Office
BISWA At-Danipali, P.o-Budharaja Dist-Sambalpur, PIN-768004 Tele fax- +91-663-2533597 Email:biswamalick@rediffmail.com, kcmalick@biswa.org www.biswa.org
State Offices
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The post nationalization period in the banking sector witnessed substantial amount of resources being earmarked towards meeting the credit needs of the poor. The banking network underwent an expansion phase without comparison in the world. Credit came to be recognized as a remedy for many of the ills of the poverty. Credit packages and programmes were designed based on the perceived needs of the poor. Programmes also underwent qualitative changes based on the experiences gained. SHG (Self Help Group), informal thrift and credit groups of poor came to be recognised as bank clients. The real challenge facing the microfinance industry today is scaling up services to reach the estimated three billion people in developing countries who still lack access to formal financial services. Successful microfinance institutions have proven that providing financial services to the poor can be an effective means of poverty reduction and be a profitable business. A major bottleneck to the development of sustainable microfinance is limited institutional and managerial capacity at the level of retail microfinance institutions, as reflected in inadequate management information systems, poor strategic planning, and high operating costs. There is also a marked shortage of organizations that can provide safe savings facilities for the poor and that can sustainably mobilize these domestic savings for on-lending.
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and participative programmes can lead to unwanted negative impacts. In many cases, microfinance has been shown to benefit the moderately poor more than the truly destitute. Many early impact studies on microfinance showed increased income levels, but more recent and better-designed studies have shown that the impact can vary per income group. In most cases, the better-off are benefited more from micro credit, due to their higher skill levels, better market contacts, and higher initial resource base. Lower income groups may be more risk-averse, and are benefited more from micro savings and micro insurance. Many microfinance and micro credit programmes target women, largely due to their higher repayment rates, but in many cases this is a mixed blessing. If a programme excludes men, particularly in areas where access to financial services is limited, the man may require his wife to get the loan for him. Others have argued that exclusive access for women actually increases her bargaining power within the household. While inspiring examples abound of women taking loans and then using the income from their business to provide employment to others, feed their children and send
them to school, and become empowered members of their household and community. On the other hand many more examples exist of vicious circles of debt, family violence and increased workloads. Micro-finance programmes not only give women and men access to savings and credit, but reach millions of people worldwide bringing them together regularly in organised groups. Although no magic bullet, they are potentially a very significant contribution to gender equality and womens empowerment, as well as pro-poor development and civil society strengthening. Through their contribution to womens ability to earn an income, these programmes have potential to initiate a series of virtuous spirals of economic empowerment, increased well-being for women and their families and wider social and political empowerment. Micro finance services and groups involving men also have potential to question and significantly change mens attitudes and behaviors as an essential component of achieving gender equality. However, donor funding for micro finance has generally been conditional on compliance with some variant of Consultative Group to Assist the Poor (CGAPs) Guidelines for Best Practice aiming at short term financial sustainability. Funding for programmes which place prime emphasis on womens empowerment continues to decrease. Despite some successes, evidence indicates that even in financially sustainable programmes, benefits for women cannot be assumed. To the contrary, many programmes report decreases in their ability to ensure that women benefit following introduction of policies to increase financial sustainability. It is clear that gender strategies in micro finance need to look beyond just increasing womens access to savings and credit and organising selfhelp groups to look strategically at how programmes can actively promote gender equality and womens empowerment. Moreover the focus should be on developing a diversified micro-finance sector, where different types of organisation: NGOs, MFIs and formal sector banks all have gender policies adapted to the needs of their particular target groups/ institutional role and capacities. But where all collaborate & work together, to make a significant contribution to gender equality and propoor development. The current point in time is potentially favorable to bring together elements of Best Gender Practice strategies for different types of institution. On the one hand there is now more experience and awareness of the issues and possible strategies. On the other hand the earlier somewhat dogmatic promotion of one-size fits all financial sustainability is now being convincingly challenged in relation to poverty targeting a major theme at the forthcoming Micro Credit Summit in Halifax in November. This will provide a key opening for now paying more attention to gender issues the second official goal of the campaign being not only reaching but also empowering women.
DICS-2006
A district level meeting was organized by District Administration on District Information Services Council-2006 on October 19th, 2006 at Office Chamber of Collector, Sambalpur. The theme of the meeting was to promote IT usage and bridge the digital divide between regions, people and classes, formulate the District agenda for e-Governance, promote electronic delivery of citizens services, facilitate & promote interaction and synergy amongst various stake holders including line departments and NGOs in the use of IT for e-Governance and good governance. Sri Vishal Gagan, IAS Collector & DM, Sambalpur presided over the meeting. In this meeting different officials from DRDA, NIC, NABARD, OCAC and HINDALCO were present. Sri S.P. Meher, PRO-BISWA represented BISWA in place of Sri K.C. Malick, Chairman BISWA.
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Printed and Published by Debabrata Malick, Chief Editor. The Link, at BISWA Computer Section, Danipali, Budharaja, Sambalpur. PIN- 768004 Ph. No- 0663-2533597, email: thelink@biswa.org