Financial Inclusion & Social Capital A Case Study of SGSY Beneficiaries in Kashmir Valley
Article Sidebar
Main Article Content
Abstract
Poverty alleviation has remained on the agenda of policy makers throughout the world, more so in developing countries with higher incidence of poverty. The paradigm shift in understanding of poverty has evolved to include various dimensions of deprivations instead of one-dimensional income poverty. Policy makers around the world as a part of long term strategy in eradicating poverty, however, consider access to financial resources as the most important constituent of the multi-pronged strategy. Further, the various socio-political dimensions and economic dimensions of poverty are believed to interact with each other and manifest itself in an intertwined relationship. Financial inclusion is believed to encourage micro entrepreneur to take on profitable activities which in turn provide an enabling environment for him to gather access to social networks which may be beneficial to him in terms of access to raw material, marketing support and business ties. Whereas financial inclusion is believed to have a positive impact on social capital, the reverse is also true; the amount and quality of social capital provides a micro-entrepreneur with easy access to diverse sources of finance. Microfinance Institutions around the world heavily rely on group financing mechanism by leveraging on social collateral as a replacement to financial collateral in financing micro-entrepreneurs. Obviously they perceive lending to micro-entrepreneurs having rich social capital as less riskier and thus his/her social capital substitutes for the financial collateral in gaining access to credit.
The present study is an attempt in this direction to understand the relationship between financial inclusion and social capital. The study attempts to evaluate the impact of access to finance on socio-political empowerment of the beneficiaries of Swarnjayanti Gram Swarozgar Yojana (SGSY), now known as National Rural Livelihood Mission (NRLM). Results indicate that access to finance has a positive impact on almost all the socio-political indicators of empowerment, the impact being relatively lesser for financial literacy and economic awarenessDownloads
Article Details
1. Proposal of Policy for Free Access Periodics
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 that allows the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in an institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
Proposal of Policy for Periodic that offer Postponed Free Access
Authors whom publish in this magazine should agree to the following terms:
a. Authors should keep the copyrights and grant to the magazine the right of the first publication, with the work simultaneously permitted under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 [SPECIFY TIME HERE] after the publication, allowing the sharing of the work with recognition of the authorship of the work and initial publication in this magazine.
b. Authors should have authorization for assuming additional contracts separately, for non-exclusive distribution of the version of the work published in this magazine (e.g.: to publish in institutional repository or as book chapter), with recognition of authorship and initial publication in this magazine.
c. Authors should have permission and should be stimulated to publish and to distribute its work online (e.g.: in institutional repositories or its personal page) to any point before or during the publishing process, since this can generate productive alterations, as well as increasing the impact and the citation of the published work (See The Effect of Free Access).
d. They allow some kind of open dissemination. Authors can disseminate their articles in open access, but with specific conditions imposed by the editor that are related to:
Version of the article that can be deposited in the repository:
Pre-print: before being reviewed by pairs.
Post-print: once reviewed by pairs, which can be:
The version of the author that has been accepted for publication.
The editor's version, that is, the article published in the magazine.
At which point the article can be made accessible in an open manner: before it is published in the magazine, immediately afterwards or if a period of seizure is required, which can range from six months to several years.
Where to leave open: on the author's personal web page, only departmental websites, the repository of the institution, the file of the research funding agency, among others.
References
AMIN, R.; HILL, R. B.; LI, Y. (1995) Poor women's participation in credit-based self-employment: the impact on their empowerment, fertility, contraceptive use, and fertility desire in rural Bangladesh. The Pakistan Development Review, p. 93-119.
BOURDIEU, P. (1983) Economic capital, cultural capital, social capital. Soziale-Welt, Supplement, n. 2, p. 183-198.
CANTRIL, H. (1965) The pattern of human concerns. New Brunswick, NJ: Rutgers University Press
CHESTON, S.; KUHN, L. (2002) Empowering Women through Microfinance, Research Study Partner, conducted with Sinapa Abu Trust, Ghana.
CICCONE, A.; HALL, R. E. (1996) Productivity and the density of economic activity,’ American Economic Review, n. 86, p. 54-70.
DARITY, W. A.; GOLDSMITH, A. H. (1996) Social psychology, unemployment and macroeconomics. Journal of Economic Perspectives, v. 10, n. 1, p. 121-140.
DIENER, E.; KAHNEMAN, D.; TOV, W.; ARORA, R. (2009) Income's Differential Influence on Judgments of Life Versus Affective Wellbeing. Assessing Wellbeing. Oxford, UK: Springer.
DUNN, E.; ARBUCKLE, J. G. (2001a) The Impacts of microcredit: A case study from Peru. AIMS paper, Management Systems International, Washington DC.
FREDRICK, J.; KALAICHELVI, K. (2010) ‘SHG: Microfinance as a New Tool to Combat Poverty.’ in Microfinance: Enabling Empowerment, (Eds.) LAZAR, D.; NATRAJANA, P.; DEO M. Pondicherry University, Vijay Nicole Imprints, p. 443-451.
FUKUYAMA, F. (1995) Trust: The social virtues and the creation of prosperity, p. 61-7. New York: Free Press.
FUKUYAMA, F. (1999) Social capital and civil society.
GANESAN, G.; SASIKALA, S. (2010) Impact of Micro Credit on Socio-economic Development of Self Help Groups with a Special Reference to Thiruvalluvar District, Tamilnadu. In Microfinance: Enabling Empowerment, (Eds.) LAZAR, D.; NATRAJANA, P.; DEO M. Pondicherry University, Vijay Nicole Imprints, p. 423-431.
GLAESER, E.; LAIBSON, D.; SACERDOTE, B. (2000) The Economic Approach to Social Capital. NBER Working Paper 7728. National Bureau of Economic Research, Cambridge, Mass.
GOLDMARK, L. (2001) Microenterprise development in Latin America: Towards a new flexibility. The Journal of Socio-Economics, v. 30, n. 2, p. 145-149.
GOMEZ, R.; SANTOR, E. (2001) Membership has its privileges: The effect of social capital and neighbourhood characteristics on the earnings of microfinance borrowers. Canadian Journal of Economics, p. 943-966.
HARTER, J. K.; GURLEY, V. F. (2008) Measuring well-being in the United States. Association for Psychological Science Observer, v. 21, n. 8.
HASHEMI, S. M.; SCHULER, S. R.; RILEY, A. P. (1996) Rural credit programs and women's empowerment in Bangladesh. World development, v. 24, n. 4, p. 635-653
HEPZIBAH, R. R.; SELVI, D. (2011) Financial Inclusion through Self Help Groups. Growth with Equity Financial Inclusion, Pondicherry University, Vijay Nicole Imprints, p. 173-181.
HERMES, N.; LENSINK, R. (2007) Impact of microfinance; A Critical Survey, Economics and Political Weekly, v. 42, n. 6, p. 462–486.
HOLZER, H. J. (1987) Hiring procedures in the firm: their economic determinants and outcomes.
JACOBS, J. (1961) The death and life of great American cities. Random House LLC.
JOHNSON, S.; ROGALY, B. (1997) Microfinance and Poverty Reduction. Oxfam, Oxford.
JOSE, JOSHEENA; VASANTHA, KUMARI P. (2009) SHG’s – A key of microfinancing in the Community Development of Kerela. Microfinance: Performance Evaluation & Enterprise Development, Allied Publishers, p. 385-391.
KABEER, N. (2003) Part III: Wider Social Impacts: 10. Assessing the “Wider” Social Impacts of Microfinance Services: Concepts, Methods, Findings. IDS bulletin, v. 34, n. 4, p. 106-114.
KHAKI, A. R.; SANGMI, M. U. D. (2012) Microfinance & Self Help Groups: An Empirical Study. Indian Journal of Management Science, v. II, n. 2, p. 50-59.
KHANDKER, S. R. (1998) Fighting poverty with microcredit: experience in Bangladesh. Oxford University Press.King, R. & Levine, R. (1993a) Finance and Growth: Schumpeter might be right. Quarterly Journal of Economics, v. 108, n. 3.
KOTISHWAR, A.; KHAN M. A. A. (2010) Inclusive Growth and the Quality of Life. The Indian Journal of Commerce, v. 63, n. 2, p. 183-190.
LASHLEY, J. (2002) Survey of Barbadian Businesses: Main Findings and Issues.
LIN, N. (1999) Building a network theory of social capital. Connections, v. 22, n. 1, p. 28-51.
LITTLEFIELD, E.; MORDUCH, J.; HASHEMI, S. (2003) Is microfinance an effective strategy to reach the Millennium Development Goals? Focus Note, n. 24, y. 2003, p. 1-11.
LYNGDOH, B. F.; PATI, A. P. (2011) Microfinance and Socio-economic Change: An Assessment of Women Clients of Meghalaya. The Microfinance Review, v. 3, n. 1, p. 110-121.
MAKINA, D.; MALOBOLA, L. M. (2004) Impact assessment of microfinance programmes, including lessons from Khula Enterprise Finance. Development Southern Africa, v. 21, n. 5, p. 799-814.
MKNELLY, BARBARA; DUNFORD, CHRISTOPHER, (1998) Impact of Credit with Education on Mothers and Their Young Children’s Nutrition: Lower Pra Rural Bank Credit with Education Program in Ghana. Davis, California: Freedon from Hunger.
MKNELLY, BARBARA; DUNFORD, CHRISTOPHER (1999) Impact of Credit with Education on Mothers and Their Young Children’s Nutrition: CRECER Credit with Education Program in Bolivia. Davis, California: Freedom from Hunger.
MOSLEY, P. (2001) Microfinance and Poverty in Bolivia, Journal of Development Studies, n. 37, p. 101-132.
MOSLEY, P.; ROCK, J. (2004) Microfinance, labour markets and poverty in Africa: a study of six institutions. Journal of International Development, v. 16, n. 3, p. 467-500.
NEPONEN, HELZI; ASA-GV MICROFINANCE IMPACT REPORT (2003) Trichipally, India. The Activists for Social Alternatives.
NOPONEN, H. (2005) The internal learning system—assessing impact while addressing participant learning needs. Journal of International Development, v. 17, n. 2, p. 195-209.
PARK, A.; REN, C. (2001) Microfinance with Chinese characteristics, World Development, n. 29, p. 39-62.
PITT, M.; KHANDKER, S. (1998) The Impact of group-based credit programs on poor households in Bangladesh: Does the gender of participants matter? Journal of Political Economy, v. 106, n. 5, p. 958-996.
PITT, M. M.; KHANDKER, S. R.; CARTWRIGHT, J. (2006) Empowering women with micro finance: evidence from Bangladesh. Economic Development and Cultural Change, v. 54, n. 4, p. 791-831.
PITT, M. M.; KHANDKER, S. R.; CHOWDHURY, O. H.; MILLIMET, D. L. (2003) Credit programs for the poor and the health status of children in rural Bangladesh. International Economic
PUHAZHENDI, V.; BADATYA, K. C. (2002) SHG-Bank linkage programme for rural poor–An impact assessment. In seminar on SHG bank linkage programme at New Delhi, micro Credit Innovations Department, Nabard, Mumbai.
PUHAZHENDI, V.; SATYASAI, K. J. S. (2000) Microcredit for rural people: An impact study. Mumbai: NABARD.
PUTNAM, R. D. (1993) The prosperous community. The American prospect, v. 4, n. 13, p. 35-42.
RANGARAJAN, C. (2008) Report of the committee on financial inclusion. Government of India report.
ROBINSON, M. (2001) The Microfinance Revolution. Washington, DC: World Bank and Open Society Institute.
SANDERS, J. M.; NEE, V. (1996) Immigrant self-employment: The family as social capital and the value of human capital. American sociological review, p. 231-249.
SANGMI, M.; KAMILI, S. J. (2010) Microfinance in Jammu and Kashmir; A Study of SHG Bank Linkage and Financial Inclusion Programme in: Lazer et al, (Eds) Microfinance; Enabling Empowerment: Vijay Nicole Imprints Pvt. Ltd., p. 522-538.
SCHULER, S. R.; HASHEMI, S. M. (1994) Credit programs, women's empowerment, and contraceptive use in rural Bangladesh. Studies in family planning, p. 65-76.
SCHULER, S. R.; HASHEMI, S. M.; BADAL, S. H. (1998) Men's violence against women in rural Bangladesh: undermined or exacerbated by microcredit programmes?. Development in practice, v. 8, n. 2, p. 148-157.
SHUKLA, R.; GHOSH, P. K.; SHARMA, R. (2011) Assessing the Effectiveness of Small Borrowing In India. NCAER, New Delhi.
SRINIVASAN, J.; KUPPUSAMY. I. (2010) Role of Microfinance in Eradicating Poverty in Vellore District: An Empirical Analysis. In Microfinance: Enabling Empowerment, (Eds,) Lazar, D., Natrajana, P. and Deo M. Pondicherry University, Vijay Nicole Imprints, p. 319-331.
WEISS, J.; MONTGOMERY, H. (2005) Great expectations: microfinance and poverty reduction in Asia and Latin America. Oxford Development Studies, v. 33, n. 3-4, p. 391-416.
WHITE, L. (2002) Connection matters: Exploring the implications of social capital and social networks for social policy. Systems Research and Behavioral Science, v. 19, n. 3, p. 255-269.
WOOLCOCK, M. (1998) Social capital and economic development: Toward a theoretical synthesis and policy framework. Theory and society, v. 27, n. 2, p. 151-208.
ZOHIR, S.; MATIN, I. (2004) Wider impacts of microfinance institutions: issues and concepts. Journal of International Development, v. 16, n. 3, p. 301-330.