MICRO-FINANCE, SELF- HELP GROUPS AND WOMEN EMPOWERMENT: AN EVIDENCE FROM HIMACHAL PRADESH

Abstract

Over the years a plethora of poverty alleviation programmes in various forms has been implemented in the country and a huge amount of social and financial investment has been made to achieve the sole aim and objective of poverty eradication. Most of the programmes were based on top-down approach and did not consider needs and requirements of the people. Activities for poverty alleviation in most cases adhered to fund-based development approach where there was little space for importing people’s sense on ownership which affected negatively the sustainability of the initiatives. The economic vulnerable groups, therefore, were forced to remain under-confident and the guarantee for security of their livelihood was found missing in the entire endeavour to eradicate poverty from the soil of India. The role of Micro-credit in eradication of poverty was stressed by the United Nations in agreed conclusions 1997/1 adopted by the Economic and Social Council on 25th July 1997, in which the Council called for Strengthening the institutions supportive of micro-credit and recognized the importance of access of micro-credit of people living in poverty to enable them to undertake micro-enterprises to generate self-employment and contribute to achieving empowerment especially women. Microfinance is commonly thought to be the magic wand to improve the social and economic status of a community by empowering women, enhancing financial inclusion and literacy, and encouraging savings. Despite the apparent success and popularity of microfinance there has been mixed evidence on its effects on the social and economic wellbeing of the poor.