Tool For Poverty Alleviation Research Articles

The impact of financial literacy on SMEs lending conditions

This study investigates the influence of entrepreneurs' financial literacy on the banking-lending terms extended to small and medium-sized enterprises (SMEs). We employed structured interviews with account managers from the second-largest bank in Brazil. The findings demonstrate that financial literacy positively impacts SME bank lending terms across three dimensions: knowledge, behavior, and attitudes. Entrepreneurs with higher levels of financial knowledge are more adept at negotiating favorable credit terms, thereby reducing administrative costs. Financial attitudes serve as a signal to banks of entrepreneurs' confidence and professional management capabilities. Additionally, heightened financial behavior enables entrepreneurs to advocate for more sophisticated financial products. Results achieved are further evidence of the positive impact that financial literacy can bring to SMEs by providing a basis for making sound financial decisions. This research provides valuable insights into how assessing lending practices through the lens of financial literacy can inform policy design, aiming to transform regions with low economic development by leveraging credit as a tool for poverty alleviation. The research aimed to analyze the influence of financial literacy on the lending conditions of SMEs from the perspective of financial institution agents involved in credit provision.

The impact of rural health insurance on vulnerability to chronic poverty among rural residents in China: analysis using Probit and IVprobit models.

Poverty is a global problem, and combating it is a major governance issue worldwide. In China, poverty management efforts have shifted from eliminating absolute poverty to managing relative poverty. One of the most important tasks in managing relative poverty in the post-poverty reduction era is to prevent recurring poverty due to illness. Rural health insurance is an important method of preventing and mitigating disease risk and a key part of China's poverty reduction policy, including among rural residents. However, the mechanism by which basic health insurance alleviates vulnerability to poverty, the causal effect of rural health insurance on vulnerability to poverty, and differences based on having a second health insurance policy and by age and income have not been sufficiently explored. Therefore, this study examined the impact of rural health insurance on vulnerability to long-term poverty among rural residents in China. In addition, this study evaluated the impact of having a second health insurance policy and differences in the effects of rural health insurance by age and income. This study used data from the 2014, 2016, 2018, and 2020 China Family Panel Studies. Household-related characteristics, such as finance, education, and healthcare, were retrieved from the household database; while data on healthcare expenditures, healthcare insurance, and personal-related characteristics were retrieved from the adult database. Robustness tests were conducted with Probit models, and endogeneity tests were conducted with IVprobit models. Vulnerability to poverty was significantly lower among residents with rural health insurance than those without any health insurance coverage, and this difference was observed across age and income groups. These findings were consistently robust and significant after controlling for endogeneity, considering sample selectivity, and eliminating measurement bias in the core variables. The findings indicate that rural health insurance is an important tool for poverty alleviation. The current results could effectively reduce the economic vulnerability of rural households facing health risks, ensuring broader economic security. Moreover, these findings provide policy references for managing relative poverty in China.

Need-Based Evangelism as a Tool for Economic Empowerment and Poverty Alleviation in Nigerian Pentecostal Churches

Need-Based Evangelism as a Tool for Economic Empowerment and Poverty Alleviation in Nigerian Pentecostal Churches

Kinship networks and financial inclusion nexus: the mediating effect of extended social cohesion among poor microentrepreneurs post COVID-19

Financial inclusion has been a major tool for poverty alleviation in Africa and, as such, it has become a topic of great interest among scholars working on the difficulties of African microentrepreneurs to access financial resources. Thus, this research examines whether extended social cohesion mediates the relationship between kinship networks and financial inclusion of poor microentrepreneurs post COVID-19 in the unbanked rural sub-Saharan Africa. Analyzing data from a sample of 304 microentrepreneurs of Uganda, we find that extended social cohesion resulting from social capital significantly affect the relationship between kinship networks and financial inclusion as it acts as substitute for the lack of physical collateral. The theoretical contribution of this research is that, it introduces the social cohesion theory, a theory developed in sociology, in the literature of microcredit finance and shows that social cohesion can serve as collateral, of which the absence has often prevented microentrepreneurs from having access to microcredit.

Zakat and Waqf Model in Reducing Poverty among Vulnerable Groups During the Pandemic in Nigeria

The crisis of COVID-19 pandemic has already crushed and affected almost everyone in the world. In terms of economy, the vulnerable group was the most affected group in the society as many of them lose their jobs and thus poverty rate rose. Poverty is a worldwide spread problem that results pains and loss of confidence to many people in the world where vulnerable citizens of Bauchi state-Nigeria are not excluded. The menace of poverty during COVID-19 pandemic can be alleviated through proper Zakat and Waqf administrations. This study explores the possible uses of Zakat and Waqf as financing tools for poverty alleviation during COVID-19 pandemic on the vulnerable in the society. The qualitative approach is adopted which includes review of related literatures and interview with relevant bodies and individuals. The findings of the study reveals that Zakat and Waqf as an Islamic finance models have relevant potential to fight any contemporary crisis and pandemic in respect of geographical location, era, people or religion. Zakat and Waqf if properly organized, maintained, collected, well managed and truthfully distributed to the people concerned can help in fighting the adverse effect of COVID-19 pandemic and alleviate poverty among the vulnerable in Bauchi state Nigeria.

A STUDY ON IMPACT OF MICROFINANCE INITIATIVES ON POVERTY ALLEVIATION AND COMMUNITY DEVELOPMENT

Microfinance initiatives have emerged as powerful tools for poverty alleviation and community development. This study examines the impact of microfinance initiatives at the Ponneri Urban Co-operative Credit Societies Ltd (PUCCSL) on poverty alleviation and community development. The sample size for the study is 210. This abstract outlines the impact of microfinance initiatives on poverty alleviation and community development at the Ponneri Urban Co-operative Credit Societies Ltd (PUCCSL) stems from the urgency to assess the efficacy of these initiatives in addressing the pressing socio-economic challenges within the Ponneri community. The study investigates the impact of microfinance initiatives on income level, Self-Help Group (SHG) loans, microfinance initiatives towards employment opportunities and overall impact of microfinance on poverty alleviation. The data were collected from respondents through a well-structured questionnaire. The tools used are non-parametric tests (H- Test, U-Test, Correlation). Overall, the findings of this study highlight the significant positive impact of microfinance initiatives at PUCCSL on poverty alleviation and community development in the Ponneri region. By continuing to innovate and expand its microfinance offerings, PUCCSL remains well-positioned to drive further social and economic progress in Ponneri and empower individuals to build a better future for themselves and their communities. Keywords: Microfinance, Self-Help Group (SHG), Income level, Employment opportunity, poverty alleviation, Socio-economic growth

Does contract farming participation promote household’s food security for smallholders? Empirical evidence from Indonesia

Contract farming has been extensively adopted as a strategy to overcome limitations in the market and enhance the well-being of farmers. Nevertheless, the extent to which it affects food security has not been sufficiently examined and is uncertain. Moreover, there is a lack of empirical evidence regarding the impact of contract farming on food security in Indonesia. To fill the existing research gap, this study employs propensity score matching (PSM) to mitigate selection bias in examining the impact of contract farming on the food security of smallholder farm households in Indonesia. It utilizes the 2021 Indonesia Agricultural Integrated Survey (SITASI) data, designed to monitor the indicators of sustainable development goals (SDGs) in the agriculture sector. The food insecurity experience scale (FIES) is used to measure food security. Our research shows that contract farming can potentially improve the food security of smallholder farm households in Indonesia. However, the overall impact can be considered minor. Contract farming has the potential to enhance food security, but it may not be adequate as a standalone solution. A comprehensive strategy, complemented by related policies such as innovative farming practices, technology adoption, and income-generation measures, is essential. Furthermore, our investigation revealed that this beneficial effect is particularly prominent among farmers residing in rural areas, female farmers, and farmers who do not own land or livestock. It indicates that contract farming can be a feasible tool for poverty alleviation, rural development, and woman empowerment. This study also found that factors such as location, market access, credit availability, gender, education, and exposure to agricultural training influenced contract farming participation.

Synergizing Women’s Health and Microfinance Programs through Self-Help Groups for Empowering Communities in India

Microfinance has evolved as a poverty alleviation tool, yet without addressing health, it will only have a limited impact, as poor health can contribute to increased poverty. This research examines a different approach to integrating initiatives that concern women’s health with microfinance programs through Self-Help Groups (SHGs) in India. It is based on a case study method where various case models integrating microfinance and health interventions are studied. In this regard, this article analyzes various cases from several states in India with a focus on the use of SHGs as an effective platform for delivering health education, services, and financial products designed to meet the specific needs of women. The research shows that SHGs are crucial for enabling their members' access to credit facilities, income-generating opportunities, and primary health care, which are necessary for fostering an environment suitable for empowering women and developing community structures. Thus, this study concludes that when applied together, such initiatives promote better health indices and augment female economic activities and decision-making ability.

Zakat-based urban farming: A tool for poverty alleviation, community empowerment, financial inclusion, and food security

Purpose – This study introduces a zakat-based model aimed at poverty reduction and enhancing food security in urban settings. Drawing upon the principles of Islamic social finance, the model integrates urban farming with the utilization of zakat, charity, and corporate social responsibility funds, offering sustainable financial avenues for disadvantaged individuals and social enterprises. The primary objective of this research is to design and pilot test a practical model that not only generates consistent financial income, but also bolsters food security and advances financial inclusion. Methodology – This study reviews various models that have used Zakat funds for economic empowerment, conduct interviews, and hold focus group discussions. It proposes a zakat-based urban farming model for poverty alleviation and community empowerment using the theory of change. In collaboration with a leading Islamic bank in Malaysia, the model was pilot tested across selected residential communities in Malaysia. Finding – The research findings demonstrated positive impacts both at the individual participant level and within the broader community. Serving as a replicable blueprint, this project envisions the transformation of urban spaces into productive landscapes, thereby ensuring sustainable livelihood, amplifying food security, and promoting financial inclusion. Implication – Through this Zakat-based approach, the research underscores the profound impact of urban farming in catalyzing socio-economic change and advancing efforts towards poverty alleviation.Originality – No previous research has introduced and pilot-tested Zakat-based urban farming solutions for Islamic financial institutions as a tool for Poverty Alleviation and financial inclusion

Cooperative Society: A Veritable Tool for Wealth Creation and Poverty Alleviation in Bayelsa State

Concerns have also been raised about cooperative organisations' efforts to reduce poverty and generate wealth in the communities in which they operate. Most cooperatives fail to achieve their goal of enhancing members' financial security and well-being, which ultimately results in their dissolution. Thus, this study looked at how cooperative societies in Bayelsa state contribute to wealth development and poverty reduction. In order to accomplish its goals, the study employed a survey research methodology with a structured questionnaire, which was analysed using chi-square and basic descriptive statistics. The study's findings showed that cooperatives help members acquire assets both directly and indirectly (in the form of cash or in kind). The support of cooperative society has enabled the acquisition of a variety of assets, including buildings, cars, gadgets, and land. This helped each member achieve their needs for safety and physiology while also improving the people's economic situation. Members who gained assets after they satisfied their fundamental needs were able to transcend extreme poverty. Asset acquisition is a physical economic progress. Here, cooperatives function as both major contributors to and agents of poverty alleviation. Therefore, in order for cooperative society activities to continue having a good influence on the livelihood of its members in Bayelsa state, it is advised that they be appropriately governed by the government and the relevant agencies.

Tourism Development and Multidimensional Poverty Alleviation

Tourism development is often used as a strategy to fight poverty, but in the tourism literature it remains controversial as a tool for poverty alleviation in a poor region. This study adopts a multidimensional framework to measure regional poverty. Specifically, we examine four dimensions, including economics, education, social security, and medical service, to reflect poverty alleviation for a region. Then we establish econometric models to explore the link between tourism and poverty alleviation. The result shows that tourism development has a positive influence on multidimensional poverty alleviation in 73 counties in Guizhou province, a typically poor region in China. The consideration of the multidimensional nature of poverty in this study is more convictive to conclude that tourism can reduce poverty. This study further demonstrates that political pressure, indicated by the time period near the end of the fight-against-poverty campaign and by whether a county has red-culture heritages, affects tourism-led poverty alleviation in China.

MODEL PENGHITUNGAN ZAKAT PERTANIAN PADA PETANI PADI MENURUT HUKUM ISLAM (STUDI KASUS DI KECAMATAN MARIORAWA KABUPATEN SOPPENG)

This qualitative descriptive study explores the practices and understanding of zakat, specifically agricultural zakat, among rice farmers in Kecamatan Marioriawa, Kabupaten Soppeng, South Sulawesi. Utilizing a phenomenological, syar'i, and juridical approach, the research focuses on how these farmers interpret and implement the Islamic obligation of zakat. Data were collected through interviews, observations, and document analysis, following an interactive method of data analysis. The study reveals a significant gap between the theoretical principles of zakat in Islam and its practical application among the farmers. Many do not accurately understand the regulations concerning nisab (the minimum amount of agricultural produce that necessitates the payment of zakat), haul (the period for zakat collection), and the percentage of zakat to be given. This misunderstanding results from inadequate education and mobilization efforts by local zakat management authorities and religious leaders. The research further discusses the variations in zakat practices, with some farmers calculating zakat incorrectly or choosing zakat recipients subjectively. This discrepancy highlights the urgent need for better education and a more proactive approach from zakat collectors (amil zakat) in educating and collecting zakat from rice farmers. The study suggests that local government and religious institutions should collaborate to provide training and workshops to enhance farmers' understanding and proper practice of zakat according to Islamic teachings. Additionally, the formation of village or sub-district zakat teams is recommended to facilitate the collection and distribution of zakat in a more structured, transparent, and accountable manner, ensuring the optimal function of zakat as a tool for economic empowerment and poverty alleviation in the community.

İSLAMİ MİKROFİNANS ARAŞTIRMALARINDA MEVCUT TARTIŞMALAR VE GELECEK GÜNDEMLER: SCOPUS VERİTABANINA DAYALI BİR BİBLİYOMETRİK ÇALIŞMA

The main purpose of this study is to encapsulate the major themes and their inter-linkage within Islamic microfinance research and to highlight the important gaps by recommending future research areas of worth investigation. The Scopus database is used for this bibliometric analysis. Using a robust selection criterion, 89 research articles were finalized to conduct the analysis. For the visualization and presentation of results, various software were used, such as R, RStudio, VOSviewer, and Microsoft excel. Results of content analysis and literature mapping show that most of the available studies on Islamic microfinance are theoretical and cover the topics of Islamic microfinance models, importance as a tool for poverty alleviation, and integration of Islamic commercial and social finance. There is an ample research gap in this area, and there are various avenues that could be explored in future research. In comparison with other studies on the same area using the same methodology, this study presents the various research agendas, areas and ideas for future research, which makes this study a good contribution to the literature.

Microfinance, Microcredit, and Women’s Empowerment: An Exploration of the Grameen Bank Experience for Social Inclusion

Microfinance, originating in the mid-1800s but gaining modern prominence with Muhammad Yunus's Grameen Bank in 1970, has emerged as a potent tool for poverty alleviation. This paper explores the profound impact of microcredit on marginalized communities globally, particularly the empowerment of women, who constitute a majority of borrowers. Microcredit not only provides financial opportunities but also fosters confidence and belief in women's potential, transcending religious and national boundaries. Examining the origins and operations of microfinance, notably Grameen Bank, the paper distinguishes microfinance institutions from traditional banks. It addresses concerns about interest rates and presents compelling evidence linking microfinance access to poverty reduction. The core contribution of this research lies in its exploration of microcredit's dual function as an instrument for socioeconomic development and a catalyst for women's empowerment. We provide insights into how microcredit can contribute to fostering a more equitable world characterized by reduced poverty.

Is Micro-financing a Viable Tool for Poverty Alleviation?: An Assessment of a Leading Microfinance Bank in Nigeria

Is micro-financing a viable poverty alleviation tool for its clients? We reflected on this question and conducted a longitudinal study using the 2011 Poverty Probability Index (PPI) to measure the household poverty of LAPO Microfinance Bank clients. The bank’s non-financial services were also examined to determine their benefits for clients. Using a multistage sampling technique, 1000 clients across the six geopolitical zones in Nigeria were selected for the study. We found that clients’ poverty likelihood index (PPI) declined from 11.62% at baseline to 9.86% at post-assessment. Poverty differentials by some socio-demographic disaggregates were observed. Compared to urban and peri-urban clients, rural resident clients had higher poverty likelihood. Disaggregated by geo-political zones, poverty likelihood was higher in northern Nigeria compared both to other zones and the national poverty likelihood. Female clients (12.32%) had higher poverty likelihood than males (9.73%). However, among all these categories, poverty likelihood declined in the post-assessment phase. Premised on the outcome of economic disruption experienced during the lockdown, we observed that clients who assessed only one loan cycle had higher poverty likelihood than their counterparts. We advanced two interrelated positions. The first relates to an inverse relationship between the number of loans accessed and poverty likelihood while the second argues that businesses at the early stage are worst affected during economic disruptions but can leverage on microfinance infrastructure to keep afloat. While our study advances the understanding of microfinance infrastructure and poverty alleviation in Nigeria, we recommend a continuous flow of loans and provision of non-financial services to clients. We also recommend that operating environment be made favourable for providers to keep impacting lives through microfinance financial and non-financial services.

AN ANALYSIS OF THE CONTRIBUTIONS OF NRLM/SGSY IN THE SAVINGS STRUCTURE OF SHGs IN THE STATE OF UTTAR PRADESH

In a country like India, the prospect or success of Microfinance is highly dominated by the Self-Help Groups as it helps in the implementation of the microfinance programs. The people belonging to similar socio-economic conditions and residing in the same locality come together to form SHGs. These associations are voluntary associations formed to attain similar goals as well as for The alleviation of the poverty conditions. It aims at providing financial aid to the poor, in the form of small savings, credit and insurance. In India, Microfinance is emerging as a powerful tool for poverty alleviation. This paper however, is an attempt towards analysing the contributions of NRLM/SGSY scheme in the savings structure of Self-Help Groups in the state of Uttar Pradesh. This paper describes the conceptual framework of Microfinance and Self-Help Groups in India. The researcher has made an attempt to understand the role of microfinance in the upliftment of people. It is an effort to highlight the role of microfinance in socio-economic development through the study of micro financial schemes, especially in the state of Uttar Pradesh, by analysing the SHGs enrollment rate along with their savings structure of the population. KEYWORDS- Microfinance, Self-Help Groups, National Rural Livelihood Mission, Swarn Jayanti Gram Swarozgar Yojana.

Urban Tourism: Designing a Tourism Space in the Post-war City Context for Sustainability

Tourism is viewed as a tool for poverty alleviation, economic diversification and regeneration, multilateral integration and peace, post-conflict stability, and socio-economic recovery in many post-conflict nations. Urban tourism is one of the forms that has emphasized the importance of supporting urban sustainability while considering all of the city's dynamic change processes, such as natural resource protection, culture, architecture, and environmental management. The purpose of this study is to assess the issues and challenges that confront urban tourism development and to make recommendations for developing sustainable urban tourism in Jaffna City. This study incorporated both primary and secondary data. Direct field observation, structured questionnaire surveys, focus group discussions, and key informant interviews were used to collect the necessary primary data. Secondary data was gathered from authorized statistical reports. The collected data was analyzed using descriptive statistical methods, and a SWOT analysis was performed to determine Jaffna's strengths, weaknesses, opportunities, and threats to sustainable urban tourism development. The maps for the study were created using the ArcGIS 10.4 software. According to the study's findings, ineffective green environmental protection systems, inadequate infrastructure facilities, a lack of industrial professionalism, cultural barriers to tourism promotion, ineffective marketing promotional strategies, a lack of institutional coordination, and a lack of tourist product diversification are the factors posing challenges to Jaffna city's sustainable urban tourism development. Based on the strengths, weaknesses, opportunities, and threats of Jaffna's urban tourism development, this study provided recommendations for sustainable tourism development that will assist different stakeholders in rethinking Jaffna's urban tourism in a sustainable manner.

Women Entrepreneurs and Poverty Alleviation in Floriculture of Colombo District in Sri Lanka

Floriculture is one of the highest-growing industries worldwide. It handles a wide range of floricultural outcomes, including fresh flowers, foliage plants, blossoming plants, pot plants, climbers, and grasses, to its customers. At present, it has become a high-income generating agribusiness. The intention of the study is to observe the floricultural influence and its success over poverty alleviation. Further, a wide emphasis is given to examine the motivational factors that led to the decision to startup the agribusiness, the socio-economic status of women floriculturists before and after, and the situation of entrepreneurs in the face of the corona pandemic. The district of Colombo was selected for the present study. Both mixed questionnaires and key informant interviews were adapted for data collection. A random sample of 65 women floriculture entrepreneurs was selected each representing the thirteen DSDs. Mixed content and discourse analyses were used to analyze data. Findings indicate that making money is the critical motivation behind the decision to engage in floriculture. Its contribution to Sri Lanka’s socio-economic development is impressive. The Corona pandemic shows a less negative impact on the studied floriculture entrepreneurs and the results illustrated a weak negative correlation between the two variables, monthly income and the age of the venture. Unlike the clash between work and family, home-based floriculture production enabled the women to remain at home and focus on business and family responsibilities. As a poverty alleviation tool, women's contribution in floriculture is very much practical. Finally, the study has made efforts to bring forward the extent of women empowerment through floriculture, income generation and challenges associated with it. The findings can be utilized for policy developments, implementing institutional frameworks to expand the floriculture industry and empower women whilst eliminating poverty in other areas.

Challenges and opportunities in achieving sustainable mud crab aquaculture in tropical coastal regions

Aquaculture plays a significant role in food security and provides livelihoods and employment for millions of people among coastal communities worldwide. However, the growing aquaculture sector has also created debates around its long-term ecological sustainability, economic viability, potential social inequalities and governance issues. We investigated the perceived challenges and opportunities to achieving sustainable mud crab aquaculture in tropical coastal regions by using the case study of coastal mud crab farms in Andhra Pradesh, India. Informed by perceptions and indicative financial data from a sample of stakeholders we investigated the potential economic outcomes under different scenarios representing varying yield levels, risk factors and project time periods. The main risks identified by the stakeholders were associated with the limited supply of mud crab seeds and the lack of access to governmental and non-governmental support schemes. There are no financial buffers, therefore major disease outbreaks or extreme weather conditions caused by climate change would lead to a loss of livelihoods. This paper also highlights the most critical factor determining the level of success of mud crab farming being the crab survival rate which is influenced by a variety of factors including increasing sea surface temperature. The results of this study show that small-scale mud crab farming has fewer risks and higher flexibility involved than large-scale mud crab farming. It could be an economically sustainable enterprise and serve as a tool for poverty alleviation in developing countries if microfinance support and training are available.

Impact of Microfinance on Poverty Reduction: A Case Study of Khushhali Bank Mirpur Khas District

Micro finance banks are an important tools to alleviate the poverty. They effectively helps the poor people by increasing their income level. The present study is designed to explore the impact of microfinance on poverty reduction in the Mirpurkhas district, using Khushhalibank as a case study. It examine the size of MF loan and effect of this loan on income level of beneficiaries. Analyzed the different variables like as size of loan, living standard and their impact on poverty rate. Sample of 300 respondent was taken randomly by using close ended questionnaire mainly focus on the customers of the Khushhalibank Mirpurkhas branch .Further raw data was analyzed with the help of SPSS 22.0 software and PLS . Finding concludes that microfinance is an effective tool for poverty alleviation, as it helps increase income and improve the living standards of the poor. Further suggests that microfinance institutions provide more effective opportunities for people living below the poverty line to invest money/capital based on their needs, experience, and knowledge. The study also suggests policy recommendations for planned improvements. The literature review highlights the importance of microfinance in poverty reduction, and how it has played a significant role in the economic development of people in rural areas. The study concludes that microfinance can be a powerful instrument in mitigating rural poverty.