Amit, Kundu and Suranjana, Mitra (2010): Group Lending Scheme operating through Primary Agricultural Credit Society: A Critical Assessment. Published in: The IUP Journal of Managerical Economics , Vol. Vol.3, No. August, 2010
Download (236Kb) | Preview
The basic objective of the paper is to identify the effectiveness of group lending based microfinance programme operating through Primary Agricultural Credit Society to improve the economic condition among the rural participants in two blocks of Hooghly district in West Bengal. Here to do the impact study we have considered both Difference-in-Difference and First Difference Method with the help of longitudinal data and it is applied to minimize the possibility of selection bias during the time of drawing samples. It came out from field survey that very few marginal farmers had taken credit from their respective groups for agricultural purposes. Results reveal that there has been no significant impact of microfinance programme in terms of improvement of the outcome variables among the member households in spite of low interest rate charged on loans, high repayment rate within groups and small size of self-help groups. The reasons responsible are lack of skill-based training programmes for the members of groups and lack of marketing facilities to promote and sell the products produced by the members of self-help groups. The only positive aspect is the members can now protect themselves from the crunches of professional money lenders who charged exorbitant interest rates
|Item Type:||MPRA Paper|
|Original Title:||Group Lending Scheme operating through Primary Agricultural Credit Society: A Critical Assessment|
|Keywords:||Microfinance, Self-help groups, Joint liability Credit Contract, Primary Agricultural Credit Society.|
|Subjects:||I - Health, Education, and Welfare > I3 - Welfare and Poverty > I38 - Government Policy; Provision and Effects of Welfare Programs
Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics > Q1 - Agriculture > Q14 - Agricultural Finance
G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
|Depositing User:||AMIT KUNDU|
|Date Deposited:||10. Sep 2010 16:00|
|Last Modified:||16. Feb 2013 08:35|
1.Armendariz, B. and Morduch, J. (2005). ‘The Economics of Microfinance’, MIT Press.
2.Asian Development Bank, Operations Evaluation Department. (September 2007). “Effect of Microfinance Operations on Poor rural Households and the Status of Women”, Special Evaluation Study, Reference Number: SST: REG 2007-19.
3.Banerjee,A., Duflo, E., Glennerster, R. and Kinnan, C. (2009). “The Miracle of Microfinance? Evidence from a Randomised Evaluation”, Department of Economics, Massachussets Institute of Technology (MIT), Working Paper May.
4.Bebezuk, R. and Haimovich, F. (2007). “MDGs and Microcredit: An Empirical Evaluation for Latin American Countries”, Working Paper No. 48. Argentina: Universidad Nacional de la Plata.
5.Chowdhury, A. (2009). “Microfinance as a Poverty Reduction Tool-A Critical Assessment”, DESA Working Paper No. 89.
6.Coleman, B. (1999). “The Impact of Group Lending in Northeast Thailand”, Journal of Development Economics 60: 105-141.
7.Coleman, B. (2006). “Microfinance in Northeast Thailand: Who Benefits and How Much?” World Development 34 (9): 1612-1638.
8.Dean, K. and Zinman, J. (2009). “Expanding Microenterprise Credit Access: Using Randomised Supply Decisions to Estimate the Impacts in Manila”, Working Paper, July, Department of Economics, Yale University, New Haven.
9.Gine, X. and Karlan, D., (May 2006). ‘Group versus Individual Liability: A Field Experiment in the Philippines’, World Bank Policy Working Paper, 4008 Washington.
10.Harper, M. (June 2005). “Farm Credit and Microfinance-Is there a Critical Mismatch?”. Small Enterprise Development, Vol.16, No. 3 September 2005.
11.Harper, M., Berkhof. A. and Ramakrishna, R.V. (April 2003). ‘SHG-Bank Linkage- A Tool for Reforms in Cooperatives?’ Economic and Political Weekly, pp.1720-26.
12.Hulme, D. and Mosley, P. (1996). “Finance against Poverty”, Routledge, London.
13.Khandker, S. (February 5 -9, 2001). “Does Microfinance Really Benefit the Poor? Evidence from Bangladesh”, Paper presented at the Asia and Pacific Forum on Poverty: Reforming Policies and Institutions for Poverty Reduction. 14.Kondo, T., Orbeto, A., Dingiong, C. and Infantado, C. (January 2008). “Impact of Microfinance on Rural Households in the Philippines”, NONJE Working Paper No. 4.
15.Mahajan, V. (2005). “From Microcredit to Livelihood Finance”, Economic and Political Weekly, October8.
16.Morduch, J. (June 27, 1998). “Does Microfinance Really Help the Poor? New Evidence from Flagship Programs in Bangladesh”, Hoover Institution, Stanford University.
17.Morduch, J. (June 28, 2002). “Analysis of the Effects of Microfinance on Poverty Reduction”, Working Paper Series, NYU Wagner Working Paper No. 1014.
18.Pollin, R. (2007). “Microcredit: False Hopes and Real Possibilities”, Foreign Policy Focus, http://www.fpif.org/fpiftxt/4323, accessed on December 2. 2008.
19.Rahman, S., Rafiq, R. and Momen, M. (February 2009). “Impact of Microcredit Programs on Higher Income Borrowers: Evidence from Bangladesh”, International Business and Economics Research Journal, Vol. 8, Number 2. 20.Roodman, D. and Morduch, J. (June 2009). “Impact of Microcredit on the Poor in Bangladesh: Revisiting the Evidence”, Working Paper No. 174, Centre for Global Development.
21.Townsend, R. (1994). “Risk and Insurance in Village India”, Econometrica 62:3, 539-591.