MRP Project by Dr.Shyamasundar
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ACKNOWLEDGEMENT At the outset, I deem it as a special privilege to express my deep sense of gratitude to the Director, UGC, New Delhi and the Regional Head, Dr. N. Gopukumar, the Deputy Secretary and the other personnel, UGC Regional Office, Bangalore for presenting me an excellent opportunity to carry out the Project with adequate funding. I sincerely place on record my deep sense of gratitude to Prof. Krishnappa. M,. Prof. Rajanna K and Prof. Mohammed Ali, the Principal –in charge, Government. First Grade College, Soraba, Shivamogga district I can never ever forget the constant support and cooperation provided by my Research Supervisor, Prof. Jayarama Bhat, DoS in Economics, Kuvempu University, Shankaraghatta. I wholeheartedly applause the efforts of my young colleagues-Mr. Vignesha. T.K., Mr. Shankar both from the department of Commerce and Management, Mr. Prakasha. R. department of Economics, Mr.Raghavendra and Vasantha Kumar both from the department of Sociology, GFGC, Soraba for their invaluable help. Also, I appreciate the co operation of mycolleagues- Prof. RaveendraBhat,, Basavarajappa.K.H.,and friends Dr. Laxmisha, A.S., Assistant Professor, L.B.&S.B.S.College, Sagar, Dr. K. PrabhakarRao, Nagaraj E. and my brother Prof. Thimmappa, A.S. Associate Professor, L.B.& S.B.S. College, Sagar and the other colleagues in the department. Special mention of Mr. Nadeem Nawaz, the superintendent and Santhoshkumar, the Librarian of my college is worthy here. My special thanks are due to the other colleagues- teaching and non teaching, Government First Grade College, Soraba where I am serving now. I am deeply indebted to all the members of SHGs and bankers in Shivamogga district, who responded positively when I went for field investigation. I am equally thankful to all the Librarians of different Institutionswho provided me worthy information i I would profusely thank my bonafide student Miss. Prathibha R.H., Vasavi DTP Centre, Sagara, who neatly did the DTP work. Finally, I would certainly fail in my duty if I do not remember my wife Mrs. Jayalaxmi. A.S. and my son Chi. Akshaya. A. S. who encouraged me through out Place : Sorab DR. SHYAMASUNDAR ii TABLE OF CONTENTS Chapter Page No. Acknowledgement i-ii Summary of Chapter Contents iv-ix List of Tables x-xii List of Graphs xiii 1 Introduction 1-8 2 Review of Literature 9-32 3 Micro Finance and Self Help Groups- Some Basics 33-56 4 Contour of Rural Development and Poverty Alleviation 57-77 5 Profile of the Study Area 78-107 6 Interpretation of the Primary Data 108-139 7 Summary and Conclusion 140-146 Bibliography 147-149 Interview Schedule For Primary Investigation 150-154 iii Summary of Chapter Contents Chapter -1 INTRODUCTION 1-8 1.1 Background 1.2 Research Problem 1.3 Objectives and Scope of the Study 1.4 Hypotheses of the Study 1.5 Methodology (a) Study Area (b) Sources of Data (c) Sampling Design (d) Data Analysis 1.6 Contemporary Relevance of the Study 1.7 Chapter Scheme Chapter-2 REVIEW OF LITERATURE 9-32 (A) Studies made in India 2.1 Studies on SHG- Bank Linkage 2.2 Microfinance and Its Operation 2.3 Studies on Poverty Alleviation and Employment Generation 2.4 Studies on Women Empowerment 2.5 Studies on Other Issues (B) Studies made Abroad 2.6 Studies on Microfinance and Its Operation 2.7 Microfinance Literature on Poverty Alleviation and Employment Generation 2.8 Studies on Women Empowerment iv Chapter-3 MICRO FINANCE AND SELF HELP GROUPS- SOME BASICS 33-56 3.1 Micro Finance- Conceptual framework 3.2 Objectives of Micro Finance Institutions 3.3 Role of Banks in Micro Credit 3.4 Role of NGO s in Micro –Credit Sector 3.5 Micro Finance –Role of NABARD 3.6 Concept of Self Help Groups (SHG’s) 3.7 Some Definitions 3.8 Necessity and Nature of SHGs 3.9 Functioning Pattern 3.10 Objectives & Functions of SHGs 3.11 SHGs Model (i) SHG-Bank Linkages (SBL-Model) (ii) MFI Model 3.12 MFI-Bank Linkage Programme 3.13 Role of SHGs in Poverty Alleviation through Micro Financ 3.14 Growth of SHG’s in India and Karnataka 3.15 Performance of Participating Agencies in Karnataka 3.16 Superiority of SHGs over Macro Credit Institutions Chapter-4 CANTOUR OF RURAL DEVELOPMENT AND POVERTY ALLEVIATION 57-77 4.1 Rural Development- Conceptual framework 4.2 Rural Development- Meaning and Definitions 4.3 Rural Development Programmes 4.4 Poverty Alleviation 4.5 Poverty- A Conceptual Frame work v 4.6 Concept of Poverty (A) Absolute Poverty (B ) Relative Poverty 4.7 History of Poverty Estimation in India (A) Pre independence Poverty (B) Post independence Poverty Estimates 4.8 Trends in Poverty 4.9 Why Poverty 4.10 Major Poverty Alleviation Programmes 4.11 Poverty Eradication Chapter-5 PROFILE OF THE STUDY AREA 78-107 PART-I (A) Profile of Shivamogga District 5.1 Location and Boundary 5.2 Origin of the name "Shimoga" 5.3 Historical Background 5.4 Administration 5.5 Human Resources (a) Population Characteristics (b) Literacy Rate 5.6. Occupational Pattern 5.7 Income Distribution 5.8 Cropping Pattern 5.9 (a) Climate and Rainfall (b) Soil Structure 5.10 Education vi 5.11 Health 5.12 Industrial Development (a) Large and Medium Scale Industries (b) Small Scale Industries 5.13 Power Resources 5.14 Irrigation Projects 5.15 Forest Resources 5.16 Mineral Resources 5.17 Tourism 5.18. Transport Scenario in the District (a) Railways (b) Roadways 5.19 Others PART –II (B) Profile of SHGs 1 Growth of SHGs 2 Composition of the Group 3 Rationale behind Forming SHG 4 Group’s Size and Number of Women Members 5 Frequency of Periodic Savings and Members’ Borrowing Chapter- 6 INTERPRETATION OF THE PRIMARY DATA 108-139 Part - A 6.1(a) Views of SHG Members I Personal Profile of the Group Members 1. Age and Marital Status of Group Members. 2. Education Level of the Group Members 3. Category- wise Distribution of Members. vii 4. Family Backgrounds of the Group Members 5. Motivating Factors for Joining the Group II. Group Profile 6 .2 Composition of the Group 6. 3 Rationale behind Forming SHG 6 4 Nature of Groups’ Activities 6.5 Group’s Monthly Income: 6.6 Size of the Group and Social Status of the Group 6.7 Amount and Frequency of Periodic Saving 6.8 Frequency of Monthly Meeting 6.9 Members’ Attendance in the Meetings 6.10 Level of Group Members’ Participation 6.11 Members’ Awareness about Rules and Norms 6.12 Nature of Accounts 6.13 Size and Amount of Members’ Borrowing 6.14 Purpose of Borrowings 6.15 The extent of utilization of loan 6.16 Members’ View about the Rate of Interest 6.17 Criteria of Lending by Groups to Members 6.18 Rate of Interest on Groups’ Lending 6.19 Groups’ Monthly Deposits in the Banks 6.20 Members’ Views on the Rate of Interest on Deposits 6.21 Members’ Awareness about Financial Services 6.22 Members Views on Vital Issues 6.23 Positives of forming SHGs viii Part-B (B) Views of Bankers 6.24 SHGs-Bank linkage 6.25 No Frill Account 6.26 Bank Lending 6.27 Criteria of Lending 6.28 Loan Repayment Chapter-7 SUMMARY AND CONCLUSION 140-146 7.1 Major Findings of the Study I Findings pertaining to the views of the members of SHGs II Findings relating to the views of the Bankers 7.2 Measures for Improvement 7.3 Areas for Further Research 7.4 Conclusion BIBLIOGRAPHY 147-149 INTERVEIW SCHEDULE 150-154 ix LIST OF TABLES Table No. & Name Page No. 3.1 SHG-Bank Linkage in India (2000-01 to 2011-12) 44 3.2 Progress Under MFI-Bank Linkage Programme in India (Amount in Rs Crores ) 47 3.3 Loans to MFIs by Banks and other Agencies in India. 48 3.4 Growth of SHGs in India (2000-01 to 2011-12) 50 3.5 Growth of SHGs in Karnataka (2000-01 to 2011-12)* 51 3.6 Performance of Participating Agencies in Bank Linkage in 53 Karnataka 2000-01 to 2011-2012 4.1 Minimum calorie consumption and per capita consumption expenditure (1973-74) 66 4. 2 Percentage of Population below Poverty line (2004-05) 68 4. 3 National Poverty lines for 2004-05, 2009-10 and 2011-12 (in Rs per capita per month) 68 4. 4 Trends in the Incidence of Poverty In India 4. 5 State-wise Poverty Estimates (% below poverty line) (2004-05, 2011-12) 71 5. 1 Geographical Area of the District –Taluk wise 79 5.2 Comparative Population Characteristics of the District (1981-2011 ) 84 5.3 District Population (Taluk wise) (From1951-2011) (in Lakhs) 85 5.4 Literacy Rates In Shimoga District (Taluk wise & Gender wise) 86 (In Per Cent) 5.5 Occupational Distribution of Population in Shimoga District vis-à-vis Karnataka State (1991 census) 87 5.6 Categories of workers in Shimoga District vis-a-vis Karnataka State (2001 & 2011) census 88 5.7 Sectoral Composition of Income in Shimoga District (in Rs. lakhs) 90 5.8 Areas under Food Crops (Cereals) in Shimoga District, (In hectares) 92 x 5.9 Production of Crops in Shimoga District (1998-99 &2012-13) (in Lakh ones) 93 5.10 Education Level and Enrolment of Students 94 5.11 Technical Education and Students Enrolment in Shimoga district, 1998-99 and 2014-15 94 5.12 SSI Units in Shimoga District 2000-01-2014-15 96 5.13 Growth of SHGs in Shimoga District vis-a vis Karnataka State over the years 101 5.14 Stree Shakti SHGs in the District -Taluk wise 2014-2015 102 5.15 Savings and Loans Availed by SHGs in Shivamogga District.