What are the benefits and challenges of microfinance initiatives in addressing poverty?
In India, food-grain production increased from 217 million tonnes in 2006-07 to 275.11 million tonnes in 2016-17. The government proudly concluded that the country was not only self-sufficient but had enough to export. Despite tonnes of food grains being stored in the government godowns across the cRead more
In India, food-grain production increased from 217 million tonnes in 2006-07 to 275.11 million tonnes in 2016-17. The government proudly concluded that the country was not only self-sufficient but had enough to export. Despite tonnes of food grains being stored in the government godowns across the country, India ranks 102 out of 117 countries in the Global Hunger Index (GHI) 2019. It is much below to its South Asian neighbours such as Nepal, Bangladesh, and Pakistan.
Hunger In India
- India’s stunting rate of children under the age of five, owing to a combination of low calories and low micronutrient intake, was 37.9 percent according to GHI 2019.
- The wasting level in India is extremely high, at 20.8 per cent.
- The GHI report stated that some 9.6 percent of children between 6 and 23 months received a minimum acceptable diet.
- As per the Global Nutrition Report, India ranks 170th out of 185 countries on the prevalence of anaemia. Anaemia continues to affect 50 per cent of women, including pregnant women, and 60 percent of children in the country.
Causes Of Hunger Despite Surplus Food Grains Production
- A complex system of procurement and distribution: The distribution of food grain is based on a complex system of classification of and distribution to different sections of the people: Above Poverty Line (APL), Below Poverty Line (BPL), Antyodaya Anna Yojana (AAY) and Open Market Sales.
- Internal Migration: Due to migration and absence of permanent residence, it is difficult for people to access their food grains. Current PDS system provides food grains only at registered addresses and specific fair price shops.
- Black marketing, corruption and leakages: PDS is yet to be fully digitised. Therefore there is a huge scope of corruption. Lack of storage infrastructure leads to wastage of huge amounts of food grains every year.
- Prevailing social practices: Because of certain social and cultural practices, nutritious food does not reach the needy especially women and children. For example, women of the family eat after men, limited dietary options leading to insufficient nutrient consumption.
- Lack of localised infrastructure and decentralisation: It leads to bureaucratic and transportation delays and affects the timely availability of food grains.
- Food security is not nutritional security: PDS system usually provide wheat and rice. Pulses and other protein sources are not as cheaply available as wheat and rice. Limited options lead to hidden hunger in the form of nutritional deficiencies.
Achievements Of India
Though prima facie data and statistics present a stark picture, there are hundreds of government initiatives and schemes which significantly improved the situation of India since independence.
- The prevalence of malnutrition in children 6-59 months in India has declined between 2005-06 to 2015-16 with chronic malnutrition decreasing from 48.0 percent to 38.4 percent and underweight decreasing from 42.5 percent to 35.7 percent.
- Stunting has declined by one fifth during the last decade with an annual decline of around one percent. The POSHAN Abhiyan targets to decline stunting from 30 percent to 25 percent by 2022.
- The introduction of mid-day meals at schools and Anganwadi systems to provide rations to pregnant and lactating mothers are also giving positive results.
- Implementation of the National Food Security Act 2013 is the largest step taken to provide food security to more than 60% of the population.
- Direct benefit transfer of up to 6000 rupees to new mothers under various schemes such as Pradhan Mantri Matritave Vandana Yojana, etc is also helping in the improvement of women by giving them the choice of diet selection.
Measures For Further Improvements
- Digitisation of ration cards and PDS system will help in improving the efficiency of service delivery. Also, duplication of beneficiaries will be reduced giving space to the inclusion of hitherto left out needy populations.
- “One nation One Ration” should be implemented on mission mode to enable accessibility throughout India.
- Food security should be addressed along with nutritional security.
- Awareness about healthy food habits and diverse varieties of nutritious meals will also help in the reduction of hidden hunger.
Goal 2 of the 2030 Sustainable Development agenda seeks to end hunger and all forms of malnutrition and double agricultural productivity in the next 15 years. Ensuring this sustainable access to nutritious food universally will require sustainable food production as well as efficient government policies.
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Microfinance initiatives have been widely recognized as a powerful tool in addressing poverty worldwide. Here are some of the key benefits and challenges of microfinance in this context: Benefits: Access to Financial Services: Microfinance provides access to financial services, such as small loans,Read more
Microfinance initiatives have been widely recognized as a powerful tool in addressing poverty worldwide. Here are some of the key benefits and challenges of microfinance in this context:
Benefits:
- Access to Financial Services:
- Microfinance provides access to financial services, such as small loans, savings accounts, and insurance, to individuals and small businesses who are typically excluded from traditional banking systems.
- This access to financial services empowers the poor to start or expand their businesses, invest in their education, and improve their overall economic well-being.
- Entrepreneurship and Self-Employment:
- Microfinance loans enable the poor to become self-employed or start their own small businesses, fostering entrepreneurship and economic independence.
- This can lead to increased income, asset accumulation, and community development.
- Women’s Empowerment:
- Microfinance initiatives often target women, who are disproportionately affected by poverty, providing them with access to financial resources and opportunities to participate in economic activities.
- This can enhance women’s decision-making power, financial autonomy, and overall social and economic status within their households and communities.
- Community Development:
- Successful microfinance programs can contribute to the overall development of local communities by supporting small businesses, creating employment opportunities, and enhancing financial inclusion.
- This can lead to improved living standards, reduced income inequality, and fostering of social cohesion.
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