Question Q.6GS2GS2

Critically assess the role of microfinance in satisfactorily addressing the interconnected challenges of poverty and unemployment.

Main Body

Microfinance is providing financial assistance in terms of small loans where the amount is generally less than 1 lakh. * Poverty and unemployment together form a vicious cycle where by one leads to other - Povertylack accesslack skilling ↑ ↓ poor income, No employment unemployment opportunities These above interconnected challenges can be addressed by microfinance as - 1) Access to education & Healthcare - small education loans can enable an individual to pursue higher education after free completing education till class 8 FTC. Also small loans can help address health emergencies. 2) Skill opportunity - microfinance

can help individual to enroll oneself for various vocational courses and learn market relevant skills as - A person can learn skills needed to be an electrician, plumber etc 3) Create job opportunities - with market relevant skills an individual can easily start jobs as electricians. 4) Promote entrepreneurship - A person with access to soft loans can develop risk taking attitude they investing in new business ideas as - grocery shop 5) Other associated challenges it can address as with economic betterment it will bring social cohesion and harmony. Laws and other situated will improve. However, there is further need to enhance access to MCF, state incentivized awareness, more microfinance teams, planning in SHG etc

216 words1 paragraphs

Conclusion

As well said that investing in poverty & unemployment elimination is not a work of charity, but also a responsibility to help dignified life of global humanity.

27 words

Diagram

Vicious cycle diagram showing relationship between poverty, lack of access to education/healthcare, lack of skills, poor income/unemployment, and lack of employment opportunities

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Page 11

Topper

Utkarsh Pathak

AIR 1792025

Subject & Paper

GS2GS2

Topic

Issues relating to Poverty and Hunger

Poverty and Malnutrition

Microfinance role in poverty alleviation

Writing Stats

243

Total words

Paragraphs

formal analytical

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