Question Q.16GS2GS2
Discuss the unique challenges and opportunities Self Help Groups (SHGs) encounter in urban areas compared to rural ones, and how can microfinance be adapted to tackle urban poverty.
Main Body
Rural-Urban divide has manifested itself in the population of self-help groups in urban areas, but microfinance can be a viable tool for tackling urban poverty.
Challenges of SHGs in urban areas: 1) Lack of awareness about SHG concept => even in academic circles, SHGs are seen in context of rural areas. 2) Lack of inter-community cohesion and social closeness in urban areas. 3) Lack of trust between the over-populated, overstrained urban community.
4Lack of microfinance institutions in urban areas => microfinance is usually diverted towards rural areas. 5) Lack of community meeting space with high cost of living class-based tension etc. Impede urban SHG development. Opportunities for Urban SHGs: 1) Produce diversification options due to vast demands of urban lifestyle. 2) Better marketing support, visibility, online presence etc. => faster information dissemination. 3) Better linkages and transport connections to reduce logistic costs, easier to diverse markets etc. => scope for growth is better in urban areas. 4) Heterogenous demographic composition of SHGs => better exchange of ideas. 5) Resource diversification to keep support math income.
9Heterogenous demographic composition of SHGs => better exchange of ideas. Role of Microfinance in Urban Poverty Reduction: 1) Targeting the homeless and slum dwellers to form SHGs and access microfinance for income-generation. 2) Low risk loans will help augment the pressures of high cost of living. 3) Microfinance can help urban women => trapped in patriarchal class mindsets. 4) Resource diversification to keep support math income. 5) Help address problem of urban underemployment. Thus, the concept of SHGs and microfinance can be replicated in urban areas for social justice and equitable development.
269 words1 paragraphs
Topper
ritika
Subject & Paper
GS2GS2
Topic
Development Processes - Role of NGOs, SHGs, Donors, and other Stakeholders
NGOs and SHGs
SHGs in Urban and Rural Areas
Writing Stats
269
Total words
1
Paragraphs