Financial services to the poor: the microfinance dilemma in Andhra Pradesh

In India, microfinance and associated strategies of forming self-help groups came about in response to a newly independent nation and its need to include the rural non-banking population into national structures of development and governance. This article examines how the rapid growth of microfinance institutions during the last two decades – especially in the context of the more recent transition from non-profit to for-profit non-banking finance companies (NBFCs) – has led to a significant increase in the delivery of financial services to the rural poor. In Andhra Pradesh, the simultaneous existence of some of India’s most prominent microfinance institutions (MFIs) and their mobilisation of self-help groups – with state backing and linkages to banks leading to relatively easy availability of funds – has led to a tremendous surge in the availability of credit across the state.     

Does microfinance alleviate poverty and inequality? Studying self-help groups in Bodoland,Assam

This article aims to assess the impact of microfinance through a government-sponsored SHG–bank linkage programme (SBLP) of the National Bank for Agriculture and Rural Development (NABARD) in India, on poverty alleviation, employment, and achievement of financial inclusion in the Bodoland area of Assam. Empirical results from an impact evaluation showed that the programme had a positive and statistically significant impact on the monthly income, employment days, and financial inclusion level of participants of the SHG programme, compared to a control group of non-participants.     

Optimal sources of financing for microfinance institutions in sub-Saharan Africa

This article studies the relationship between different sources of finance and the financial performance of microfinance institutions in 36 sub-Saharan African countries. The analysis is based on a panel dataset of 471 microfinance institutions over the period 1995 to 2012. By applying the GMM estimator, the results suggest that first, there is a positive and robustly significant relationship between equity and the financial performance of microfinance institutions; and second, debt and microsavings negatively affect the financial performance of microfinance institutions in the sub-Saharan African region. Therefore, the optimal source of finance for microfinance institutions in sub-Saharan Africa is equity. More importantly, the policy recommendation is that private or public partners must support MFIs financially; doing so could contribute to extending financial services to the poor in sub-Saharan Africa.     

An exploration of the financial practices of tribal communities in Jhabua,India

Tribal communities of India have been facing financial challenges for many years, and these have increased alongside commercialisation led by industrialisation. The major reason for this is that tribal communities are neglected by the state, which has had a negative impact on their livelihoods and financial status. The state has made some attempts to promote these communities, but these have been unsuccessful. Against this background, this article explores the financial practices of tribal communities in Jhabua district of Madhya Pradesh, India and presents a microfinance model which could be suitable in the Jhabua context.     

Building assets to reduce vulnerability: microfinance provision by a rural working people's union in Mexico

Proyecto Tequisquiapan (PT) provides protective microfinance services in a small region of rural Mexico, including, importantly, open access to deposit facilities. The authors report on new research which examined PT's record in enabling people with different degrees of vulnerability to build assets and protect themselves from both sudden shocks and more predictable demands for lump sums of cash. Proyecto Tequisquiapan was found to be relatively more useful for the most vulnerable households. Its successes rely on its small scale and on the commitment of its staff, whose salaries are subsidised, to innovation and experimentation in order to remain relevant to members' changing and differentiated financial lifeworlds. This stands in contrast to the current trend towards large‐scale commercialised microfinance. The World Bank, the authors argue, should take note.     

Gender impact assessment in microfinance and microenterprise: why and how

This article discusses the reasons for conducting gender impact assessment in microfinance and microenterprise. Although women are increasingly being targeted in microfinance and microenterprise projects, this does not necessarily mean that gender relations are being taken into account. Rather, targeting women raises a host of questions about the context in which women are operating their businesses or handling finance. Assessing gender impact in microfinance and microenterprise can help answer the questions in order to understand whether women are able to use the services and make the anticipated improvements in their livelihoods. Moreover, several approaches are suggested: 1) establish a gender baseline; 2) consider the potential impacts of the project on gender relations; 3) establish the information and indicators required; and 4) collect and analyze the data using tools and techniques appropriate to the task. However, in the context of gender relations there remains much ground, which often cannot be openly discussed. The discussion of how people organize their financial and economic affairs inside the household is usually a delicate area. Hence, it is suggested that such matters should be handled very carefully and to consider the composition and dynamics of the research team itself.     

The South African telecommunications environment: a brief assessment of regulatory change

Abstract

Communications play a critical role in transforming society. Governments as the custodians of communications therefore have a serious obligation to ensure that all the people of their country have access to basic telecommunications services. Access to basic communication services is a right because communications is an enabler of social interaction across time and geographic space, a creator of economic development and prosperity for even the most dispersed populations. In South Africa, under apartheid, vast populations of people were excluded from this basic right of having access to communications, resulting in a serious backlog of basic communication services. One of the major objectives of the Afican National Congress (ANC) government when it came to power in 1994 was to ensure that communications were made available to all people even those in the most remote areas of South Africa. These objectives were constrained by a number of factors such as: telecommunications policy that favoured a monopolistic telecommunications environment. To re-engineer the South African telecommunications landscape, telecommunications policy has since 1994 evolved in a revolutionary way.     

India's Role in the South China Sea: Geopolitics and Geoeconomics in Play

This article looks at the South China Sea, an area of dispute between China and other littoral states, as a new area of geopolitical and geoeconomic interest for India. The article follows the strategic discourse on the South China Sea circulating in the Indian government and wider strategic community, and brings in Chinese responses and interpretations of India's involvement. India's role in the South China Sea is four-fold: first, naval deployments; second, increasing strategic-military links with littoral states like Singapore, Indonesia, the Philippines, and Vietnam; third, economic involvement of Indian energy companies in South China Sea waters; and fourth, discussions between India and other regional and extra-regional China-concerned powers about the South China Sea. India's involvement in the South China Sea represents a new development in its Look East Policy, a new balancing factor in the interplay of actors within these waters, and a new friction factor within India-China relations.     

Women's empowerment and micro-finance programmes: strategies for increasing impact

This study summarizes findings from a pilot project that distributed information and ran workshops in Ethiopia, Ghana, and India, on women's empowerment and microfinance. The project was funded by the British Small Enterprise Development Fund of the Department of International Development. Links between microfinance and women's empowerment are viewed as optimistic, limited by design, cost effective in eliminating poverty, and a misplaced diversion of resources. Microfinance programs range from small scale self-help groups to large poverty-targeted banks. One model may vary in delivery, group functions and structures, and complementary services. This project identified 3 contrasting approaches to microfinance and women's empowerment: the financial sustainability approach, the integrated community development approach, and the feminist empowerment approach. However, program evaluations revealed the need to question the assumptions underlying all 3 approaches. In most programs, women benefited to a limited degree. Many women did not control the loan use. Most women were engaged in low paid, traditionally female activities, and increases in income were small. Resources and time invested in economic activity were limited by responsibility for household consumption and unpaid domestic work. Microfinance programs sometimes created domestic tension between spouses and loss of spousal income and support. Group repayment pressures sometimes created pressures between women. Many women focused on personal rather than social objectives. The author proposes a gender strategy for microfinance and sets priorities for further research.     

Online crisis communication response: A case study of fraudulent banking transactions in South Africa

Abstract

The emergence and advancement of information technology – specifically the replacement of face-toface services with innovative self-service technology, such as banking transactions on the Internet – is forcing companies to adopt a proactive approach to online crisis communication response, and to combine the management and control of online messages during a crisis. In the financial services industry, deregulation and the rapid growth in technology have removed entry barriers in the online environment, forcing financial institutions to transform from the traditional brick-and-mortar to click-and-mortar service delivery, while at the same time allaying customers’ fears (and the perceived risk) of fraudulent online transactions. Although studies have been conducted on the adoption, use, perceived risk and purchase intention of self-service technology, limited research has examined the knowledge management of an online crisis communication response. Knowledge management, which focuses on the acquisition, transfer and assimilation of information, is one way in which to manage messages effectively before, during and after an online crisis communication response situation. The main aim of this article is to identify and characterise typologies of the management and control of messages in an online crisis communication response, through an interpretative and critical analysis of fraudulent websites, based on the main premises of the knowledge management approach. This is done through a case study approach: the website of one of the top ten banks in South Africa was studied in terms of it dealt with fraudulent banking transactions, specifically from the knowledge management paradigm.     

Information,communication and transformation: a South African perspective

ABSTRACT

The growth of the South African information and communication technology (ICT) sector has been phenomenal in the past four years. Although the global ICT sector has suffered setbacks in the past few months because of the dramatic loss of technology stocks in world markets. South Africa's ICT is set to improve due to a still massive unmet demand for ICT services in the country. South Africa must seize the opportunity to leapfrog into an information society, while not repeating the mistakes of the developing economies. South Africa has opted for a managed liberalisation of the economy. The telecommunications sector is gradually being opened to competition while ensuring the optimum use of existing investments in the sector. This article argues that while liberalising telecommunications, it remains important that state assets such as Telkom, the telecommunications parastatal, should remain in the hands of the state in order to serve public interest. Wholesale privatisation of state assets is not the solution for South Africa, but to build global dreams needs global architects. Unless South Africa joins the global architects of the information society, the quality of life of its citizens will remain poor. This then makes privatisation a necessity as it brings huge revenue to state coffers in order to deliver much-needed services. This article also argues that the success of the implementation of South Africa's ICT policies relies mainly on the stability and viability of the sector regulator, the Independent Communications Authority of South Africa (ICASA).     

Taking the power out of empowerment – an experiential account

This article traces the centuries-long evolution of the concept and practice of empowerment, its adoption by radical social movements, especially women's movements from the 1970s onwards, and its conversion, by the late 1990s, into a buzzword. Situating the analysis in the context of women's empowerment interventions in India, the article describes the dynamic of the depoliticisation and subversion of a process that challenged the deepest structures of social power. The ‘downsizing’ and constriction of the concept within state policy, the de-funding of genuine empowerment strategies on the ground, and the substitution of microfinance and political quotas for empowerment are examined and analysed.     

Afghanistan's India–Pakistan dilemma: advocacy coalitions in weak states

This article seeks to examine the foreign policy behaviour of weak states in regions marked by politically turbulent geostrategic environments. An analysis of Afghanistan's foreign policy behaviour vis-à-vis Pakistan and India lends focus to this aim. India–Pakistan rivalry has gained traction as a key factor in determining Afghanistan's stability in the wake of the drawdown of Coalition forces. Missing from this debate, however, is consideration of Afghanistan's agency as a weak state with an independent set of policy preferences. Based on primary interviews with a diverse set of Afghan political actors the article outlines two competing policy advocacies: Pakistan friendly and Pakistan averse. The article argues that these advocacies are key to understanding Afghanistan's India–Pakistan dilemma. Departing from the ethnic lens used to explain Afghan politics and its regional linkages, this article shows that Kabul's relations with Islamabad determine its approach towards New Delhi regardless of ethnic rivalries. Understanding domestic Afghan narratives in this regional context is therefore imperative to adequately assess South Asia's prospective security calculus.     

Microfinance in online space: a visual analysis of kiva.org

Microfinance practices were originally developed in offline contexts. Modern microfinance practices were based on development models for the financial and social empowerment of the poorest of poor in developing countries. Several of these practices drew from existing traditions of money lending within local communities that were reformed to be in sync with rural development and the empowerment of the underprivileged individual. In present ‘postmodern’ times, microfinance providers are using online tools in the hopes of broadening the reach and extending the advantages provided by such a model of micro-lending and micro-borrowing. In this article, we examine an online peer-to-peer lending and borrowing website, Kiva.org, which uses online social networking tools in microfinance. The study is thus a close look at the actual content of the website with a view to understanding the representational practices of online space through Internet mediated microfinance.     

Exploring the perceived influence of South African adolescents on product purchases by family communication type

Abstract

This article investigates the effect of family communication types on the perceived purchase influence of South African adolescents (13–18 years) across 34 product groups. The research builds on previous research in developed countries such as America and Israel, but represents only one of a few in a developing country such as South Africa that integrates family communication and consumer purchase behaviour theory. The article shows statistically significant differences in the perceived purchase influence of adolescents by family communication type for 13 of the 34 product groups investigated. From the inferential statistical analyses presented in the article, it is evident that the influence of adolescents in pluralistic families is far greater than in consensual, protective or laissez-faire families. This implies that adolescents’ influence in product purchases is likely to be greater as family communication becomes more open, and as unconstrained discussions on a wide range of topics with all family members are encouraged. This finding is particularly evident in the purchase of children's products (toys, clothing and footwear), family activities (take-away meals, snacks and outside entertainment), children's educational products/services (courses and schools), watches and personal jewellery, cosmetics, cell phones, reading matter, and gymnasiums, health, sport and social clubs. The outcome of the research indicates that the influence of South African adolescents has broadened and is no longer only relevant to children's products. This strengthening influence of children on product choices of South African families has clear implications for marketers who need to target this market segment. Knowledge of family communication patterns and how these impact on children's influence in actual product purchases presents a valuable opportunity for marketers to develop effective future marketing segmentation and communication strategies.     

Women in water management: the need for local planning

This article on women's role in water resource management is based on a paper delivered at a seminar organized at the Water and Land Management Institute in Anand, India, in 1994. The article reflects Family Planning International's (FPI) experience in community-based water resource development. Most analyses of village and household water management data exclude women's role. The reasons are identified as the lack of inclusion of women's thinking in land-development research and planning, the dominance of males in planning and consequent male assumptions made about women's work and use of water, the lack of valuation of the nonmonetary nature of women's relationship to water, and the ease of ignoring women. Women's roles that are obstacles to inclusion in research and planning are identified as the lack of effective women's lobbies, the undervaluation by women of their work, and the lack of professional recognition of women as potential users of water or spokespersons for more than their own self-interests as women. National water policies are shifting to community-based management because local authorities are in daily contact with users, of whom about 50% are women. Historically national policy shifted from attention to distribution of investments in the water sector to reorganization of water agencies and to building up the capacity of private or voluntary agencies. The local context allows for more efficient and effective responses to local conditions. Local institutions and groups are better equipped to solicit local participation. One primary lesson learned by FPI is that local water resource planning is very important in strengthening the economic and individual capacity of poor people in underdeveloped areas. FPI's experience in Mahesana, Banaskantha, and Sabarkantha in Gujarat state supports this lesson learned. Water resource development policies resulted in mixed outcomes, and national control has been inefficient and disrespectful to local authorities. Another obstacle in Gujarat to water resource development is identified as increased demand for public water services and inadequate provision of services due to remoteness of the area and financial limitations of central agencies. Infrastructure is poorly maintained.     

Evaluation of microfinance projects

This paper criticizes the quick system proposed by Henk Moll for evaluating microfinance projects in the article ?How to Pre-Evaluate Credit Projects in Ten Minutes?. The author contended that there is a need to emphasize the objectives of the project. The procedure used by Moll, he contended, is applicable only to projects that have only two key objectives, such as credit operations, and the provision of services. Arguments are presented on the three specific questions proposed by Moll, ranging from the availability of externally audited financial reports, the performance of interest rate on loans vis-a-vis the inflation rate, and the provision of loans according to the individual requirements of the borrowers. Lastly, the author emphasizes that the overall approach is not useful and suggests that careful considerations should be observed in the use or abuse of a simple scoring system or checklist such as the one proposed by Moll.     

Surveillance of the poor in a socio-financial enclosure: a critical analysis of Zidisha.org

This article provides a critical analysis in examining narratives on Zidisha.org, a microlending site that facilitates loans to the poor, building on media scholar Mark Andrejevic's conception of the digital enclosure and the critical anthropology of development scholar Anke Schwittay's theorisation of financial inclusion. Online microlending sites like Zidisha have wide-reaching implications for policy and development initiatives. The study's findings suggest that perceptible signs of the contemporary neo-liberal effort to assemble ordinary people through Web 2.0 communication technologies to participate in the socio-financial enclosure are riddled with issues of control and surveillance, coupled with a paradoxical meaning of the financial inclusion concept.     

The Press Freedom Commission in South Africa and the regulation of journalists online: Lessons from Britain and Australia

Abstract

The last few years have seen several attempts to strengthen press regulation in various parts of the world, while the difficulty of controlling online publication is arguably only increasing. In this article the focus is on recent suggestions for a new system of co-regulation of the press in South Africa, in order to see how online journalism is viewed and treated by regulators. In comparison, the article refers to suggestions in this regard by the Leveson Inquiry in Britain and two Australian press and media reviews. Reference is made to Flew and Swift (2013), who apply six main theories in three overlapping categories in debates on the role of journalism and its relationship to the state: fourth estate/market liberal; social responsibility/critical pluralist and dominant interest/radical. A literature review and a qualitative approach were used to identify and compare key debates in various reports from Australia, Britain and South Africa. While suggestions in Britain and Australia favoured an inclusive approach to the regulation of print and online journalism, the South African Press Freedom Commission rejected the idea, due to principle and practical objections. It also became clear that the key problem in the three countries lay in the inability to establish consensus between divergent perspectives on dominant interest and social responsibility, and the entrenched values of the fourth estate/market liberalism.