ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Gujarat: Collapse of Urban Cooperative Banking Sector

The cooperative banking system in Gujarat, which was part of the larger cooperative movement in the state, began to be undermined when its financial resources became a means of dispensing political patronage. With the collapse of several banks, the delegitimisation of the cooperative movement in the state is complete, shutting out the possibility of wealth creation and social participation for marginalised communities.

Micro-Credit and Rural Poverty

This paper reviews empirical evidence on NGO-led micro-credit programmes in several developing countries, and compares them with state-led poverty alleviation schemes in India. The study shows that micro-credit programmes have been able to bring about a marginal improvement in the beneficiaries' income. However, the beneficiaries have not gained much by way of technological improvements, given the emphasis on 'survival skill'. Also, in Bangladesh the practice of repayment of Grameen Bank loans by making fresh loans from moneylenders has resulted in the creation of 'debt cycles'.
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