چکیده:
The financial institutions in the developing countries can not cater the needs of poor due to unfriendly mechanisms. Organizing poor into small thrift and created groups, popularly known as Self Help Groups (SHG) is thought as an alternative credit institution to combat the crisis of petty credit requirements. In fact this is the basic principle of SHG formation. The collective action represents the process of participation and interaction through which one simultaneously enhance the power of other and ones own power. Self-help groups are voluntary unions of peers, formed for mutual assistance in accomplishing a socio-economic and health-related purpose, the social comparison occurs between similar people or between people with similar problems, and self-help groups consist of just such people. In Europe, self-help groups developed out of dissatisfaction with a depersonalized social and health care system. They successfully complement existing social and health services but cannot be instrumentalized to improve socio-economic and health outcomes while reducing expenditure. In South Asia, with its hierarchical society, instrumental approaches towards self-help prevail in Non-governmental Organizations and government as well. The utility of this approach is limited as self help groups are unlikely to be sustainable and effective when steered from outside. Self-help groups emphasize face to face social interactions and the assumption of personal responsibility by members. They often provide material assistance, as well as emotional support; they are frequently "cause"-oriented, and promulgate an ideology or values through which members may attain an enhanced sense of personal identity".
خلاصه ماشینی:
Organizing poor into small thrift and created groups, popularly known as Self Help Groups (SHG) is thought as an alternative credit institution to combat the crisis of petty credit requirements.
Key Concepts: Self Help Groups, Poverty, Micro Finance, Micro-Credit, Development Assistant Prof.
When the financial scenario of rural poor in many of developing countries is simplified, it appears relying on landlords and money lenders to meet the credit needs even with higher rates of interest in emergencies.
So SHG is a homogenous group of rural poor voluntarily formed to save what ever amount they can conveniently save out of their earnings, and mutually agree to contribute to a common fund of the group to be lent to the members for meeting their production and credit needs.
In fact, Micro-finance is a new field, resulted from project related work done by NGOs under written by multilateral, bilateral and private institution and also developed based on examples provided by informal finance and formal and semiformal financial institutions; as well as a solid body of academic research.
g. Non-Governmental Organizations in India have promoted micro-finance through women’s self-help groups.
Conclusion People in Europe and the US form self-help groups to fulfill a need that is not met by existing social and welfare services.
Stiglitz (1990): "Introduction: Imperfect Information and Rural Credit Markets-puzzles and policy perspectives", The world bank economic review, Vol. IV, No. 3.
"Asymmetric Information in Rural Financial Markets and Interlinking of transactions through the Self Help Groups", saving and Developments, Vol. 14, No. 2.