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Part - IV
Forms
The various forms that financing from below takes: -
Collections in a common fund for a one time construction/etc to meet the costs fully or partially.
Regular contributions to build a corpus and use the interest for financing. This is somewhat unlikely. But instead of corpus we could use it as a source for regular needs, e.g., maintenance, providing credit. (desipower, gramkosh)
The micro finance mechanism and SHGs wherein it's a group rather than an that is financed.
Wherein savings by the target population is matched with provision/loan of a multiple of amount saved.
Conclusion
Financing rural development from below is necessary because of the failure of earlier macro level attempts to bring about development. The assumption that macro development efforts would automatically trickle down and get translated into real benefits at the micro level and improve the quality of life of poor has not fully worked.
If the development efforts have to bring about a change then they have to be micro level and localized in nature. They have to be much more focused in addressing the basic problems, which generate the vicious circle of poverty.
Concluded.
* Contributed by -
Reena Narula,
2nd Year - PGDRM,
Institute of Rural Management, Anand.
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