scholarly journals Information Systems to Support “Door-step Banking”: Enabling Scalability of Microfinance to Serve More of the Poor at the Bottom of the Pyramid

Author(s):  
Lakshmi Mohan ◽  
Devendra Potnis ◽  
Steven Alter
2013 ◽  
Vol 12 (4) ◽  
pp. 489-513 ◽  
Author(s):  
Fauzia Erfan Ahmed

Abstract As never before, the private sector can make a difference at the bottom of the pyramid (BOP). But little is known about who the poor really are, the environment in which they live, and how to create value for them. This also means that little is known about how to establish a business at the BOP that meets both development and profit goals. This article presents a segmentation approach embedded in a larger theory of the culture of poverty to help businesses focus on serving the BOP. I focus on examples from my research on the Grameen Bank in Bangladesh and Patrimonio Hoy in Mexico to show examples of applications of segmentation theory to businesses at the BOP.


Author(s):  
Mohsin Habib ◽  
Leon Zurawicki

<p class="MsoNormal" style="text-align: justify; margin: 0in 0.5in 0pt; mso-pagination: none;"><span style="color: black; font-size: 10pt; mso-themecolor: text1;"><span style="font-family: Times New Roman;">The poor at the Bottom of the Pyramid (BOP) has traditionally been viewed as an unattractive segment for businesses. The lack of interest has led to various proposals to increase company participation. At the same time there is also a renewed focus on how to reduce or eliminate poverty. Companies are asked to seriously consider both objectives: making a profitable operation and eradicating poverty. For businesses, the poor can be viewed as consumers, suppliers, and employees.<span style="mso-spacerun: yes;">&nbsp; </span>Each of these areas presents different challenges which are discussed. Finally, recommendations are presented to address the issues and to make the companies more effective. </span></span></p>


Author(s):  
Aashish Kalra ◽  
Vinode B. Ramgopal

In capital-poor economies, redistributing what little capital there is can leave everyone poorer. In such societies, the challenge of getting capital to the poor can seem truly hopeless. Capitalization of public sector especially in the context of public–private partnerships can be crucial. India’s case shows that India did not jump on the bandwagon of privatization in the early 1990s. Increasing capitalization in India seen from the capital account suggests that the multiplier effect of capital on economic growth must be significant. Capitalization is a powerful mechanism to rebuild institutional authority. It capitalizes the bottom of the pyramid in a bold singular act; however, many challenges remain.


2020 ◽  
Vol 10 (5) ◽  
pp. 34-36
Author(s):  
Arunjyoti Sarangi ◽  
Sandipana Das

While the entire world is under constant observation and lock down caused by the Coronavirus COVID-19, the most suffered are being neglected. As the press says “The rich brought this virus in to the country and the one paying for it are the poor and marginalized population”. The virus has not only challenged the entire health and immune system, it has also taken a toll on the already damaged economy of our country. Every sector has been through loss, be it is production, transportation or supply chain. The major trouble is the larger the population density is, the bigger the threat it is going to be. As the same has been observed in Italy, India also is dreading for that nightmare to turn into reality. But the recipient of all these hassle and negligence comes down to the bottom of the pyramid. The nation and the GoI sure are trying to support every individual. Yet the question lies: Is this sufficient?


The present study was planned to determine the micro-financial perspectives of SHGs from disadvantaged districts in Maharashtra. A total of 40 SHGs from two disadvantaged districts were selected using a disproportionate random sampling method. The data were collected from SHGs by personal interview method. The study revealed that SHG members strictly adhered to the principle of Saving First and Credit Later. The cumulative savings of SHGs were `83,785. The sampled SHGs had mobilized their savings in the form of an internal loan. The need-based lending approach was used which ensured a cent percent loan recovery. The average loan borrowed by SHGs from banks was fairly high due to an affordable interest rate of 4.0 percent per annum charged by banks on external loans. However, SHGs had charged 1.00 to 2.00 percent monthly interest, it accounted annually 12 to 24 percent interest on the external loan while lending. This shortfall in lending microfinance may be overcome by organizing the sensitization program for SHGs. It was concluded that sampled SHGs adopted good microfinance management practices in disadvantaged districts of Maharashtra. Further, the SHG Bank Linkage programme was an effective intervention in economic upliftment and financial inclusion for the bottom of the pyramid. This proven platform initially conceived for increasing the outreach of banking services among the poor which led to promotion of livelihoods and poverty alleviation. Further, the potential SHGs may be encouraged to graduate as members of farmers producers’ organisations/companies.


Author(s):  
Oswald A J Mascarenhas ◽  
Ram Kesavan ◽  
Michael D. Bernacchi

Any credible agenda that seeks to eradicate global poverty must seek to correct the structural injustices and inequities that cause and perpetuate desperate endemic poverty. Such an agenda must aim not merely to aid the poor with grants, welfare and subsidies, but it must primarily seek to enhance the capabilities, skills, access and opportunities of the marginalized to participate on more equitable terms, in the dynamic process of overall economic growth. We apply a systems approach to poverty, the latter itself being a pernicious system. Eradication of global desperate poverty and its unjust structural causes can be done through two concurrent systems-thinking based strategies: (a) micro catalytic social entrepreneurship that leads to catalytic innovations that alleviate poverty, and (b) macro social catalytic political entrepreneurship that radically innovates legislation or designs macro-policy intervention systems that can effectively dismantle existing unjust structures of social injustice and inequities – the causes that perpetuate endemic global poverty. Using the theories of catalytic innovations and the bottom of the pyramid, we focus on solution (a) as being feasible, viable and doable and in the long run having the potential for eradicating global desperate poverty. We also provide two case studies where solution (b) was effectively implemented. The main proposition of the paper is that the use of both micro- and macro- catalyst can help alleviate poverty in the world.   Keywords: Micro catalyst, macro catalyst, global poverty, system approach, catalytic innovation, macro-policy intervention.


2020 ◽  
Vol 25 (3) ◽  
pp. 191
Author(s):  
Dominggus Elcid Li

<div>The analytical view exploers in this paper represent the perspective of subsistent farmers in NTT Province when integrated with market economy. It tries to explain why the subsistent community are so vulnerable to become migrant workers and uprooted from their land; it is also attempt to investigate the relation between economic policy on free labour market with death and torture received by migrant workers. While the victims, especially women and children, are publicized and attracted attention from mass media and also social media. However, the publication over the suffering of migrant workers from the margin of Indonesia such as NTT Province, does not get direct impact over the policy makers with the willingness to renew regulation to protect migrant workers. This paper focuses on investigating why the poor migrant women and children are being neglected by policy makers under the neoliberal</div><div>order. It also tries to explain why the subsistent members are easily uprooted from their land and become migrant workers during modernization. It also tries to answer why the are often in position as the losers or victims during globalization. The hope that the State is able to protect the vulnerables is fading away under the domination of pro market policy. Children and women as the silent victims are the evidence of absolute surrender of the subsistent community. State incapacity to protect the most vulnerable citizens is the evidence of the coming of new wave of neocolonialism. This is also a proof the modernization is also part of conquering when</div><div>half-hearted modernization has placed them at the bottom of the pyramid of modernity which is vulnerable to be exploited without the ability to speak and to be listened.</div><div> </div><div><div> </div></div>


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