People are poor since they have low skill. They are low skilled
since they are poor. To break this vicious cycle, it necessary to
empower people so that they can gain access to the capital market.
The group lending is an important idea that helps to break the
shackle. Generally such group formation are voluntary. In India,
however, there is an active public support system to enhance,
monitor and further this system. In our study, we try to understand
the efficacy of the public system in fostering this job. Most of
the standard studies in this field are oriented towards the
individuals who form group. In our case, the focus is different. We
try to see how far the public authorities are able to fulfill their
job. Using data from a poor district in India, we study growth and
sustainability of Self Help Groups . We find that the public system
is not very effective in provision of the necessary impetus towards
the group formation. The links are weak and often non-existent. A
radical shift in the standard practice is highly required.
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