Final Report

CONTENTS
CHAPTERS No. 1.
1.1 Introduction
PARTICULARS 2 3 4 7 8 8
PAGE NO.
1.2Microfinance 1.3 Indian Microfinance Context 1.4 Millennium Development Goals (MDGs) 1.5 The Millennium Development Goals are a challenge the global community has set for itself 1.6 Understanding Millennium Development goals 1.7 India progress towards MDGs 1.8 Microfinance and MDGs 1.11 Objectives of the study 1.12 Hypothesis 1.13 Scheme of the report
10 17 19 20 20 21
2.
Review of Literature
22
3.
Research Methodology 3.1 Research Process 3.2 Sampling Plan 3.3 Collection of data 3.4 Data Analysis and Interpretation 30 31 31 32
4. 5. 6.
Research Analysis and Interpretation of data Findings and Conclusion APPENDIX
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CHAPTER 1 1.1 INTRODUCTION
The United Nations' Millennium Development Goals (MDGs) have galvanized the development community with an urgent challenge to improve the welfare of the world's neediest people. Donor agencies are orienting their programming around the attainment of the MDGs and are mobilizing new resources to reduce hunger and poverty, eliminate HIV/AIDS and infectious diseases, empower women and improve their health, educate all children, and lower child mortality. The MDGs are framed as concrete outcomes in the areas of nutrition, education, health, gender equity, and environment. Thus work in these specific areas will be a large part of any development strategy driven by the MDGs. But decades of experience has represented that that progress in these areas is powerfully affected by other factors in the broader context, such as a functioning government, physical security, economic growth, security, and basic infrastructure (for example, transportation). This paper reviews the mounting body of evidence showing that the availability of financial services for poor households ("microfinance") is a critical contextual factor with strong impact on the achievement of the MDGs. Microfinance, and the impact it produces, go beyond just business loans. The poor use financial services not only for business investment in their microenterprises but also to invest in health and education, to manage household emergencies, and to meet the wide variety of other cash needs that they encounter. The range of services includes loans, savings facilities, insurance, transfer payments, and even micro-pensions. Evidence from the millions of microfinance clients around the world demonstrates that access to financial services enables poor people to increase their household incomes, build assets, and reduce their vulnerability to the crises that are so much a part of their daily lives. Access to financial services also translates into better nutrition and improved health outcomes, such as higher immunization rates. It allows poor people to plan for their future and send more of their children to school for longer. It has made women clients more confident and assertive and thus better able to confront gender inequities. Microfinance clients manage their cash flows and apply them to whatever household priority they judge most important for their own welfare. Thus microfinance is an especially participatory and non-paternalistic development input. Access to flexible, convenient, and affordable financial
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services empowers and equips the poor to make their own choices and build their way out of poverty in a sustained and self-determined way. Microfinance is unique among development interventions: it can deliver these social benefits on an ongoing, permanent basis and on a large scale. Many well-managed microfinance institutions throughout the world provide financial services in a sustainable way, free of donor support. Microfinance thus offers the potential for a self-propelling cycle of sustainability and massive growth, while providing a powerful impact on the lives of the poor, even the extremely poor. Evidence shows that this impact intensifies the longer clients stay with a given program, thus deepening the power of this virtuous cycle. Unfortunately poor people in most countries have virtually no access to formal financial services. Their informal alternatives such as family loans, savings clubs, or moneylenders are usually limited by amount, rigidly administered, or available only at exorbitant interest rates. The challenge ahead is to ensure access to financial services for the poor majority. This note reviews the evidence on the impact of microfinance as it relates to the attainment of the MDGs. Specifically it assesses impact in the areas of eradicating poverty, promoting children's education, improving health outcomes for women and children, and empowering women. Finally, the note addresses the feasibility of reaching significant numbers of the absolute poor with financial services on a sustainable basis and on a massive scale.
1.2
MICROFINANCE
Microfinance is globally recognized as an effective instrument to address poverty and women empowerment. Microfinance is not a mere financial instrument but a powerful tool for development to address multiple dimensions of poverty by addressing the issue of health, education, gender and environment. The experience across India and other countries has represented a robust potential of Microfinance to integrate with the development issues thereby significantly impacting the lives of poor. Micro Credit is defined as provision of thrift, credit and other financial services and products of very small amount to the poor in rural, semi urban and urban areas for enabling them to raise their income levels and improve living standards. Micro Credit Institutions are those, which provide these facilities. It is claimed that this new paradigm of unsecured small scale financial service provision helps poor people take advantage of
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economic opportunities, expand their income, smoothen their consumption requirement, reduce vulnerability and also empowers them Microfinance is a term used to describe financial services for those without access to traditional formal banking. It incorporates the provision of loans, often at interest rates of 25% or more, to individuals, groups and small businesses i.e. micro-credit. More recently it has also been extended to include the provision of savings accounts micro-savings as well as insurance and money transfer services. These interventions have been hailed by many as a solution to poverty alleviation, which allows market forces to operate, enabling the poor to invest in their futures and bring themselves out of poverty. The advocacy movement behind these initiatives is powerful and many evaluations highlight the benefits of these services. The expectations amongst donor agencies and the clients they serve are high microfinance organizations bear names in local languages reflecting these expectations, meaning for example hope and mustard seed. There is however growing concern amongst academics that these expectations are not being met. Rigorous research approaches, employing randomized trial designs, have begun to suggest that microfinance may not be the golden bullet that many had hoped. With a current expansion of microfinance services in sub- Saharan Africa, and an increased focus on how best to extend these services to the poorest of the poor, there is an imperative to establish whether micro-credit and micro-savings are helping or harming the poor people they purport to serve.
1.3
INDIAN MICROFINANCE CONTEXT
Indian public policy for rural finance from 1950s to till date mirrors the patterns observed worldwide. Increasing access to credit for the poor has always remained at the core of Indian planning in fight against poverty. The assumption behind expanding outreach of financial services, mainly credit was that the welfare costs of exclusion from the banking sector, especially for rural poor are very high. Starting late 1960s, India was home to one of largest state intervention in rural credit market and has been euphemistically referred to as Social banking phase. It saw nationalization of existing private commercial banks, massive expansion of branch network in rural areas, mandatory directed credit to priority sectors of the economy, subsidized rates of interest and creation of a new set of rural banks at district level and an Apex bank for
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Agriculture and Rural Development (NABARD) at national level. These measures resulted in impressive gains in rural outreach and volume of credit. As a result, between 1961 and 2000 the average population per bank branch fell tenfold from about 140 thousand to 14000 and the share of institutional agencies in rural credit increased from 7.3% 1951 to 66% in 199122. These impressive gains were not without a cost. Government interventions through directed credit, state owned Rural Financial Institutions (RFI) and subsidized interest rates increased the tolerance for loan defaults, loan waivers and lax appraisal and monitoring of loans. The problem at the start of 1990s Looked twofold, the institutional structure was neither profitable in rural lending nor serving the needs of the poorest. In short, it had created a structure, quantitatively impressive but qualitatively weak. Microcredit emergence in India has to be seen in this backdrop for a better appreciation of current paradigm. Successful microfinance interventions across the world especially in Asia and in parts of India by NGOs provided further impetus. In this backdrop, NABARDs search for alternative models of reaching the rural poor brought the existence of informal groups of poor to the fore. It was realized that the poor tended to come together in a variety of informal ways for pooling their savings and dispensing small and unsecured loans at varying costs to group members on the basis of need. This concept of Self-help was discovered by social-development NGOs in 1980s. Realizing that the only constraining factor in unleashing the potential of these groups was meagerness of their financial resources, NABARD designed the concept of linking these groups with banks to overcome the financial constraint. The programme has come a long way since 1992 passing through stages of pilot (1992-1995), mainstreaming (1995-1998) and expansion phase (1998 onwards) and emerged as the worlds biggest microfinance programme in terms of outreach, covering 1.6 million groups as on March, 2005. It occupies a pre-eminent position in the sector accounting for nearly 80% market share in India. Under the programme, popularly known as SHG-Bank Linkage programme there are broadly three models of credit linkage of SHGs with banks. However, the underlying design feature in all remains the same i.e. identification, formation and nurturing of groups either by NGOs/other development agencies or banks, handholding and initial period of inculcating habit of thrift followed by collateral free credit from bank in proportion to the groups savings. In accordance
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with the flexible approach, the decision to borrow, internal lending and rate of interest are left at the discretion of group members. Its design is built on combining the collective wisdom of the poor, the organizational capabilities of the social intermediary and the financial strength of the Banks The success factors of the programme lie in it being beneficial for both banks and clients another example of Win-Win proposition. The programme is an attractive proposition for banks due to high recovery rates and lowering of transaction costs by outsourcing costs associated with monitoring and appraisal of loans. Records show a recovery rate as high as 95% for loans extended by banks to SHGs and it was observed that the reduction in costs for the bankers is around 40 % as compared to earlier loans under Integrated Rural Development Programme (IRDP). Similar findings in respect of commercial benefit of SHG lending to banks were reported. The programmes exclusive focus on reaching those sections of population, who were hitherto out of reach of financial system, has increased the coverage of poor. Non reliance on physical collateral and total flexibility in loan purpose and amount has also resulted in increased coverage of the poor and the marginalized. The programme has received strong public policy support from both Government of India and Reserve Bank of India. The importance attached to it by Government is exemplified by mention of yearly targets by Finance Minister in his annual budget speech as well as introduction of similar group based lending approach in governments poverty alleviation programme. The success of the programme in reaching financial services to the poor has won international admiration. World Bank policy hails the programme and states that it is particularly suited to India because the model capitalizes on countrys vast network of rural bank branches that are otherwise unable to reach the rural poor.
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1.4
MILLENNIUM DEVELOPMENT GOALS
The Millennium Development Goals have become a universal framework for development and a means for developing countries and their development partners to work together in pursuit of a common vision. The challenge of achieving the Millennium Development Goals in all regions of the developing countries by 2015 is however a daunting one. Unfortunately, many of these countries are behind the MDG targets. As noted in the 2006 MDG Report disparities in progress, both among and within countries, are vast, and that the poorest among us, mostly those in remote rural areas, are being left behind. Much more can and must be doneThe majority of young citizens and other marginalized groups are unable to realize their full potential because of high rates of unemployment, poverty, HIV/AIDS, illiteracy among other factors. Significant statistics show that women constitute about 70 per cent of those living in poverty in developing countries, and that there are about 60 per cent of the 40 million people living with HIV/AIDS are in Africa. This alone can seriously affect the attainment of the MDGs. In terms of progress towards the attainment of the MDGs, therefore, the collective record is mixed there have been some gains even in the areas facing the most challenges. Success is possible but there is a clear need for more targeted interventions and strategies for localizing the MDGs more. Without a concerted effort at all levels including local level actors (including the poor communities) millions of people will not realize the promises of the MDGs in their lives. There is still a dire need for sound local governance, enhanced productive capacities, effective policies, strategies and technical and financial support. There is increasing awareness that sustainable development will only be enhanced if processes at the local level are strengthened. Throughout local governments have for a long time been assigned a broad range of
responsibilities which are directly linked to the MDGs. This included responsibilities for ensuring access to primary education, health, water and sanitation, roads, agricultural (crop, animal and fisheries) extension services, disease control and revenue collection among others. Local governments were also responsible for physical planning, human resource development, statistics generation, and legislation, law enforcement, promoting self-help activities, implementing central government policy and coordinating the activities of non-governmental, community-based and faith-based organizations. All this required a great deal of planning, budgeting and management capabilities. However, despite these changes, local governments
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across the developing countries, still face major challenges in providing basic services in their jurisdictions. With large scale budgetary deficits, and rising expectations of the citizens, they are under constant pressure to respond to increasing infrastructure needs in their regions. Increasingly many local bodies have turned to non-public sector agencies to partner for asset creation as well as for service delivery. Recognizing the nature of these issues, partnerships between local governments and private and non-governmental organizations are seen as bold and innovative strategies to improve performance of the services delivered by local authorities.
1.5
The Millennium Development Goals are a challenge the global
community has set for itself

They are a challenge to poor countries to demonstrate good governance and a commitment to poverty reduction. And they are a challenge to wealthy countries to make good on their promise to support economic and social development. The Millennium Development Goals have captured the world's attention, in part because they can be measured.
In September 2000, leaders from 189 nations agreed on a vision for the future: a world with less poverty, hunger, and disease; greater survival prospects for mothers and their infants; bettereducated children; equal opportunities for women; and a healthier environmenta world in which developed and developing countries worked in partnership for the betterment of all. This vision took the shape of eight Millennium Development Goals, which provide a framework for development planning for countries around the world, and time-bound targets by which progress can be measured.
To help track progress on the commitment made in 2000 in the United Nations Millennium Declaration, international and national statistical experts selected relevant indicators to be used to assess progress over the period from 1990 to 2015, when targets are expected to be met. Each year the Secretary-General presents a report to the UN General Assembly on progress achieved
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toward implementing the Declaration, based on data on the 48 selected indicators, aggregated at global and regional levels.
The World Bank Atlas of the Millennium Development Goals lets you visualize and map the indicators that measure progress toward the Goals, with clear explanations of each Goal and its related Targets as the context. When you select an indicator, the Atlas creates a world map keyed to that indicator, with country rankings and data in your choice of tables or graphs. You can pan or zoom to view different countries or regions, view the dynamic change in that map with a time series, compare two maps and sets of data, and do much more.
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1.6
Understanding the Millennium Development Goals (MDGs)
GOAL 1: ERADICATE EXTREME POVERTY & HUNGER Target 1.A: Halve, between 1990 and 2015, the proportion of people whose income is less than $1 a day
The global economic crisis has slowed progress, but the world is still on track to meet the poverty reduction target
Prior to the crisis, the depth of poverty had diminished in almost every region Target 1.B: Achieve full and productive employment and decent work for all, including women and young people
Deterioration of the labor market, triggered by the economic crisis, has resulted in a decline in employment
As jobs were lost, more workers have been forced into vulnerable employment Since the economic crisis, more workers find themselves and their families living in extreme poverty
Target 1.C: Halve, between 1990 and 2015, the proportion of people who suffer from hunger
Hunger may have spiked in 2009, one of the many dire consequences of the global food and financial crises
Progress to end hunger has been stymied in most regions Despite some progress, one in four children in the developing world are still underweight Children in rural areas are nearly twice as likely to be underweight as those in urban areas In some regions, the prevalence of underweight children is dramatically higher among the poor
Over 42 million people have been uprooted by conflict or persecution

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GOAL 2: ACHIEVE UNIVERSAL PRIMARY EDUCATION Target 2.A: Ensure that, by 2015, children everywhere, boys and girls alike, will be able to complete a full course of primary schooling
Hope dims for universal education by 2015, even as many poor countries make tremendous strides
Sub-Saharan Africa and Southern Asia are home to the vast majority of children out of school Inequality thwarts progress towards universal education
GOAL 3 PROMOTE GENDER EQUALITY AND EMPOWER WOMEN Target 3.A: Eliminate gender disparity in primary and secondary education, preferably by 2005, and in all levels of education no later than 2015

For girls in some regions, education remains elusive Poverty is a major barrier to education, especially among older girls In every developing region except the CIS, men outnumber women in paid employment Women are largely relegated to more vulnerable forms of employment Women are over-represented in informal employment, with its lack of benefits and security Top-level jobs still go to men to an overwhelming degree Women are slowly rising to political power, but mainly when boosted by quotas and other special measures
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GOAL 4: REDUCE CHILD MORTALITY Target 4.A: Reduce by two thirds, between 1990 and 2015, the under-five mortality rate
Child deaths are falling, but not quickly enough to reach the target Revitalizing efforts against pneumonia and diarrhea, while bolstering nutrition, could save millions of children
Recent success in controlling measles may be short-lived if funding gaps are not bridged GOAL 5 IMPROVE MATERNAL HEALTH Target 5.A: Reduce by three quarters the maternal mortality ratio
Most maternal deaths could be avoided Giving birth is especially risky in Southern Asia and sub-Saharan Africa, where most women deliver without skilled care
The rural-urban gap in skilled care during childbirth has narrowed Target 5.B Achieve universal access to reproductive health
More women are receiving antenatal care Inequalities in care during pregnancy are striking Only one in three rural women in developing regions receive the recommended care during pregnancy
Progress has stalled in reducing the number of teenage pregnancies, putting more young mothers at risk
Poverty and lack of education perpetuate high adolescent birth rates Progress in expanding the use of contraceptives by women has slowed
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Use of contraception is lowest among the poorest women and those with no education Inadequate funding for family planning is a major failure in fulfilling commitments to improving womens reproductive health GOAL 6 COMBAT HIV/AIDS, MALARIA AND OTHER DISEASES Target 6.A: Have halted by 2015 and begun to reverse the spread of HIV/AIDS
The spread of HIV appears to have stabilized in most regions, and more people are surviving longer
Many young people still lack the knowledge to protect themselves against HIV Empowering women through AIDS education is indeed possible, as a number of countries have represented
In sub-Saharan Africa, knowledge of HIV increases with wealth and among those living in urban areas
Disparities are found in condom use by women and men and among those from the richest and poorest households
Condom use during high-risk sex is gaining acceptance in some countries and is one facet of effective HIV prevention
Mounting evidence shows a link between gender-based violence and HIV Children orphaned by AIDS suffer more than the loss of parents Target 6.B Achieve, by 2010, universal access to treatment for HIV/AIDS for all those who need it
The rate of new HIV infections continues to outstrip the expansion of treatment Expanded treatment for HIV-positive women also safeguards their newborns
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Target 6.C Have halted by 2015 and begun to reverse the incidence of malaria and other major diseases

Production of insecticide-treated mosquito nets soars Across Africa, expanded use of insecticide-treated bed nets is protecting communities from malaria
Poverty continues to limit use of mosquito nets Global procurement of more effective ant malarial drugs continues to rise rapidly Children from the poorest households are least likely to receive treatment for malaria External funding is helping to reduce malaria incidence and deaths, but additional support is needed
Progress on tuberculosis inches forward Tuberculosis prevalence is falling in most regions Tuberculosis remains the second leading killer after HIV GOAL 7 ENSURE ENVIRONMENTAL SUSTAINABILITY Target 7.A: Integrate the principles of sustainable development into country policies and programmes and reverse the loss of environmental resources
The rate of deforestation shows signs of decreasing, but is still alarmingly high A decisive response to climate change is urgently needed The unparalleled success of the Montreal Protocol shows that action on climate change is within our grasp
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Target 7.B Reduce biodiversity loss, achieving, by 2010, a significant reduction in the rate of loss
The world has missed the 2010 target for biodiversity conservation, with potentially grave consequences
Key habitats for threatened species are not being adequately protected The number of species facing extinction is growing by the day, especially in developing countries
Overexploitation of global fisheries has stabilized, but steep challenges remain to ensure their sustainability Target 7.C Halve, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation
The world is on track to meet the drinking water target, though much remains to be done in some regions
Accelerated and targeted efforts are needed to bring drinking water to all rural households Safe water supply remains a challenge in many parts of the world With half the population of developing regions without sanitation, the 2015 target appears to be out of reach
Disparities in urban and rural sanitation coverage remain daunting Improvements in sanitation are bypassing the poor Target 7.D: By 2020, to have achieved a significant improvement in the lives of at least 100 million slum dwellers
Slum improvements, though considerable, are failing to keep pace with the growing ranks of the urban poor
Slum prevalence remains high in sub-Saharan Africa and increases in countries affected by conflict
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GOAL 8 DEVELOP A GLOBAL PARTNERSHIP FOR DEVELOPMENT Target 8.A Develop further an open, rule-based, predictable, non-discriminatory trading and financial system

Developing countries gain greater access to the markets of developed countries Least developed countries benefit most from tariff reductions, especially on their agricultural products Target 8.B: Address the special needs of least developed countries
Aid continues to rise despite the financial crisis, but Africa is short-changed Only five donor countries have reached the UN target for official aid Target 8.C: Address the special needs of landlocked developing countries and Small Island developing States Target 8.D Deal comprehensively with the debt problems of developing countries
Debt burdens ease for developing countries and remain well below historical levels Target 8.E: In cooperation with the private sector, make available benefits of new technologies, especially information and communications
Demand grows for information and communications technology Access to the World Wide Web is still closed to the majority of the worlds people
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A large gap separates those with high-speed Internet connections, mostly in developed nations, and dial-up users.
Source: www.worldforworld.org
1.7 INDIA PROGRESS TOWARDS MILLENNIUM DEVELOPMENT GOALS

According to the Report, as many as 25 States/Union Territories in India are likely to have halved their 1990 levels of poverty earlier or around 2015. There is optimism that the country will be able to achieve universal primary education by 2015 and eliminate the enrolment gap between boys and girls by then. The government also claims that it is on course in controlling the incidence of HIV/AIDS, malaria and tuberculosis and expects to achieve the MDGs target for sustainable access to safe drinking water by the designated year. Well, there are many who would contest even the basic assumption that India will be able to peg down its poverty levels in a meaningful way. On one issue, however, everybody agrees, including the government: Among the gravest challenges facing India today is its persistently high Infant Mortality Rate (IMR). Change on this score has been tragically sluggish. The Report estimates that going by present trends, the country would have achieved, by 2015, an IMR of only 46 per 1000 live births, as against the required 26.7 per 1000 live births. It also notes that the "incidence of neo-natal deaths has not changed over the last seven years in the heartland states". Expectant mothers in the country are not doing too well either, although things have improved immeasurably since 1990, when the country's Maternal Mortality Rate (MMR) was 437 per 100,000 live births. According to the Country Report's projections, India is expected to bring down its MMR to 135 per 100,000 live births by 2015, which falls short of the required 109 per 100,000 live births.
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The deaths of these innumerable children and mothers are a severe indictment of the country and point to significant and overlapping inequalities of gender, class, caste and region. Not surprisingly, it is the poorest states - like Bihar, Jharkhand, Chhattisgarh, Madhya Pradesh, Orissa and Uttar Pradesh - constituting India's heartland, and the most marginalized communities - whether Dalits, Tribals or the Minorities - that report the highest mortality levels. If India's IMR and MMR are to be pegged down, the country will have to focus urgently on three central concerns: hunger/malnutrition; health care; and sanitation. Malnutrition is directly related to poverty and food security. About half the children in India are stunted, and more than a third of our women have a Body Mass Index below 18.5 per cent, an indicator of serious nutritional deficiency and the inter-generational transfer of malnutrition from mother to child. Health care remains another huge concern. The shortfall of primary health centers and subcenters in 2008 has remained almost the same as in 2005, and the number of auxiliary nurse midwives has, in fact, decreased over the same period. Today, there is a 50 per cent shortfall in trained health workers, radiographers, lab technicians and doctors. At the existing rate, only 62 per cent deliveries will be attended by skilled personnel by 2015 - with rural areas being particularly under-serviced. Sanitation, unfortunately, has never been a policy priority for India despite that fact that drinking water contaminated by fecal matter is a major cause of child deaths. India has the lowest sanitation coverage in the world - in 2007-08, an estimated 66 per cent of rural households did not have toilet facilities. Since the Suresh Tendulkar Committee has assessed the actual population living below poverty in India at 37 per cent instead of the earlier figure of 27 per cent, it means that achieving the targets will be that much more difficult. The government needs to get back to delivering basic services, like health and education, instead of linking their access to the vagaries of the market. A group working for the last 27 years among Rajasthan's farmers is that while agriculture continues to be the main source of livelihood for at least 60 per cent of Indians - in Rajasthan the figure is around 70 per cent - there has been precious little investment in the sector. India is still
awaiting its tryst with its developmental destiny.

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The MDGs represent a web of overlapping deprivations. Achieving them will not only change the face of the country, it could go some way in addressing the million mutinies that are raging, or will rage in the near future. All insurgencies, after all, are fuelled by a sense of grievance and powerlessness among ordinary people, whether in the Northeast or in Chhattisgarh. In September the governments of the world will meet at the UN to present their assessments on the status of MDGs in their respective countries. Annie Raja, General Secretary of the National Federation of Indian Women, wants the Government of India to make the effort to understand the concerns of civil society. "Before the Government of India makes its presentation on MDGs at the UN, we demand that our views be taken into consideration," says Raja. The clock is ticking. If India does not get its act together now, 2015 will go down as the year of broken promises.
Source: http://www.un.org/millenniumgoals/stats.shtm
1.8
Microfinance & MDG
The current literature on microfinance is also dominated by the positive linkages between microfinance and achievement of Millennium Development Goals (MDGs). Microcredit Summit Campaigns 2005 report argues that the campaign offers much needed hope for achieving the Millennium Development Goals, especially relating to poverty reduction. CGAP lends support to this by saying that the growing body of evidence suggests microfinance to be a critical contextual factor in achievement of MDGs. ADB in its theme chapter on microfinance also cites access to financial services as critical for eliminating poverty and reaching MDGs. IFAD along with Food and Agriculture Organization (FAO) and the World Food Programme (WFP) declared that it will be possible to achieve the eight Millennium Development Goals (MDGs) by the established deadline of 2015 if the developing and industrialized countries take action immediately by implementing plans and projects, in which microcredit could play a major role
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1.9
OBJECTIVES OF THE STUDY
The Objectives of the study are: To study the concept of Microfinance and Millennium Development Goals(MDGs) To Study the impact of Microfinance on Millennium Development Goals (MDGs)
1.10 HYPOTHESIS
In order to analyze whether there is any significant difference, the following null hypotheses were framed. 1. There is a significant difference between the reasonability of rate of interest of beneficiaries than non beneficiaries 2. There is a significant difference between the earning opportunities of beneficiaries than non beneficiaries 3. There is a significant difference between the accessibility to education of beneficiaries than non beneficiaries 4. There is a significant difference between accessibility to safe drinking water of beneficiaries than non beneficiaries 5. There is a significant difference between the rights provided to women of beneficiaries than non beneficiaries 6. There is a significant difference between the awareness on HIV/AIDS , Malaria and other diseases of beneficiaries than non beneficiaries
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7. There is a significant difference between the awareness on environment protection of beneficiaries than non beneficiaries 8. There is a significant difference between accessibility to basic food of beneficiaries than non beneficiaries
1.11 Scheme of the report

The First chapter explains the Introduction, Objectives of the study, Introduction to Microfinance and Millennium Development Goals, Hypothesis and Scheme of the Report. The Second chapter represents the Review of Literature. The Third chapter Research Methodology explains the Research Framework, Data Collection, Sampling Design, Research Tools and Limitations of the Study. The Fourth chapter represents the Data Analysis & Interpretation. The Final chapter presents the summary of Findings, and Conclusion.
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CHAPTER 2 ` REVIEW OF LITERATURE
Microfinance attempts to address the lack of access to financial markets by the poor. It focuses on providing micro-credit - small collateral free loans to the very poor for self-employment. Other financial services such as savings and insurance (known as microfinance) can also be provided. There are two main rationales for investing in microfinance. First, it can be seen as being part of integrated programme for poverty reduction for poor households. Second, it can be seen as a means of providing financially self-sustainable programs that increase access to finance for large numbers of poor people. In this scenario, microfinance is seen as addressing a market failure.1 around two thirds of microfinance clients around the world are women. 2 Under the first rationale for investing in microfinance (integrated poverty programme) the focus tends to be on women because they are often the poorest and are responsible for household welfare, whereas in the second, women are the focus because they tend to have higher repayment rates. The basic idea of microfinance is to provide credit to the poor people who otherwise would not have access to credit services. Micro-credit programme extend small loans to very poor people for self-employment projects that generate income and allow them to take care for themselves and their families. This programme is working in many developing countries. There is no dearth of literature related to microfinance. In order to find the impact of microfinance programme, impact assessment studies have been done by many authors in different countries like Bangladesh, India, Pakistan, Nepal, Thailand, Ghana, Rwanda, Peru and many other countries of South Asia and Africa. The literature on microfinance offers a diversity of findings relating to the type and level of impact of the programme. There are various studies which confirm that microfinance programme has a significant positive impact in increasing employment and reducing poverty. A number of studies show that the participant households enjoy higher standard of living as compared to the non-participants. The programme reduces consumption as well as income vulnerability among its beneficiaries. Some of the studies also confirm that the programme is helpful in attaining millennium development goals by reducing poverty, hunger, infectious diseases and through women empowerment. There are a number of studies which explain that participation in the programme has led to greater levels of women empowerment in
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terms of increase in knowledge, self confidence, economic, social and political awareness, mobility, development of organizational skills etc. However, some of the studies show that the programme is not reaching the bottom poor people and the group loans are utilized for non-income generating activities such as consumption and other emergency needs. The studies also show that the women participants have limited control over the use of group loans, therefore, the programme results in limited empowerment of women participants. Thus the literature on microfinance provides mixed results about the impact of microfinance programme on the programme participants. BRAC is an integrated program of poverty reduction for poor households. It provides loans to poor women in combination with various forms of skills training, non-formal primary education for children of BRAC members, health care, social development services and the creation of grassroots organizations for the poor. An Impact Assessment in May 2007 of the North West Microfinance Expansion Project showed that there was an improvement of knowledge and awareness of legal issues among the beneficiaries, including issues around marriage and divorce. Domestic violence also decreased over time7. Other evaluation of BRAC activities shows similar findings in relation to gender impacts. Participation of women in BRAC was found to increase the empowerment of women, despite 53% of women handing over their loan money to their male household members for use. Overall womens participation in BRAC was found to increase their self confidence and reduce their dependence on male household members.
(bank, 1999)Survey conducted for the mid-term review of the poverty alleviation and microfinance project among 675 micro-credit borrowers in Bangladesh showed that there had been positive change in the economic and social status of the surveyed borrowers. The survey showed that income had increased for 98 per cent of borrowers; 89 per cent of the borrowers accumulated new assets; and 29 per cent had purchased new land, either for homestead or for agriculture. Food intake, clothing and housing had improved for 89, 88 and 75 per cent of the borrowers. Sanitation conditions improved for 69 per cent and child education for 75 per cent of the borrowers. The improvements had mainly achieved due to the increased level of selfemployment of women participants.
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(Dunn & and Arbuckle, 2001) Studied the impact of micro-credit on the Mibanco clients in Peru. The impact was measured using cross-sectional data collected in two parts, once in 1997 and again in 1999. The study demonstrated a very significant positive impact on its clients in terms of income and employment generation. It was found that the participation in the programme led to nine additional days of employment per month. The authors calculated that based on 40,000 Mibanco members at the end of 1999, 17414 full time jobs were created. It was also found that Mibanco clients earned $266 more per household member per year than the non-participants.
(Mishra, Verma, & and Singh, 2001) Studied the impact of rural SHGs on generation of income and employment among the beneficiaries identified the major constraints and problems faced by the groups, and suggested measures for overcoming these problems in Faizabad district of eastern Uttar Pradesh. For the purpose of the study, five SHGs in Amaniganj block of the district were selected randomly. It was observed that SHG members were mainly from OBC community whose main occupations were agriculture, small businesses, labor etc. Ninety-three per cent of the SHG members were male and only 7 per cent were female. Majority of the members lived below the poverty line. The average monthly savings ranged from Rs. 15 to Rs. 50. Repayment performance was good. The results of the survey showed that SHGs have helped to increase the income of the participants by 10 to 15 per cent. The major problems that the members faced were lack of training, credit and marketing facilities, entrepreneurship and high interest rate. (singh, 2003) had explained the failure of government initiated anti-poverty programmes and the success of microfinance programme as an effective poverty alleviation strategy in India. According to him the government-implemented rural development programmes failed because these were centrally invented (lacking participation of local level institutions), politically motivated, had leakages, misappropriation and heavy administrative expenses. More than 250 million people in India remained poor, even after 50 years of independence. Failures of these institutional initiatives and learning from the success of the Grameen Bank in Bangladesh had given way to the development of microfinance programme in India in 1992. Many NGOs who were following SHG promotion approach such as Mysore Resettlement and Development Authority (MYRADA) in Karnataka, Society for Helping and Awakening Rural Poor through Education (SHARE) in Andhra Pradesh, Rural Development Organization (RDO) in Manipur, Peoples Right and Environment Movement (PREM) in Orissa and Andhra Pradesh, Youth
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Charitable Organization (YCO) in Andhra Pradesh, Acil Navsarjan Rural Development Foundation in Gujarat, ADITHI in Bihar Professional Assistance for Development Action (PRADAN) and Rural Development Society for Vocational Training (RUDSOVAT) in Rajasthan came forward in this sector. These NGOs were proving very successful in reducing poverty level of its clients and generating additional employment opportunities. Though in its young age microfinance sector had a diversified growth and multiplicity of impacts, as impact on income, employment, health, education, housing and sanitation etc. The programme was playing an important role in the process of development particularly when subsidy and grant based schemes were losing their importance. (Morduch, 2003) in their paper reviewed that microfinance programme was very helpful in attaining the millennium development goals through mobilizing various resources to reduce poverty and hunger, eliminate HIV/AIDS and infectious diseases, empower women, educate all children and lower child mortality. This paper presented the findings of various microfinance studies and had proved that availability of financial services for poor households had a strong impact on the achievement of the millennium development goals. The poor used financial services not only for business investment in their micro-enterprises but also to invest in health and education to manage household emergencies and to meet other wide variety of cash needs that they encountered. A large number of microfinance institutions had proved that they were profitably reaching the bottom poor people by applying various innovative products and methodologies. The availability of financial services had proven to be a critical factor in reducing poverty and its effects, resulting in positive impacts on nutrition, education, health, gender equity and the environment.
(Kabeer & and Noponen, 2005) in their paper set out the findings of a socioeconomic impact study of PRADANs microfinance programme carried out in Jharkhand, one of the poorest states in India. The study was carried out in Godda, Dumka and Banka districts of Jharkhand. In order to study the impact of microfinance programme 400 SHG members were compared with 104 non-members in these three districts. The major objective of the study was to find out the impact of microfinance on the capacity of the participants to meet basic needs, livelihood base, asset position, saving and debt position and womens choice and agency. The findings of the study
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showed that as far as basic needs were concerned, the members had reported a more favorable overall food situation in terms of adequacy and diversity of diet as compared to non-members. They had better access to clean drinking water, improved housing with more rooms and doors. Members were sending greater number of children to school along with greater gender equity. Members were engaged in own cultivation and livestock rearing and less dependent on unskilled wage labor activities. Members had higher levels of savings and lower incidence of indebtedness to high interest of money40 lenders as compared to non-members. As regards womens skills, knowledge and agency, members had acquired more practical skills and demonstrated greater awareness of government programme for the welfare of poor. However, there was less difference regarding participation in household decision-making. In both the groups, women made sole decisions in one-fifth of the households and a joint decision was made in about half of the households. Overall, the study showed that members were in a better position than non-members and the process of women empowerment had been initiated through the microfinance programme.
(Muhammad, 2006)In his study explained Grameen Banks new microfinance programme, exclusively targeted for beggars in Bangladesh. The struggling members (beggars) programme was a new initiative taken by Grameen Bank in late 2003 to help the people in the lowest rung of poverty which was also reinforcing the banks campaign that credit should be accepted as a human right. The goal of the programme was not only to economically empower but also to boost the morale and dignity of the beggars. The struggling members were not required to form any group or attend weekly meetings. In this programme, 31.11 million Taka loans were provided to 47,454 struggling members without charging any interest, up to July 2005. Out of this collateral free loan, 15.40 million Taka had been repaid and 786 members had already quit begging.
(sarangi, 2007) Evaluated the impact of microfinance programme on rural poor households in some backward regions of Madhya Pradesh in India. For the purpose of study, Betul, a tribal region; and Sehore, a relatively prosperous region; were selected. The researcher examined three
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most popular group based microfinance programmes, i.e. government supported SGSY programme, NABARDs SHG bank linkage programme, and World Bank promoted Swashakti programme. One hundred eighty participants from two districts, and three programmes were selected through a multistage random sampling method. Non-participant households were selected with a ratio of 1:2 to participants in each village. In order to make comparisons, t-test, analysis of variance, and regression techniques were used. Impact assessment results showed a significant positive effect of programme participation on increase in the income of the households. It was found that the income of households reporting self-employment in off-farm activities was much higher for the participant households than their counterparts. Intervention of PRADAN in promoting poultry, mushroom cultivation and sericulture among the participant households had helped diversifying their economic portfolio. Indicators of consumption items including clothing and footwear seemed to obtain high average values for the participant households than non-participants. It was also found that location factors contribute to the creation of opportunities for diversifying the economic portfolio and employment choices. The probit regression was applied to estimate the probability of participation as a function of level of per capita income, off-farm activities, and work participation rate, education of principal earner of the household, adult literacy ratio, productive assets, agricultural land, distance index and years of operation of different microfinance programmes in the villages. The results indicated the exclusion of very poor households from participation in group-based credit programme. The probability of participation was low at the lower end of income distribution and it increased with the increase in per capita income of the household and declined with very high level of per capita income. The results also showed that the increase in share of off-farm earnings increased with increase in landholding. The returns seemed to be much higher for the very big landowners than the small farmers. The findings suggested that on the one hand, many of the very poor households were excluded from the programme, and on the other, the gains from participation of the programme were mostly observed for the better-off section of households, particularly those with high per capita income or the large landholders. He concluded that credit to serve as a sole instrument of poverty alleviation did not seem to be plausible, without other corroborative mechanisms that help in increasing the potential of credit use by the poor or the small farmer
.
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(Sharma, 2007) Examined the impact of participation in microfinance programme on womens autonomy and gender relations within the household. For this purpose participants of the programme were surveyed in Hill and Terai areas of Nepal during the period 2004 to 2006. The microfinance institution participants who had adopted Grameen model for at least four years were selected. Comparison of pre- and post-SHG participation showed that programme led to womens greater participation in household decision-making, greater access to economic resources, wider social networks and freedom of mobility. Female credit had increased spousal communication about family planning and parenting concerns. It was also found that microfinance institutions had reached only a tiny fraction of the population and the challenge was to multiply the existing services. The researcher suggested that government should build conductive environment to develop microfinance services.
(Sarkar, 2008)In his paper discussed the new model of microfinance in Bangladesh and expressed the need of some institutional reforms in the microfinance development strategy of India. The Grameen Bank had introduced a more flexible credit system named as GrameenII. Under this new system, loans of different duration suited to individual needs were provided. Besides the duration of the loan, the size of weekly installments could be varied and the borrower could pay less during the lean season and more during the busy season. All borrowers started with a basic loan. In addition to the basic loan, the same borrowers were also granted a housing loan and a higher education loan simultaneously. The most important feature of the flexible loan was that, if borrowers were unable to repay their loans, they were no longer seen as defaulters; rather they had a legitimate way to remain within the folds of the organization so that they may continue to receive loans. The Grameen Bank had also introduced a pension fund for its borrowers with a minimum contribution for each borrower towards a pension deposit scheme. Further, the Grameen Bank had introduced loan insurance for its borrowers to pay off a members debt in the event of her/his death. In this way, Grameen-II introduced a range of attractive new savings and loan products for its borrowers, which the SHG bank linkage model of India was lacking. (Borbora & and Mahanta, 2008) In their case study of Rashtriya Grameen Vikas Nidhis (RGVN) credit and saving programme (CSP) in Assam examined the role of credit in
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generation of employment opportunities for the poor. They also assessed the role of SHGs in promoting the saving habits among the poor and the contribution of the programme in social and economic empowerment of the poor in general and of women in particular. The analysis of survey data revealed that 80 per cent of the members in the selected SHGs were from poor families. The members of the groups were engaged in gainful economic activities. It was found that the programme had succeeded in inculcating the habit of saving among the members. As many as 57.8 per cent of the members saved Rs. 200 to Rs. 500 and 42.2 per cent saved Rs. 501 to Rs. 1000 each. It also helped them to free themselves from the clutches of non-formal sources of credit. Forty-three per cent of the sample beneficiaries expanded their income generating activities. The SHGs had helped to set up a number of microenterprises for income generation. The focus of CSP was exclusively on rural poor and it adopted a credit delivery system designed especially for them with the support of specially trained staff and a supportive policy with no political intervention at any stage in the implementation of the programme. So, the CSP in Assam was found to be successful.
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CHAPTER 3 RESEARCH METHODOLOGY

Research is the systematic investigation into existing or new knowledge. It is used to establish or confirm facts, reaffirm the results of previous work, solve new or existing problems, support theorems, or develop new theories. A research project may also be an expansion on past work in the field. In order to test the validity of instruments, procedures, or experiments, research may replicate elements of prior projects, or the project as a whole. The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, or the research and development of methods and systems for the advancement of human knowledge. Approaches to research depend on epistemologies, which vary considerably both within and between humanities and sciences.
3.1
RESEARCH PROCESS
Research process consists of series of actions or steps necessary to effectively carry out research. These steps are to be followed in the same sequence. One should remember that the various steps involved in a research process neither mutually exclusive; nor they are separate and distinct. However, the following order concerning various steps provides useful procedural guidelines regarding the research process. These steps are as follows: Formulating the research problem Extensive Literature survey Development of working Hypothesis Preparing the Research design Determining sample design Collecting the data Execution of the project Analysis of data Hypothesis testing
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Generalizations and interpretation Preparation of the report or the thesis
3.2
SAMPLING PLAN
Population: Population can be defined as an aggregate of all the elements sharing some common set of characteristics that comprises the universe for the purpose of problem. In the study the population denotes people living Below Poverty Level (BPL) Sampling Frame: A sampling frame is the representation of elements of the target population. It consists of a list or set of directions for identifying the target populations Geographical scope: It implies the area or region from where we are going to draw the sample i.e. area where we conduct the research. In this study, sample has been taken from Ludhiana City. Sampling Size: Sample size means selection of the elements from the population which represents the whole population. In the Study sample size of 100 has been taken among 50 are the beneficiaries and 50 are Non-Beneficiaries.
3.3
DATA COLLECTION
PRIMARY DATA: It is the data which is collected first time by the user (Researcher) by conducting surveys. It is collected to prove the objectives of the Research. Primary data of this study has been collected through Schedule. SECONDRY DATA: it is the data which is already been taken from other sources. Secondary data of this study has been collected through Weekly Magazines Internet Websites
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3.4
DATA ANALYSIS AND INTERPRETATION
The following tools has been used for this study

Mean: Mean or Average is defined as the arithmetic sum of elements in a set divided by total number of elements in a set. it is denoted by :
Standard deviation: It shows how much variation or "dispersion" exists from the average (mean, or expected value). A low standard deviation indicates that the data points tend to be very close to the mean, whereas high standard deviation indicates that the data points are spread out over a large range of values. It is denoted by:
Independent samples t-test (Two samples t-test): A t-test is any statistical hypothesis test in which the test statistic follows a Student's t distribution if the null hypothesis is supported. This test is only used when both: the two sample sizes (that is, the number, n, of participants of each group) are equal; It can be assumed that the two distributions have the same variance.
Where Bar graphs (Clustered Column Chart): To represent the data in the graphical form. Software SPSS 17.0 is used
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CHAPTER 3 RESEARCH ANALYSIS AND INTERPRETATION OF DATA Figure: 3.1 REASONABILITY OF RATE OF INTEREST
25 20 15 Non Benefeceries 10 5 0 Strongly Disagree Disagree Neutral Agree Strongly Agree Benefeceries
(robinson, 1995) States that the 1995s represented a turning point in the history of microfinance in that MFIs such as Grameen Bank and BRI2 began to show that they could provide small loans and savings services profitably on a large scale. They received no continuing subsidies, were commercially funded and fully sustainable, and could attain wide outreach to clients
Interpretation: As represented in the Figure 3.1 40% beneficiaries agree with the statement that they got the loan at reasonable rate of interest and 40% non beneficiaries disagree with the statement provide the loan with reasonable rate of interest
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Figure: 3.2 ACCESS TO EARNING OPPURTUNITIES

(Banu, Fehmin, Altaf, & and Shahnuj, 2001) Conceptualized empowerment as the capacity of women to reduce their socio-economic vulnerability and their dependency on their husbands or other male counterparts. Case studies of 25 village organizations (VOs) and household surveys were conducted on 1072 households from 125 VOs. The study concentrated on before and after type of comparison of members over time. In order to assess the impact over time the members were categorized in three groups according to the length of membership in BRAC, such as 1 to 11 months, it had been found that BRAC was able to bring substantial changes in the lives of its programme participants both at individual and family level. Women participants were involved in economic activities, generating income and some of them had started nontraditional economic activities and were engaged in more than one earning activity throughout the year. Women used their income for a variety of personal and household uses
Interpretation: As represented in the Figure 3.2, 46% beneficiaries agree that they have access to earning or employment opportunities and 34% non beneficiaries strongly disagree that they have access to employment or earning opportunities
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Figure 3.3 PROVIDE ACCESS TO EDUCATION

20 18 16 14 12 10 8 6 4 2 0 Strongly Disagree Disagree Neutral Agree Strongly Agree Non Benefeceries Benefeceries
(kabeer, 2000) Argues that, with moves towards the universalisation of primary schooling, education has become more of a widely felt need, rather than a privilege of the elite, with basic literacy and numeracy viewed as prerequisites for improving livelihood opportunities. Yet, in Malawi, it is suggested that the increased primary enrolment following the abolition of fees in 1994 has increased pressure on higher levels of schooling, given that primary schooling is unable to improve livelihood opportunities to the vast number of children leaving primary school (Kadzamira, 2003). Again, questions arise of the type and level of education required to influence chronic poverty. Interpretation: As represented in the Figure 3.3, 38% beneficiaries agree that now they and their child have access to educational institutions and 34% non beneficiaries disagree that there is access to educational institutions
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Figure 3.4 ACCESS TO SAFE DRINKING WATER

(Hutton G, 2000)"The base coverage year for MDG target 10 is 1990. Water and sanitation coverage estimates are obtained from the WHO/UNICEF (United Nations Childrens Fund) Joint Monitoring Programme (JMP) for Water Supply and Sanitation based on current JMP classifications.14 JMP classifies as improved water supply: piped water into dwelling, plot or yard; public tap; tube well or borehole; protected dug well or spring; and collected rainwater. To be classified as improved, at least 20 liters per capita per day from a protected source within one kilometer of the users dwelling is required." Interpretation: As represented in the Figure 3.4, 44% beneficiaries agree that they have access to safe drinking water and 32% non beneficiaries disagree that they have access to safe drinking water
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Figure 3.5 IMPROVED THE LIFE OF SLUM DWELLERS

(Pitt & and Khandker, 1998) Had studied the impact of microfinance on poverty in Bangladesh. Data was collected through a survey in 1991-92 containing 1798 households (1538 participants and 260 non-participants) in three Bangladeshi programmes, i.e. microfinance programmes of the Grameen Bank, Bangladesh Rural Advancement Committee (BRAC) and of Bangladesh Rural Development Board (BRDB). For finding the impact borrowers were compared to the people in non-programme villages. Results showed that for every Taka (currency of Bangladesh) lent to a female member, the consumption increased by 18 Taka and for men this figure was 11 Taka. Interpretation: As represented in the Figure 3.5, 34% beneficiaries agree that standard of living of slums has been improved and 38% non beneficiaries disagree that life of slums has been improved
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Figure 3.6 EQUAL RIGHTS FOR WOMEN
(Sims, 1997) Suggested that expanding female education will improve gender equity which was the outcome of the study done in Uganda. The study focused on the involvement of women in politics in South Africa and Uganda. He also found a relationship between the importance of gender equity to economic growth and traced women's civil society in Uganda was given importance. Interpretation: As represented in the Figure 3.6 , 30% beneficiaries agree that now women has equal rights to study and work as men and 40% non beneficiaries disagree that there is women has equal rights as men
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Figure 3.7 AWARENESS OF REASONS FOR HIV/AIDS, Malaria, and Tuberculosis

18 16 14 12 10 8 6 4 2 0 Strongly Disagree Disagree Neutral Agree Strongly Agree Non Benefeceries Benefeceries
(kaleeba, 2000)"The ministry of health revealed the problem of AIDS in Uganda at world health assembly in Geneva and requested the support of international community in the fight against it a move that that was perceived as demeaning by some participants from Africa" Interpretation: As represented in the Figure 3.7, 34% beneficiaries strongly agree that now they aware of the reasons and protection from harmful diseases like HIV/AIDS, Tuberculosis, and Malaria and 30% non beneficiaries strongly disagree that they aware of the reasons and protection from harmful diseases like HIV/AIDS, Tuberculosis, and Malaria
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Figure 3.8 AWARENESS ON ENVIRONMENT PROTECTION

Interpretation: As represented in the Figure 3.8, 36% beneficiaries agree that they are fully aware of the environment related issues and 35% non beneficiaries strongly disagree that they are fully aware of the environment related issues
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Figure 3.9 PROVIDE THE BASIC FOOD

(Drze, 2003), the year of reporting, midday meals also helped to avert an intensification of child under nutrition in many drought-affected areas. Poor households find the assurance of a free lunch every day for their children valuable, and note that in tribal areas, where hunger is endemic, midday meals make a crucial contribution to food security and child nutrition. The scheme also has a positive impact on gender equity, by promoting the employment of women as cooks and helpers. Interpretation: As represented in the Figure 3.9, 32 % strongly agree that they have access to good quality food at least 2 times a day and 40% disagree that they have access to good quality food
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Figure 3.10 ACCESS TO CHILD VACCINATION
18 16 14 12 10 8 6 4 2 0 Strongly Disagree Disagree Neutral Agree Strongly Agree Non Benefeceries Benefeceries
(Blair, 2003)Assessed the achievements in, critically reviewed the relevant issues of, and put forward recommendations for achieving the target of the Millennium Development Goal relating to mortality of children aged less than five years (under-five mortality) in Bangladesh within 2015. To materialize the study objectives, a thorough literature review was done. Mortality of under-five children and infants decreased respectively to 65 from 151 and to 52 from 94 per 1,000 live births during 1990-2006. The immunization coverage increased from 54% to 81.9% during the same period. The projection shows that Bangladesh will achieve targeted reduction in under-five mortality and infant mortality within the time limit, except immunization coverage. Neonatal mortality contributed to the majority of childhood deaths. Contribution of neonatal mortality to child mortality was the highest.
Interpretation: As represented in the Figure 3.10, 32% beneficiaries neither agree nor disagree that the child mortality rates has been reduced and 30% non beneficiaries disagree that the child mortality rates has been reduced
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Table 3.1 t-test for Reasonability of Rate of Interest

Beneficiaries/NonBeneficiaries Reasonability of Beneficiaries rate of Interest Non Beneficiaries N 50 50 Mean 3.56 2.34 Std Dev 1.198 0.982
df Sig.(2tailed) 0.0
5.570 98
Interpretation: The t-value (5.570) is higher than the table value (1.96) which shows that there is significant difference between the reasonability of rate of interest of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide credit to poor people at reasonable rate of interest
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Table 3.2 t-test for Access to Earning opportunities Beneficiaries/Non- N Beneficiaries Beneficiaries 50 Non Beneficiaries 50 Mean 3.92 2.2 Std Dev
df
98
Access to earning opportunities
0.778 8.99 1.107
Sig.(2tailed) 0.0
Interpretation: The t-value (8.99) is higher than the table value (1.96) which shows that there is significant difference between the Accessibility to earning opportunities beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide earning opportunities to poor people
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Table 3.3 t-test for Access to education

Beneficiaries/NonBeneficiaries Beneficiaries Non Beneficiaries N 50 50 Mean 4.08 2.42 Std Dev
df Sig.(2-
Access to education
tailed) 0.0 0.9 7.986 98 1.162
Interpretation: The t-value (7.986) is higher than the table value (1.96) which shows that there is significant difference between the accessbility to education of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide education facilities to poor people
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Table 3.4 t-test for Access to safe drinking water

df
98
Access to safe drinking water
0.808 6.603 1.081
Sig.(2tailed) 0.0
Interpretation: The t-value (6.603) is higher than the table value (1.96) which shows that there is significant difference between accessibility to safe drinking water of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide access to safe drinking water
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TABLE 3.5 t-tests for Improved the life of slum dwellers

df
98
Improved the life of slum dwellers
0.904 6.325 1.081
Sig.(2tailed) 0.0
Interpretation: The t-value (5.570) is higher than the table value (1.96) which shows that there is significant difference between the improvements of life of slums of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance contribute to improve the life of slums
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Table 3.6
t-test for Equal rights for women

df
98
Equal rights for women
1.071 6.59 0.96
Sig.(2tailed) 0.0
Interpretation: The t-value (6.59) is higher than the table value (1.96) which shows that there is significant difference between the rights provided to women of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance promotes gender equality
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Table 3.7 t-test for Awareness of reasons for HIV/AIDS, Malaria, Tuberculosis
df
98
Awareness of reasons for HIV/AIDS , Malaria , Tuberculosis
1.321 5.005 1.193
Sig.(2tailed) 0.0
Interpretation: The t-value (5.005) is higher than the table value (1.96) which shows that there is significant difference between the awareness of reasons of HIV/AIDS of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide facilities to the poor people to protect from these diseases
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Table 3.8 t-test for Awareness on Environment protection

df
98
Awareness on Environment protection
0.981 7.961 1.004
Sig.(2tailed) 0.0
Interpretation: The t-value (7.961) is higher than the table value (1.96) which shows that there is significant difference between the awareness on environment protection of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide awareness on environment protection
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Table 3.9 t-test for Provide the basic food

df
98
Provide the basic food
0.947 8.86 1.016
Sig.(2tailed) 0.0
Interpretation: The t-value (8.86) is higher than the table value (1.96) which shows that there is significant difference between the accessibility to basic food of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide basic food to the poor people
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Table 3.10 t-test for Access to child vaccination

df Sig.(2tailed) 0.0
Access to child vaccination
0.992 5.566 98 1.191
Interpretation: The t-value (5.566) is higher than the table value (1.96) which shows that there is significant difference between the accessibility to child vaccination of beneficiaries than non beneficiaries. Hence our Null hypothesis is rejected and we can conclude that microfinance provide access to child vaccination and reduces mortality rates
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CHAPTER 5 FINDINGS AND CONCLUSION FINDINGS 40% beneficiaries as compared to 20% non beneficiaries agree that under the microfinance programme they have access to short term credit with reasonable rate of interest 46% beneficiaries as compared to 34% non beneficiaries that microfinance has impact on them so they can earn and improve their standard of living 38% beneficiaries as compared to 34% non beneficiaries agree that microfinance provide them or their children access to educational institutions 44% beneficiaries as compared to 32% non beneficiaries strongly agree that they have access to safe drinking water 38% non beneficiaries as compared to 34% beneficiaries disagree that
standard of living of slums has been improved because of microfinance 40% non beneficiaries as compared to 30% beneficiaries disagree that microfinance has provided women equal rights as men to study , work and decide their careers 34% beneficiaries as compared to 30% non beneficiaries agree that microfinance has impact on the harmful diseases and protect the people from these diseases like HIV/AIDS , Malaria , Tuberculosis 40% beneficiaries as compared to 35% non beneficiaries agree that because of microfinance they become aware of environment related issues and live in clean and green environment. 32% beneficiaries as compared to 30% non beneficiaries agree that microfinance has impact on child mortality rates and child vaccination
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Conclusion The Indian economy at present is at a crucial juncture, on one hand, the optimists are talking of India being among the top 5 economies of the world by 2050and on the other is the presence of 260 million poor forming 26 % of the total population. The enormity of the task can be gauged from the above numbers and if India is to stand among the comity of developed nations, there is no denying the fact that poverty alleviation & reduction of income inequalities has to be the top most priority. Indias achievement of the MDG of halving the population of poor by 2015 as well as achieving a broad based economic growth also hinges on a successful poverty alleviation strategy. No single intervention can defeat poverty. Poor people need employment, schooling, and health care. Some of the poorest require immediate income transfers or relief to survive. Access to financial services forms a fundamental basis on which many of the other essential interventions depend. Moreover, improvements in health care, nutritional advice and education can be sustained only when households have increased earnings and greater control over financial resources. Financial services thus reduce poverty and its effects in multiple, concrete ways. And the beauty of microfinance is that, as programs approach financial sustainability, they can reach far beyond the limits of scarce donor resources. The focus of study is on Millennium Development Goals (MDGs) and Microfinance. The Research Study shows that there is positive contribution of microfinance in removing economic and social problems of beneficiaries than non beneficiaries. Microfinance has helped in poor by providing earning opportunities, good quality food, Better education, removing gender disparity, creating awareness about protection from HIV/AIDS and other harmful diseases by providing credit to poor people at low rates of interest.
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Mishra, J. P., Verma, R. R., & and Singh, V. K. (2001). Socio-economic Analysis of Rural Self help Groups Schemes in Block Amaniganj, District Faizabad (Uttar Pradesh). Indian Journal of Agricultural Economics , 473-74. Morduch, J. S. (2003). Is Microfinance an Effective Strategy to Reach the Millennium Development goals. 72-79. Muhammad, Y. (2006). Is Grameen Bank Different from Conventional Banks?. http://www.grameen-info.org/index.php?option=com_content&task=view. Pitt, M. M., & and Khandker, S. R. (1998). The Impact of Group-based Credit Programs on Poor Households in Bangladesh. journal of political economy , 958996. robinson. (1995). is microfinance a effective strategy to eradicate poverty. 42-45. sarangi, n. (2007). Microfinance and the Rural Poor: Impact Assessment Based on feildwork in MP india. Delhi School of Economics , 6-8. Sarkar, D. (2008). Indian Microfinance: Lessons from Bangladesh. Economic and , 18-20. Sharma, P. R. (2007). Micro-finance and Women Empowerment. The Journal of Nepalese Business Studies , 16-27. Sims, R. L. (1997). Journal of Education for Business , 283. singh, n. (2003). Building Social Capital through Micro-Finance: A Perspective on the Growth of Micro-Finance Sector with special reference to India. 50-55.
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REFERENCES WEBSITES: www.worldforworld.org www.en.wikipedia.org/wiki/MillenniumDevelopmentGoals www.un.org/millenniumgoals/ Www. shodhganga.inflibnet.ac.in WWW.CGAP.ORG www.dfid.gov.uk/R4D/Project/60747/Default.aspx www.ilo.org/addisababa/WCMS_145026/lang--en/index.htm www.worldbank.org/mdgs/poverty-hunger.html www.who.int/gender/mainstreaming/en/MDG
www.dochas.ie/Shared/Files/2/MicroFinance_literature_review.pdf www.safod.org/MDGS
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QUESTIONAIRE
I am studying masters of business administration at GNIMT, Ludhiana. I have designed this questionnaire for the research study of Impact of Microfinance on Millennium Development Goals (MDGs). I would really appreciate you if you like to give a little time to fill this questionnaire.
NAME____________________ GENDER AGE MALE Less than 25 FEMALE 25-40 years not at all Graduated FAMILY MEMBERS BUSIENESS EXPERIENCE 1-2 YES more than 40 up to 10th class others_________ 2-5 NO MORE THAN 5 up to 12th
EDUCATIONAL EXPERIENCE
READ THE INSTRUCTIONS CAREFULLY 1. The numbers denote level of satisfaction as from 1 to 5.
2. Number 1 in the series denotes higher level of dissatisfaction and similarly number 5 denotes higher level of satisfaction.
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Q. Do you think Microfinance Has? Provided the credit with reasonable rate of interest 1 2 3 4 5 Access to earning opportunities 1 2 3 4 5 Access to education 1 2 3 4 5 Access to safe drinking water 1 2 3 4 5 Improves the life of slum dwellers 1 2 3 4 5 Equal rights for women 1 2 3 4 5 Awareness of reasons for HIV/AIDS. 1 2 3 4 5 Awareness on environment protection 1 2 3 4 5 Provide the basic food 1 2 3 4 5 Access to child vaccination
1 2 3 4 5
Thanks for your cooperation and time.
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Final Report

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CONTENTS

Research Analysis and Interpretation of data Findings and Conclusion APPENDIX

CHAPTER 1 1.1 INTRODUCTION

INDIAN MICROFINANCE CONTEXT

MILLENNIUM DEVELOPMENT GOALS

The Millennium Development Goals are a challenge the global

community has set for itself

Understanding the Millennium Development Goals (MDGs)

Over 42 million people have been uprooted by conflict or persecution

1.7 INDIA PROGRESS TOWARDS MILLENNIUM DEVELOPMENT GOALS

awaiting its tryst with its developmental destiny.

Microfinance & MDG

OBJECTIVES OF THE STUDY

1.11 Scheme of the report

CHAPTER 2 ` REVIEW OF LITERATURE

CHAPTER 3 RESEARCH METHODOLOGY

Generalizations and interpretation Preparation of the report or the thesis

DATA ANALYSIS AND INTERPRETATION

The following tools has been used for this study

Figure: 3.2 ACCESS TO EARNING OPPURTUNITIES

Figure 3.3 PROVIDE ACCESS TO EDUCATION

Figure 3.4 ACCESS TO SAFE DRINKING WATER

Figure 3.5 IMPROVED THE LIFE OF SLUM DWELLERS

Figure 3.6 EQUAL RIGHTS FOR WOMEN

Figure 3.7 AWARENESS OF REASONS FOR HIV/AIDS, Malaria, and Tuberculosis

Figure 3.8 AWARENESS ON ENVIRONMENT PROTECTION

Figure 3.9 PROVIDE THE BASIC FOOD

Figure 3.10 ACCESS TO CHILD VACCINATION

Table 3.1 t-test for Reasonability of Rate of Interest

Access to earning opportunities

0.778 8.99 1.107

Table 3.3 t-test for Access to education

tailed) 0.0 0.9 7.986 98 1.162

Table 3.4 t-test for Access to safe drinking water

Access to safe drinking water

0.808 6.603 1.081

TABLE 3.5 t-tests for Improved the life of slum dwellers

Improved the life of slum dwellers

0.904 6.325 1.081

t-test for Equal rights for women

Equal rights for women

1.071 6.59 0.96

Awareness of reasons for HIV/AIDS , Malaria , Tuberculosis

1.321 5.005 1.193

Table 3.8 t-test for Awareness on Environment protection

Awareness on Environment protection

0.981 7.961 1.004

Table 3.9 t-test for Provide the basic food

Provide the basic food

0.947 8.86 1.016

Table 3.10 t-test for Access to child vaccination

Access to child vaccination

0.992 5.566 98 1.191

Thanks for your cooperation and time.

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