IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v11y2024i1d10.1057_s41599-024-02708-z.html
   My bibliography  Save this article

Rawls’ difference principle, self-help group, financial inclusion and social cohesion—lore or actuality? Experience of Central Assam

Author

Listed:
  • Shrabanti Maity

    (Vidyasagar University)

Abstract

Microfinance is an alternative banking service available to low-income individuals or organizations for whom no institutional financial services are available. A widely accepted approach to assisting disadvantaged and excluded communities, especially in remote rural areas, is microcredit. The purpose of microfinance is to promote financial equality and inclusion by acting as a substitute for traditional lending methods for the marginalized. In India, Self-Help Groups (SHGs)—Bank Linkage Program that led microfinance—gained maximum popularity. The National Bank for Agriculture and Rural Development architected this model. In this model, Grameen Banks are associated with SHGs. The model is familiar as the SHG-Bank Linkage Program (SBLP). A microfinance program’s theoretical foundation is the “Rawls’ Difference Principle” embedded in the “Theory of Justice.” The microcredit program, through the Self-Help Group-Bank Linkage Program (SBLP), gained maximum popularity in India. These SBLPs are registered with the “Deendayal Antyodaya Yojana—National Rural Livelihoods Mission (DAY-NRLM)” under the scheme Aajeevika. In harmony with “Rawls’ Difference Principle,” the ultimate goal of Aajeevika is social cohesion for all. The current study aims to assess the effectiveness of the SBLP-driven microfinance program in promoting financial inclusion. Furthermore, unlike earlier studies, the present study also considers whether or not involvement in SBLP increases social cohesion, which is a crucial component of the Difference Principle. The empirical research is conducted using novel data collected through a field survey of 335 participants and 490 non-participants from Nagaon, Morigaon, and Hojai districts of Central Assam. The “Propensity Score Matching” method facilitates the impact analysis of SBLP. The participation decision in the SBLP is positively influenced by the level of education. Empirical results also indicate that Hindus and low-caste women are interested in participating in SBLP. Contrarily, distance from the bank and operational land holdings are negatively influencing the participation decision. The empirical findings support higher financial inclusion through SBLP involvement but do not support greater social cohesion. Based on the empirical results, we suggest that more SBLPs be enrolled with DAY-NRLP under “Aajeevika.” Simultaneously, social cohesion may be achieved only by guaranteeing participation for every deserving individual, irrespective of religion, caste, and class.

Suggested Citation

  • Shrabanti Maity, 2024. "Rawls’ difference principle, self-help group, financial inclusion and social cohesion—lore or actuality? Experience of Central Assam," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-13, December.
    • Handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02708-z
    DOI: 10.1057/s41599-024-02708-z
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-024-02708-z
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-024-02708-z?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marco Caliendo & Sabine Kopeinig, 2008. "Some Practical Guidance For The Implementation Of Propensity Score Matching," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 31-72, February.
    2. Stephan Klasen & Janneke Pieters, 2015. "What Explains the Stagnation of Female Labor Force Participation in Urban India?," The World Bank Economic Review, World Bank, vol. 29(3), pages 449-478.
    3. Annamaria Lusardi & Olivia S. Mitchell, 2014. "The Economic Importance of Financial Literacy: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 52(1), pages 5-44, March.
    4. Alkire, Sabina & Foster, James, 2011. "Counting and multidimensional poverty measurement," Journal of Public Economics, Elsevier, vol. 95(7), pages 476-487.
    5. Tabea Bucher-Koenen & Annamaria Lusardi & Rob Alessie & Maarten van Rooij, 2017. "How Financially Literate Are Women? An Overview and New Insights," Journal of Consumer Affairs, Wiley Blackwell, vol. 51(2), pages 255-283, July.
    6. Kumar, Neha & Raghunathan, Kalyani & Arrieta, Alejandra & Jilani, Amir & Pandey, Shinjini, 2021. "The power of the collective empowers women: Evidence from self-help groups in India," World Development, Elsevier, vol. 146(C).
    7. Hoffmann, Vivian & Rao, Vijayendra & Surendra, Vaishnavi & Datta, Upamanyu, 2021. "Relief from usury: Impact of a self-help group lending program in rural India," Journal of Development Economics, Elsevier, vol. 148(C).
    8. Sabina Alkire, James E. Foster, 2009. "Counting and Multidimensional Poverty Measurement (Revised and Updated)," OPHI Working Papers 32, Queen Elizabeth House, University of Oxford.
    9. Shrabanti Maity & Rahul Sarania, 2017. "Does microfinance alleviate poverty and inequality? Studying self-help groups in Bodoland, Assam," Development in Practice, Taylor & Francis Journals, vol. 27(7), pages 1006-1019, October.
    10. Agarwal, Bina, 2000. "Conceptualising Environmental Collective Action: Why Gender Matters," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(3), pages 283-310, May.
    11. Meerman, Jacob, 2005. "Oppressed people: Economic mobility of the socially excluded," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 34(4), pages 542-567, August.
    12. Sabina Alkire, James Foster, 2009. "Counting and Multidimensional Poverty Measurement (Short Version)," OPHI Working Papers 7_5, Queen Elizabeth House, University of Oxford.
    13. Siddhartha T. & Nambirajan T. & Ganeshkumar C., 2021. "Self-help group (SHG) production methods: insights from the union territory of Puducherry community," Journal of Enterprising Communities: People and Places in the Global Economy, Emerald Group Publishing Limited, vol. 16(4), pages 517-539, May.
    14. Thankom Arun & Katsushi Imai & Frances Sinha, 2006. "Does the Microfinance Reduce Poverty in India? Propensity Score Matching based on a National-level Household Data," Economics Discussion Paper Series 0625, Economics, The University of Manchester.
    15. James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 65(2), pages 261-294.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shrabanti Maity, 2023. "Financial inclusion also leads to social inclusion—myth or reality? Evidences from self-help groups led microfinance of Assam," Journal of Innovation and Entrepreneurship, Springer, vol. 12(1), pages 1-22, December.
    2. Sayed Ehsan Khandoozi, 2015. "An Index for Economic Justice: The Case of Iran," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 19(2), pages 193-210, Spring.
    3. Raoul Herrmann & Ephraim Nkonya & Anja Faße, 2018. "Food value chain linkages and household food security in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(4), pages 827-839, August.
    4. Gibson Masumbu & Kristi Mahrt, 2014. "Multidimensional Welfare in Districts of Zambia: A First Order Dominance Approach," WIDER Working Paper Series wp-2014-137, World Institute for Development Economic Research (UNU-WIDER).
    5. Caicedo Hurtado, María Isabel & Castillo Valencia, María, 2021. "Tipologías de pobreza en Cali: un análisis con base en el SISBEN," Revista Tendencias, Universidad de Narino, vol. 22(1), pages 39-70, January.
    6. Salim Shah & Niranjan Debnath, 2022. "Determinants of Multidimensional Poverty in Rural Tripura, India," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 20(1), pages 69-95, March.
    7. Sen, Sugata, 2019. "Decomposition of intra-household disparity sensitive fuzzy multi-dimensional poverty index: A study of vulnerability through Machine Learning," MPRA Paper 93550, University Library of Munich, Germany.
    8. Ang'u, Cohen & Muthama, Nzioka John & Mutuku, Mwanthi Alexander & M’IKiugu, Mutembei Henry, 2023. "Analysis of energy poverty in Kenya and its implications for human health," Energy Policy, Elsevier, vol. 176(C).
    9. Corbelle Cacabelos, Fernando & Troitiño Cobas, Ángela, 2021. "Pobreza multidimensional en España. Una aplicación de la metodología de Alkire y Foster. 2008 - 2015 || Multidimensional poverty in Spain. An application of the Alkire and Foster methodology. 2008 - 2," Revista de Métodos Cuantitativos para la Economía y la Empresa = Journal of Quantitative Methods for Economics and Business Administration, Universidad Pablo de Olavide, Department of Quantitative Methods for Economics and Business Administration, vol. 31(1), pages 55-103, June.
    10. Federico HUNEEUS & Oscar LANDERRETCHE & Esteban PUENTES & Javiera SELMAN, 2015. "A multidimensional employment quality index for Brazil, 2002–11," International Labour Review, International Labour Organization, vol. 154(2), pages 195-226, June.
    11. Silvia Terzi & Luca Moroni, 2022. "Local Concordance and Some Applications," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 161(2), pages 457-470, June.
    12. Getachew Yirga Belete, 2022. "Children’s multidimensional deprivation, monetary poverty and undernutrition in Ethiopia," Review of Economics of the Household, Springer, vol. 20(4), pages 1087-1118, December.
    13. Abre-Rehmat Qurat-ul-Ann & Sana Mahfooz, 2022. "Effect of Household Cooking Energy Poverty on Child Respiratory Health in Pakistan," iRASD Journal of Economics, International Research Alliance for Sustainable Development (iRASD), vol. 4(2), pages 352-366, June.
    14. Renuka Mahadevan & Maneka Jayasinghe, 2020. "Examining Multidimensional Poverty in Sri Lanka: Transitioning Through Post War Conflict," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 149(1), pages 15-39, May.
    15. Adepoju, A., 2018. "determinants of multidimensional poverty transitions among rural households in Nigeria," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276027, International Association of Agricultural Economists.
    16. Shinkai, Naoko, 2016. "Examination of Poverty in Northern Mozambique: A Comparison of Social and Economic Dimensions," Working Papers 133, JICA Research Institute.
    17. Marcelino, Gésia Coutinho & Silva da Cunha, Marina, 2024. "Multidimensional poverty in Brazil: evidences for rural and urban areas," Revista de Economia e Sociologia Rural (RESR), Sociedade Brasileira de Economia e Sociologia Rural, vol. 62(1), January.
    18. Bach, Maria & Morgan, Mary S., 2020. "Measuring difference? The United Nations’ shift from progress to poverty," LSE Research Online Documents on Economics 101769, London School of Economics and Political Science, LSE Library.
    19. Ida D’Attoma & Mariagiulia Matteucci, 2024. "Multidimensional poverty: an analysis of definitions, measurement tools, applications and their evolution over time through a systematic review of the literature up to 2019," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(4), pages 3171-3213, August.
    20. Omar, Md Abdullah & Hasanujzaman, Muhammad, 2021. "Multidimensional energy poverty in Bangladesh and its effect on health and education: A multilevel analysis based on household survey data," Energy Policy, Elsevier, vol. 158(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:11:y:2024:i:1:d:10.1057_s41599-024-02708-z. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.