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Fianance Assistant

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Submitted By wazery1
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The biggest problem faced by any SAARC country is poverty. Poverty has a wide spectrum of causes which vary from country to country. Issues like Naxalism in India, Civil wars in Sri Lanka, Terrorism in Pakistan have a direct link to poverty. Illiteracy and ignorance have resulted in an unbridled rise in population in many under developed nations. This is one of the alarming problems faced by the world considering its impact on global food and commodity market. The impact is so severe that, India which once was an exporter of food grains became an importer. The literacy rate of a country is dependent on socio-economic status of the people. This problem can be viewed from the other side in a different way. Though the land under cultivation in India is more than that of China, Indian agriculture can't feed its own people, while the Chinese could feed themselves. 60% people in India rely on agriculture directly, but its contribution towards GDP is just around 20% to 30% .Lack of implementation of modern technology in the field of agriculture, fragmented land holdings, low irrigation potential, unviable returns etc can be shown as the causes here. Considering the GDP as the bench mark for development of a country, India registered a growth rate around 9% only after globalization in 1991. This clearly indicates that market based economy with minimum regulations encourage entrepreneurship. Survival of small scale and micro level industries is one of the key aspects in the success of a country as majority of the population lives in rural areas (at least in SAARC countries). Since the current GDP growth of India doesn’t reflect much in rural sector, microfinance has a very huge role to play. Mr Muhammad Yunus of Bangladesh needs to be appreciated for his brilliant idea of Grameen Bank and the way he changed the fundamentals of microfinance with SHGs (Self Help Groups). Because of his foresight in woman’s role in developing a society, rural sector of Bangladesh has...

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