Social Inclusion in Microfinance Cooperative Societies

Table of Contents

1. INTRODUCTION

1.1 BACKGROUND

1.2 STATEMENT OF PROBLEM

1.3. OBJECTIVES

1.4 RATIONALE OF THE STUDY

1.5 LIMITATIONS OF THE STUDY

1.6 CHAPTER PLAN

2. REVIEW OF LITERATURE

2.1 BACKGROUND

2.2 MICROFINANCE UNDER COOPERATIVES

2.2.1 COOPERATIVES

2.2.2 MICROFINANCE

2.2.3 SMALL FARMERS’ COOPERATIVES

2.3 SOCIAL INCLUSION AND DALITS

2.4 CONCLUSION

3. RESEARCH METHODOLOGY

3.1 BACKGROUND

3.2. SAMPLE DESIGN

3.3 DATA COLLECTION

3.4 DATA PROCESSING AND ANALYSIS

4. CONCEPT AND EVOLUTION OF COOPERATIVE, MICROFINANCE AND SOCIAL INCLUSION

4.1 COOPERATIVES

4.1.1 MICROFINANCE COOPERATIVE DEVELOPMENT IN NEPAL

4.1.2 DEMAND FOR AND SUPPLY OF MICROFINANCE

4.1.3 PROGRESS UPDATE OF COOPERATIVE

4.1.4 STRUCTURE OF THE COOPERATIVE MOVEMENT

4.2 MICROFINANCE

4.2.1 KEY PRINCIPLES OF MICROFINANCE

4.2.2 PATTERN OF MICROFINANCE INSTITUTIONS

4.2.3 MODEL under the legal framework

4.2.4 DICHOTOMY IN MICROFINANCE INSTITUTIONS-MINIMALIST OR INTEGRATED

4.2.5 HISTORICAL OVERVIEW OF MICROFINANCE PROGRAMME

4.2.6 SCALE OF MICROFINANCE SERVICES

4.3 CONCEPT AND HISTORICAL CONTEXT OF SOCIAL INCLUSION

4.3.1 CONCEPT OF SOCIAL INCLUSION

4.3.2 THREE MODELS OF SOCIAL INCLUSION

4.3.3 THEORIES OF DIVERSITY

4.3.4 EXCLUSION AND DALITS IN THE CONTEXT OF NEPAL

4.3.5 INCLUSION OF DALITS IN GOVERNANCE

4.3.6 ECONOMIC MARGINALIZATION OF DALITS

4.3.7 ACADEMIC STATUS OF DALITS

4.3.8 POLICY ANALYSIS

4.4 BUILDING INCLUSIVE MICROFINANCE-A GLOBAL CHAMPAIGN

5. SITUATION OF INCLUSION IN MFC

5.1 SOCIAL PERFORMANCE MEASUREMENT

5.1.1 THE IMPORTANCE OF SPM FOR NEPAL

5.1.2 SOCIAL PERFORMANCE ASSESSMENT PROCESS

5.1.3 SOCIAL PERFORMANCE ASSESSMENT TOOLS

5.1.4 SOCIAL RATING

5.2 SOCIAL INCLUSION FACTOR AS THE SOCIAL PERFORMANCE MEASUREMENT

5.2.1 GOVERNANCE

5.2.2 MANAGEMENT

5.3 VARIABLES INFLUENCING SOCIAL INCLUSION FACTOR IN MFC

5.3.1 ORGANIZATIONAL LEVEL

5.3.2 INDIVIDUAL LEVEL

5.4 ECONOMIC IMPACT IN MEMBERS/CLIENTS

5.5 DIVERSITY AND SUSTAINABILITY

6. PROBLEMS AND PROSPECTS FOR INCLUSIVENESS IN MICROFINANCING

6.1 BACKGROUND

6.2 BARRIERS OF INCLUSIVENESS IN MFCS

6.2.1 PHYSICAL BARRIERS

6.2.2 ECONOMIC BARRIERS

6.2.3. SOCIO-CULTURAL BARRIERS

7. MAJOR FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

7.1 MAJOR FINDINGS

7.2 CONCLUSION

7.3 RECOMMENDATIONS

7.3.1 INSTITUTIONAL POLICY REFORM

7.3.2 REVIEW/REFORM ON PUBLIC POLICY AND PLAN

7.3.3 STAKEHOLDERS' CONCERN

7.3.4 CIVIL SOCIETY PERSPECTIVE

7.3.5 FURTHER STUDY

Research Objectives and Thematic Focus

The primary research objective is to conduct a survey among Microfinance Cooperatives (Saving and Credit Cooperatives and Small Farmers’ Cooperatives) to evaluate their inclusiveness, specifically regarding Dalit access and representation, in order to identify barriers and recommend future strategies for inclusive development.

• Analysis of social inclusion and exclusion dynamics within rural microfinance in Nepal.
• Assessment of Dalit participation in cooperative governance and management.
• Examination of barriers to social inclusion, including physical, economic, and socio-cultural factors.
• Evaluation of the impact of inclusive microfinance practices on financial sustainability.
• Development of recommendations for institutional policy reform to improve social inclusion.

Excerpt from the Book

Summary of Chapters

INTRODUCTION: Introduces the research background, statement of the problem, specific objectives, and the scope of the study regarding social inclusion in microfinance.

REVIEW OF LITERATURE: Examines previous studies on microfinance, cooperatives, and social inclusion to identify research gaps, particularly regarding the Dalit community.

RESEARCH METHODOLOGY: Describes the exploratory and descriptive research design, sampling techniques, and data collection tools utilized during the field work in 2006/07.

CONCEPT AND EVOLUTION OF COOPERATIVE, MICROFINANCE AND SOCIAL INCLUSION: Provides theoretical and historical context for cooperatives and microfinance, analyzing the specific context of Dalit exclusion in Nepal.

SITUATION OF INCLUSION IN MFC: Presents empirical findings on social performance, calculating the Social Inclusion Factor and analyzing governance and management practices.

PROBLEMS AND PROSPECTS FOR INCLUSIVENESS IN MICROFINANCING: Analyzes the physical, economic, and socio-cultural barriers hindering the inclusion of Dalits in microfinance cooperatives.

MAJOR FINDINGS, CONCLUSIONS AND RECOMMENDATIONS: Synthesizes the research results and offers recommendations for policy reform and future research to enhance social inclusion.

Keywords

Microfinance, Cooperatives, Social Inclusion, Dalits, Poverty Alleviation, Financial Sustainability, Governance, Nepal, Economic Marginalization, Capability Deprivation, Credit Methodology, Rural Development, Caste System, Social Performance Measurement, Empowerment.

Frequently Asked Questions

What is the core subject of this dissertation?

The dissertation focuses on the dynamics of social inclusion and exclusion within microfinance cooperatives in Nepal, specifically investigating the access and participation of the most deprived group, the Dalits.

What are the primary themes explored in this work?

The primary themes include cooperative governance, microfinance outreach models, caste-based economic marginalization, the development of the Social Inclusion Factor (SIF), and the link between inclusiveness and organizational sustainability.

What is the primary research goal?

The goal is to assess and evaluate the inclusiveness of primary microfinance cooperatives toward Dalits and to provide evidence-based recommendations for policy improvements to achieve greater social and financial equity.

Which scientific methodology is employed?

The study uses an exploratory and descriptive research design, utilizing a multi-stage stratified sampling technique for selecting cooperatives and a snowball sampling approach for interviewing individual clients, supported by quantitative data analysis and qualitative focus group discussions.

What is covered in the main body of the work?

The work covers the evolution of the cooperative movement, a critical review of existing literature, the development of the Social Inclusion Factor (SIF) as a measurement tool, an empirical analysis of barriers to inclusion, and comprehensive policy recommendations.

How would you characterize this research using keywords?

The research is best characterized by keywords such as Microfinance, Social Inclusion, Dalits, Cooperatives, Financial Sustainability, and Caste Hierarchy.

How does the author define the "Social Inclusion Factor" (SIF)?

The SIF is an original measurement tool established in this research to quantify the magnitude of inclusiveness based on weighted average involvement across governance (committees), management (staffing), and outreach (client services), going beyond simple headcount measures.

What is the central finding regarding sustainability?

The research finds that the widely held belief that social inclusion hinders financial sustainability is a myth; instead, higher inclusiveness correlates with better financial performance, suggesting that diversity can actually enhance organizational productivity.

What specific barriers for Dalits are identified?

The study identifies physical barriers (remoteness), economic barriers (collateral requirements, "saving-first" policies), and socio-cultural barriers (caste discrimination and historical exclusion from development processes).

What is the proposed model for future microfinance?

The author recommends the promotion of a "community-owned microfinance institution" model, which serves as an improvement on the Grameen and Solidarity group models by focusing specifically on the empowerment of the most deprived groups.