Author: Supriti
Place: Bangalore
Publisher: Ramanathan Foundation
Year: 2002
Volume: 1
Pages: 125
Subject: Urbanisation
Sub-Subject: Urban Poverty/ Urban Development
Keyword: Urban Poverty, Livelihoods, Libralization
Classification: 307.1416
Shelf: C1R3
Accession No: B168
Contents: Contents: Foreword; Executive summary; Section 1. The urban contex: Points to ponder; 1.1 Urbanisation : a common meaning; 1.2 Urban India; 1.3 The urban poor and slums; Section 2. Poverty alleviation: an Indian perspective; 2.1 Urban poverty alleviation initiatives; 2.2 A critique of urban poverty alleviation initiatives; 2.3 SJSRY : a state study in Karnataka; Section 3. Credit: The current scenario; 3.1 Urban informal credit markets; 3.2 Volume of credit in informal markets; 3.3 Microcredit initiatives led by NGOs; Section 4. The way forward: Credit as a catalyst; 4.1 Credit: areas for improvement; 4.2 The next step: an Apex Bank for urban development; Appendix; Bibliography
Abstract: This report focuses on urban concerns, especially town planning to address basic needs such as housing, healthcare, drinking water, sanitation, and the challenges posed by a growing population, including those in slums. Effective town planning is vital for economic growth, job creation, affordable transport, and a healthy social and ecological environment. The report highlights government-led urban poverty alleviation initiatives, particularly those aimed at providing subsidized credit to support the livelihoods of the poor. However, these programs often fail due to inflexible designs and bureaucratic inefficiencies. The report also discusses the impact of liberalization on the poor, emphasizing that the poor have always lived in a liberalized environment, where they face high interest rates in informal credit markets. In cities like Bangalore, poor people often pay interest rates of 5-10% per day, which prevents them from building adequate capital. The solution, the report suggests, lies in self-help affinity groups that manage their common funds effectively. These groups build trust, which allows them to access formal credit from banks. This approach has proven to be the most successful system for empowering the poor, offering an alternative to exploitative credit systems and fostering long-term financial sustainability.