AN IMPERATIVE NEED FOR A NEW SOCIAL ORDER IN MICROFINANCE COMMUNITY - TOWARDS USHERING IN A RESILIENT ECO-SYSTEM IN THE BATTLE AGAINST CORONA PANDEMIC
DOI:
https://doi.org/10.29121/granthaalayah.v8.i8.2020.986Keywords:
COVID-19 Pandemic, Health Vulnerability, Economic Deprivation, Liquidity Crunch, Preventive Governance, Social Capital, Participatory ApproachAbstract [English]
The battle against corona does not confine to only economic resurgence by supplying microcredit to the poor clients in both demand and supply sides of microfinance sector but how to protect them from the offense of the corona in the health perspectives. In other words, imperatively it is warranted that the survival of human beings in the pandemic in the Microfinance sector merits attention on priority in the revival package. It is therefore surmised that in the process of ushering in a new social order with a resilient ecology in the Microfinance sector, there is a dilemma in awarding priority either for economic revival through the flow of microcredit for releasing financial stress or human survival with the resilient physical capability in the process of recovery from the pandemic. The study, based on secondary data, concludes that Microfinance actors need to consider that economic revival bundle should not confine with a fresh dose of microcredit alone and recovery of it collectively or individually in Microfinance sector without synchronizing a social-oriented bundle in the micro-financial package towards nurturing on health care awareness and for the obedience of obligatory preventive measures namely social distancing, Face mask, washing hands by the poor clients in the last mile. Any assumption on this issue is dangerous. The latter that guarantees the basic survival of the customers from the Corona pandemic, should precede the former one or get integrated simultaneously with it to generate a resilient ecosystem from interdisciplinary perspectives. Otherwise, another Microfinance crisis is forthcoming.
Downloads
References
Abed, S., Diallo, A., Dubitsky, R., & Karmaker, T. (July 2017). Financial Inclusion and Resilience: How BRAC’s Microfinance Program Recovered from the West Africa Ebola Crisis. Liberia; Sierra Leone: BRAC.
Alshebami, A. S. (2017). The Role of Microfinance in Mitigating Poverty and Unemployment in Yemen. India, Maharashtra, Nanded: SRTM University (Ph.D. thesis).
Alshebami, A. S., Morsi, S. A., Raza, M., & Aziz, A. (2020). Exploring the Potential of Microinsurance for Challenging the Vulnerabilities In Poverty Sector of Yemen: (An Empirical Study From Demand-Side Perspectives). International Journal of Disaster Recovery and Business Continuity, 1288-1302, Vol. 11, No. 1, (2020).
Alshebami, A. S., & Khandare, D. M. (2014). Microfinance in Yemen “Challenges and Opportunities “. International Journal in Management and Social Science, 2(12). Retrieved from http://www.ijmr.net.in
Alshebami, A. S., & Khandare, D. M. (2015a). Islamic Microfinance Industry in Yemen “Challenges and Opportunities.” International Journal of Social Work, 2(2). https://doi.org/10.5296/URL
Adebimpe Esther Ogunleye (2020) COVID-19 Comment in Threatens the Microfinance Sector and the Livelihoods of Those We Serve: Building a Coalition for Collective Action Fin Dev Gateway blog A program of CGAP World Bankhttps://www.findevgateway.org/blog/2020/05/covid-19-threatens-microfinance-sector-and-livelihoods-those-we-servebuilding?utm_source=ENGLISH+May_27_2020&utm_campaign=English+28+April+2020+gateway+exchange&utm_medium=email.
Amartya Sen. (1987). Self-interest and rational behavior ethics and economics at Oxford University presser 1987. p15.
Bach M, Jordan S, Hartung S, Santos-Hövener C, Wright MT (2017). Participatory epidemiology: the contribution of participatory research to epidemiology Med Central Journal National Institute of Health's National library of medicine https://www.ncbi.nlm.nih.gov/pubmed/28203262.
Barometer, M. (2019 -10 edition). Microfinance Barometer,10 YEARS ALREADY!, A LOOK BACK AT THE TRENDS IN MICROFINANCE.
Beinker, N., & Shorey, B. (2020, 12 May). CGAP. Retrieved from Financial Inclusion and Resilience for FDPs in the Time of COVID-19, Coronavirus (COVID-19): Financial Services in the Global Response: https://www.cgap.org/blog/financial-inclusion-and-resilience-fdps-time-covid-19.
Bull, G., & Ogden, T. (2020, May 25). COVID-19: How Does Microfinance Weather the Coming Storm? Retrieved from CGAP: https://www.cgap.org/blog/covid-19-how-does-microfinance-weather-coming-storm.
CNBCTV18. (2020, April 15). Retrieved from COVID-19 impact: ICRA sees huge strain on liquidity, the asset quality of microfinance institutions: https://www.cnbctv18.com/economy/covid-19-impact-icra-sees-huge-strain-on-liquidity-asset-quality-of-microfinance-institutions-5694121.htm.
Deshpande, R., Kibe, J., & Kaaria, L. (2020, April 15). CGAP. Retrieved from COVID-19 Exposes Risks and Opportunities in Kenya's Gig Economy,Coronavirus (COVID-19): Financial Services in the Global Response: https://www.cgap.org/blog/covid-19-exposes-risks-and-opportunities-kenyas-gig-economy.
El-Zoghbi, M., Chehade, N., McConaghy, P., & Soursourian, M. (No. 12, April 2017). The Role of Financial Services in Humanitarian Crises. CGAP and Its partners. DOI: https://doi.org/10.1596/26511
Goldberg, M., & Varada, S. (December 2008, NO.8). Microfinance and Disasters Preparing for the Worst. The World Bank, Department of International Development (DFID).
International, A. D. (2016). DISASTER-RESILIENT MICROFINANCE: LEARNING FROM COMMUNITIES AFFECTED BY TYPHOON HAIYAN. Asian Development Bank and Vision Fund International.
K.Mangowal, C. (2020). IMPACT OF COVID-19 TO MFIs IN INDONESIA: A RAPID ASSESSMENT. Indonesia: RISE (Research and Training).
Medine, D. (2020, April 09). CGAP. Retrieved from Financial Scams Rise as Coronavirus Hits Developing Countries, Coronavirus (COVID-19): Financial Services in the Global Response: 2020.
Roy, S. (2020, March 21). BusinessLine. Retrieved from Money and Banking: Covid-19 is no threat to the microfinance industry; sees no impact on loan disbursement, collection: https://www.thehindubusinessline.com/money-and-banking/covid-19-no-threat-to-microfinance-industry/article31120068.ece.
Tarazi, M. (2020, April 12). What’s a Donor to Do? The Financial Impact of COVID-19 on the Poor, CGAP Leadership Essay Series. Retrieved from Consultative Group to Assist the Poor (CGAP): https://www.cgap.org/blog/whats-donor-do-financial-impact-coronavirus-poor.
ECDC (2020). European Centre for Disease Prevention and Control (ECDC) Second updatehttps://www.ecdc.europa.eu/sites/default/files/documents/ECDC%20International%20Relations%20Policy%202020-FINAL_1.pdf.
FinDev Blog (2020) COVID-19 Threatens the Microfinance Sector and the Livelihoods of Those We Serve: Building a Coalition for Collective Action. FinDev Weekly Update A program of Consultative Group for Assisting the Poor (CGAP) -World Bank | 14-20 May 2020 Fin Dev Gatewayhttps://www.findevgateway.org/guide/2020/05/covid-19-findev-weekly-update-14-20-may-2020.
Frank Fisher (2012) Participatory Governance: From Theory To Practice, Oxford Handbook online scholarly research reviewshttps://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780199560530.001.0001/oxfordhb-9780199560530-e-32.
Elsbet Lodenstein, Marjolein Dieleman, Barend Gerretsen, Jacqueline E W Broerse(2016). Health provider responsiveness to social accountability initiatives in low- and middle-income countries: a realist review Health Policy and Planning, Volume 32, Issue 1, February 2017, pp 125–40, https://doi.org/10.1093/heapol/czw089 DOI: https://doi.org/10.1093/heapol/czw089
JyotiBhola, VandanaRevathiVenkateswaran, and Monika Koul(2020).Corona Epidemic in the Indian context: Predictive Mathematical Modelling -Research Group for Theoretical Models in Eco-evolutionary dynamics, Max Planck Institute for Evolutionary Biology, 24306, Germany https://www.medrxiv.org/content/10.1101/2020.04.03.20047175v1.full.pdf.
Krishnan Reddy. G (2020) an effective lockdown India’s containment strategy has been successful The Hindu Newspaper dated 17th May 2020.
KiranMazumdar Shaw (2020). How to make India ready for future corona virus-like crises-Economic Times 21st, March, https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/armed-with-solid-bio-data/articleshow/74737523.cms?from=mdr.
Ka Yin Leung, Frank Ball, David Sirl, and Tom Britton (2018)."Individual preventive social distancing during an epidemic may have negative population-level outcomes”, Journal of Royal Society Interfacehttps://doi.org/10.1098/rsif.2018.0296. DOI: https://doi.org/10.1098/rsif.2018.0296
Kiesha et al., (2020). The Lancet Public Health 'The effect of control to reduce social mixing on the outcome of the COVID-19 epidemic in Wuhan, China; A modeling study https://www.ncbi.nlm.nih.gov/pubmed/322206555.
iK.R., (2012). Three decades of ICSSR-ICMR Committee Report and the Re-assertion of Social Determinants of Health. Indian Journal of Medical Research, 2012 Oct; 136(4): 540–543. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3516019/.
The National academies (2007). Workshop Summary on Ethical and Legal Considerations in Mitigating Pandemic Disease (Institute of Medicine (US) Forum on Microbial Threats. Washington (DC): https://www.ncbi.nlm.nih.gov/books/NBK54167/.
Oscar A. Martínez-Martínez & Anidelys Rodríguez-Brito (2020). Vulnerability in Health and Social Capital: A Qualitative Analysis by Levels of Marginalization in Mexico International Journal for Equity in Health.https://equityhealthj.biomedcentral.com/articles/10.1186/s12939-020-1138-4. DOI: https://doi.org/10.1186/s12939-020-1138-4
Thinamalar (2020) National Tamil daily newspaper Chennai dated 30th May 2020https://www.dinamalar.com/news_detail.asp?id=2548404.
Rene Loewenson (2000). Participation and accountability in health systems: The missing factor inequity? Research Gate.https://www.researchgate.net/publication/237717601_participation_and_accountability_in_health_systems_the_missing_factor_in_equity.
Rajesh Singh and R. Adhikari (2020). Age-structured impact of social distancing on the COVID-19 epidemic in India, Research Gatehttps://www.researchgate.net/publication/340209224_agestructured_impact_of_social_distancing_on_the_COVID19_epidemic_in_India_Updates_at_httpsgithubcomrajeshrinetpyross.
Rengarajan.V. (2013). Incompatibility of value system and human behavior at client level Microfinance Principles and Approaches: Ten Commandments for responsible financing to the poor, Notion Press, India, p 32.
Rengarajan (2013p49-50) MF crisis in countries in Asia and Africa Microfinance Principles and Approaches: Ten Commandments for responsible financing to the poor, Notion Press, India, pp 48-50.
Rengarajan.V, (2020) Comment in Threatens the Microfinance Sector and the Livelihoods of Those We Serve: Building a Coalition for Collective Action Fin Dev Gateway blog A program of CGAP World Bank https://www.findevgateway.org/blog/2020/05/covid-19-threatens-microfinance-sector-and-livelihoods-those-we-serve-building?utm_source=ENGLISH+May_27_2020&utm_campaign=English+28+April+2020+gateway+exchange&utm_medium=email.
Somayyeh et al 2017 SomayyehKhazaeian, NourossadatKariman, Abbas Ebadi, and MaliheNasiri The impact of social capital and social support on the health of female-headed households: a systematic review Electron Physician. 2017 Dec; 9(12): 6027–6034.Published online 2017 Dec 25. DOI: 10.19082/6027https://europepmc.org/article/med/29560156.
World Health Organisation (2017). Integrating social science interventions in an epidemic, pandemic, and health emergency response report of an Informal Consultationhttps://apps.who.int/iris/bitstream/handle/10665/259933/WHO-WHE-IHM-2018.1-eng.pdf.
WHO (2014). Child Health and Development: Information, Education, and Communication http://www.emro.who.int/child-health/community-information/information/All-Pages.html.
World Bank (2020). "WASH (Water, Sanitation & Hygiene) and COVID-19” Brief -Context.https://www.worldbank.org/en/topic/water/brief/wash-water-sanitation-hygiene-and-covid-19.
World bank (Brief/ Ap,.16 2020) Poverty and Distributional Impacts of COVID-19: Potential Channels of Impact and Mitigating Policies
Published
How to Cite
Issue
Section
License
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.
