MICROCAPITAL.ORG STORY: Microfinance Organisations In The Kashmir Valley Should Increase Their Focus On The Urban Poor – Observations From Jammu And Kashmir

In a recent report available the Microfinance Focus portal [1] entitled ‘Rising urban poverty in Jammu and Kashmir calls for focus on microfinance’ [2] by the journalist Bilal Hussain [3] in Srinagar, Mr Hussain calls for microfinance participants to increase their focus on the urban poor in the Kashmir Valley. Whilst a good number of MFIs and related organisations focus on alleviating poverty in rural areas of the Kashmir valley, Mr Hussain is of the view that there are significant numbers of urban poor who would benefit greatly from access to microcredit.

Mr Hussain refers to a survey of Jammu and Kashmir by the Directorate of Economics and Statistics (DES) [4] [5] which state that over 2.21 million people live below the poverty line in the states of Jammu and Kashmir. In the district of Srinagar alone, there are over 73,363 people who live below the poverty line according to recent estimates by the DES. A large majority of unskilled people live in urban areas on low and unsustainable incomes and, according to the report, would benefit from opportunities to augment their income through microfinance facilities.  

Mr Hussain further adds that policitians have diverted funds for development to rural areas in an attempt to gain political leverage from the rural populations, ‘sidelining’ the poor communties in urban areas as a result. The problem has become more acute as a result of the financial crisis. Unskilled urban workers often seek employment in the service industry, an industry which has suffered during the global financial meltdown. Some of the unemployed try to find alternative opportunities in the primary sectors such as agriculture, although they are often restricted from doing so due to a limited or lack of access to land. In addition, rural migrants continue to arrive in the cities from the countryside, a factor which exacerbates the problem of urban poverty. Mr Hussain also raises the gender aspect of the poverty issue in the Kashmir valley. According to him, poor women need opportunities to facilitate their participation in the urban economy. Their access to shelter, transport facilities and standards of living can be significantly improved.   Microcapital.Org has previously published stories on the role of microfinance in rural areas in many parts of the world and the gender aspect of the provision of microcredit. Links to these stories are set out in the Bibliography section below.  

By Chinq Yee Chong, Research Assistant  

Bibliography  

[1] Microfinance Focus portal: www.microfinancefocus.com/  

[2] Article on ‘Rising urban poverty in Jammu and Kashmir calls for focus on microfinance’: http://www.microfinancefocus.com/news/?p=485  

[3] Email address of journalist Mr Bilal Hussain: bilal4u2@gmail.com   

[4] Directorate of Economics and Statistics, India: http://mahades.maharashtra.gov.in/  

[5] The Official Website of the Jammu and Kashmir Government, India: http://jammukashmir.nic.in/  

[6] MICROCAPITAL STORY: Grameen Foundation and Women’s World Banking Express Concern Over the Potential Crisis in Punjab, Pakistan’s Microfinance Sector  

[7] MICROCAPITAL STORY: Government of Ghana to Investigate Disbursement of Microfinance Loans to Rural Women in the Country  

[8] MICROCAPITAL STORY: Small Business And Rural Finance In China – Low Leverage Ratios  

[9] MICROCAPITAL STORY: The Role Of Rural Microfinance In Improving Food Security – Experiences of the Agricultural Credit Corporation in Jordan  

[10] MICROCAPITAL STORY: Indonesian Government to Invest USD 107.1 million to Expand the Reach of Microfinance in Rural Areas  

[11] MICROCAPITAL STORY: Study Reveals Ghanaian Women Still Face Challenges Accessing Microfinance  

[12] MICROCAPITAL STORY: A Brief Survey on the Impact of Microfinance on Women Part 3 of a 3-Part Series: Focusing on Women Clients for Financial Sustainability  

[13] MICROCAPITAL STORY: A Brief Survey on the Impact of Microfinance on Women Part 2 of a 3-Part Series: Evidence of Women’s Empowerment  

[14] MICROCAPITAL STORY: A Brief Survey on the Impact of Microfinance on Women Part 1 of a 3-Part Series: Targeting Women and its Effect on the Wellbeing of Poor Families

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