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Technical Note

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Micro-Credit as a Tool of Community Organization: A Study of Soan Valley Development Programme

Rasul Baksh Rais


INDUSTRY : Institutional Development

AREA : Devolution & Governance

ORGANIZATION : Soan Valley Development Programme

LENGTH : 16

LUMS No : 20-006-2006-2

PUBLICATION YEAR : 2006

DESCRIPTION

KEYWORDS:

Micro-Credit,Devolution,Governance,Community Organization,Soan Valley Development Programme


DESCRIPTION:

Soan Valley is a relatively small sub-region of the Khosab district in North-Central Punjab. Productive agricultural land is limited and landholdings compared to the rest of the Punjab are very small. There is hardly any industry or government network to upgrade the limited agricultural resources of the Soan Valley. Poor land resources have driven many young men to seek jobs in the armed forces of Pakistan. The Soan Valley Development Project (SVDP) is engaged in community work for sustainable development in the region. It feels that a serious problem in the region is water shortage. The area is entirely rain fed and most of the crops depend on seasonal rains, or on underground water that is available in limited quantity within the valley. It is generally feared by experts that water resources are fast depleting and may not sustain the present agricultural practices. If measures such as preventing over-use of subsoil water resources, conserving water through dams, building check dams, and efficient use of water and substitution of crops that use lesser amounts of water are not taken, the larger part of the valley may become barren. Before taking up the challenge of sustainable development, SVDP launched a micro-credit scheme to help small local businesses and farmers to sustain themselves. Although SVDP continues to work in this area it seems to be diversifying its interest into sustainable development because of the specific nature of land and water resources in the valley. SVDP does not believe that micro-credit schemes are the answer to sustainable development, poverty alleviation or enhancing employment opportunities for the region. But it doesn't want to end its micro-credit operations and move altogether into its new area of interest because of the social utility of micro-credit in organizing community networks. This paper gives an account of SVDP and its micro-credit operations and analyzes what it is likely to gain by shifting its strategy. 


LEARNING OBJECTIVES:


SUBJECTS COVERED:

Governance