10

Sa-Dhan Patrika

Volume 7,

Issue 2, December 2006

The success seal to organizational

governance in providing financial services

to the poor

Mr. V.Satyamurti

ABSTRACT: This article aims at providing a comprehensive insight in assessing the

grey areas in the provision financial services to the poor and implementation of

systems and structures, which aim at facilitating the objective of an organization.

AIAMED has developed the Board Self-Assessment Tool aimed at uncovering

the weaknesses of the Board collectively as well as individually. Once, the self-

assessment tools have been implemented, it aims at recognizing the kind of

governance that would yield the maximum benefits to the poor. It also provided

the experiences of AIAMED in using the tool for capacity building of boards and

executive committee.

Introduction

disaster by promoting

social protection finances.

1.

This article has two parts, the first

This strategy among other

At the start of the

reviewing  the  concept  of

things needs inclusive

new millennium,

governance in organizations

financial services for the

poverty still

involved in providing /facilitating

poor.

What

are

"inclusive

financial services to the poor and

remains as a

●

financial services" to the

the second reviewing the particular

global problem of

poor?

experience  and  learning  of

huge proportions

enhancing

/facilitating

3.

What are inclusive financial services

governance structures and systems

to the poor?

with specific tools.

An inclusive financial sector offers

2.

Organizations involved in providing

majority of the population a sustainable

financial services to the poor are

access to ranges of financial services

laying new grounds in tackling

suited to their needs. This is evident in the

poverty, vulnerability and providing

fact that households and micro-

social security. Poverty amidst

enterprises now have access to a full

plenty in the world is the biggest

range of financial services like savings,

challenge .At the start of the new

short and long-term credit, mortgages,

millennium, poverty still remains as

insurance, pensions, remittances and

a  global  problem  of  huge

leasing for production as well as for

proportions .Of the world's six billion

prosperity. The cost effective way is the

people, 2.8 billion live with less than

only effective route to assure access to

2 USD a day and 1.2 billion people

serve over time. Acquiring these financial

live on 1 USD a day; majority of

services for the poor should increasingly

these people live in India .To meet

be seen as an important and integral

these challenges India needs a

component of the emerging assets class

three pronged development

of the formal financial sector and across

strategy.

institutional models.

Promoting opportunities in

●

expanding the economic

4.

Where are we now?

avenues by stimulating

growth, thereby resulting in

Even though we are far from having an

more livelihoods and assets.

inclusive financial services for the poor

Facilitating

and

with all it's components, the sector has

●

strengthening

the

come a long way in the last decade. It is

participation of the poor

facilitating micro-finance (to face the

and the marginalized in the

present in the area of poverty) and

development process and

facilitating micro-insurance and micro-

facilitating wider choice.

pension (to face the future, in the area

Enhancing security and

of vulnerability and social security).

●

reducing the vulnerability

Beginning of synthesis in combing the

of the poor towards ill

promotional and protectional aspects of

health, economic shocks,

financial services is slowly visible because

crop failure and natural

of the emerging opportunities. For these