Hand In Hand: Case Study: Hand In Hand

968 Words 4 Pages
State and society :- Case answer Submission
‘Hand in Hand’
Date:- 1st November, 2015
Submitted by:- Sanjula Ahuja

Q 1:- What are the institutional voids/deficiencies highlighted by the case?
The voids mentioned in the case which Hih was facing and which were hampering the implementation of the 5 programs and all the development services are:-
Poor infrastructure:- India’s poor infrastructure in rural areas and lack of integrated information systems to connect 12 districts was making it difficult to determine capital requirements or branch performance. The unavailability of strong intuitions in rural areas for development and connectivity hampers the functioning and working of many such organizations.
Public systems:- the public schools and
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Organization depends upon the donations and government can’t help the organization on that. Government lacks in regulating its rules and regulation on the society. Government should become effective enough so that such organization need not to come up to eradicate child labor.
Q 3:- Given the suggested advantages of commercialization - evaluate HiH’s goal of making all five of its main programs sustainable by 2010. Given the organization’s development mission, is an appropriate goal?-

HiH was among the chief critics of the commercialization approach, preferring poverty lending targeted exclusively at reaching the poorest of the poor. HiH believed the interests of the poor could be compromised if MFIs placed too much emphasis on profit motives or operational sustainability metrics.
Benefits associated with commercialization, the rate at which Indian MFIs were transitioning to this model was slower than in Latin America and other Asian nations such as Bangladesh and Indonesia.
Why do we buy known products it’s all because of the trust? The same thing goes with it. Their development mission is to reach more and more people and provide them huge
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Instead of microfinance why not creating jobs. For example a micro financier lens money to a group of women to buy sewing machines and set her up own small business, on the other side a traditional financer lends some amount to an entrepreneur and helps her to set her up her own garment manufacturing business with suppose 500 employees. In first case women must make enough money to pay off her interests and in second case the woman uses modern manufacturing processes and organizational techniques to enrich not only its owners, but also its workers.
Requirement of collateral while filing the loan documents. All these problems were addressed with the coming of MFIs and hence it became an essential tool for providing capital access to the poor. The question whether this MFIs were feasible for HiH is a mind bender because it is the only program that would give funds to the organisation and make it sustainable or else HiH would be only considered as other NGO. The Micro finance is the only way that would empower the people providing the source of employment and ultimately eradicating poverty and child

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