The Role of Grameen Bikas Bank (Paschimanchal) iIn Poverty Reduction A Case Study of Branch Office, Gorkha

Abstract

The term poverty has become a buzzword for the sociologists, economists, planners and the government as well but it can't be limited by defining the term with in a specific definition as it covers every aspect of human life. However, literally the term can be defined as "the state or fact of being in want" i.e. people are poor if they lack enough income and resources to be adequate by the accepted living standards of their community. It has been estimated that only the annual per capita income on Rs 4404/-can meet the expenses on daily minimum average of 2124 calorie for food and other non-food requirements. The recent study shows that around 38% of the total population is in absolute poverty as their annual income level is for more low. However the figure shows that there is a slide decrease on the poverty during the last decade, which can be cited due to the annual increase in GDP, agricultural growth and remittances as well. The overriding objective of the Tenth plan is to alleviate poverty by addressing the income based poverty, human poverty and social inclusion appropriately. A significant percent of people, both men and women, poor and rich and urban and rural society feels that economic liberalization has not been able to reduce poverty in Nepal. The government is failed to accelerate the targeted programmes due to the rising inflation, lack of cheap credit, non affordability of agricultural inputs, unorganized and small market rampant corruption, weak governance and total failure of public work programmes to create short term policy and generate long-term sustainable and social benefit for targeted communities. For the purpose of alleviating poverty Grameen Banking system has brought into effect, which is basically to offer a comprehensive package consisting of loan facility, literacy programmes, general health and sanitation to landless and the poorest of the poor in the rural areas in order to uplift their socio-economic condition and general living standard. The main objective of this study is to explore the role of Branch Office Gorkha of PGBB in poverty reduction. The overall research found out that Paschimanchal Grameen Bikas Bank has Played a remarkable role in reducing and finally alleviating poverty in the study area. The bank's social and credit programmes have contributed to increase in income, employment, saving, consumption, health and sanitation which constitute the major indicators of change in poverty situation.