Introduction: Poverty alleviation and micro-credit are the two interrelated terms. For the greatest sustainable development in all the spheres of a nati0n, poverty alleviation and, micro-credit is obvi0usly needed. Now it is our task to define, evaluate and assess the poverty alleviation and micro-credit.
Definition of poverty alleviation: Poverty alleviation means to eradicate or remove poverty. Poverty alleviation is a fact by which poor people can be helped by applying the different kinds of welfare activities. And the micro-credit project ts one of them.
Definition of micro-credit: Money begets money. Adam Smith in his famous book, “The Wealth of Nations” demonstrated the fact that when you have got a little, it is often simple to get more and the greatest difficult act is to get that little. Microcredit is a small size of loan project that is given to the poor for self-employment or self-reliance. Conceptually micro-credit can be evaluated as a collateral-free small loan offered to the poor, to create small employment in income-generating activities based on group lending methodology. Micro-credit can broadly be defined as a programme that provides credit for self-employment and other financial and business services including savings and technical assistance to the poor people.
Micro-credit and poverty alleviation: The main objective of microcredit is to create income for poor household and thereby alleviate poverty. Micro-credit leads to improvement in income and the increase in income elevate the poor above the poverty level. The from Secretary-General UN Kofi Annan opines that eradicating poverty is perhaps the greatest global challenge out of 6 billion population in the world 2.8 billion live on less than two dollars income a day, of the 1.2 billion people, 50 million live in Asia and 30 million in Africa. Micro-credit programs in these regions show that micro-credit is a strong poverty alleviating weapon. More than 6 million of the world’s poorest people have taken part in the past seven years in microfinance projects with the purpose of coming out of the vicious circle of poverty.
The policies or measures to alleviate poverty through the theory of micro-credit: The theory of micro-credit innovates the following measures to eradicate poverty:
(a) More food .has to be grown for a greater number of people.
(b) Poultry farms arid cattle rearing have to be given emphasis tl1roughout the length and breadth of the country.
(c) To emphasize the importance of the agricultural sector.
(d) To set up industrial factories both large or small or even the cottage industries.
(e) Emphasis has to be enforced on fishing, weaving and looming.
Conclusion: In conclusion, it is said that we may encourage people to follow the process of micro-credit. The program of poverty alleviation through the theory of micro-credit can be a success if all of us act shoulder to shoulder for the massive development of our nation.