2010 Annual Report: Civil Society - PartnershipsInAction

y e a r i n r e v i e w : c i v i l s o c i e t y
If unable to successfully manage and complete projects, these institutions risk
their legitimacy within their regions. Beyond capacity building, AKF is helping
these groups identify important infrastructure needs, develop plans to make
lasting improvements and manage projects through completion. As these
projects improve the quality of life, 140,000 Afghan citizens across four
provinces will grow to trust their government more, increasing stability and
security in the country.
Community-based Savings Groups in Bihar, India
PROBLEM: Poor Communities with Limited Choices are the Most Vulnerable
to Economic Shocks
Densely populated Bihar is India’s poorest state, and its residents struggle to
provide for their families. Nearly half of its people are poor, less than half can
read or write and its per-capita income is a third of the Indian average (at
$94 a year against India’s average of $255). Agriculture continues to be the
mainstay of the population, and the cropping intensity is high. Although very
fertile, the productivity of its main crops is among the lowest in the country.
In Bihar, AKF is mobilizing women from
marginalized communities to form savings
groups and organize simple lending practices
that help cushion them against economic
shocks and avoid debt in the face of
emergencies.
In comparison to other states, the microfinance activity is in a rudimentary
stage in Bihar. Less than five percent of Bihar’s population has access to
banks. The poor’s lack of access to formal financial institutions such as
commercial banks, regional rural banks or financial cooperatives makes it
difficult to securely save money or acquire loans.