Financial Management Focus on Debt-Ridden Farmers’ Problems at Grass Root Level: Prospects for Rural Poverty Alleviation Through Village Adoption Scheme: Methodological Approach
Journal of Financial Management and Analysis, 30(1):2017
Posted: 6 Nov 2017
Date Written: October 30, 2017
Abstract
It is confirmed based on case studies that the problem of infectious disease of ‘Poverty’ among the majority (75 per cent of debt-ridden farmers who are highly productive) has not been tackled with any success due to middlemen’s collusive activities which have dwarfed and derailed organic development path towards self-reliance and prosperity. It being so, there is a strong financial management case for formulating rational subsidy scheme to give relief to peasant farmers to tackle the perennial problem of poverty at grassroot level as studies have confirmed that politically motivated debt-waiver schemes would water merely the branches of the tree and not the root.
The author has recommended, applying the minimum marginal cost pricing principle, village democratization through village adoption scheme to attack the problem of rural poverty from grass-root level.
Keywords: Debt-ridden farmers; Middlemen collusion, Village democratization; Debt-waiver schemes
JEL Classification: B41; C82; D43; I32; N55
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