Influences on Physical and Cognitive Development in Adolescents

Adolescence is the development of a child from childhood to adulthood. Changes are noted as the child grows, such as sexual characteristics. Girls start to grow breasts, public and armpit hair, and menstrual periods; the full development is attained at the age of 18.Advertising We will write a custom essay sample on Influences on Physical and Cognitive Development in Adolescents specifically for you for only $16.05 $11/page Learn More Boys’ testicles and scrotum enlarges and the penis enlarges in size, and the full development of boys’ reproductive parts is attained at the age of 16 to 17 years. These developments are influenced by environmental and genetic factors. Physical Development According to Smith Cowie (2005), environmental factors such as nutrition can determine how the child will grow. Adolescents should be given a balanced diet because their rapid growth makes them crave for calories, but if calories intake is exceeded, they ar e likely to develop weight problems. For example, identical twins with same genes growing in different environments are likely to have different heights or physical appearance. According to the University of United Nations, this may be due to nutrition which affects the growth of bones, the body size, and can also delay the body growth. Regular exercises are essential in youngster’s development. Those who spend their time playing or engaging in vigorous activities are likely to have stronger bones than those who spend their time watching televisions, thus their bone growth is likely to be impaired. Likewise, chronic illness also affects the child’s growth. Childs genetics influences how he/she will grow physically. Genetics have a big effect on the growth rate and the size of body parts. For instance, Doctor Stefan Czerwinski did a study for genetics for 30 years and concluded that when both height and weight of a child’s parents is measured, it is easy to appro ximate the child’s height and weight at the age of thirty. If a child’s parents are short, he/she is likely to grow short even if the age mates look taller. Other factors include the body mass, percentage of body fat and body muscles. Physical characteristics such as facial and body developments are likely to cause different reactions from people.Advertising Looking for essay on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More Additionally, healthy and attractive children are more likely to be favored than the less attractive ones with slim bodies. Furthermore, a youngster who comes from a family with a history of schizophrenia is likely to develop the hereditary disease, especially if the environment in which he/she lives is easy to contaminate (Bronfen, 2000). Cognitive Development Bronfen (2000) argues that physical activity helps the brain to function properly. Exercises can help improve cognition and academic per formance. The effects of the physical activity on cognition and brain function have been shown at the molecular, cellular, organ system, and behavior levels, which points out that exercises may lead to increase in both physical and mental health during child development. Exercise helps adolescents to improve their memory, neuroprotection and lessen chances of depression. They support neurogenesis, metabolism, and vascular functions. It also alleviates diabetes, hypertension, and cardiovascular disease, which may lead to inflammation of the brain which can impair its growth. Eyes development is another factor because it depends on which environment the child grows. A youngster with teary eyes, maybe due to dietary deficiency causes the child to strain and is not able to learn more as compared to his age mates. This may be due to spending a lot of time on computers, which may lead to eye fatigue and as they play, foreign objects such as dirt and bacteria may impair their vision. Gende rs roles in the society also determine the youngsters learning capabilities. Girls tend to be interested in learning female related activities such as soft labor – for example, baby care. Boys learn activities that are related to hard labor. However, girls and boys who have been taught to do both male and female tasks, normally called the androgynous, are able to do hard labor, with the girls being able to fix cars and boys able to do home chores. Adolescents who are brought up in wealthy and loving families are likely to be mentally stable and are able to develop good domestic and learning skills. These children regard ability as an acquirable skill and hence, they are capable of increasing it by gaining more knowledge. They regard error as natural and are able to learn through mistakes. They are capable of handling difficulties and do not compare their personal achievements with others. Youngsters who go through tough experiences, for example, orphans have poor mental devel opment. The issue of their parent’s death can lead to unhealthy mental development. Such children have negative attitude about life and are not focused on their studies.Advertising We will write a custom essay sample on Influences on Physical and Cognitive Development in Adolescents specifically for you for only $16.05 $11/page Learn More Similarly, the training and experience to which an adolescent is exposed determines who he/she will become. A delay in cognitive development of a youngster becomes problematic especially in societies that value cognitive skills for work and self-determined life. In essence, culture and environmental factors are the results of differences in cognitive achievements (Smith Cowie, 2005). Social, Moral, and Personality Development There are many behaviors that cause differences between people. These behaviors include emotions and thoughts and are sometimes caused by environmental and heredity factors. Environmental factors are helpful in formation of characters attitudes. Adolescents show different attitudes in same conditions and this depends on the learning environment where the child was brought up. The family where the child grew is an important factor in formation of a personality. Children who come from a family of independent parents are likely to grow with the same independence, self trust, and self control, and with a lot of creativity (Berk, 2004). Adolescents who come from a family where parents are authoritative are likely to be shy and anxious. These youngsters also become dependent and with little or no self control. More so, an adolescent who have been brought up in a family with a single parent is affected because in case of the absence of a mother, the child is likely to be shy and dependent. The father’s absence differs in both boys and girls. Girls are likely to be more dependent, but with an aggressive personality, especially when dealing with boys. In case of parent s divorce, adolescent girls become anxious about their relationship with boys. Moreover, birth order affects the development of an adolescent because elder children have good leadership characteristics and tend to be successful. Middle children are likely to be rebellious whereas lastborns are likely to be spoilt, and experience insufficient emotions. Berk (2004) affirms that social developments are affected by the culture from which an adolescent come from. People from different cultures have their own believes, merits, morals, and attitudes. The first source of socialization for adolescents is parents. If the youngster’s parents had unsocial behavior, they are likely to behave the same, especially in groups.Advertising Looking for essay on psychology? Let's see if we can help you! Get your first paper with 15% OFF Learn More In this regard, Freud’s Theory about personality is divided into three. The first is the topographic theory, which divides the psychological structure into consciousness, pre-consciousness, and unconsciousness. They express how much the individuals are aware of mental activities that they do. Second, in structural theory, personality is formed by the primitive personality of birth, ego which is a sensibility for logic, behaviors and controlling consciousness. Third, Superego is the ethnical and personality judgment which depends on the rules of the family and society. According to Treyt Moral theory, each person has an ethical judgment on good or evil. These judgments determine an individual’s self behaviors and acts. These morals are determined by the environmental and society where an individual has been brought up. In order for a person to live peacefully, he/she must adopt and follow the rules which he/she esteemed. In Carl Jung’s Social theory, individualâ €™s personalities, such as being an extrovert and introvert shows individuals interest of self and others. According to Jung, introverts are shy and find it hard to make friends, while extroverts are confident and hence get friends easily (Bronfen, 2000). Thus, these three theories help explain the mentioned moral, social, and personality factors. In conclusion, adolescence is a stage of remarkable physical changes and cognitive development; adolescents’ bodies establish and mature sexually, together with their minds engaging in advanced thinking, which include metacognition, speculative, and intense introspection. These changes affect social and psychological development. Parents, teachers and the whole society should be ready to accommodate adolescents and teach them because it is a temporary stage with many changes, especially in cases where these youngsters feel they are special and above the laws. This might lead to risky behaviors, such as drug abuse and having unpr otected sex while they try to engage into intimate relationships with the push to discover who they are in the society and in the world. Therefore, the society must educate and protect adolescent because it has a greater influence on adolescents’ physical and cognitive development. References Berk, L. E. (2004). Infants, Children, Adolescents Development Theories. Harvard University Press, Cambridge. Bronfen, B. (2000). The Ecology of Human Development: Experiments by nature and Design. Cambridge, MA: Harvard University Press. Smith P.K. Cowie, H. (2005). Understanding Adolescents Development, Basic Psychology (4th ed.). New York: McGraw Hill. This essay on Influences on Physical and Cognitive Development in Adolescents was written and submitted by user Sidney Frederick to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Roy Plunkett and the Invention of Teflon

Roy Plunkett and the Invention of Teflon Dr. Roy Plunkett discovered PTFE or polytetrafluoroethylene, the basis of Teflon ®, in April 1938. It’s one of those discoveries that happened by accident. Plunkett Discovers PTFE Plunkett held a Bachelor of Arts degree, a Master of Science degree, and his PhD in organic chemistry when he went to work at the DuPont research laboratories in Edison, New Jersey. He  was working with gases related to Freon ®Ã‚  refrigerants when he stumbled upon PTFE. Plunkett and his assistant, Jack Rebok, were charged with developing an alternative refrigerant and came up with tetrafluorethylene or TFE. They ended up making about 100 pounds of TFE and were faced with the dilemma of storing it all. They placed the TFE in small cylinders and froze them.  When they later checked on the refrigerant, they found the cylinders effectively empty, even though they felt heavy enough that they should still have been full. They cut one open and found that the TFE had polymerized into a white, waxy powder polytetrafluoroethylene or PTFE resin. Plunkett was an inveterate scientist. He had this new substance on his hands, but what to do with it? It was slippery, chemically stable and had a high melting point. He began playing with it, attempting to find out if it would serve any useful purpose at all. Ultimately, the challenge was taken out of his hands when he was promoted and sent to a different division. The TFE was sent to DuPont’s Central Research Department. The scientists there were instructed to experiment with the substance, and Teflon ® was born. Teflon Properties The molecular weight of Teflon ® can exceed 30 million, making it one of the largest molecules known to man. A colorless, odorless powder, it is a fluoroplastic with many properties that  give it an increasingly wide range of uses. The surface is so slippery, virtually nothing sticks to it or is absorbed by it – the Guinness Book of World Records once listed it as the slipperiest substance on earth. It’s still the only known substance that a geckos feet cant stick to.   The Teflon Trademark PTFE was first marketed under the DuPont Teflon ® trademark in 1945.   No wonder Teflon ® was chosen to be used on non-stick cooking pans, but it was originally used only for industrial and military purposes because it was so expensive to make. The first non-stick pan using  Teflon ® was marketed in France as Tefal in 1954. The U.S. followed with its own Teflon ®-coated pan the Happy Pan in 1861. Teflon Today Teflon ® can be found just about everywhere these days: as a stain repellant in fabrics, carpets and furniture, in automobile windshield wipers, hair products, lightbulbs, eyeglasses, electrical wires and infrared decoy flares. As for those cooking pans, feel free to take a wire whisk or any other utensil to them – unlike in the old days, you won’t risk scratching the Teflon ® coating because its been improved. . Dr. Plunkett stayed with DuPont until his retirement in 1975. He died in 1994, but not before being inducted into the Plastics Hall of Fame and the National Inventors’ Hall of Fame.

Roy Plunkett and the Invention of Teflon

Roy Plunkett and the Invention of Teflon Dr. Roy Plunkett discovered PTFE or polytetrafluoroethylene, the basis of Teflon ®, in April 1938. It’s one of those discoveries that happened by accident. Plunkett Discovers PTFE Plunkett held a Bachelor of Arts degree, a Master of Science degree, and his PhD in organic chemistry when he went to work at the DuPont research laboratories in Edison, New Jersey. He  was working with gases related to Freon ®Ã‚  refrigerants when he stumbled upon PTFE. Plunkett and his assistant, Jack Rebok, were charged with developing an alternative refrigerant and came up with tetrafluorethylene or TFE. They ended up making about 100 pounds of TFE and were faced with the dilemma of storing it all. They placed the TFE in small cylinders and froze them.  When they later checked on the refrigerant, they found the cylinders effectively empty, even though they felt heavy enough that they should still have been full. They cut one open and found that the TFE had polymerized into a white, waxy powder polytetrafluoroethylene or PTFE resin. Plunkett was an inveterate scientist. He had this new substance on his hands, but what to do with it? It was slippery, chemically stable and had a high melting point. He began playing with it, attempting to find out if it would serve any useful purpose at all. Ultimately, the challenge was taken out of his hands when he was promoted and sent to a different division. The TFE was sent to DuPont’s Central Research Department. The scientists there were instructed to experiment with the substance, and Teflon ® was born. Teflon Properties The molecular weight of Teflon ® can exceed 30 million, making it one of the largest molecules known to man. A colorless, odorless powder, it is a fluoroplastic with many properties that  give it an increasingly wide range of uses. The surface is so slippery, virtually nothing sticks to it or is absorbed by it – the Guinness Book of World Records once listed it as the slipperiest substance on earth. It’s still the only known substance that a geckos feet cant stick to.   The Teflon Trademark PTFE was first marketed under the DuPont Teflon ® trademark in 1945.   No wonder Teflon ® was chosen to be used on non-stick cooking pans, but it was originally used only for industrial and military purposes because it was so expensive to make. The first non-stick pan using  Teflon ® was marketed in France as Tefal in 1954. The U.S. followed with its own Teflon ®-coated pan the Happy Pan in 1861. Teflon Today Teflon ® can be found just about everywhere these days: as a stain repellant in fabrics, carpets and furniture, in automobile windshield wipers, hair products, lightbulbs, eyeglasses, electrical wires and infrared decoy flares. As for those cooking pans, feel free to take a wire whisk or any other utensil to them – unlike in the old days, you won’t risk scratching the Teflon ® coating because its been improved. . Dr. Plunkett stayed with DuPont until his retirement in 1975. He died in 1994, but not before being inducted into the Plastics Hall of Fame and the National Inventors’ Hall of Fame.

Law and Management Essay Example | Topics and Well Written Essays - 2500 words

Law and Management - Essay Example Leaders aspiring to be visionary should be able to mentor their successors at all levels and look beyond the horizon. To maintain the quality of leadership and lead people effectively, one needs to maintain the time and adopt the change required by the market. To be ahead in the competition, he should be the market leader in product development and technology. The leader should be a continuous learner, who always observes the global economic trends very closely, improves his listening skills and maintains a good relationship with his employees, while showing the empathy that will lead to better organizational culture. This will help to attract, nurture and retain the best talent in the organization. An effective leader should ask himself some retrospective questions like whether he is inspiring his own employees in the right direction or not Whether he is able to communicate effectively his vision, mission and strategic goals of the business, across the organization or not How courageous he is to implement his strategies, even during difficult times How frequently he takes the feedback whether he is in the wrong direction or right How best is he able to take timely decisions And, at the same time, whether he directs his employees towards right path or not An effective leader should maintain the simplicity and should be careful enough in matters of costs for the company and if the company is global he should not think in terms of dollars but should see each pie in terms of that country's currency. This will help him become aware of the local problems and culture that, in turn, will be helpful in solving such issues by adopting a suitable strategy related to that unit. An effecti ve leader lays emphasis on leadership principles, especially on the awesome responsibility of taking care of a good number of people's life and livelihood. According to James C Hunter, the author of "The Servant Leadership", the true foundation of leadership is not power, but authority, which is built upon relationships, love, service and sacrifice. Traditional Leadership Styles Comprehending the types of leadership styles is an essential first step in leadership development, which will help one to decide the leadership style that would work best for oneself and the organization Basically there are three classic leadership styles Laissez Faire, Autocratic, and Participative. 1. The Laissez-faire Style This style works well if one has highly skilled and highly motivated people and where direct reporting is done. The laissez-faire style employs low control; it depends more upon the leader's perception of how much freedom one should give to the people. 2. The Autocratic Style An autocratic leader is one who demands instant conformity to his words. These are the characteristics of autocratic leadership: Directs others what to do; restricts ideas or novel ways of doing things; generates fear of power, nepotism and humiliation; the team does not experience the teamwork sensation; shows immediate discontent at the petite blunder in accomplishing the business goals. This style is the least effective, because of hierarchical decision-making. It slaughters the creativity of employees. The autocratic style is found to be very effective when time is scarce, team members are unknown, persons/team lack expertise and know-how, and also in turning around a company, or in a formidable hostile takeover. 3. The Participative Style This style

Compare and contrast analysis paper Term Example | Topics and Well Written Essays - 500 words

Compare and contrast analysis - Term Paper Example These three articles present three different cultural settings each with a particular cultural background ranging from human relations to animals and objects culture. Geertz (2005) "Notes on the Balinese cockfight", the author presents a community deeply rooted cultural observance despite the educational purpose of the cockfight function. As a way of raising school fees a role that government should have undertaken, this closely-knitted community comes together through a cultural event. In this article, symbolic interactionism theory plays out quite well. The community is united, and as theory suggests, they should be understood at their social level. In addition, ethnographic communication of the community need for school is clear. Through a cultural cockfight, the community communicates the social philosophy called verstehen that emphasizes on understanding the event from participants point of view (Geertz 2005). Certainly, Geertz knowledge on social theories in practice was put to test. In addition, the Actor-Network Theory (ANT) significantly applies to the cultural event. As this social theory suggests, the objects and animals use ought to be understood as part of the community communication and social network. Unlike Phillipsen and Hernandez articles, this article focuses on a cultural communicative ritual that is viewed noble and undertaken to pass crucial message. Besides, the article by Fordham Hernandez " A white Mothers muse" brings into light intercultural interaction theories. Certainly, a Mexican raising American-Mexican children present a sociological challenge. According to the social construction theory, the philosophy of typification bedevils the character of this article. As a product of a different culture in a totally new environment with a varied background of the children, she is prone to create cultural standards. However, the challenge of ethnocentrism would not allow the children to adopt their mothers culture. Perhaps,

Healthy Grief Essay Example for Free

Healthy Grief Essay Feeling and expressing grief is unique to each individual and it depends on the nature of their loss. People experience all kinds of emotions, pain and sadness that are considered normal reactions to a significant loss. While there is no right or wrong way to grieve, there are healthy ways to cope with the grief (helpguide.org). Elizabeth Kubler-Ross, a Psychiatrist invented the â€Å"five stages of grief†, based on the grieving process when negative life changes and loses happen, such as death of a loved one. The five stages of grief according to Kubler-Ross are responses that many people may go through, but there is not a typical response to loss as there is no typical loss and everyone grieves differently (helpguide.org). The five stages of grief are denial, anger, bargaining, depression and acceptance. The story of Job in the Bible is an example that displays all the stages of grief set forth by Kubler-Ross’s grief model. Job was a Christian man who followed the path of God’s will in His life. Kubler-Ross was not a Christian, and formulated the grief model from observing patients in a hospital who were dying from terminal illness. Job suffered great loss in his life and endured different stages in his grieving process but never denounced God. The five stages of grief compared and contrasted with the life of Job Denial The first response of grief according to Kubler-Ross is denial and isolation. This is a stage of shock and numbness and a time when a grieving person is trying to grasp the situation that something tragic has just happened in their life. Job is grieving at his tremendous loss., he lost his children, his wealth and health. It seemed unreal to Job that he tore his clothes, shaved his head and fell on the ground. Job 1: 21 reads â€Å"Naked I came from my mother’s womb, and naked shall I return there. The Lord gave, and the Lord has taken away; Blessed be the name of the Lord â€Å"(The Christian Life Bible). Job mourned and lamented at his loss but did not reject God. In contrast to the grief model where the patients knew they were going to die, Job even in his loss knew that he had life. Job maintained total submission to God’s plan in his life. The things of this world can become overwhelming and meaningless to those who are grieving a great loss but knowing God can help to overcome all difficulties of life. Anger Anger is the second stage of grief. According to Kubler-Ross when a patient can no longer maintain the denial stage, they enter into the stage of anger, rage and resentment and start questioning everyone and everything (Roy,A.). Job cursed the day he was born. Job3:16 illustrate his frustration and he felt that death would be easier to endure than his grief. Job is angry and felt betrayed by God. Job’s anger becomes obvious and can be seen in Job 7:11-15. According to Kubler- Ross, anger is a defense used against the primary feelings of hopelessness and helplessness (grief.com). Job is defending himself by showing his anger to ease his pain of loss. But even in his anger, Job maintains communication with God. The feeling of anger may be towards anyone, may be a person who didn’t attend the funeral, doctors, other family members, loved one who have passed (grief.com). It is natural to feel pain and deserted in this stage and finds it hard to accept the loss. Bargaining In this stage, feeling of guilt is common and trying to blame it on ourselves and questioning selves for things that could have been done different to prevent the loss. A grieving person may bargain or try to negotiate a compromise to ease their pain and try to do anything to not feel the pain of loss. For example, a Hindu friend of mine once wrote a letter to Billy Graham indicating to heal her dying mother from cancer and if the mother lives then she will convert to Christianity. That was a bargain and it did not work. Job is bargaining with God in chapter 13:20-21,† Only two things do not do to me, and then I will not hide myself from You. Withdraw your Hand far from me. And let not the dread of you make me afraid† (The Christian Life Bible). For Job, blaming God and everyone seemed natural due to the fear of taking responsibility for what has happened (faiththerapy.org). Job wants to put an end to his suffering, but instead he bowed down in humility and trusting more in God. Job did not listen to his wife’s plea to curse God and to die, but he remained in submission to God’s plan in his life. Depression According to Kubler-Ross, grief becomes deeper in this stage and feelings of emptiness and intense sadness and loss of hope invades life. When bargaining does not help, the reality of depression sets in. This is a noticeable stage as people are down and uncertain about their future. The loss of a loved one is heart breaking and a stage of depression is considered normal and appropriate in a healthy grieving process by Kubler-Ross (grief.com). It shows that the person has at least begun to accept the reality. Job 7:6 reads,† My days are swifter than a waver’s shuttle, and are spent without hope.† (The Christian Life Bible). Job is facing sadness about the situation that he is facing which is not under his control. Even though Job was depressed he never ran from God’s presence. Job 42:5-6 reads â€Å"I have heard of You by the hearing of the ear, But now my eye sees You. Therefore I abhor myself, and repent in dust and ashes (The Christian Life Bible). Acceptance During this stage according to Kubler-Ross, the person has accepted the reality of the loss of their loved ones and realizes that fighting is not going to make any difference. The loved one is no more physically present and that it is a permanent loss. Past is gone and a new future is set in front to run the race in the absence of the loved one. Job is also finally accepting the fact of his total loss and tries to resolve and come into a trusting relationship with God. In chapter 38 of Job, it displays the fact that Job finally heard from God again. This is an essential step in the grief process to restore relationships and to come in terms with life and meaning to move on with life. Through acceptance, God blessed Job again with more blessings than before and ultimately he regains his strength back. Job 42:10 reads† And the Lord restored Job’s loses when he prayed for his friends. Indeed the Lord gave Job twice as much as he had before.†(The Christian Life Bible). Conclusion From the grief model of Kubler-Ross and the story of Job from the Bible it is clear that grief is a natural process that everyone endures at some point of their life. From the theory of Kubler –Ross, the author points out that a person may or may not go through all the stages during a grieving process and the duration may not be the same and will depend on how one handles grief in their life. The component of faith is not central to Kubler-Ross’s grieving process. Job responds to his grieving situations as a normal person would respond but his tremendous faith in God enables him to overcome all obstacles and regain his joy in life. His faith alone in God carried him through such devastating times. This understanding can become a tremendous source of strength when we find ourselves facing the unthinkable. Job was a man of great integrity who loved the Lord deeply and his faith was genuine, personal and deep. Grieving is a personal experience and how a person grieves depends on their coping style, faith and the nature of loss. It is important to take care of the physical and emotional needs during a grieving process. Unresolved grief can lead to serious consequences in life that can create health problems such as depression, anxiety and substance abuse (helpguide.org). The grieving process takes time and healing happens gradually. Whatever grief a person experiences, it is important to be patient and allow the process to unfold naturally and not to be forced or hurried. References Biblical Answers for Grief. Faith Therapy. Retrieved from http://www.faiththerapy.org/Grief%20Topic.html Coping with Grief and Loss. Understanding the Grieving Process. Retrieved from http://www.helpguide.org/mental/grief_loss.htm Kubler-Ross Five Stages Model. Retrieved from http://www.change-management-coach.com/kubler-ross.html Roy, A. (1991). The Book of Job: A Grief and Human Development Interpretation. Journal of Religion and Health, 30(2). Retrieved from http://link.springer.com/article/10.1007%2FBF00988704 The Five Stages of Grief. Elisabeth Kubler-Ross David Kessler. Retrieved from http://grief.com/the-five-stages-of-grief/ The Christian Life Bible (1998). Thomas Nelson Publishers.

Micro-finance in Rural India: Challenges for the Future

Micro-finance in Rural India: Challenges for the Future Submitted by: Aishik Chakraborty Aritra Datta Shubham Chowdhury Snehashish Saha INTRODUCTION Rural India is home to about two-thirds of the Indias 125 crore population. This population is mostly engaged in agriculture that contributes 17.2 percent to Indias GDP. However, this dependence on agriculture is gradually diminishing with small-scale cottage industries and self-help groups gaining prominence in rural economy. This is clearly reflected by the contribution of industry in rural economy which has grown to 30.2 percent in the recent years. However the self-help groups and cottage industries often have to depend on the local moneylenders for financing of its activities with most large scale banks yet to make a foray into rural markets. In such circumstances, micro-finance gains prominence in financing activities of such industries. Micro-finance is a critical factor in uplifting rural economy. However this sector suffers from various challenges. It is imperative that the challenges are studied in order to ensure the Indian growth story to continue. This study will analyze the prevalent challenges and recommend strategies to overcome these bottlenecks. LITERATURE REVIEW Micro-finance refers to small scale financial services provided by financial institutions to the financially backward classes. These services include savings, credit, insurance, etc. The conditions for a financial service to be termed as micro-finance is that the transaction should be small and the customers should be financially weak. Jeffrey Sachs, the renowned economist once claimed that â€Å"The key to ending extreme poverty is to enable the poorest of the poor to get their foot on the ladder of development.† The concept of micro-finance was introduced in India during the 1990s. The country is home to about a third of the world’s poor, most of who do not have access to commercial banking services. The key problem areas in rural financial markets included a lack of credit in rural areas, absence of modern technology in agriculture, low savings capacity in rural areas and prevalence of usurious moneylenders. In such circumstances, micro-finance provides financial inclusion to the under-privileged sections of the society. In absence of micro-finance, the poor in rural India would fall prey to the money-lenders who charge a very high rate of interest on credit and thereby rob the poor of their savings. Micro-finance differs from conventional banking as unlike conventional banks, micro-financing lays more emphasis on the principles of co-operation, equality and mutual self-help. Micro-finance targets mostly the women of rural India, with more than 90% of its customers being women belonging to self-help groups. Micro-credit is mostly used for direct investments by self-help groups and facilitates access to credit by clients who need small amounts of credits but are less credit-worthy for larger loans. However, MFIs in India are susceptible to a number of challenges including political interference. They compete with both politicians and government backed lending programs for the same target segment. The ability of the Indian MFI industry to mitigate this risk is a crucial factor in determining its success. An example of a crisis in the micro-finance sector was when Andhra Pradesh found itself at the center of a debacle thatwas triggered by a the highly successful MFI, SKS Microfinance, which tactfully covered up cases of suicides among MFI borrowers. While it has not been clearly established whether indebtedness or coercive MFI tactics triggered the suicides, the political backlash was intense. In order to counterbalance the political criticism, the state government hastily pushed through a legislation that effectively crippled the MFI industry in the state. RBI established a committee, headed by Y.H. Malegam, to review the various issues and to recommend regulatory steps needed to prevent these incidents from recurring. Released in January 2011, we the recommendations will have wide ranging impacts on the industry. Some of the key impacts include: Creation of entry and operational barriers through higher net worth, capital adequacy, loan portfolio allocation requirements with a possibility of some banks absorbing some of the MFIs. Implementation of industry specific corporate governance standards, greater oversight by the RBI, tailoring NPA definitions in accordance with industry standards will improve corporate governance and transparency . Establishment of a fully fledged credit bureau, limitations on the number of loans to each household, conditions on procedures for loan sanctioning and repayments will reduce the incidence of over-borrowing and multiple-lending . The World Bank has also taken major steps in the sector of micro-finance. Formation of Consultative Group to Assist the Poor (CGAP) in 1995 as a consortium of 33 Public and private development agencies and establishment of Microfinance Management Institute(MAFMI) in 2003 are significant landmarks. Regional multilateral development banks like Asian Development Bank also champion the cause of commercial micro-finance. Nationalization of existing private commercial banks, massive expansion of branch network in rural areas, mandatory directed credit to priority sectors of the economy, subsidized rates of interest and creation of a new set of rural banks at district level and an Apex bank for Agriculture and Rural Development (NABARD20) at national level are some of the organizations working in micro-finance. The initial micro-credit innovations in Bangladesh, Bolivia and Indonesia demonstrated the success of micro-lending. However the popularity of micro-finance in India stemmed from its ability to reach the poor without collateral and near full recovery rates. Micro-finance is contributing significantly to the financial activities of the poor. Various initiatives and programs have been launched to fortify the position of micro-finance in India. The speed of enforcement and the degree to which these recommendations are implemented will determine how much the industry will change and how likely it is to succeed. CONCEPTUAL FRAMEWORK Microfinance suffers from various challenges from its competitors and also from the issues stemming from the mismanagement of various micro-finance companies. The study will enable us to recommend the future strategies and build the way forward for MFIs in India by addressing the following issues. What is microfinance and how does it impact rural India? What are the challenges faces by MFIs in India? What are its implications on the various stakeholders (villagers, money-lenders, banks, Govt. and the MFI institutions) What are the possible solutions to these challenges? Action plan for the recommendations. RESEARCH DESIGN The research will be based on the following methodologies. Identification and interpretation Identify the major issues and challenges. Formulate relevant questions keeping in mind these issues. Gather information from primary and secondary sources. Interpret the solutions to the issues Support and supplement the findings from research data. Data Analysis Gather data from self help groups and find whether they are involved in Micro Finance, and how micro finance has contributed to their business and rural India in general. Challenges that they face while getting the requisite loan from the Micro Finance Institutions. What are the viable alternatives to Micro Finance. The strategic importance of Micro Finance Institutions to their organization. How Micro Finance has impacted their lives and whether the impact is positive or negative. EXPECTED CONRIBUTION The study will consider all the dimensions of Micro Finance in Rural India and provide the following value additions to the field. Appreciate the importance of Micro Finance in rural India and explain their significance. Understand the perceptions of the rural population about Micro Finance in India. Remove the apprehensions about Micro Finance and communicate the benefits of Micro Finance to the rural population. Understand and comprehend the challenges that Micro Finance Institutions face in rural India. Elucidate how the challenges impact the MFI’s. Analyze and evaluate the challenges critically. Develop strategies for overcoming the current challenges and sustaining them. Analyze the competitors and their strategies. How can MFI’s handle the challenges and maintain their customer base. Design the future path of development for Micro Finance in India. Existing micro-finance models in India The following micro-financing models are prevalent in India. Each of these models have their own advantages and disadvantages. SHG-Bank Linkage Model: In this model the SHGs get credit directly from the co-operative banks, regional rural banks, NABARD, etc. This model provides credit to SHGs at lower rates of interest. However this model reduces the credit worthiness of the SHGs and increases the risk of default for the banks. Bank-MFI Linkage Model: In this model, the MFIs act as intermediaries and guarantors for the SHGs and receive financing from banks for further lending it to the SHGs. This model helps in improving the credit worthiness of the SHGs and reduces the risks for the banks. However the SHGs have to pay a higher rate of interest to MFIs in this model. Challenges faced by the Micro-finance sector in India Through extensive study and discussions with relevant stakeholders, the following have been identified as being the foremost challenges to the micro-finance sector in India. There is extreme skewness in distribution of micro-finance services in India. 52% clients of micro-financing come from southern India while 23% come from eastern India. The share of micro-finance beneficiaries from North, West, Central and North-East India stand at an abnormally low level of 9%, 12%, 3% and 3% respectively. This disparity clearly shows that micro-financing services are unevenly spread and is not available to many people who need it. Micro-finance is mostly concerned with micro-credit to SHGs. However other financial services such as insurance, savings schemes are not provided. Also it serves the SHGs, individual businesses don’t benefit through micro-finance. Micro-finance is considered as a social/charitable business rather than a profitable one. Consequently, almost 90% MFIs are dependent on subsidies and suffer from a high debt-equity ratio. The loan sizes are generally small and involves high transaction and processing costs. Consequently the interest rates are higher. There is high turnover of MFI employees. The reasons are poor salary, lack of incentives and working mostly in rural areas with limited opportunities. The employees also lack in financial and technical training. The MFIs lack control over how efficiently the money is used after lending. This often leads to bad investments by SHGs and results in default. MFIs are aware of this risk and keep the interest rates high in absence of a collateral. Micro-finance has reached only a small fraction of the people who need it. The micro-finance sector lags behind from technological perspective that would allow it to disburse loans more effectively. Absence of best practices norms in the industry often leads to coercive recovery of loans. The poor in urban areas cannot avail micro-finance services. Hence these services should be extended for the urban poor as well. Micro-finance institutions have a very low rate of customer retention. This is because clients are not properly educated about the services available from the MFIs. Recommendations Based on the findings, the following steps are recommended for reviving micro-finance sector in India and turning it into a tool for poverty alleviation and financial inclusion. Micro-finance reaches a very small fraction of the people who need it. Hence an overall scaling up of micro-finance sector is imperative. The initiative can be in form of public ventures, private banks or PPP model. The MFIs and NBFCs are to be brought under a regulatory authority to ensure standardization and enforce best practices. The micro-finance sector should diversify its portfolio from being a money-lending entity into an sector that provides holistic financial services such as insurance and savings to its clients. It should also try to widen its client base from SHGs in rural areas to the deserving urban poor who require financial inclusion. Greater use of technology and analytics can negate some issues that arise out of asymmetric information while sanctioning a loan and provide better risk analysis. This will allow MFIs to lower the risk of default while the poor will benefit from lower interest rates due to less chances of default. There employees should be provided with better incentives and given proper training to educate the rural people with the benefits of services provided by the MFIs. They should also be provided with technical and financial training to better assess the credit worthiness of the client. The perception of MFIs should change from being social or charitable organizations into being sustainable and profitable organizations. This would allow MFIs access into financial markets and investments and end their dependency on subsidies. Appendix The following questions were asked to hostel and mess staff and security guards of IMI who were likely to have been exposed to the Micro-finance sector. The questionnaire and responses are as follows. Are there any SHGs operating your native village? Do you have any close relative associated to SHGs? Which part of the country your native village is situated at? Are you aware of the services that micro-finance institutions provide? Do you have access to micro-finance institutions in your village? What is the preferred source of credit in your village? Has micro-finance institutions uplifted the rural class? REFERENCES Microfinance in India: Empirical Evidence, Alternative Models and Policy Imperatives Rajaram Dasgupta Access, Use and Contribution of Microfinance in India: Findings from a National Study Frances Sinha Microfinance in India K.G. Karmakar ISBN: 978-0-7619-3626-8 Microfinance in India: Mission or Misery? Jaideep Singh Panwar The Microfinance Sector in India: Which Way Now? Savita Shankar and Mukul G. Asher Issues and Challenges Relating to Microfinance in India Dr. Sandeep Bansal Microfinance in India: Contemporary Issues and Challenges Sibghatullah Nasir