article

Innovative microfinance scheme is alleviating child poverty in Northern India

Friday, 11 October 2019

Small loans given to women in poor areas of Northern India are helping to improve child nutrition in rural communities, according to a report from experts at the University of Nottingham.

The findings, published today in the journal Archives of Disease in Childhood, show the results of a large clinical trial looking at a microfinance programme called Rojiroti (daily bread), which gives small loans to poor women in self-help groups.  

Microfinance schemes are designed to help alleviate poverty in some of the world’s poorest countries, with the aim of helping the poor to work themselves out of poverty.  The low cost, innovative Rojiroti approach enables poor and marginalised women to be the primary customer group – working with much smaller loans than is usually the case.

Dissemination workshop at the A N Sinha Institute of Social Studies, Patna

This trial looked at the effects of Rojiroti and the impact it had on very poor women living in Tolas (village communities) in the Bihar State (Northern India), where only 10% of participants own land and only 20% were literate. The team of researchers were primarily interested in the health of their children.

Alan Smyth, Professor of Child Health in the School of Medicine at the University led the study, he said: “Malnutrition is common in children in these areas and between 15 and 20% are wasted - where their weight for height is more than two standard deviations below normal. Wasted children are at least three times more likely to die than their better nourished peers. Under five mortality in Bihar is high, with a ratio of 52 deaths to 1000 births compared with 10 deaths to 1000 births in Goa. So this is a real issue which needs addressing.”

With Rojiroti microfinance, women form self-help groups and save their money to provide loans to group members. After six months, they receive larger external loans. The women are then able to use the money for any purpose, from family emergencies, to small business or agriculture. The team of researchers randomised village communities to either receive immediate Rojiroti or to wait 18 months to receive it. They then weighed and measured the children after 18 months (before the second group received microfinance). In total 2064 children took part.

Meeting to discuss trial with villagers

The team found that the children in the Rojiroti group had significantly better weight for height, weight for age and mid upper arm circumference following the trial. Significantly fewer were wasted or underweight.

Through our clinical trial, we have shown that Rojiroti can improve children’s nutrition and we think this can lead to improved survival. Rojiroti has steadily become more popular in Northern India over the last 15 years and there are now approximately 31,000 members in Bihar. To further improve the lives of people in these areas, the scheme should be scaled up, which could lead to better health for more children.”
Professor Alan Smyth, lead author

Story credits

More information is available from Professor Alan Smyth at alan.smyth@nottingham.ac.uk

CharlotteAnscombe
Charlotte Anscombe - Media Relations Manager - Faculty of Medicine and Health Sciences
Email: charlotte.anscombe@nottingham.ac.uk
Phone: 0115 748 4417
Location:

Notes to editors:

About the University of Nottingham

Ranked 32 in Europe and 16th in the UK by the QS World University Rankings: Europe 2024, the University of Nottingham is a founding member of the Russell Group of research-intensive universities. Studying at the University of Nottingham is a life-changing experience, and we pride ourselves on unlocking the potential of our students. We have a pioneering spirit, expressed in the vision of our founder Sir Jesse Boot, which has seen us lead the way in establishing campuses in China and Malaysia - part of a globally connected network of education, research and industrial engagement.

Nottingham was crowned Sports University of the Year by The Times and Sunday Times Good University Guide 2024 – the third time it has been given the honour since 2018 – and by the Daily Mail University Guide 2024.

The university is among the best universities in the UK for the strength of our research, positioned seventh for research power in the UK according to REF 2021. The birthplace of discoveries such as MRI and ibuprofen, our innovations transform lives and tackle global problems such as sustainable food supplies, ending modern slavery, developing greener transport, and reducing reliance on fossil fuels.

The university is a major employer and industry partner - locally and globally - and our graduates are the second most targeted by the UK's top employers, according to The Graduate Market in 2022 report by High Fliers Research.

We lead the Universities for Nottingham initiative, in partnership with Nottingham Trent University, a pioneering collaboration between the city’s two world-class institutions to improve levels of prosperity, opportunity, sustainability, health and wellbeing for residents in the city and region we are proud to call home.

More news…

Media Relations - External Relations

The University of Nottingham
YANG Fujia Building
Jubilee Campus
Wollaton Road
Nottingham, NG8 1BB

telephone: +44 (0) 115 951 5798
email: pressoffice@nottingham.ac.uk