A Proposed Islamic Microfinance Impact Assessment Methodology

Impact assessment of microfinance programs have been remained the foremost concern of microfinance stakeholders for optimal policy measures. The existing literature regarding the impact assessment varies from parametric to experimental methods to evaluate the performance of microfinance programs across the world however; the literature is lacking a single measure to reveal maximum possible changes in socioeconomic variables resulting from microfinance institutions’ intervention. This study aims to develop a composite index for evaluating the performance of microfinance programs in multi-dimensional contexts. The study exposes a set of eight “diverse indicators” to evaluate the performance of a microfinance program on a wider socioeconomic scale. The dimensions of the index are consist of economic (Income, saving) and socioeconomic (poverty, access to basic facilities, family empowerment) indicators. The changes in deprivations of household, based on the selected indicators, reveal the intensity of success of a microfinance program towards their goals. Finally, we have developed an index by the interaction of incidence and intensity of socioeconomic deprivations. The index is named as “Multidimensional Microfinance Deprivation Index”. This is an index developed in the same line as multidimensional poverty index. The implications of this study are three folds; firstly, it will open up a new dimension of literature in the field of microfinance including Islamic microfinance by instigating an important area. Secondly, it may provide a better alternative to microfinance’s stakeholders to investigate the impact assessment of microfinance programs on a wider socioeconomic scale rather than a few economic. Last but not the least, the study integrates diverse socioeconomic indicators, after assigning weights and adjustment to portray an overall picture of the performance of microfinance in terms of uplifting the socioeconomic conditions of the poor and financially marginalized people.

Geo-Strategic Significance of Gilgit Baltistan: Political, Economic and Security Interests of Pakistan, India and China 1947-2013

Geography is the study of earth, environment and the people living on it and geographical position of a state determines its geopolitical and geostrategic significant role in international politics. Gilgit-Baltistan (GB), formally known as Northern Areas of Pakistan, is located at a place where three great mountain ranges (Empires); Karakorum, Himalayas and Hindukush, meet. Gilgit-Baltistan borders with Xinyang Autonomous Province of China, Indian held Kashmir and Ladakh region, Pakistan held Kashmir and KPK province, and ‘Wakhan’ of Afghanistan and this narrow belt separates Gilgit-Baltistan from Central Asian Republics (CARs). Gilgit-Baltistan is the home of mighty mountain ranges, numerous highest peaks including five ‘eight thousanders’ of the world, K-2, world second highest peak, 5100 glaciers, huge fresh water and natural resources, rivers, world second highest plateaus, coldest deserts, beautiful lakes, gorgeous valleys, enormous fauna and flora, rich cultures, attractive historical tourist points, ancient routes, and multi-ethic societies. Gilgit-Baltistan always remained an attractive point for foreign invaders, travelers, tourist, and missionaries due to its unique topography as well as its geopolitical position, hence this region is called ‘Heaven on Earth for tourist.’ Politically, this region stayed under the rules of the various Empires, kingdoms, Rajas, of the invaders from ancient China, Central Asia, India and other old civilizations. In the medieval history, Gilgit-Baltistan went under the rules of local dynasties. In 1840s Dogra of Jammu invaded in Gilgit-Baltistan and defeated the local rulers and sized power. In 1870s, during Great Game, Gilgit-Baltistan went under the consideration of British. To curtail the Russian’s expansion, British decided to establish Gilgit Agency in 1877 and reestablish in 1889. In March 1935 the control of Gilgit was given to British as a 60 year lease by Maharaja Hari Sing. In 1947, the political scenario had been changed in Sub-continent. Under the Indian VIII Independence Act 1947, the Subcontinent divided into two independent states; Pakistan and India while the 562 princely states (Native States) had been given choice to join either with Pakistan or India or remained autonomous. The Princely State of Kashmir remained outside from this partition but later through ‘the Instrument of Accession’ on 26, October 1947, Maharaja Hari Sing agreed to accede to India which was against the will of his people. From 1947 to present Kashmir has made the bone of contention between Pakistan and India. On 1st November 1947, the government of Dogra Raja toppled by Gilgit scouts and Azad force and set up a provisional government. On 16th November, 1947, Political agent of Pakistan took power of the region and imposed the Frontier Crimes Rules (FCR) in Gilgit-Baltistan. In April, 28 1949, the Karachi Agreement was signed by Pakistan and Azad Kashmir government’s representatives, in which Pakistan was granted as the interim administrator of GB. This agreement made Gilgit-Baltistan political puzzled in this region. On the other hand due to its equivocal constitutional status and geostrategic significance of Gilgit-Baltistan created interest conflict game among regional as well as international powers. During the Ancient Silk Routes, Gilgit-Baltistan was gateway for Chinese, Indian, Central Asian traders. Sino-India war 1962 and Sino-Pakistan Border agreement 1963 were the two most important developments that put a huge impact on this region. China and India are the world largest populated countries and both states have emerged as economic power in 21st century. China has world 2nd largest economy while India is world’s seventh largest economy by nominal GPD. In 2013, Pakistan and China has started a new economic corridor; China Pakistan Economic Corridor (CPEC), which is considered as a game changer for socio-economic facet of Pakistan and China and Gilgit-Baltistan serves as gateway for these developments.