Analysis of the Effects of Cash Payment Subsidiary on Empowerment of Rural Focus Group

Document Type : Research Paper

Authors

1 Assistant professor of geography, Ferdowsi University of Mashhad, Mashhad, Iran

2 MA in sociology, Kharazmi University, Tehran, Iran

Abstract

Introduction
In the rural sustainable development process, poverty eradication, providing the essential needs and empowerments of the poor in different dimensions have an important position. In recent decades, so many solutions had been presented and focused by different countries for reduction or even eradication of economic poverty such as entrepreneurship development, micro credit allocation, subside targeting, cash assistance grants and etc. which are implementing for rural economic empowerment especially in the focus groups. To support the poor social groups, so many countries pay  low benefit loans and some of them pay cash payments subsidies to rural poor people. In the recent years, cash payment of subsidie to the poor is implemented in Iran. Subsidies targeting is considered as one of the economical tools for poverty reduction especially in rural areas. The cash payment subsidiary is an effective way for rural empowerment which is experimented in Iran’s rural area during recent years. The key question of this study is that how cash payment subsidiary could be effective for rural empowering as a main goal of subsides targeting? 
 
Methodology
This practical study had been done based on analytical- explanation method. The main purpose of current study is to assess the effects of cash payment subsidiaries on rural focus group empowerment. In the present study, the data were gathered through documentary, field observation methods and questionnaire based on 16 indicators that were chosen from theoretical framework. The sample community of this research contains all rural families members in Khodabandeh Relief Foundation and Welfare Organization (7207) and 365 families had been selected randomly by Cochran’s formula as a case study community with sample distribution. Chi-square, T-test, correlations and regression statistical methods had been used for data analysis.
 
Results and discussion
Based on the results of this research, effective dimensions of subsidiaries cash payment are on medical and health care issues, improvement of the food diet among rural people, and increase in the purchasing power. In micro level items, the highest impact was on the reduction of monetary tablets, installment purchase supplies, power repayment, purchase basic necessities and living tools (TV, washing machine and. ..), reduction of self-medication, conduct periodic tests ups, preparing children’s educational needs, increase in weekly consumption of protein (meat and fish) at meals and weekly consumption of fruits and vegetables in the diet. But overall correlation between dependent and independent variables indicated a significant correlation, but the important point is that the intensity of relationship between them is different. In other words, there is high and significant relationship between subsidiaries receipt and changes in the indicators such as increased economic risk, diversification of diet, increase in purchasing power, and improvement of access to health care and to education. Also, the results of regression examination showed that cash payment subsidiaries highly influenced economical risk taking indicators (0.184), diversification of diet (0.181) and increase in the purchase power (0.169).
In this study it was found that cash payment subsidy had less impact on the lives of rural target groups and empowers them. In most cases, the mean of studied indicators and items are lower than the theoretical average; because increasing the cost of energy and level of inflation had reduced purchase power of the rural people, especially in target groups and in different fields. It seems that during the first year of the subsidiaries cash payment, it has positive effects on the rural targets group, but over time due to inflation and increase in cost of living, and a gradual increase in intermittent energy prices, without any appropriate change in the amount of the subsidy payments, effects of subsidies had been reduced for empowering the rural target groups. On the other hand, due to lack of educational base for entrepreneurship and investment among the rural families, the rural families used the payments to buy essential commodity and needed material for family. 

Keywords

Main Subjects

References

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Human Geography Research
Volume 50, Issue 1
April 2018
Pages 163-180

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History

  • Receive Date: 14 February 2016
  • Revise Date: 16 November 2016
  • Accept Date: 02 December 2016

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