Chapter 5: Transformational Financial Leadership: A Key to Conflict Resolution in a Community Lending Program

This chapter will explore the impact of state intervention in ensuring the resolution of conflicts within the group. A group is generally fraught with various power imbalances that lead to conflicts among group. Without any state intervention, the scarce resources within a group cannot be allocated equitably. The state intervention enables the members of the group to achieve an equitable allocation of resources. If left to the dynamics of the group, the community lending initiatives suffer from the risk of exploitation and deprivation. With the thrust on financial sustainability and the discontinuation of a charity-based approach, the groups are required to be self-reliant. In this context, state intervention and hand-holding by the Government have come to play an important role in the success of the groups. The secondary data will be collected using the existing published literature. For data collection, the samples will be selected using purposive random sampling. A case study method will be used to explore the role that the state is playing in implementing various community lending programs in countries across the world. The data will be collected through semi-structured interviews and hermeneutics. This chapter will also provide a discussion on various policy initiatives by the state and their role in ensuring the success of groups.