Social fund
The term fund means provision capital, goods or any useful thing for individual, private or public institutions, or any other business. The managed funds or the mutual funds can be classified under the category of collective investment schemes. Funds can be future classified in the following types:-
- Market funds
- Balance funds
- Index funds
- Pure bond funds
- Pure stock funds
- Aggressive growth funds
- Growth funds
- Growth and income funds
- Sector funds
- Small cap stock funds
- Social funds
Social funds- meaning and concepts
As the name suggests social funds are raised for social purposes. The main aim for the raising of a social fund is to bring overall development in the society. Social funds provide payments for the lump slum, provisions of loans and grants.
Social funds are the multi-sectoral programs which at providing finance (in the form of grants) for the small-scale public investments. These small-scale public investments are targeted at meeting the needs of the poor and the financially suppressed communities by contribution of the social capital and bringing about the over-all development.
The social funds serve as the innovators and the demonstrators by the adoption of the new methods and techniques for bringing about decentralization and increasing the active participation in management activities.
In large organizations, the social funds are provided in order to bring about the overall welfare of the employee. By the provision of the social funds to the needy employee he /she gets motivated indirectly and participates actively in the activities held in the management. Social funds help the employees to share their stressed and bottled feelings to the sub ordinates and a healthy atmosphere is developed. Social funds also bring about free exchange of thoughts, ideas and feelings which helps the management of the company or the organization to solve the problems at the lower level itself.
Social funds- Aims and objectives
The aims and the objectives are classified according to the various generations:-
1st Generation (mid to late 1980s)-
The basic objective behind the launching of social funds in the first generation was to soften the impact of the structural policies on the poor. In the late 1980s the social funds were launched and were started in and around 60 countries. The purpose of the social funds was ranged between the post-emergency reconstructions to empowerment of the local communities.
2nd Generation (after late mid 1980s and onwards)-
In the second generation different policies were adopted. More explicit strategies for the institutions were adopted. These strategies aimed at empowerment, capacity building, and sustain the ability of the goals with an attention on longer-term objectives. They played a vital role in the funding for the empowering communities, community projects, building links between the communities and their local governments. The recent adoption made is that they have tried the development of the loser links to decentralization approaches. Social funds have contributed significantly to the increasing relationships between the sectoral agencies.
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