Natural Disaster, Livelihood Challenges and Microfinance: A Field Survey Analysis of the Sundarban Region in West Bengal, India

In this study, an economic analysis was performed to evaluate the roles of microfinance and self-help groups in adapting to and coping with the natural calamities in the Sundarban region in West Bengal. Climate change, incidence of recurrent cyclones, poverty and varying response patterns were empirically verified using primary data collected from 400 households across 21 villages of 4 administrative blocks in the Sundarban region. The survey data indicated that almost all households in the region were negatively impacted by cyclones. The econometric analysis attempted to assess the role of microfinance and self-help groups in the livelihood diversification of households, which was measured using the Simpson Index of Diversity. The results highlighted that the microfinance institutions, with the involvement of the self-help groups, have been able to help households diversify their livelihood and build resilience against natural disaster episodes. The coping behaviours were manifested in the adoption of integration farming using available local inputs and wastes after disaster and migration, among others. This represents a unique long-term model, which combines locally available resources and minimal external support, for the disaster management and rehabilitation of affected households.