Transcript Self Help Groups, Poverty Alleviation and Empowerment

Self Help Groups, Poverty
Alleviation and
Empowerment
Presented by Dr. K. Lalita
YUGANTAR
At the Planning Commissions Civil Society Window on Self Help Groups
7th November 2006 New Delhi
[email protected] &
[email protected]
Backdrop
 Environment for ensuring ‘spread effect of growth’
emphasized during 90s.
 Concept of women’s groups (Sangams) existed
from 80s. NGOs drew on experience of Left
movements and Anti-arrack movement.
 Andhra Pradesh adopted DWCRA (development
of women and children in rural areas) model for
APDPIP and APRPRP
 Organising women around thrift and credit
services is a very effective method for alleviating
poverty and empowering women
Delivery mechanisms
Growth of Microfinance sector: Four models:
1. Community owned and managed (CDF, Sanghatita, ASP,
Roshan Vikas)
2. Financial Intermediary Model ( an arm of retail banking
and insurance sector) like BASIX, SKS, SPANDANA,
SWAS, SHARE
3. Banks and Insurance directly dealing with SHGs.
4. DWACRA + SAPAP [govt models]
NUANCES OF DIFFERENT
STRUCTURES
1.Financial Intermediary Model
Not targeted at a particular segment
Any adult woman can become member of the
group.
Members save any amount from Rs 20 to Rs
200 or more.
2% per month (24 % p.a.)interest is charged on
loans. Funds borrowed from banks/FIs
Contd…
2. DWCRA Model (Government Model)
 SHGs of DWCRA are federated into MACs : Training in leadership,
attitudinal changes, skills for income generation.
 Lump sum grant of Rs. 25000: IRDP subsidy and bank loans can be
accessed.
 Groups save, inter-lend to meet needs of members.
 Program for services (health, education, child care, nutrition, water and
sanitation); other govt. rural development programmes.
 Linkages with govt. line departments; financial institutions; corporates.
Economic and social empowerment is the bottom line.
Contd…
3. SAPAP model (International Model)
 1995, SAPAP pilot in 20 poor mandals of AP.
 Social mobilization as mechanism to form SHGs.
 SAPAP Empowerment model’s 3 components:
social mobilization, capital formation, capacity
building of the poor
 SAPAP implemented in collaboration with local
NGOs and state government.
 This is also a micro finance plus model.
GROUND REALITIES: CERTAIN IMPORTANT FEATURES
1. SHG and Caste
According to a recent sample study, 80% of SHGs are single caste. 20% of groups do
cross caste hierarchies.
N SHGs
Single caste
Mixed caste
ST/SC/ Minorities
BC/OC
Total
AP
Karnataka
Orissa
Rajasthan
214
66%
34%
7%
7%
60
63%
37%
2%
23%
51
69%
31%
4%
50
74%
26%
6%
53
60%
40%
15%
4%
N SHGs
Single caste
Mixed caste
ST/SC/ Minorities
BC/OC
NGO
Govt
Bank
137
61%
39%
9%
5%
49
69%
31%
2%
14%
28
86%
14%
7%
2. SHGs & Poor
% of poor in SHGs
SC
ST
Women headed HHs
Total
AP
Karnataka
Orissa
Rajasthan
51%
30%
25%
11%
53%
7%
13%
13%
61%
45%
10%
16%
58%
41%
35%
14%
34%
27%
41%
3%
(Source: Self help groups in India: a study of the lights and shades, M Harper, 2006)
Benefits of SHG models
 SHG movement created an institutional framework.
 Participation of women in SHGs improved their
access to credit.
 Culture of thrift and disciplined loan repayment
 Winning confidence of mainstream financial sector
as credit worthy institutions.
 Interest rates in the informal credit sector decreased.
 Consumption needs and certain production needs
met.
Problems
Low levels of credit absorption, low
skill base and low asset base.
Interior and tribal villages have not
benefited.
SCs and women headed
households have not benefited.
Pressures by govt to push sterilization
and birth control methods.
Emerging Challenges
 Two major factors threatening sustainability:
 A) Damage to ‘credit discipline’ because of high interest rates and
political reactions to incidents of coercion
 B) High handed recovery of loans
 C) Lack of skills/experience for advisory/technical support services to
promote livelihoods and build market intervention
 Subvertion of P.R.I.s and bitter inter-department rivalry
 Politics of patronage
 Internalised notions of vulnerability of women affecting their confidence
and performance.
 Social norms inhibiting women from articulating personal needs.
 Women experience Invisible barriers to entry in economic & political
spheres.
Gender Perspective of Empowerment
No men in SHGs
Resistance to women’s entry in local
market and political structures
Family resistance to changing power
relations
Continuing need for improving quality of
life: education, literacy, health, child care,
household chores
Empowerment through livelihood
development: Problems
Microfinance programmes assume men and
women face same challenges.
Management of household subsistence needs
Adding to household income stream – (‘work
efficiency’; skills for home based activity etc,)
Managing a small business
Scaling up the small business