Self-help groups and the poor

Self Help Groups – Under NULM and their Dynamicss for the Urban Poor

Under the NULM that has been discussed above, an of import subdivision that the paper has focussed on is the Social Mobilization and Institutional Development ( SM & A ; ID ) of the urban hapless. This subdivision has concentrated a big constituent on ‘community institutions’ and their function in turn toing poorness. Hence it is of import to understand the demand of community establishments and why Self-Help Groups ( SHGs ) form an of import portion of this procedure. Second, it is cardinal to this paper as to why the NULM has been keen on SHGs as an instrument for the establishment development for the urban hapless. Hence, this subdivision of the paper would foreground the principle of NULM for SHGs in urban countries along with an analysis of the same by foregrounding both positives and negatives of a SHG theoretical account for the urban countries.

Community Institutions and SHGs

Under the NRLM to develop and promote people for sustainable rural development programmes, community establishments were seen as the most of import unit. It was through these programmes that a community is strengthened and empowered with capablenesss for assorted undertakings. The authorities establishments use these Community Based Organisations ( CBOs ) as the instigator of understanding the demands of the community and they play a function in the overall administration constructions as good. SHGs are one such CBOs. SHGs are defined as ‘Self Help Groups ( SHGs ) as the organized forum of people which is planned, shaped and structured by the people themselves to achieve present/pre-identified ends and intents[ 1 ] ’ . These groups are the agents of societal alteration and accelerators for the full authorization and development procedure in a community. Therefore, since 1990 based on Bangladesh’s microfinance experiences and India’s MYRADA experiences, SHGs have become a critical CBO in any rural, tribal and semi-rural country ( urban poorness and adult females SHG ) .

Hence, with this SHG motion seen to convey consequences in rural countries, under the SJSRY programme of authorities of India, Development of Women and Children in the Urban Areas ( DWCUA ) groups were formed. These were subsequently called as SHGs. The major thought behind formation of SHGs is chiefly because they act as entry points for any intercession. In rural countries, SHGs were seen by NGOs and authorities intercessions as the entry point for many other societal activities – from watershed councils to school commissions to mid-day meal strategy. They had become vote blocks and able to assist neighbors stand for office and win elections ( EDA – SHGs visible radiation and sunglassess ) . Sing how in rural countries SHGs have made an impact, it was assumed that even in the urban- slum countries it would. It would possibly move as an entry point for other formal interactions with the community. ( Possibly illustration of AP with MEPMA )

Types of SHGs

The theoretical account of SHG lending micro-finance has been brought into India from Bangladesh which has been acknowledged as a innovator in the field of micro-finance. India has adopted the Bangladesh’s theoretical account in a modified signifier. To relieve the poorness and to authorise the adult females, the micro-finance has emerged as a powerful instrument in the new economic system. With handiness of micro-finance, self-help groups ( SHGs ) and recognition direction groups have besides started in India. And therefore the motion of SHG has spread out in India.

SHGs can be of two types – Micro-finance ( MF ) , which promote bank linkages and are merely for micro-finance and recognition or Micro-finance asset ( MF+ ) which work beyond merely pecuniary minutess. It can be said that one is highly on bettering fiscal facets of the adult females who join SHGs while the other considers societal issues as a portion of SHGs itself. Hence, it can be questioned whether there are tensenesss in the manner these two operate. Even with societal aims, ‘Self-Help’ has a fiscal base ( lodging and pull offing nest eggs, loaning and adoption ) and the base has to be right, with effectual and crystalline direction and the counsel to make this ( visible radiations n sunglassess paper ) .

• Self Help Affinity Group ( SAG ) as a construct

An of import factor that plays a important function in the type of SHGs is the caste or category affinity. As MYRADA, an NGO engaged in rural development, is pull offing 18 undertakings in 12 backward territories of Karnataka, Andhra Pradesh and Tamil Nadu. MYRADA has promoted Self Help Affinity Groups ( SAGs ) as a tool for authorization of the hapless and the publicity of their support schemes. The construct of SAGs is alone to factor in the singularity of category or caste or income, fundamentally a common land for the formation of groups of adult females. The common factors ensured that power dealingss in group meetings are reserved as impersonal. This was done in rural Mysore, before it spread to other rural parts.

• Self Help Groups and NRLM

Therefore utilizing this construct SHGs were to be formed under the NRLM that would assist adult females salvage money, get credits for low involvements, aid other adult females in the group for thrift and bank linkages. Once this was ensured, SHGs as units were to supply adult females with voice at gm panchayat meetings, to enable them to entree other authorities strategies like PDS, MNREGA etc. hence, Linkages have been established, e.g. , between SHGs and Gram Panchayats for recognition, income generating activities and for wellness related issues. Gram Panchayats and husbandman groups are being linked for agricultural services like loans, input supply, etc.

It was through the publicity of SHGs by NABARD that the SHG motion found impulse. Subsequently, under NRLM most provinces adopted this thought of SHGs. The first phase affect acquiring the SHG bank linkages in each small town along with formation of Federations, 2nd involved the publicity of little and average endeavors with SHG federations and thirdly, these federations of influence operation of authorities strategies.

• What is each state’s idea/concept of SHGs ( Urban versus rural ) ?

Kerala’s SHG theoretical account does non see a rural – urban divide. This is chiefly because of the manner in which the geographics is unvarying. Hence, for every 20 – 40 adult females from households under poorness line have a grassroots degree association known as vicinity group ( NHGs ) that act as SHGs, guaranting a forum for hapless adult females.

Andhra Pradesh’s SHG theoretical account varies in urban and rural countries. In the rural countries, the SHG acts a nest eggs and thrift organic structure along with guaranting a convergence between SHG members and Panchayats. However, in the urban SHG theoretical account, it is more of an constitution of micro-enterprises for adult females who live in slums through SHG and bank linkages.

Maharashtra’s SHG rural theoretical account once more is on similar to that of the Andhra Model. However, the Pune theoretical account has been designed from the Kerala’s theoretical account. Pune was in fact one of the urban territories in Maharashtra to hold successfully endured this SHG motion for urban slum households. The Urban Community Scheme ( UCD ) , launched by the Pune Municipal Corporation ( PMC ) , has financially empowered 4,000-odd adult females populating in the metropolis ‘s slums. Apart from fiscal authorization, some SHGs have tried bring a alteration in their community every bit good. For illustrations, a SHG from Mundhawa ( Pune ) has started its ain chapatti-making unit to enable adult females of the SHG to acquire an extra beginning of income and has now become a new micro – endeavor in itself.

Convergence between CBOs and Local Government Institutions

Convergence and alliance between Panchayats and community groups has been widely recognized as an eminent scheme for local degree development action. This is chiefly because it ensures community engagement in specific undertaking activities that Panchayats might desire to set about. Furthermore, it involves the community and they learn to accept the undertaking as their ain and guarantee its transparence and their function by partnering. Hence, constructing linkages between CBOs with the Gram Panchayats and other authorities bureaus is frequently considered a practical scheme to guarantee station undertaking sustainability of the establishments.

Self Help Groups and Good Governance

CBOs like SHGs were to make the same. They are to move as a nexus between the community and Panchayats and adult females are to take up the undertaking of guaranting answerability is being maintained in such undertaking activities. The SHGs are to move as force that trains adult females to raise their voices and understand the value of transparence, answerability, self-regulation and organizational sustainability which are the nucleus of the SHG formation and operation. Thus these values get engrained into the adult females who are a portion of SHGs and they can be better change-agents or can move as entry-points for other governmental intercessions. For illustration, in Andhra Pradesh, under the Rural Permanent Housing Programme of the province authorities was entrusted to the SHGs on a pilot footing to understand if they are successful in interacting with the authorities functionaries and their community to guarantee the strategy is received by all in demand of it. Similarly, constructing baby’s rooms and direction of water partings are besides entrusted to adult females in some territories of AP. In add-on to the above, building of single healthful latrines has been entrusted to adult females in assorted topographic points. This is because adult females are seen to active spouses of the authorities in development undertakings. Therefore, through the innate values that an SHG runs on, one time understood by the adult females and they can utilize it for guaranting their rights, a ‘good governance’ theoretical account can be seen to be.

NULM’s thought of SHGs

This history and the principle of SHGs conveying in consequences for rural hapless adult females through NRLM, promoted NULM is initiate the thought of SHGs for the urban hapless, those who stay in slums and are below poorness line. The thought of behind this venture was that the urban hapless are entrepreneurial and have a great capacity to take hazards. Hence, with equal linkages and benefits, they can cut down their ain poorness and there was a demand for an entry point to supply for these benefits and necessities. Hence, the thought of SHGs was taken up to guarantee a discovery non supplying these necessities. Furthermore, the formation of SHGs was one of the accents under NULM. This would possibly be first clip for many metropoliss, instead slums of these metropoliss, where adult females will be organised into thrift and credit-based SHGs to run into their fiscal and societal demands. It was felt that the urban hapless had a deficiency of entree to finance, therefore through SHGs- recognition and bank linkages for loans would do adult females get down micro – endeavors for an addition in income coevals activities and hence, they would be able to cut down their poorness. Last, SHGs would be the platform where adult females could be provided developing for such micro-enterprises as good.

The NULM has provisioned for such groups or persons of the group to acquire fiscal aid under the mission’sSelf-Employment Programme ( SEP ) at a subsidised involvement rate to put up their ownmicro-enterprises.Being uneducated, possibly even migrated to metropoliss along with holding noformalaccomplishments, the urban hapless are peculiarly vulnerable as they are forced to work as amahs, cooks, guards or in perspiration stores where they toil in hapless on the job conditions, frequently being denied minimal rewards. The framers of the NULM have decided to give them an chance to larn new accomplishments so that they can command a better wage or put up freelance ventures. Therefore, in a manner, be able to take attention of their ain poorness.

To sum up, the positives of SHGs in urban countries is that they would make a revolving fund which would move as a safety cyberspace for the hapless along with the thought of micro-enterprises that would cut down their exposure.

Problems with SHGs and Urban country

When expression at the NRLM holding successful SHGs and NULM endeavoring to hold the same success rate, there are many rural-urban differences that tend to be ignored and a generalized thought of SHG being an authorization scheme tends to emerge. Hence, we believe there is a demand to understand the kineticss at drama when an thought that has rudimentarily been one of foundation blocks of rural countries to be imposed into that of the urban countries.

• Heterogeneity: A concern?

In the rural countries we see that there is homogeneousness among communities of people in a small town, in footings of their caste, income, support etc. , which enables adult females who are similar to organize groups or SHGs with similar affinities. However in the urban countries there is a assorted population in most slums. Some who are migratory workers, some who are from a higher income group yet can non afford lodging, some who are below poorness line and from assorted and diverse supports like domestic workers, store proprietors, building workers, day-to-day pay workers etc. Given this diverse set of people in a community of a slum, formation of SHGs if non on a footing of commonalities or equity can do legion issues of power political relations like who plays what function in the operation of SHGs, non being able to pay back loans, one adult female giving loans and so on. Furthermore, the migratory population tend to be excluded because of the fright of go forthing the slum and traveling back to their small town, inhibits the SHG members to include them in the group. Therefore, heterogeneousness becomes a concern among the urban hapless.

• Urban Governance and SHGs

We have seen in the earlier subdivisions how SHGs are one of the most efficient CBOs that map in rural countries. Along with this, they are besides seen to authorise adult females by guaranting engagement and coaction with Panchayat for assorted authorities strategies. However, there is no such proviso made for SHGs in urban countries. SHGs in urban countries are simply organic structures for fiscal stableness and for formation of micro – endeavors for employment of adult females. Furthermore, they are non seen as an built-in portion of the administration construction itself. They exist outside of the construction, unlike the 1s in rural countries. Hence, they might stop up being vote Bankss for some political party that would enable or promote some adult females to raise their voice. Hence, they do non guarantee or enable political authorization for adult females. An illustration from Karnataka Urban Infrastructure Project was that although local authoritiess and assorted sections of the State of Karnataka enforced plans for the urban hapless and assisted the bing Self Help Groups in assorted ways, there are several restraints to the advancement of these plans. Inputs for group solidarity, group affinity and the similar have been really limited and the deficiency of this group solidarity led to no engagement from certain communities in the administration or guaranting execution of the undertaking.

• Womans as donees or brunt carriers?

SHGs expression at adult females members as being donees through credits, loans and bank linkages, it has besides been seen that they tend to go a load for the adult females as the brunt of the duty to pay back the loan lies entirely on the adult females. Hence, if the adult female had taken the loan for junior-grade issues or demands of the hubby, it is finally her exclusive duty to pay it back with no aid from her husband’s side. Therefore at times SHGs become a load on the adult females and alternatively of being donees are forced take duty of the family itself. In assorted surveies it has been seen that entree to microfinance did non ever lead to women’s control over the financess obtained. Women member of SHGs frequently availed loans to put in household concern run by the male member of the household. This fits the Indian ethos of household being the chief societal unit. Hence, SHGs need non ever assist cut down poorness or cause women’s authorization and this can be true for SHGs in rural and urban countries.

• Power dealingss

At times, in SHGs there are power dealingss that tend to come up in the group. This could be because some adult females can non read or compose, therefore do non cognize the sum they have to pay back. They tend to be the more marginalised 1s in the group itself as they might acquire cheated in the procedure. Apart from this, some adult females might be more financially stable than others and hence, might maintain lending the adult females money. This could be because of better support chances, sing that in urban infinites the support chances are highly diverse. The opportunities of absurd are higher in urban countries because of the deficiency of group solidarity and equity in the choice of members. Hence, it can be said that it is necessary to hold a cohesive group or adult females who belong to the same category, to enlist any sort of support and to cut down the power political relations that play out if this clause is non met.

• Where is the ‘trust’ ?

The trust factor is an of import and indispensable portion of SHGs for adult females both in the rural and urban countries. In rural countries, due to the affinity and geographical factors the ability to swear members of one’s SHG is higher than the trust involved in urban countries. This is once more attributed to the diverse and heterogeneousness of the members in urban countries. Hence, the ability and the privation of adult females to fall in SHGs vary. The construct of Self Help Groups thrives on common trust and aid, shared ownership, peer force per unit area, stressing group solidarity and togetherness, which are non a portion of the vocabulary of the urban hapless. Urban hapless adult females have to bear the sick effects of societal struggles and intuitions which appear to be more frequent in urban countries, which makes them aversive to swear as a construct. This can turn out to be of much injury when an community-based establishment like SHG has to be functional.

• Is it all about the ‘money’ ?

This is a inquiry that is raised when one negotiations SHGs and micro-finance. Micro-finance can non be the reply to eliminate poorness and cause authorization, nevertheless they do ease it. In urban countries, since there is no trust among communities of adult females along with no homogeneousness or solidarity, SHGs map merely as money givers to adult females. Though there are two types of SHGs, SHGs in urban countries would possibly be merely for micro-finance and non for micro – finance plus. This is chiefly because the purpose with which NULM approaches SHGs and the adult females of the slum besides would look at it, would be for pecuniary intents. They are to supply for micro – endeavors and bank linkages, and can non travel beyond that in urban infinites. Hence, it becomes all about the money and barely about group community. Therefore, looking at assorted surveies and the province of SHGs, I believe it can be argued that microfinance plans have non ever succeeded in accomplishing their aims of sustainable poorness relief and authorization because they do non affect other plans of sustainability. And this would be more debatable when SHGs are introduced in urban infinites, given the sort of kineticss that play out.

Therefore, it can be said that though SHGs might hold been a good and superb thought under the NRLM for the rural countries, in urban vicinities, given the power kineticss, category or caste disparities, deficiency of proper engagement with the local governmental organic structures and deficiency of execution of the decentralized attack in metropoliss, a theoretical account like SHG would possibly stop up merely guaranting pecuniary additions for adult females, which given may non be to all marginalised and excluded adult females. Furthermore, they might go on making disparities for adult females in the urban countries, given its fundamental footing or foundations in the rural contexts.