KARNATAKA - of Planning Commission

Bangarpet branch to Venkateshwara MahilaSangha of Muduguli on December 9, 1991 andby the Corporation Bank, Andersonpet Branchto Saraswathi Mahila Sangha of Bodugurikion January 30, 1992. NABARD upscaled theprogramme in Karnataka by initiating a seriesof measures that included training of NGOand bank staff, convening regular meetings ofall intervening agencies, analysing reports andproviding feedback for changes in operationalsystems to make them more user-friendly, andlaunching the fi rst RRB (Regional Rural Bank),the Cauvery Grameena Bank of Mysore district,as an SHG promoting institution (1994-95). Inthe 1990s, IFAD, with World Bank collaborationand in partnership with the Government of Indiaand six state governments, including Karnataka,launched a similar programme titled Swashakti.This experience encouraged Karnataka to launcha state-wide programme called Stree Shakti,(Women’s Power) based on the SHG strategy.Together, the initiatives of the various stakeholders,(the government, NGOs, banks) increased SHGcoverage in Karnataka signifi cantly. At recentestimates, 40,295 anganwadi workers (of theDepartment of Women and Child Development),561 NGOs, 8 regional rural banks, 20 DistrictCentral Co-operative Banks, and 2 commercialbanks are engaged in SHG promotion. Togetherthey are estimated to have facilitated the creationof close to 1,95,000 SHGs in Karnataka. 1OutreachToday there is scarcely a village in Karnatakawhere an SHG has not been facilitated. Thestate government is now the single largest SHGpromoting institution. It is important also to notethat even in the many government programmesthat are not primarily SHG-oriented, SHGs arestill included and budgeted for, mainly to engageand empower the poor and introduce a measure1Estimated on the basis of a note circulated by NABARD at ameeting called in 2004 at Bangalore of bankers, Government(Women and Child Development Department) and NGOs inKarnataka to review the SHG-Bank Linkage Programme and fi xtargets for 2004-05. The number of 1,95,000 SHGs also tallieswell with the fi gures obtained from the various agencies listedin Table 14.1.of equity, where otherwise, the programme mayhave remained ‘poor-neutral’. Table 14.1 gives anindicative list of interveners and the SHGs theyhave promoted.Broadly, therefore, there are three categories ofinstitutions promoting SHGs: the government,fi nancial institutions and NGOs. The promotinginstitution plays a signifi cant role in the way anSHG develops and functions. The Stree Shaktiprogramme, anchored by the Department ofWomen and Child Development, attempts tofocus the attention of members on curbingdomestic violence against women, promoting girlchild education, preventing child marriage, etc.Up-scaling the number of SHGs to 100,000meant that all activities did not take place asscheduled due to budgetary constraints. SHGspromoted by fi nancial institutions are normallyviewed as potential sources of clients. They tendto focus on credit provision, and investment in theinstitutional capacity building of SHGs is limited.These SHGs hardly ever move into social activism.Of the three broad categories of SHG-promotinginstitutions mentioned above, fi nancial institutionsmay have the smallest numbers, but in a way theyare the most signifi cant since these initiativesof bankers to become directly involved in SHGformation have helped to mainstream the SHGstrategy in their priority sector portfolio and tomake it a normal lending activity of banks. SHGspromoted by NGOs tend to promote the prioritiesand agenda of the NGOs concerned and to refl ectthe organisational and fi nancial strengths as wellas weaknesses of the NGOs. Thus, at least inthe fi rst two years of formation, they may rangebetween two ends of the spectrum: the onedeterminedly focussed on altering power balancesin favour of the poor (mainly poor women) withoutmuch attention to strengthening SHG institutionalsystems and the other focussed on building up theSHG as a professionally managed institution withlittle or no attempt made to infl uence social issueson which members could focus, leaving it to thediscretion of members themselves.However, though there may be one institutiontaking the lead in SHG promotion in a givencontext, yet in most cases other institutions areKarnataka Human Development Report 2005Broadly, therefore, thereare three categories ofinstitutions promotingSHGs: the government,financial institutions andNGOs. The promotinginstitution plays asignificant role in theway an SHG develops andfunctions.291