Chapter VCapacity building and training: Utilisation of earmarked funds (10 per cent of total SGSY allocation)for capacity building and training of swarozgaris has been inadequate.Implementation Mechanism: District Rural <strong>Development</strong> Agencies (DRDAs) have shortage of manpower(more than 40 per cent posts are vacant). They are over burdened with multiple schemes and areunable to handle complex livelihood issues.SHG v Promotion: States are charged to prepare plans to cover at least one member from each ruralBPL family under SHGs during the 11th Five-Year Plan. To cover all the BPL families there is a needto form 20 lakh more SHGs, which is an enormous task in the light of the resource availability and thedelivery mechanism that exists vi .Inclusion of above poverty line (APL): A substantial proportion (over 25 per cent) of SGSY beneficiarieswere from the top two quintiles of the population in the villages. The targeting has been a problemalso because of the lacunae in the BPL list that exists in the blocks, which have left out the very poor.Quality of SHGs: A large number of SHGs have been formed and have passed grading. But the levelof understanding of the block staff about SHGs and quality is limited in most places. The entry ofother self-help promoting institutions (SHPIs) has not been welcome in general. There is a need toemploy SHPIs in large numbers to ensure promotion of good quality SHGs, and ensure strong socialmobilisation.Flow of Credit: Banks in general have not been enthusiastic about lending to the poor households andthus have placed a major block in the progress of SGSY.Level of Financing: The financing available under SGSY is quite inadequate to promote livelihoods.In particular, there are issues with working capital finance.Livelihood support: The scheme of supporting one member per poor family for self employment ishighly inadequate to meet the target of poverty elimination in the conceivable future.Dedicated structure for SGSY: A separate delivery structure for SGSY at the state, district and blocklevel, manned by development professionals, needs to be created. This has to be formed outside DRDA,and made free from patronage and political interference.Other proposals in the restructuring of SGSY include: (i) replacement of the subsidy component inSGSY with interest subsidy; (ii) convergence with SHGs promoted by other organisations like NABARD,SIDBI, RMK etc.; (iii) insurance of beneficiaries and assets; (iv) development of SHG Federations asFinancial Intermediaries; (v) forward and backward linkages for SHG products.3. Government-led livelihoods programmes with multilateral agency support3.1 World Bank funded District Poverty Initiatives Projects (DPIP) 12The DPIP in Andhra Pradesh (AP), Madhya Pradesh (MP) and Rajasthan funded by WB are communitydemand-driven projects. The three share common development objectives, but the context in whichthey operate and the methodologies used, differ to some extent in their approach to rural developmentto India. There is a strong focus on developing grassroots organisations and building the capacity ofexisting local institutions. The difference is in the types of community groups formed and the way variousinstitutional actors interact.11612Developed by Girija Srinivasan and Santosh Sharma. The authors are thankful for the valuable inputs received from Mr. Raghunath Reddy, IKP,Mr. Sitaramachandra Machiraju, Mr. G Muralidhar, Akshara, Mr. Asish, Team leader, PRADAN, Mr. Rajeev Gupta, BASIX.
Public Systems: Major central government anddonor-supported programmes for Livelihood Promotion(i) DPIP-Andhra Pradesh Rural Poverty Reduction Programme (APRPRP) –Indira Kranthi PathamThe Andhra Pradesh District Poverty Initiatives Project (APDPIP) was built on the United Nations<strong>Development</strong> Program (UNDP) supported South Asia Poverty Alleviation Project (SAPAP) i and theAP government’s investments in institution building through SHGs. A follow-up APDPRP programmescaling up APDPIP ii in the rest of the districts in AP was initiated in 2003. In the year 2005 the stategovernment decided to extend the same approach to all rural areas of AP iii by the name of Velugu andleverage the programme with funds from ongoing programmes from the state budget. The World Bankcredit supports the overall strategy of the state to address rural poverty reduction in a holistic mannerand the present government has renamed Velugu as Indira Kranthi Patham (IKP). Thus IKP is an integrationof these programmes and SGSY and the state’s funds. The Society for Elimination of RuralPoverty (SERP) implements this large programme.is built on thefoundation ofcommunityowned andmanagedinstitutionswith a role forpoor women totake initiativesin planning,implementingand monitoringthe developmentprogrammes.Livelihood Promotion StrategyInstitution Building: The entire programme is built on the foundation of community owned and managedinstitutions with a role for poor women to take initiatives in planning, implementing and monitoringthe development programmes. Community institutions have been developed into a four-tier structure.All SHGs at the hamlet level are organised into a Village Organisation (VO). There can be more thanone VO in a village, depending on the numbers. The VOs in one Mandal are then federated to form theMandal Samakhya (MS), which typically has 4,000 to 6,000 women as members. Around 20 MS’s formthe Zilla Samakhya (ZS). A key design feature is the deployment of a large number of animators, groupleaders, community resource persons, etc selected from the target villages to support the CBOs. Thestrategy is to ensure that the institutions are formed around a system of local ownership and supportand are not dependent on external sources forever.IKP hascontributed tothe de-linkingof exploitativeinter-linkedcredit andcommoditymarkets.As of April <strong>2008</strong>, the programme has mobilised 88 lakh members into seven lakh SHGs, 34,269 VOs,1,086 MSs and 22 ZSs. A unique feature of the programme has been the focus on the poorest of thepoor, SCs, STs, single women and the disabled. The percentage of total SC and ST households mobilisedinto SHGs account for 90 per cent of the total of such rural households. These institutional arrangementshave enabled the poor to access a range of services, resources and expertise from both the publicand the private sector.Build on existing livelihoods: IKP has identified a number of livelihood initiatives, which are aimedat building on the existing livelihood patterns of the poor. Availing financial support through SHGs, thehouseholds have invested predominantly in agriculture, dairy, non-farm trade, and sheep-rearing withagriculture and dairy taking a predominant share. The programme has contributed to the de-linking ofexploitative inter-linked credit and commodity markets. CBOs are permitted to act as authorised procurementand marketing agents by line departments and para-statal agencies like the dairy corporationwhich assures communities of price benefits. The collective activities have cumulatively benefited about300,000 poor households in the project area. The turnover has increased from Rs 16 crore in 2004-’05to Rs 320 crore as of March <strong>2008</strong>.Community Managed Sustainable Agriculture (CMSA): The major intervention under CMSA hasbeen promotion of non-pesticide management practices (NPMP) which replace chemical and other externalinputs with local knowledge and natural methods of pest management. The partnership betweenNGOs and MSs as a community-managed extension programme, covers 2.05 lakh acres benefiting nearly90,000 farmers. The cost of cultivation has reduced to a substantial extent leading to a 40-to-60-per centincrease in the income of a farmer.The sustainable agriculture intervention is now being looked at as a comprehensive programme whichis dovetailing various other elements such as natural resource management of soil and water, setting up117
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ChapterPage NoForeword 6Preface 8Ab
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Chapter Iresponse, risks and shocks
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Mona DikshitMona Dikshit has been a