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SOIL Report 2011 - ACCESS Development Services

SOIL Report 2011 - ACCESS Development Services

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State as the Largest Livelihoods Promoter 99Figure 4.1: NRLM delivery system in two phasesSource: Compiled from various documents of NRLM in public domain.since 2000. The government is set to spend`225 billion for the scheme as an initialinvestment over the next plan period.4.3.1. Key challenges in rolling outNRLM on a large scaleThere are several challenges in implementingNRLM as the magnitude and natureof poverty are varied. Some of the majorchallenges are already being debated at thisjuncture. These are:1. Feasibility of organizing 70 million BPLfamilies into SHGs.2. What will these SHGs do?3. What skills are required by the SHGsand their members to get meaningfulwork?4. What skill training and placement isenvisioned?5. What will be the consequence of theabsence of a sustainable employmentstrategy?6. This could be another flawed schemewhich could turn the SHGs into a vehiclefor routing other welfare programmesand highly corrupt subsidy-drivenschemes.7. At one level, such programmes are asilent acceptance of defeat in solvingthe problems of rural India, with nolong-term solutions on the difficultyof endowing the rural masses, especiallythe rural youth with the requisitemarketable vocational skills and careercounselling to make them more employable.8. It is not clear whether SHGs can movebeyond the primary production level tothe next level of high quality products,that is, services and value-added processedgoods.9. Political will at both the central and stategovernment level to ensure fund entitlementsand simple transfer of moneysans the corrupt system so that this doesnot turn into another politically drivenprogramme, leading to election slogansto win the votes.10. Is it a short cut without a back-end supportstructure and committed investmentsin education and skills to helpthe rural poor out of poverty?4.3.2. National rural livelihoodsproject in 12 statesIn 2000, the World Bank extended its supportto the state governments for the promotionof economic livelihoods, and mobilizationand delivery of services, to the poor, inselect districts of Andhra Pradesh, MadhyaPradesh and Rajasthan. Several studies

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