8. Self Help through Microfinance: A paradigm shift in Orissa, India

More documents

Recommendations

Info

Kalajhini Mahila SHG 5700 Golden Grass Cultivation on leased in land &Trading,PisciculturePurana Sahi Mahila SHG 2581 Golden Grass Processing &Trading, Renting outSprayer, Diesel Pump, Tarpaulins etc.Maa Tarini Mahila Samiti 3257 Renting out Sprayer, Diesel Pump, Paddy ThresherHoller, Golden Grass cultivation & TradingMaa Mangala Nari Sangh 4582 Rice Trading, Goatery Turmeric Processing,PiscicultureMaa Durasuni SHG 3160 Golden Grass Processing, Pisciculture & PrawnCultureMaa Bhagabati Sangh 790 Herbal garden, Lemon, PiscicultureAdam Changa SHGPatherkata VillageCommittee 6300 Pisciculture, Agri – processing, Cashew plantationDharamveer SHGJay Hanuman KrushakKalyan Sangh 5200 Golden Grass cultivation & ProcessingLinkage Building – a way for EffectiveEmpowermentThe empowerment of these Self HelpGroups was possible because of theirstrong contacts and links with otherinstitutions and government machinery. Allgroups regularly visited the block office ofthe local government for information andhad a good rapport with the BlockDevelopment Officer. They regularlyvisited the DRDA and local NGOs. Seeingtheir interest, various govt. agencies andNGOs conducted training programmes ongoat-raising, piggery, fishery, dockery,dairy farming, Golden Grass cultivationand processing. In most meetings, theBlock Development Officer, Asst.Agriculture Officer and other govt.bureaucrats/ technocrats along with NGOsparticipated.4Capacity Building for InstitutionalSustainabilityThe SHGs felt that participation andinteraction with others would reduce theinequalities in their social system.Consequently they kept good contactswith DRDA, Block Offices, local NGOs andOrissa University of Agriculture &Technology. In turn, these agenciesprovided training in pisciculture, piggery,Goat-raising, dockery, dairy farmmanagement, cultivation and processingof Golden Grass, squash and picklemaking.Groups were taken on exposurevisits to various places. At group level,these SHGs started Golden Grasscultivation, processed the products intoropes and sold them in nearby markets.Groups also took block level contracts forrenovation of ponds, construction ofcommunity halls and repairing of thevillage road from the block office.4These groups got grants from DRDA, GVT,and NYK. The grants were in both cash andkind. They varied depending on groupactivities. In some cases, the grant was on ashare basis i.e., input from granting agencyand labour from the groups for activities likethreshing floor, community hall and adulteducation center. GVT provided grants in theform of sprayers, tarpaulins, rice winnowerand huller on a 50% cost sharing basis.International Journal of Ruralvol. 15 no. 1 AprilStudies (IJRS)2008ISSN 1023–2001 www.ivcs.org.uk/IJRS Article 8 Page 6 of 7
Improved Standard of LivingAll members of the 10 SHGs were studiedand the results revealed that the averagepersonal income of the membersincreased significantly. This was due tothe capacity building of the members andinitiatives to undertake enterprises at apersonal level (apart from the group level).The literacy percentage increased from14% to 68%. The literacy level increaseddue to high peer pressure and motivationfrom other members. There was 92%attendance of members in health andsanitation camps and the few absenceswere due to emergencies.ConclusionThese groups were informal groups whosemembers pooled savings and lent outwithin the group on a rotational or needsbasis. These groups’ formation was basedon specific activities; they promotedsavings among members and pooledresources to meet the emergent needs ofmembers, including consumption as wellas production needs.The internal savings generated by thesegroups were well supplemented byexternal resources loaned/donated bybanks, NGOs and govt. agencies. TheseSelf Help Groups were able to mobilizeand effectively recycle pooled savingsamong members. They succeeded inproviding banking services to theirmembers, though in a primitive way, but ina manner which was cost effective, simpleand flexible.The clearcut visible outcome fromMicrofinance• Enhanced self-reliance, in terms ofidentification of appropriateresources• Creative use of locally availableresources• Increased ability of SHG membersand villagers to work together• Strengthening institutional strengthand institutional health• Coming out from traditional issues& social stigmas• Marked increase of literacy due tohigh peer pressure to handlemicrofinance among the SHGgroup members• Positive change in knowledge,attitude and behaviour among thevillagersAbbreviationsDRDA: District Rural development AgencyGVT: Gramin Vikas Trust, a national LevelNGO in IndiaSHG: Self Help GroupMFI: Micro Finance InstitutionsNABARD: National Bank of Agriculture &Rural DevelopmentNGO: Non Government OrganizationNYK: Nehuru Yubak Sangh, a nationalLevel NGO in IndiaThe groups developed good linkages withvarious NGOs and govt. institutions. On apersonal level, the average income of themembers increased substantially. Theliteracy level increased from 14 % to 68%.The level of awareness of health andhygiene increased. Group membersclearly perceived their social, educationaland economical upliftment by the SHGformation. Seeing the upliftment throughthe SHG movement, other women of thevillage have also started forming groups.International Journal of Ruralvol. 15 no. 1 AprilStudies (IJRS)2008ISSN 1023–2001 www.ivcs.org.uk/IJRS Article 8 Page 7 of 7
Page 1 and 2: Self Help through Microfinance: A P
Page 3 and 4: 1. Maa Durasuni Self Help Group(Fem
Page 5: Interest perRs.100 permonthCash inB

8. Self Help through Microfinance: A paradigm shift in Orissa, India

Create successful ePaper yourself

Delete template?

Save as template?