UPSC CSE Prelims 2024

Self Help Groups

Introduction

  • A 'self-governed, peer controlled voluntary Ass of people with similar S-E background who aspire to improve their living stds & address their common problems'
  • Origin—ROSCA (Rotating Savings & Credit Association)—> Gained momentum after 1992 (SHG Bank Linkage Project)

Importance of SHGs

  • Poverty alleviation & Rural Development —
    • Financial inclusion-- Facilitates access to credit & Micro Finance to poors + SHGs members act as "Banking Correspondent" (Bank Sakhi prog)
    • Provide Livelihood  (By vocational training, skill development)-- Improved living standards
    • Promotes savings & investments
    • Promotes Entrepreneurship—self-employment through setting of micro-enterprise
  • Awareness generation + Efficacy in implementation of Govt schemes
    • DAY-NRLM, MGNREGA
    • Social Audits
  • Many +ve externalities

    • literacy, Nutrition-- Operates PDS shops (MH)

    • ↑ Maternal & Child health-- By implementing ICDS & MDM

    • Better health care, family planning

    • Voice to marginalized—Social justice + Inclusive growth.

  • Social Justice & Women empowerment--
    • Financial independence through self-employment

    • Encourages entrepreneurship

    • Financial independence  Literacy rates, nutritional status-- their self esteem
    • Inculcates leadership skill—participate actively in Gram Sabha & Elections
    • SHGs bonds women into a collective force--> Act as PGs—Prohibition of liquor in Bihar because of pressure from women SHGs.
  • Facilitate--
    • Democratic Deepening & Grassroots empowerment ( Act as PGs at Village level)
    • Creation of Social capital 
    • Combating Social ill— Close liquor shops
    • Imbibing spirit of Self Help, Democracy, Social Solidarity & social cohesiveness

  • Role of SHGs during COVID-19
    • MoRD— 132 lakh+ masks were produced by 14.5 k SHGs
    • Women SHG members (Bank Sakhis')— provided doorstep banking services— pensions etc
    • Kudumbashree—Dispelling fake news + disseminating authentic information through Whats App groups + Delivered free ration + Running kitchens around  state
    • Prerna SHG (UP)—communicated on social distancing by street art & wall paintings.

Case studies

  • Kudumbashree (Kerala)—Skill training & poverty eradication of women
  • Sorath Mahila Vikas Mandali (Gir region) fighting social taboos by helping widows 

  • TN used SHGs to inculcate sanitation habits among people under SBM

  • Haryana used for increasing sex ratio & BBBP

  • SHGs like SEWA, Lizzat papad promotes entrepreneurial culture among women.

  • TANWA ( TN Women in Agriculture) by TN govt

Govt steps

  • NABARD efforts--
    • SHG-Bank Linkage Prog—For providing micro-finance / Collateral-free loans to SHGs.
    • By providing grant for training, capacity building, skill up-gradation. 
    • “Women SHGs Development Fund” (NABARD) with a corpus of 500 cr 
    • e-Shakti initiative-- for Digitization of SHGs
  • Rashtriya Mahila Kosh—acts as a facilitating agency & provides loans to NGO-MFIs
  • Budget 2019-20
    • Women SHG interest subvention prog to be expanded to all districts
    • Women SHG having a Jan dhan a/c to be allowed a overdraft of ₹5000.
  • NRLM, DAY –NRLM— To promote self-employment in rural areas through formation & skilling of SHGs.
  • Recent Announcement--
    • To create 75 lakh SHGs by 2022
    • 2x collateral free loans to WSHGs from 10 lakh to Rs 20 lakh.

Challenges for SHGs

  • Socio-cultural hurdles—  
    • Embedded Patriarchy, Caste Rigidities
    • Illiteracy— Information asymmetry  
    • Lack of financial literacy—Creates Mgt & Governance issues
  • Lack of proper training regarding production tech, quality, packing, etc—No competitive adv.
  • Problems related to Raw Materials, Marketing—Bcz of
    • Lack of linkages with marketing agencies
    • Inadequate sales promotion
    • Issues of quality & Tough Competition
  • 2nd ARC
    • Most of their activities are still based on primitive skills related mostly to primary sector enterprises—Poor value addition—No substantial increase in the income of group members
    • SHG has led to definite social empowerment of poors but economic gains rnot adequate to bring a qualitative change in their life.  

Way forward

  • Est separate SHG monitoring cell in every state

  • Awareness camps about schemes of assistance available to SHSGs 

  • Invest in digital-financial literacy & Entrepreneurship Dev 
  • With increasing Urban poors—Need to develop & strengthen SHG network in urban areas.
  • 2nd ARC—SHGs needs to be extended to urban & peri-urban areas

              SHGs are imperative for economic revival & reconstruction in post covid order

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