Empowerment refers to increasing the spiritual, political, social or economic strength
of individuals and communities. It often involves the empowered developing confidence
in their own capacities
Empowerment is probably the totality of the following or similar capabilities:
- Having decision-making power of their own
- Having access to information and resources for taking proper decision
- Having a range of options from which you can make choices (not just yes/no, either/or.)
- Ability to exercise assertiveness in collective decision making
- Having positive thinking on the ability to make change
- Ability to learn skills for improving one's personal or group power.
- Ability to change others’ perceptions by democratic means.
- Involving in the growth process and changes that is never ending and self-initiated
- Increasing one's positive self-image and overcoming stigma
Marginalization
"Marginalized" refers to the overt or covert trends within societies whereby those
perceived as lacking desirable traits or deviating from the group norms tend to
be excluded by wider society and ostracized as undesirables.
One empowerment strategy is to assist marginalized people to create their own nonprofit
organization, using the rationale that only the marginalized people, themselves,
can know what their own people need most, and that control of the organization by
outsiders can actually help to further entrench marginalization. Charitable organizations
lead from outside of the community, for example, can disempower the community by
entrenching a dependence on charity or welfare. A nonprofit organization can target
strategies that cause structural changes, reducing the need for ongoing dependence.
Red Cross, for example, can focus on improving the health of indigenous people,
but does not have authority in its charter to install water-delivery and purification
systems, even though the lack of such a system profoundly, directly and negatively
impacts health. A nonprofit composed of the indigenous people, however, could insure
their own organization does have such authority and could set their own agendas,
make their own plans, seek the needed resources, do as much of the work as they
can, and take responsibility - and credit - for the success of their projects (or
the consequences, should they fail).
Personal development
In the arena of personal development, empowerment forms an apogee of many a system
of self-realisation or of identity (re-)formation. Realising the solipsistic impracticality
of everyone anarchistically attempting to exercise power over everyone else, empowerment
advocates have adopted the word "empowerment" to offer the attractions of such power,
but they generally constrain its individual exercise to potentiality and to feel-good
uses within the individual psyche. The concept of personal development is seen as
important by many employers, with emphasis placed on continuous learning, increased
self-awareness and emotional intelligence. Empowerment is ultimately driven by the
individual's belief in their capability to influence events.
Empowerment can be attained through one or many ways. An important factor in the
discovery and application of the human "self empowerment" lies within the tools
used to unveil the truth. It has been suggested that Yoga is one such tool that
can be used for more than the obvious physical benefits. When Yoga is practiced
consistently the mind / body connection is apparent. Through this connection, the
individual finds him or herself with a stronger sense of self and the ability to
change areas where bad habits rule, negative emotions run rampant, even controlling
addictions through understanding them for what they are. What can be more empowering
than gaining control over self.
Gender
Our primary concern is to build awareness on gender, within and outside the organization,
especially in-line with our mission statement.We therefore strongly believe that
the State Policy has a role to play in building gender awareness and strengthening
the hands of Women.
Schemes Gender Citizen Charter Events Related Links Future Direction Tenders Annual
Reports Research Publications Contact Us Our primary concern is to build awareness
on gender, within and outside the organization, especially in-line with our mission
statement.We therefore strongly believe that the State Policy has a role to play
in building gender awareness and strengthening the hands of Women. As a consequence
of the Platform For Action (also called the Beijing Declaration ) in 1995 and the
forth coming Beijing + 5 Conference scheduled for June 2000, we propose to push
for a State Policy for Women in 2000 & beyond taking into account the fount of learning
and experience available today. We also wish to work on getting every Government
department and agency to draft, announce and implement its Gender Policy.
DeW Gender Policy Statement
In a project for women it is essential that all stakeholders subscribe to a gender
policy. The following are elements of a policy to be adopted by all:
- Preference for women in staffing positions in PIUs and NGOs.
- Training for all Project Staff and NGO staff on gender issues, leading to sensitisation
on women's rights and issues.
- Ensure human rights of women, both staff and beneficiaries, in NGOs and PIUs and
prevent discrimination against them or their harassment as enshrined in the laws
of the land and in International covenants.
- All stakeholders, especially NGOs, are expected to advocate these ideals.
- Sensitise SHG women and their husbands on women's rights
Sociological impact of SHG
NABARD recognizes the social impact of its SHG Bank Linkage Program as a very critical
area that needs to be studied. The term “social impact” includes the empowerment
of the SHG members. In September 2002, NABARD approached Myrada with a request to
undertake a concise Study on the above subject as part of their broader endeavour
to assess the overall status of the SHG Bank Linkage Programme. NABARD’s holistic
plan included a Study of the following five aspects of the Programme:
- An overall review of the progress made under the SHG Bank Direct Linkage Programme,
and a strategy for upscaling the same.
- Commercial aspects of the Programme, from the point of view of the participating
banks.
- A review of the efforts to widen and deepen the range of SHG Promoting Institutions.
- The socio-economic impacts of the Programme, with particular reference to backward
areas
- The social impact of the Programme, with particular reference to the empowerment
status of women SHG members.
Of the above, the last-mentioned component was requested of Myrada. In the beginning,
the expectation was that the Study would focus on the Social Impact of Bank Linkage.
However, since this would have entailed a much more sophisticated level of research
that could not be undertaken due to severe constraints of time, the focus was modified
to study the impact of SHGs per se on the empowerment status of members. With the
knowledge and consent of NABARD, Myrada engaged ORG-MARG (Social Research Unit)
to conduct the Study. Conceptual and logistical inputs were provided by Myrada on
a regular basis, throughout the duration of the Study. The methodology of the Study
was finalised in consultation with Myrada. However, Myrada did not influence the
Study tools or the interpretation of findings. The objective of the Study was to
establish whether and to what extent membership in self-help groups and their consequent
involvement in the various activities of the group have an impact on the social
status and empowerment of the women members of such groups. The Report, from this
point forward, is as articulated by ORG-MARG.Congruity with human nature enhances
the relevance and utility of human development initiatives.
The core of SHGbank linkage in India has been built around an important aspect of
human nature - the feeling of self worth. Over the last ten years, it has come to
symbolize an enduring relationship between the financially deprived and the formal
financial system, forged through a socially relevant tool known as Self Help Groups
(SHGs). An amazingly large number of formal and non-formal bodies have partnered
with NABARD in this unique process of socio-economic engineering. What had started
off in 1992 as a modest pilot testing of linking around 500 SHGs with branches of
half a dozen banks across the country with the help of a few NGOs, today involves
about 20,000 rural outlets of more than 440 banks, with an advance portfolio of
more than Rs.1, 200 crore ($ 240 m.) in microFinance lending to SHGs. Financial
services have reached the doorsteps of over 8 million very poor people, through
500,000 SHGs, hand-held by over 2,000 development partners. A brief history of the
microFinance initiatives in India will help place the present study report in perspective.The
high level of dependence of the informal sector on non-institutional sources continued
despite a rapid growth of banking network in India in the last five decades. The
rural financial system at present functions through an impressively large network
of more than 150,000 retail outlets. Despite such phenomenal expansion of the outreach
of the formal banking structure, the All India Debt and Investment Survey (GoI),
1981, gave indications that the share of non-institutional agencies (informal sector)
in the outstanding cash dues of the rural households was quite high at 38%. It was
also seen that households in the lower asset groups were more dependent on the non-institutional
credit agencies.
The main hurdle faced by banks in financing the very poor seemed to be the comparatively
high transaction cost in reaching out to a large number of people who required very
small doses of credit at frequent intervals. The same held true of the costs involved
in providing savings facilities to the small, scattered savers in the rural areas.Feelings
were mutual among the very small savers and borrowers in the rural areas as well,
as they tended to view banking as an institutional set up for the elite; even if
they tried to reach the bank branch the long distances and loss of earnings on being
away from work while visiting bank branch were hurdles and they were never sure
whether they would get any service or not if they did approach the branch. The levels
of mutual inconvenience and discomfort made the poor look at banking as an almost
inaccessible service, and the banks felt that banking with the very poor was not
a ‘bankable’ proposition.
Impact of SHGs on rural panchayats
A small homogeneous group of poor women consisting of 12 to 20 members voluntarily
formed to promote savings and mutually agreeing to contribute a common fund to be
lent to its members as per the group’s decision is called as “Self Help Group” (SHG).
The members have to be in the age group of 18-60 years.
The unique feature of the SHG is its ability to inculcate among its members sound
habits of thrift, savings and banking. Due to this quality SHGs have been recognized
as useful vehicles to help the poor in accessing financial resources, which were
hitherto not available to them and has helped them break away from the clutches
of exploitative moneylenders.
Regular savings, periodic meetings, compulsory attendance, and systematic training
are the salient features of the SHG concept. Normally, each SHG member saves around
Rs.100/- per month. Each group selects one animator and two representatives from
among themselves. The animator is responsible for providing leadership to the group
and to maintain the various registers. The representatives assist the animator and
maintain the bank accounts of the group.
The SHGs excellent track record of repayment of loans is the cornerstone for the
success of the SHG movement in the state. The percentage of repayment of loans by
SHGs is as high as 98%. The SHG members use their collective wisdom and peer pressure
to ensure proper end use of credit.
Capacity Building
The capacity building of the SHGs is critical for the cohesiveness of the group
and its effective functioning. This is achieved through a series of systematic trainings,
like the basic training (i.e.) SHG member training and animator and representative
training within 6 months of the formation of the group.
SHG member training:
This training is imparted to all the members of the SHG in 4 modules in 4 days.
The primary objective of this training is to orient all members to the SHG concept
and bring out the hidden talents and capacity of all the members. In the year 2006-07,
the per diem payable to the SHG members attending the training was increased to
Rs.45/- per day from Rs. 7.50/- per day.
Animator and Representative training:
The animator and one representative from each SHG are given this training in 3 modules
in 6 days. The main objective of this training is to enhance the leadership quality,
team building spirit and to build their capacity to maintain books of accounts.
The per diem payable to the trainees was increased in 2006-07 to Rs.45.00 per day
from Rs.20.00 per day in 2006-07.
Community resource persons:
In the current year, it is proposed to develop community resource persons drawn
from self-help groups and their federations who will undertake the task of training
the SHG members and their leaders. Around 5000 community resource persons will be
developed in the course of next two years.
Credit Rating
The SHGs that complete 6 months become eligible for credit rating. Credit rating
is a bench marking exercise to grade the group and ascertain its credit worthiness.
The credit rating committee consists of an Assistant Project Officer from Mahalir
Thittam, a representative from DRDA, a Banker, and a NGO representative. In an effort
to strengthen the Panchayat level federation (PLF) of the SHGs, one representative
from the PLF has been included in the credit rating committee. Regularity of savings,
frequency of meetings, proper maintenance of registers, internal loaning and repayment
are some of the key parameters for rating of groups. The successfully credit rated
SHGs, become eligible for credit linkage.They are given revolving fund through schemes
like SGSY, TAHDCO or directly provided loans by banks.
The groups also undergo a second credit rating after the lapse of another six months
to ascertain their readiness and suitability to undertake an economic activity.
The groups which pass the second credit rating are provided financial assistance
to start an economic activity through SGSY / TAHDCO schemes along with bank funding.
Non-Governmental Organisations
Mahalir Thittam is implemented through NGOs who help in the formation of SHGs, provide
training and monitor the SHGs. The NGOs are provided formation cost and monitoring
cost for the above activities. The NGOs who are interested in partnering with TNCDW
for implementation of Mahalir Thittam are affiliated, if they satisfy the prescribed
norms like
- Past experience in forming SHGs
- Unblemished track record for three years
- Adequate infrastructure facilities.
There are at present 628 approved NGOs under Mahalir Thittam. The five-year agreement
entered by Mahalir Thittam in 2002 with the NGOs has expired in March 2007. A new
agreement is being drafted and will come into effect from the current year. The
new agreement will give greater focus for promotion of livelihood activities paving
the way for economic empowerment of SHGs. The existing norms for affiliation of
NGOs will be reviewed in tune with the new strategy.
Present Status Of SHGs
The SHG movement, which was started in 1989 as a spark in the horizon, has emerged
as a powerful and vibrant movement illuminating the lives of poor women across the
length and breadth of the state. As of March 2007, 22020 new SHGs have been formed
including 12564 SHGs in Annaithu Grama Anna Marumalarchi Thittam villages this year
adding upto a cumulative total of 3,37,744 SHGs under Mahalir Thittam .
Credit and SHGs
SHG is a small group of rural poor, who have voluntarily come forward to form a
group for improvement of the social and economic status of the members.
It can be formal (registered) or informal. The concept underlines the principle
of Thrift, Credit and Self Help. Members of SHG agree to save regularly and contribute
to a common fund. The members agree to use this common fund and such other funds
(like grants and loans from banks), which they may receive as a group, to give small
loans to needy members as per the decision of the group. SHIS has the constant endeavour
to expand and diversify its activities for the mankind. Self Help Group and Micro
Credit are the two projects that SHIS started 7 years before. Subsequently, SHIS
set up its own bank “Ashadeep” where 30000 mothers have availed of loan facility
of over 6 crore and a secured deposit of over 5 crore exists in the bank. The entire
activities towards Self help program for the Adult Female were restricted to Sundarbans
areas in North 24 Paganas and South 24 Parganas district.
Such stupendous work could not be limited in the mind of Sunderbans people. The
matter was spread around and NGOs from all over West Bengal started approaching
SHIS for rendering assistance to them with the similar project in their area of
operation.
SHIS never thought of carrying out its activities by itself. Its aim is always to
involve people along, to cherish her goal to reach people and do for people. Thus
SHIS decided to build a strong and effective NGO network to cover entire West Bengal
by the Micro Credit and Self help group program and other sectors.
SHIS wanted only small but potential NGOs to bring in the net work to work in the
project. SHIS went for media insertion inviting applications from dedicated NGOs
who had worked for at least 3 years and are not very large. More than 200 requests
were received. After due screening SHIS selected 5 NGOs from Coochbehar and 6 from
Alipurduar in North Bengal to start the operation from May 2002. SHIS intends to
bring in 100 NGOs along with her in next 24 months time and spread the activities
all over West Bengal. SHIS intends to introduce these small NGOs to the Financial
Institutions, even can function as catalyst between these NGOs and the Financial
Institutions for their sustenance. Till that is matured, SHIS assures to provide
financial aid to the deserving NGOs involved in the project.
Rural financial systems and SHGs
Rural Financial System Development: SHG Banking in India - The Evolution of Rural
Financial Innovation and the contribution of GTZ(2006)
The developing world’s largest and fastest-growing microfinance program Linking
banks and self-help groups in India is the largest and fastest-growing microfinance
program in the developing world. Implemented since 1996 on a national scale, it
has reached 1.6 million savings-based groups credit-linked to 35,294 bank branches,
with 23.96 million members covering over 120 million people from the lowest strata
of the rural population (End of March 2005). Performance is excellent, and impact
is deeply felt by the members, the vast majority of them women. Yet enormous challenges
remain, particularly in terms of further expansion into underserved areas and sustainability.
SHG-Bank Linkage: Defaulting and Competition Among the Microfinance Institutions
and its Implications(2006)
In the year 1992 National Agricultural Bank for Rural Development (NABARD) has started
SHG-Bank Linkage Programme with the objective of eradicating poverty through improving
access to formal institutional finance for SHGs. As on March 2003 NABARD has linked
7,17,360 groups disbursed an amount of Rs. 20,487 millions. Of these nearly 40%
of the linkages with 48% of amount disbursement happened in Andhra Pradesh. These
services and goods have been delivered through 30,942 branches of commercial, regional
rural banks and cooperatives.
It is now a decade since the National Bank for Agriculture and Rural Development
(NABARD) piloted the SHG-bank Linkage Programme to provide poor rural households
access to banking services. The programme has grown in an exponential manner, particularly
during the past five years or so. While NGOs have taken the lead in forming SHGs,
a variety of financial service promoters and intermediaries, official and non-official,
are currently associated with the programme. Further, several central government
ministries and state governments have launched projects and schemes involving the
organisation of savings and credit groups, usually of poor women, often as part
of programmes supported by bilateral and multilateral agency funding. Indeed, SHGs
are currently seen as an essential and integral part not only of financial services
delivery, but also as a channel for the delivery of non-financial services within
larger objectives of livelihoods promotion, community development and women’s empowerment.
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