Self-Help Groups are voluntary and small groups working on the concept of the mutual aid and support. They help as the media of connectivity and spreading the link. The self-help groups existed since long. As the role and relevance of the micro-finance has increased in matters of the local development, Self-Help Groups have become more and more important.

These groups may be promoted by the Government, Banks, NGOs, etc. Public Sector Commercial Banks, Private Sector Commercial Banks, Regional Rural Banks, Cooperative Banks, etc are being used.

The concept of Self Help Groups (SHGs), which evolved in Latin America and South Asia in the 1970s and the 1980s, took concrete shape in India in early 1990s through TRYSEM, DWACRA, STEP, etc. There were parallel NGO movements like SEWAin Gujarat, MYRADA in Karnataka, KALANJIAM in Tamil Nadu, etc. SHGs, as effective tools to combat poverty and effect social Mobilisation, have nowbeen accorded recognition by the planners who have formulated Swarnjayanti GramSwarojgar Yojana (SGSY) and Swayamsidha (for women). While the former hasbeen conceived as a holistic programme for self-employment, the latter has a widercanvass of bringing about all round development of women. Both the programmes seek active involvement of NGOs in the formation of SHGs, capacity building, training and assistance to deal with on-line departments, banks and project monitoring. Convergence with Schemes of Line Departments. Even some state programmes have taken measures for the empowerment of the self-help groups. For instance, in Kerala, Poverty Eradication Mission (PEM) was brought in 1991, as GONGO (Government Organized NGO), Kudumbasree is used as poverty eradication strategy, in Kerala.

• In Asia, Asian and Pacific Regional Agricultural Credit Association (APRACA) supported by German Technical Assistance promoted such approach. NABARD (National Bank of Agricultural and rural Development) has been sued as the implementing agency for this concept, in India.
• In Kerala before bringing of the self-help groups there were Credit Unions and Mahila Samajams, then they were converted into Self-Help Groups after the emergence of the self-group system as per the initiatives of the National Bank of Agriculture and Rural Development and initiatives of the Reserve Bank of India, from the beginning of 1990s.

Benefits

• Result in the empowerment of people: They involve people of all weaker sections - economic, social and political.They break social and gender barriers by allowing the formation of mixed groupsbased on economic consideration.Since the members of the group chart their own course with benign help fromGovernment and NGOs, they gain self-confidence to determine their own future.
• They enhance socialization process and spirit of cooperation outside the family as well.
• Results in more inclusive growth through financial inclusions through financial intermediation. These self-Help Groups linked with the financial institutions provide for the better access of these institutions to the people.
• create newer opportunities for social betterment and economic improvement.
• They link popular participation with State efforts for development and empowerment.
• They are helpful for individual as well as collective development and empowerment.
• Due to people’s participation and informal structures, even opportunities for corruption are reduced.
• They help in better identification of the beneficiaries.
• Their utility lies in matters of capacity building through partnership in the development process.
• They also help in the spread of the cooperative movement that aims at helping the rural poor and overcoming the domination and exploitation by the moneylenders.

Kinds of activities

• Activities carried out in the self-help group movement include: stationery shops; flour making units; sales of readymade garments; animal husbandry; pickle making; production and sale of bakery items; etc.
• There is even use of meetings, seminars, some training programmes, etc to develop capacity in the related women. Through these self-help groups better opportunities are getting creating for participation in other areas.

Examples

Various kinds of the Non-Governmental Organizations have come to participate in these kinds of the activities. Say, in Andhra Pradesh there is Youth Charitable Organization (YCO); in Orissa Gram Vikas; in Tamil Nadu working women Forum (WWF); Self-Employed Women Association (SEWA) in Gujarat; Women Development Programme (WDP) in Rajasthan; etc Adithi Nari in Bihar, Loyolam in Manipur, etc.

Social Engineering by SHGs- Case study

In a small hamlet in Omalur in the Salem district of Tamil Nadu, a group ofSHG members, calling themselves Kurinji Magalir Iyakkam, have a very focusedobjective – prevent female foeticide and female infanticide. Their vigil includesmonitoring health and nutritional status of pregnant women in the area, speakto and counsel the families on the rights of child and arrange for adoption if thefamily is adamant about not having the girl child. Any resistance beyond thesoft approach invites threat of police action. This social activism of SHGs ina sensitive area like curbing female foeticide is making a difference to the girlswhose lives have been saved.

Fruits of Collective Effort- Case study

In Madhya Pradesh, members of SHGs promoted by Swashakti have replicatedthe mythology of Bhagirath harnessing the river – they have brought water toevery house in Ranipur Village in Betul district and to 60 farms in DodramohanVillage in Shahpur Block. Women themselves did the digging and networking ofpipes and fitted the taps. Within weeks, every lane and by-lanes had pipes running.The Self Help Groups got into the act when they found that resource crunch wasstalling the tap water project

Women and the Self-help Groups

In Karnataka, Urban Infrastructure Development Project was implemented from 1996 to 2004 supported by Asia Development Bank. Policy of Self-help groups of women and federating amongst them was used. It aimed at uplifting the urban poor.

Swashakti Projects were launched in Karnataka, Uttar Pradesh, Gujarat, Bihar, Madhya Pradesh, Haryana, etc in late 1990s. In 2002, further, Jharkhand and Uttaranchal were also added. Self organizing issues amongst women were taken care of. It aimed at poverty alleviation and empowerment.

In Bangladesh, Bangladesh Grameen Bank (BGB) also made use of Self-Help Group Model in rural credit and used this movement quite successfully.

In Nepal there is Production Credit for Rural Women (PCRW). There is policy of NABARD in India to link the savings and credits, to go for the savings and to link that with the credits.

NABARD brought self-help group initiative on pilot project basis then it expended. In 1986-87 NABARD initiated Savings Credit Management Groups (SCMG) study of Mysore  Resettlement and Development Agency (MYRADA). MYRADA also helped in sensitizing the banks about the needs of the Self-Help Groups. In 1991-92

NABARD launched numerous pilot projects, initially in July 1991 RBI gave some guidelines; in February 1992 detailed guidelines were brought. In May 1993, the Scheme was put to effect in RRBs (Regional Rural Banks) and Cooperative Banks. In the Self-Help Groups either their may be direct linkage between the banks and them. When NABARD supports the concerned credit delivery bank, concerned bank provides the credit to the Self-Help Groups they operate on the basis of the agreed upon principles and practices. Self-Help Groups on the Cooperative basis on the mutual support and agreed upon principles makes use of the finance. Other way, NGOs can act as the intermediary only in matters of organizing and linkage but the credit may still be given to the Self-Help Groups. Further there may be instances, when NGOs may act as the intermediary for the distribution of the credit as well, may even be responsible for the collection. NGOs may even be given responsibility relating to the training and the capacity development.

In Kerala for Kudumbasree. Community Development Society (CDS) is organised in three tier structure that includes: poor families represented by a women; then there are Self-Help Groups consisting of volunteers and related office bearers; then, there is federating of these Self-help Groups in the form of Area Development Societies. (Finally, there is linkage with the Community Development Society). Women Self-Help Groups provide access to the families and the community. They give an opportunity for self-development and empowerment of the women. They provide for better invoice to the community, and are also useful in matters of the community accountability. They have utility for identification of the beneficiaries. They even can be used of the local government in the related sphere. They help even in developing the community leadership competencies. They provide for better voice to the community, and are also useful in matters of the community accountability. They have utility for identification of the beneficiaries. They even can be used of the local government in the related sphere. They help even in developing the community leadership competencies. They provide easy access of finance and association to the poor families and the needy. They help in developing the informal leadership with the group consensus. They help in linking social as well as economic motives. When, Self-Help Groups activity supports the family income, which improves the status of the women within the family. They act as the catalyst in developing in entrepreneurship skills amongst deprived sections. Productive activity at local community level increases. They help in linking the agriculture with the small scale and cottage industry.

Challenges

There is problem of group-churning. Members join and leave the group that affects the stability and continuity. Drop out problems exists in, both, self-help groups organized by the Government as well as those organized and used by the NGO’s. Monthly income generated through the self-help group movement is still meager by the members. Main issue remains how to link the social, political and economic empowerment of the women. Main challenge still remains in matters of mobility of women – if they don’t have suitable mobility then use of the assistance to them is affected. Many times, members of the self-help groups don’t have saving accounts in the banks that affects the transactions and flow of the finances. Due to local informal network of the money lenders, there is an impact on the effectives of the self-help groups, and financial institutions. Due to the deficiency in the repayment members start using the other modes for lending. There are problems in developing the leadership competencies in the new members. At times, there are instances of charging of higher interest rates. That affects repayments and over all effectiveness of such activity. Issues of orthodox social traditions and other community problems also affect the output in such activity. Members attract other members but when drop out is more that has more adverse implications in their expansion as well as functioning. One major reason for joining the Self-Help Groups is normally the economic factor but in fact financial constraints of these groups, then problems in the repayments happiness to be one major reason for leaving these groups. There are many instances when members are not suitably aware of practices of the Self-Help Group functioning. At times, there are problems in linkage and coordination between the banks and the NGOs. There are instances when Group Leaders start making decisions rather than the group itself. There are issues of sub-group emergence and intra-group conflict. Local social divide has implications in the group functioning.

Suggestions

• Informal contacts are much useful in their functioning. There is need to ensure the secular character of the self-help groups.
• There is need to target more vulnerable sections of society ( eg widows or separated women).
• There is need to bring a change in the outlook of the society, so that better support from the family is available for spending of the finance under the self-help group movement.
• There is need to bring awareness about legal rights of the women and children amongst the members of the self-help group.
• In addition, in participation in the Self-help Groups, other dimensions also needs to better develop the communication skill and public relations outlook amongst the members.
• Brining more transparency and better maintenance of records may further help in improving their effectiveness.
• State institutions and NGOs should more effectively come together in matters of training and capacity building. Support of those who manage the group is needed to resolve the issues relating to the intra-group conflict.
• Not only careful selection of the NGOs is needed (if use made) even relationships need to be better streamline and clarified.
• Maturity of the Self-help Group is important criteria in banks directly lending to the self-help groups. New members need more support from the old members in making them aware of the practices in the Self-help Groups.
• Better support is needed to ensure better productivity of the finances given. Second ARC has raised the issue of creating better opportunities for entrepreneurial training in the rural areas. More sensitization programmes are needed amongst the bank functionaries so that relationships are better streamlined amongst them and the Self-Help Groups. Progressive social change and better social mobility will add up in the effectiveness of Self-Help Groups. In selecting productive activities, profit earning opportunities and marketing issues should be looked at. Linkage with other kinds of support for cottage industries is also needed.