Self-help groups in Bihar and Way forward

My job at SRLM (Jeevika) has given me an opportunity to work closely with the community driven development project implemented through Self Help Group. The career progression at SRLM also provided an opportunity to work with SHGs in the various stages i.e. from formation to maturity. The articles aims to analyse the experience of working and tries to documents the various aspects of the same. In the end the article will also try to assess the way forward with the SHGs.


The advantage that SHG network in Bihar is its outreach; the program has been rolled out by government of Bihar in all the 534 blocks. As per the NRLM total number of the SHGs in Bihar is around 5.5 lakhs which averages out to around 1030 SHGs per block. This average would go-up over the period of time as the project has been rolled out phase wise and majority of the blocks had this project in the year 2013-14.  Given that average size of the SHG as per NRLM guidelines is 12 which makes the average size of the SHG network per block to 12360; as stated earlier this would increase with increase in  number of the SHGs. It is also important to keep in mind that there is one member from one household as such this makes the outreach to average 12000 families per block. These numbers will help in understanding the reach and magnitude of the SHGs.


The problem prevailing with CBOs is the interest of the member decreases over period of time which results in fewer meetings, lesser attendance and lesser cohesion among group members. Over the period of the time it has been found that the frequency of the meetings and interest of the members in these SHGs over the period of the time decreases. This can be attributed primarily to the failure to introduce new products for the SHGs.  The redundancy of the regular meeting saving and inter loaning leads to disinterest of the members in the SHGs as such it gets imperative for the implementation agencies to maintain the level of the interest of the members in these CBOS. This can be achieved primarily through the introduction of new products; that is using these CBOs as the platform for implementing the policies and schemes.  The existing network of SHGs can be leveraged in order to increase the base of the popular schemes like MGNREGA, NSAP, IAY etc. This will help these existing programs in right targeting and increasing beneficiary base.  This will help in bridging both the supply and demand side gap. On the part of the community based organizations it will keep them vibrant.  This in more technical term is called “convergence” and is very much way forward for these community based organization. 


In order to achieve the convergence it has to be ensured by the government that the both the institutions are on the level playing field. There is high probability that the bureaucracy  might take over the community based organization and push their agenda. It would be responsibility of the management of these SRLMs to ensure that the same is not done and convergence happens on equal terms. This is very essential for the survival of the Community based organization. The same is already being done by the government of Bihar through implementation of Lohiya Swatch Bharat mission and other schemes. The time would tell us about the efficacy and efficiency but of now this seems a step in right direction.



- Abhishek Singh (can be reached at abhi1471989@gmail.com)

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Livestock Extension Sevices: Enhancing rural production

Indian farmers has a very diverse set of livelihood activities. It includes farming, farm labor, livestock rearing, trading etc. If we look at the facts, we will find India is primarily a rainfed country[1], 68% of our cultivable land comes under rainfed areas[1]. Surprisingly most of the cash crops are also sown in these areas. With a disturbed ecological one cannot say with complete certainty that rains(Monsoon) going to be enough. India is such a diverse and big country that rainfall patterns also change dramatically with change in geography. It is to an extent that some district might have received 20% more rainfall while neighboring district would have got 50% less than normal rainfall.Sadly such fluctuations can decidedly change the livelihood potential of a family in rural areas from agriculture activities. 

Since last 3 years, the cash crops are failing because of lack of adequate rainfall. This implied a whole loss to rural economy with lack of demand in farm labor, increased demand for credit and reduction in agricultural production. These are all negative factors to reduce the money a rural family could have with a good crop. It is not that they do not have sense to mitigate that. They are one of the most intelligent people around and know very well how to feed their families. That is where livestock pitches in. 

Across indian rural communities households keep domestic animals to save them from any financial insecurity. In addition to it they add to the nutritional aspect of rural households.  19th livestock census[2] indicates that Cattle,Buffalo and Goats form major portion of rural livestock rearing. In totality these three categories of animals constitute nearly 85% of total rural livestock. Poultry is a seperate segment which is also very very important in context of rural households.  

Basic Problems with Rural livestock rearing

1. Lack of veterinary services: Biggest problem which people face is lack of on time veterinary services available. Sometimes they are available but not within the financial means of the family, this unavailablity of basic service results in mortality. Many times curable diseases like diarrhea results in death which inicates a very poor delivery of services.

2. Inadequate arrangements for feed and fodder: In rainfed areas of the country there is lack of perrenial availability of green fodder and for most of households feed is unaffordable hence during peak summer season farmers face challenge to feed their animals. Alternative green fodder like Azolla and Silage is still far away from reach and government systems are not innovative enough to implement such models.

There is a problem with market being unorganized and full of middlemen but still the basic problem remains how to keep animal alive and healthy. Until these issues are addressed we should not talk about skewed livestock market economics for farmers.

How Extension sevices could help address the issues:

 
1. Good community institutions: Community instituions form the very basis of service delivery to address basic livestock issues. Community has very good understanding of livestock issues and hence they can appreciate the efforts put in to address livestock issues through local resources. In this case second level institutions like cooperatives and societies could very well chip in.

2. Establishing a para veterinary network and medical infrastructure: To provide on time cost effective services, a para veterinary system need to be established along with medical infrastructure like maintaing cold chain and safe keeping of medicines. For this a experienced veterinary doctor and 3-4 para workers could be selected. Veterinary doctor can train para workers to do the treatmeant in his supervision but without his physical presence. Para veterinary workers can roam in their designated villages and will be on call all the time for treatmeants. This will be a on demand service. Veterinary doctor can plan and procure medicines and should regularly train para workers. For establishing infrastructure there would be requirement of approx Rs. 30000 to buy refrigeator and safe for medinice as well as to buy equipments. 

3. Regular vaccinations of major disease outbreaks: Regular vaccines must be administered to the livestock in your work area to stop outbreaks and through this we can reduce atleast 50% of present mortality. If coverage improves the mortality rates can come down even further. Major vaccines which should be given regularly for FMD, HS&BQ, PPR, ET, Newcastle disease (Poultry).

4. Work in silage preparation and Azolla: Azolla and Silage could be a very healthy alternative source of nutrition to livestock during dry seasons. More and more farmers must be covered under this, since cost is not much, if needed initial subsidy can be given. 

All of above can be done but this all must be financially viable. Institutions can obtain grants for setting up medical infrastructure and medicine/vaccine purchase. But how to sustain para workers should be worked out thouroughly. They can get fixed salary or they can work on incentive based system. Which ever seems best in organizations interest must be opted. One more thing try to regulary get in touch with government veterinary system at local level to build good rapport and charge minimalistic fee for treatment and vaccination as compared to government norms but also keep in mind about organizations sustainability of program.

- Vaibhav Pandey

EternalExplorers.com

javatute@gmail.com

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Entrepreneurship v/s entitlement

A lot of rural development schemes and policies focus on how to inculcate business acumen among the rural poor. Providing them capital and/ or training to open small enterprises for income enhancement is considered a long lasting solution to end poverty. But how feasible is this approach? Firstly, entrepreneurship is not something that can be taught to someone. It is believed that entrepreneurial instinct is inherent in some people and cannot simply be cultivated. Secondly, not everyone in a small village can become an entrepreneur. After all, how many tailors or kirana shops are enough for an entire village. There is a huge risk of supply exceeding demand by encouraging everyone to become an entrepreneur. 

Another important aspect is that when in a poor and backward village where people are deprived of basic facilities, how wise is it to sell entrepreneurship as panacea. Yes, it is true that providing people with feasible livelihoods will go a long way in bettering their economic position. After all as the saying goes – catch a fish for a man and you feed him for a day, teach him how to fish and you feed him for life. But, when there are a lot of existing government schemes that directly address the problem of entitlements for rural poor, the delivery of the same can a go a long way in addressing many needs of the rural poor. For e.g. the construction of Individual Household Latrines (IHHLs) under the Swachh bharat Abhiyan, or the construction of pucca houses under Indira Awas Yojna, or providing smart cards under Rashtriya Swasthya Bima Yojna (RSBY). If the rural poor are successfully linked with these government schemes it will go a long way in their human development, because not only will their health and living conditions improve but also the exorbitant amount of money being spent on a regular basis due to poor living conditions will be drastically cut down. In other words, their monthly recurring expenditure shall be cut down drastically. This in turn shall ensure that whatever additional income they earn from their entrepreneurial activity is not drained away and the net income registers an increase. Hence, livelihood enhancement by encouraging rural enterprises is a welcome measure but at the same time providing rightful entitlements to the rural poor is not something that can be ignored.

-Prerna Rana

Prerna Rana can be contacted at prerna.rana03@gmail.com

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Saturation Approach to Development

Another important approach of certain projects in creating self sustaining CBOs (Community Based Institutions) is the saturation approach i.e. covering all the target households in an area to ensure that all households are beneficiaries of a particular scheme or project. The drawbacks of this approach are as follows:

1. When dealing with human capital one should remember that “small is beautiful”. Trying to scale up and register progress in numbers alone shows an approach that lays higher emphasis on quantity rather than quality. This can be detrimental when one is dealing with human beings as opposed to objects.

2. Demand driven development: Saturation approach is somehow in absolute contrast to participatory approach to development. No wonder it has failed to succeed - an apt example being Swarnjayanti Gram Swarozgar Yojna which aimed to promote self employment through SHGs but in reality the sole purpose became formation of SHGs and providing credit to them without any focus on their capacity building. It completely overrules an individual’s will to be part of a project, in other words it does not believe in demand driven approach in identifying its beneficiaries. It is to be assumed that all target HHs need to be taken into the fold of project whether they desire it or not and if that fails to happen then there must be something wrong in the entire implementation of the project. I believe that indifferent people, even if they fall in the target population segment, should not be included forcibly as they will hamper the entire objective of any project and not result in much value addition. The initial stage of any project should focus on nurturing a few, quality CBOs and saturation approach, should the need arise, must be brought in at a later, mature stage of the project.

3. Taking forward the above point, there needs to be a substantial case in favor of a particular project for saturation approach to be given the go-ahead. A thorough impact assessment – social as well as economical - must be conducted for the existing areas of operation. This shall serve two purposes. Firstly, it will provide authentic information regarding any left out beneficiary households who might have been left out in the first phase. Secondly, it will throw up any flaws while implementing the project in its first phase so that the same mistakes are not committed when the project is scaled up. Resorting to saturation approach from the word go leaves a huge scope for wastage of resources – be it money, time or manpower- as there is no opportunity to test it on a smaller sample population. A lot of seed fund given to CBOs in the hope that it will result in some form of asset creation and livelihood enhancement is wasted as a lot of it is used as nothing more than consumption loans.

-Prerna Rana

Prerna Rana can be contacted at prerna.rana03@gmail.com

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Participatory Development | Still a dream!!

Participatory model of development lays emphasis on involvement of community members to bring about development. Participation includes not just membership of CBOs (Community Based Organizations like Self Help Groups) or providing member contribution in activities, but also in important decision making processes and ultimately the smooth operation of activities. The aim behind this is to ensure such development which is brought about by taking into account the needs of the people and not to impose a top down approach of development.

The idea behind this is very noble but has its own drawbacks. For example, in a subsidy fuelled rural context the willingness of people to step up and take charge is not an easy thing. The habit of getting quick relief just because one qualifies as poor was a quick fix solution. This is one of the reasons why even financially well off families want to feature in the “BPL” list. The handouts and doles given to the poor might not have done much to improve their standard of living but it has sure spelt success for political parties come election season, quite a few times. But participatory development seeks to create a more empowered society for which the rural poor might not be ready. After all, they have never been active players in the development process before, only passive receivers. And the participation required of them is not of a rudimentary nature. For instance, women self help groups are created in the hope that it will lead to women centric participatory development, but attendance is the least of the requirements; what is required from these women is active participation in the day to day affairs of their SHGs (Self Help Groups), making important decisions, ensuring the smooth operation of daily activities as well as taking initiative and suggesting changes which will better their socioeconomic condition. To achieve this some hand holding support must be provided in the initial stage to encourage dialogue. But, it can take a really long time to achieve the desired result since what is being undertaken is very ambitious.  For a woman who rarely steps out of her house, who is hardly ever consulted by her family in any household decision, it is unthinkable to take vital decisions about her destiny at a community forum like an SHG. Decades of societal conditioning makes it difficult to actually realize this dream of participatory development. It might be easier in matriarchal societies of South India or north East India, but very difficult in patriarchal societies. Also, as mentioned earlier it seems cumbersome to the people themselves who are more used to getting instant subsidy benefits. The history of rural development initiatives as well as the cultural context makes participatory development a not so easy task.

 To cultivate a temperament of decisiveness and drive is a long drawn process. A number of failed government schemes has led to this dependence on participatory approach but the important question is – are the people themselves ready for such a change, are the people ready to become masters of their own destiny or do they want to remain passive receivers?

Prerna Rana (can be reached at: Prerna.rana03@gmail.com)

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Microfinance and Development

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Microfinance and Development

Microfinance is a noble concept which in its entirety has the potential to help the needy get access to capital and raise their standard of living. It has the ability to help in development because everything in this world ends up being capital-centric. Considering the huge opportunity, the standing capital is being pumped in the economy with a generous hope that it may end poverty to some extent and make the poor self sustainable. But all the hope was not so generous because companies were eyeing big payoffs since the capital invested was based solely on trust and at huge risk (no collateral). This is the reason why initially Micro finance companies charged upto 36% interest, which in itself was not justified and equalled extortion similar to what is done by traditional moneylenders. Today, since MFIs are regulated by RBI, the interest rates are curbed to a maximum of 24%. Microfinance was envisioned as a tool which has the ability to change the Indian rural context in a big positive way viz to increase production, alternate livelihood development as well as reviving traditional arts, crafts and culture. After so many years and so many organizations having pumped lakhs of crores there has to be a mechanism to look back and reflect on what microfinance has done for rural population's development and the impact it has created on sustainability. What also needs to be assessed is the effect of microfinance on rural psychology keeping in mind many government and private sponsored rural development projects.

In the current context the meaning and significance of the word 'Microfinance' is lost somewhere. In reality the finance done by Microfinance companies is not micro at all since the individual loans are given to an extent of Rs. 50,000 to 1,00,000 depending on a person's credit history. Sometimes these companies form their own women groups and give loans to group members. The basic thing to look forward is that these so called Microfinance companies often laugh at the concept of self help. Their basic notion of “capital solves it all” is not a viable argument in general sense because we should be encouraging the capacity building of poor and collective action to raise their living standards. The capital being pumped into the rural economy through microfinance loans needs to be channelized in a more structured manner. Having seen the things done by some MFIs myself I sense that it has harmed and changed the psychology of rural people where they have inclined towards being individualistic and money centric (Govt. is equally responsible for bringing in schemes relying heavily on subsidies to the poor like SGSY). When we try to instill the ideals of collective action in community institutions we face a very tough and arduous task. Every once in a while some case happens where an individual drifts away from the basic principle of unity and collectivism which should be the core belief of any self help group and thus renders the effort put into rural development in vain. It is an undeniable fact that capital is required for development. But the point remains that pushing too much money in rural setting where you are not keeping track of the usage of money is a big hazard to economy. In my view microfinance must work on the lines of or at least promote collectivism. Merely targeting rural population for profit and business will make things worse for government as well as diminish NGOs rural development effort.

- Vaibhav Pandey (can be reached at: javatute@gmail.com)

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Participatory Development | Still a Dream!!

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