In the last decade Self Help Groups (SHGs) of women have been the mantra
of development actors. NGOs, government, multilateral institutions are all
waxing eloquent on the role that these groups can play in women's empowerment
and livelihoods. There is no denying that the concept of Self Help is superb
and the idea has tremendous potential to foster development. However, when
one has interacted with a large number of groups, a number of questions are
raised automatically regarding the translation of the concept on the ground.
·
Have the promoters of these groups (NGOs, government officials, banks
etc), understood the scope and possibility of the concept?
·
Have they been able to translate this understanding so that the women
understand?
·
Have the promoters used sensitive processes to form these groups?
·
Why are most of the Self Help Groups restricted to being mere Savings
& Credit Groups (SCGs)?
·
Do women personally benefit from the process of SCGs in terms of having
control over their financial resources (read saving and credit lines with
banks)?
·
Do men allow women to truly control the processes?
The questions could go
on but the point remains that most of the groups that we saw on the ground
during the Padayatra were SCGs. These too are beneficial but in a much
restricted sense.. We have mentioned in the last report that a number of groups
have been formed by men who simply want to access cheaper (2% a month is always
cheaper than any other option) credit rather than hope for something more for
women. We will not dwell on that issue but look at the SCGs in context of the
overall credit needs of women and their families. This is what we found when we
looked at the typical financial status of a well run SCG.
The group
size is around 12 on an average. For saving amounts of even Rs. 50/- (the
average must be around Rs. 25/-per) per month per member, the group saves Rs.
600/- per month. This translates to Rs. 7200/- per year. Even assuming that all
of it is revolved (rare) within the group and the repayment is prompt the
maximum interest that the group can earn in a year is around 30% or say Rs.
2160/-. This when added to the principle will take the total capital to around
Rs. 10,000/- for the group or around Rs. 825/- per member.
If the
group is run well and manages to link up with banks (lots of conditions for
that to happen but let us assume that those are met) they are likely to get
credit up to Rs.25,000/- This translates to notional credit availability per
women to the tune of around Rs. 3000/- per year. This is no doubt a pretty goodly sum.
However,
one needs to look closely at the informal credit that these women and their
families access. This could be from moneylenders, agri-input dealers,
landlords, labour contractors etc. The amounts may vary but we have seen very
few families with less than Rs. 10,000/- of loans from private sources. Even
assuming that the loan is only Rs. 10,000/- per family the interest payment on it
per year comes to around Rs.6000/- at the very minimum. This interest
payment is itself double the savings and credit accessed through banks / FIs.
We must look at the economic benefits of the savings
activity in the context of overall credit needs and liabilities of families.
In many cases the best of savings, linkages etc make a very marginal difference
to the lives of women.
·
The
difference is important but is it as important as the hype?
·
Should
we not be addressing the root issue of credit (non)availability?
·
Should
we not use savings activity merely to mobilize and empower women (the original
concept) rather than merely aim to get them into economic activities that will
further burden them?
You don’t
have to take our word on this. We suggest that all people involved in savings
and credit activities reflect and try and understand what they are really
achieving.
A
SPECIAL APPEAL
WE HAVE
BEEN SENDING THESE REPORTS TO ALL OF YOU OVER THE LAST TWO MONTHS. THIS IS THE
23RD REPORT THAT HAS BEEN SENT OVER THE LAST 55 DAYS. ONLY TWO MORE
ARE LEFT. THEY WILL COME THROUGH ON THE 27TH AND THE LAST ON THE 3RD
OF MARCH.
WE HAVE
BEEN RECEIVING FABULOUS FEEDBACK ON THESE REPORTS. WE HAVE ALSO REACHED OUT AND
GARNERED SUPPORT FOR THE PROCESS.
THE
PADAYATRA, AS REPORTED EARLIER, IS COMING TO A CLOSE. THE 28TH OF
FEBRUARY IS A DAY OF REFLECTION. ALL THOSE INVOLVED IN THE PADAYATRA ARE
MEETING IN SEWAGRAM FOR REFLECTION AND DELIBERATIONS. THE SCHEDULE OF THE 28TH
MEETING HAS BEEN PUT UP ON THE WEBSITE www.greenearthconsulting.org/padayatraprogress.htm
WE WISH
TO INVITE COMMENTS FROM READERS OF THESE REPORTS. PLEASE SEND IN YOUR COMMENTS
TO grnearth@vsnl.com
BEFORE 1600 HRS (IST) ON THE 27TH OF FEBRUARY. WE WILL SHARE YOUR
COMMENTS IN THE DELIBERATIONS.
grnearth@vsnl.com, 020-25466103,
09422521703
Dushkaal Hatawu :
Manoos Jagawu
(Eradicate Drought :
Save Humanity)
February 25, 2006