Yamanoor Srihari
2004-03-11 04:15:26 UTC
Jai Sivanantham <mail2mayil-/***@public.gmane.org> wrote: To: ***@yahoo.com
From: Jai Sivanantham
Date: Wed, 10 Mar 2004 19:43:18 -0800 (PST)
Subject: (GodFathers) good articles
very sensible articles
http://www.deeshaa.org/who_paid.html
http://www.financialexpress.com/fe_full_story.php?content_id=53257
Credit, SHGs And Women: The AP Way
PANT JOSHI
A silent revolution is sweeping through Andhra Pradesh
through its
networks
of self-help groups (SHG). The state has demonstrated that
empowerment based
on the SHG model can have far reaching spin-offs. It has
blazed a
new path
and shown clearly that the poor benefit materially from
access to
credit.
That they are willing and able to service loans on a
commercial
basis.
The uniqueness of the SHG approach lies in its simplicity.
Groups
which
self-select 15-25 members are organised with the help of an
animator, a
trainer.
This role fulfilled by a non-government organisation (NGO)
which
acts as a
social intermediary, a bridge between the NGO and the bank
and also
helps
financial intervention through the bank. SHG members are
encouraged
to make
small, affordable and regular contributions to a savings
fund
managed by the
groups.
Once a reasonable corpus is collected, the group is
encouraged to
provide
petty loans for its members. The group decides the priority
of needs
as to
who should get the loans first and determines the rates of
interest.
Membership of the group gives women a sense of self-worth.
It
confers on
them a voice in their families and in their larger society,
and also
ensures
the economic and social upliftment of women.
Once the group builds up a stake through regular
contribution to its
corpus,
it is also given revolving credit. Though interest rates
are set by
the
group, they are lower than the rates charged by the money
lender by
two -
three per cent per month which means 24 - 36 per cent per
annum.
The velocity of turnover is quite rapid as repayments are
prompt.
This leads
to disbursement of loans which are three to four times the
quantum of
savings. A medium-sized loan can average between Rs 500 and
Rs 1,000.
Supplementary doses of assistance are provided for those
who have
only been
able to avail of a nominal sum during the first borrowing
cycle.
For landless women, assistance is provided for taking up
animal
husbandry
programmes or cottage and village industries. For women who
have
taken land
on lease and for those who own land, assistance is provided
for land-
based
activities. This represents a demand-driven approach to
credit. This
is also
a participatory approach, and gives rise to democratic
empowerment
among SHG
members.
The involvement of women in SHGs has also changed the
behaviour of
their
men-folk. They have started helping them in domestic tasks,
and have
started
sharing responsibilities within the home. Not just that.
The access to and control over resources by women has
empowered them
towards
asserting their own rights.
Though gender division in decision-making still persists in
the
project-districts, there is definitely an increase in the
intra-
household
decision making powers of women. This empowerment has
percolated into
decisions regarding credit activities, children's
activities, and
health
care of family members and use of family assets. NGOs also
play a
central
role in the formation of groups and in project activities.
In Andhra Pradesh, Velugu was launched in 2000. It was
introduced on
a
pilot-basis in six districts aided by the World Bank.
Velugu provided
additional funds which enabled skilled animators to be
hired, thus
reducing
dependence on the free services provided by NGOs. It
financed
a `community
investment fund' for building small local infrastructure as
sheds for
weavers, etc. After the success of the pilot-project,
Velugu 2 has
been
launched in every mandal of the state.
Under the umbrella of Velugu, all SHGs are encouraged to
form `federations
of village organisations' which in turn federate into
Mahila Mandal
Samakhyas. The model is highly cost effective: lender
transaction-
cost could
be further reduced if the option of institutional lending
to groups
for
lending to individuals rather than directly to individuals
within
groups is
considered. This is attractive for banks.
However, this requires the exercise of great care in so far
as group
dynamics is concerned particularly with regard to loan
distribution
within
the groups to ensure that the poorer women are not
marginalised. It
is
necessary not to lose sight of the fact that pro poor,
equitable and
transparent financial operations through built-in savings
and lending
practices contribute to the efficient functioning of the
groups and
to the
collective engagement of the group in socially productive
activities.
SHGs have successfully created a number of successful
income
generating
opportunities. Loans have enabled women to manage their
activities
independently and to have greater control over their assets
and
incomes. The
assumption that women would generally make wise choices due
to their
expertise and knowledge of local markets conditions has
been
justified by
healthy repayment rates.
SHGs in Andhra Pradesh have achieved much and heralded an
era of
social
change with respect to empowering women in rural
communities. Its
strongest
point centres around the formation of cohesive women's
groups who
have
developed the habit of systematic savings. It has helped
consolidate
their
bargaining power and decision making responsibilities
towards the
overall
development of their communities.
The distinct features and success in enabling women to
overcome the
double
burden of being poor and being women are indicators of the
need to
replicate
the model to empower women in other states. There are
valuable
lessons to be
learnt from SHGs of Andhra Pradesh.
(The author is chief general manager at Reserve Bank of
India in
Hyderabad.
The views expressed here are personal)
bye
Jaimv
__________________________________
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From: Jai Sivanantham
Date: Wed, 10 Mar 2004 19:43:18 -0800 (PST)
Subject: (GodFathers) good articles
very sensible articles
http://www.deeshaa.org/who_paid.html
http://www.financialexpress.com/fe_full_story.php?content_id=53257
Credit, SHGs And Women: The AP Way
PANT JOSHI
A silent revolution is sweeping through Andhra Pradesh
through its
networks
of self-help groups (SHG). The state has demonstrated that
empowerment based
on the SHG model can have far reaching spin-offs. It has
blazed a
new path
and shown clearly that the poor benefit materially from
access to
credit.
That they are willing and able to service loans on a
commercial
basis.
The uniqueness of the SHG approach lies in its simplicity.
Groups
which
self-select 15-25 members are organised with the help of an
animator, a
trainer.
This role fulfilled by a non-government organisation (NGO)
which
acts as a
social intermediary, a bridge between the NGO and the bank
and also
helps
financial intervention through the bank. SHG members are
encouraged
to make
small, affordable and regular contributions to a savings
fund
managed by the
groups.
Once a reasonable corpus is collected, the group is
encouraged to
provide
petty loans for its members. The group decides the priority
of needs
as to
who should get the loans first and determines the rates of
interest.
Membership of the group gives women a sense of self-worth.
It
confers on
them a voice in their families and in their larger society,
and also
ensures
the economic and social upliftment of women.
Once the group builds up a stake through regular
contribution to its
corpus,
it is also given revolving credit. Though interest rates
are set by
the
group, they are lower than the rates charged by the money
lender by
two -
three per cent per month which means 24 - 36 per cent per
annum.
The velocity of turnover is quite rapid as repayments are
prompt.
This leads
to disbursement of loans which are three to four times the
quantum of
savings. A medium-sized loan can average between Rs 500 and
Rs 1,000.
Supplementary doses of assistance are provided for those
who have
only been
able to avail of a nominal sum during the first borrowing
cycle.
For landless women, assistance is provided for taking up
animal
husbandry
programmes or cottage and village industries. For women who
have
taken land
on lease and for those who own land, assistance is provided
for land-
based
activities. This represents a demand-driven approach to
credit. This
is also
a participatory approach, and gives rise to democratic
empowerment
among SHG
members.
The involvement of women in SHGs has also changed the
behaviour of
their
men-folk. They have started helping them in domestic tasks,
and have
started
sharing responsibilities within the home. Not just that.
The access to and control over resources by women has
empowered them
towards
asserting their own rights.
Though gender division in decision-making still persists in
the
project-districts, there is definitely an increase in the
intra-
household
decision making powers of women. This empowerment has
percolated into
decisions regarding credit activities, children's
activities, and
health
care of family members and use of family assets. NGOs also
play a
central
role in the formation of groups and in project activities.
In Andhra Pradesh, Velugu was launched in 2000. It was
introduced on
a
pilot-basis in six districts aided by the World Bank.
Velugu provided
additional funds which enabled skilled animators to be
hired, thus
reducing
dependence on the free services provided by NGOs. It
financed
a `community
investment fund' for building small local infrastructure as
sheds for
weavers, etc. After the success of the pilot-project,
Velugu 2 has
been
launched in every mandal of the state.
Under the umbrella of Velugu, all SHGs are encouraged to
form `federations
of village organisations' which in turn federate into
Mahila Mandal
Samakhyas. The model is highly cost effective: lender
transaction-
cost could
be further reduced if the option of institutional lending
to groups
for
lending to individuals rather than directly to individuals
within
groups is
considered. This is attractive for banks.
However, this requires the exercise of great care in so far
as group
dynamics is concerned particularly with regard to loan
distribution
within
the groups to ensure that the poorer women are not
marginalised. It
is
necessary not to lose sight of the fact that pro poor,
equitable and
transparent financial operations through built-in savings
and lending
practices contribute to the efficient functioning of the
groups and
to the
collective engagement of the group in socially productive
activities.
SHGs have successfully created a number of successful
income
generating
opportunities. Loans have enabled women to manage their
activities
independently and to have greater control over their assets
and
incomes. The
assumption that women would generally make wise choices due
to their
expertise and knowledge of local markets conditions has
been
justified by
healthy repayment rates.
SHGs in Andhra Pradesh have achieved much and heralded an
era of
social
change with respect to empowering women in rural
communities. Its
strongest
point centres around the formation of cohesive women's
groups who
have
developed the habit of systematic savings. It has helped
consolidate
their
bargaining power and decision making responsibilities
towards the
overall
development of their communities.
The distinct features and success in enabling women to
overcome the
double
burden of being poor and being women are indicators of the
need to
replicate
the model to empower women in other states. There are
valuable
lessons to be
learnt from SHGs of Andhra Pradesh.
(The author is chief general manager at Reserve Bank of
India in
Hyderabad.
The views expressed here are personal)
bye
Jaimv
__________________________________
Do you Yahoo!?
Yahoo! Search - Find what youre looking for faster
http://search.yahoo.com
Yahoo! Groups Links
La vie..
http://www.stanford.edu/~yamanoor
http://yamanoor.tblog.com
---------------------------------
Do you Yahoo!?
Yahoo! Search - Find what youre looking for faster.