upscvision.org
upscvision.org/
3️⃣
Forum IAS CA Classes/
✅
SHG
Search
✅

SHG

News
  1. MFIN Report related to Micro Finance
  1. Budget 2023-24
    1. Important Theme of “Reaching the Last Mile”
    2. Oppurtunity - Economic Empowerement of Women
Quote
  1. PM Said that
      2. SHG’s need to tranform into NHG’s (National Help Groups). NHG’s can be the large collective needed
  1. Finance Minister Budget 23-24 talked about creating Unicorns amongst self help groups
      2. SHG’s have tranformed Women Development to Women Led Development
  1. SHG are untapped powerhouse of Enterprise and highly potential vehicales to deliever social good → Collective Enagagement will help SEBC
Data
  1. Acc to Eco Survey
    1. There are 12 Million SHG’s of which 88% are all women member SHG’s
    2. Bank Repayment is more than 96% → better financial discipline
  1. Govt has set a target of increasing each SHG’s income to Rs 1 Lac by 2024
      2. To Ensure this MFI is a key aspects
  1. Survey also quoted the Transformative Potential of SHG’s highlighting the role played by SHG’s during covid pandemic
      2. Survey says that SHG’s led from the Front by Manufacturing Masks, Sanitary and Many Essential Goods
SHG’s
Defintion
Governments Defintion
SHG are Informal Group of 10 to 20 members who are socially and economically marginalised who come together to achieve commn goals.
It is based on the Idea of Social Capital
Defintion of Noble Laureate - Jospeh Stigliz Defines SHG’s
Development should result in the Enhancement of a Nations 4 Fold Capital
  1. Capital of Material Goods - Material Goods like Infra
  1. Natural Capital - Soil Water Forest etc
  1. Human Capital - Education, Skill Development etc
  1. Social Capital - Mutual Trust and Harmony, Relationships, Networks and Cooperation
Noble Laureate Dr Mohammad Yunus
Talked about Three Zeroes in his book “The World of Three Zeores”
  1. Zero Poverty
  1. Zero UnEmployment
  1. Zero Net Carbon Emission
in all these three phases SHG’s can help. To create more and more business. From Job Seekers to Job Creators. They can also create solutions which are Locally Available and Environmentally Sustainable Practises.
Principle / Aspects
  1. based on principle of “One for All and All for One”
  1. SHG’s are called as Thrift & Credit Socities. So they promote savings amongst the members and provide Loans
  1. Key Aspects
    1. Economically Homogenus & Have Common Goals
    2. Voluntary Contribution
    3. Generate a Common Pool and Common Fund
        4. Based on the Idea of Micro Finance like SHG BLP - SHG Bank Linkage Program
    4. Democractic Functioning = Participatory Approach = Bottom Up Approach
Phases
4 Phases
  1. Phase 1 → SEWA
      2. Initital SHG was formed by Efforts of Selp Employed Womens Association
  1. Phase 2 → BLP
      2. State Led Model - NABARD Launched SHG Bank Led Model
      SHG BLP is the worlds largest Micro Finance Model
  1. Phase 3 → SGSY
      2. SGSY - Swaran Jayanti Swarozgar Yojana → Renamed to National Rural Livelihood Mission
      State Led Model transofmring SHG movement into Livelihood Movement
  1. Phase 4 → NHG
      2. SHG’s → Into Unicorns and NHG’s (National Help Groups)
Positions
State Started Giving → Asset Creation and Developmental Roles to SHG’s where State became Facilitator
State Started Implementing Many Programs through SHG’s
State Strted Finding Out More and More Methds of Developmental Activities
SHG started becoming Vehicle for Government Progreess
Positives
Socio Political and Economic Empowerement
  1. Poverty Reduction
  1. Social Solidarity
  1. Women Empowerement
  1. Entrepreneurship
  1. Emergence of Local Leadership
Happended with Decentralisation & Implementation of PESA
Eco Survey 22-23
Postive Effect on Women Empowerement
  1. Familiarity with Handling Money → Boost to Financial Inclusivity
  1. Financial Decision Making by Women like what to do and where to invest
  1. This Led to Livelihood Diversification & Asset Ownership
  1. Improved Social Networks
Challenges
Organisational
  1. Tranperancy & Accountability - Lack of Auditing or SHG Account
      2. Lack of Leadership Rotation
      though they are called as SHG but do no follow th principles of Self Help, Self Management, Self Responsibility and Self Reliance
      SHG should practise Panch Sutras
      Regular MEeting
      Regular Saving
      Regular Interloaning
      Timely Repayment
      Up to Date Book of Accounts
  1. Lack of Quality of SHG
    1. Lack of Standardisation
        2. Example of Toy Industry in Vocal for Local
    2. Lack of Industry Level Market Finish
  1. Capacity Building
    1. More than 70% SHG is in Southern States
  1. Financial Resources
    1. Not Getting Adequate Financial Resources
  1. Scalability
    1. They are small in no and processes are not Standardised hence they are less scalable
Political
  1. INteference
Social
  1. Hierarchy - Elite Capture, Social Disparity Proliferating into SHG’s
  1. Discriination - Caste
  1. Gendered Vocation - SHG are involved in those work where there is already a Pink Collared Jobs
Economic
  1. MFI Related
  1. Non Productive Purposes - Primary Sector Agricultural Activities with issue of Low Productivity. Loans are taken for Non Productive Works
  1. Low Productivity Areas - Acc to Study, SHG members still had to borrow from Informal Money Lenders
Best Practises
Patrekar Didi’s Delievered Essential Goods
Divyshree and Prerna Canteen Comunity Kitchen in Kerala
SHG’s Support Livelihood
Kudumbshree, Kerala → She Taxi
Looms of Ladakh - Traditional Artisans who were upskilled and now they are creating products like Pashmina Shawls that appeals to Global Audience and Global Market while preserving Cultural Legacies
Millet Sisters Network → Group of Women Came together and focused on Backyard Poultry and Millet Cultivation. Nutritional Security Economic Security and Livelihood Network
Govt Practises
  1. ABCD Campaign where state provided documents to tribals. Some Initiatives like this
  1. Promoting Larger Collectives Like Farmer Producers Organisation
  1. NRLM - Deen Dayal Antodaya Yojana
    1. Social Mobilisation and Promotion of SHG’s
    2. Financial Inclusion and Other Technical and Marketting Services
    3. Capacity Building
    4. Social Development and Access to Entitlements
Obj : To Mobilise Rural Women into Community Groups for Poverty Reduction
  1. Lakhpati Didi Scheme - To Enable SHG women to Earn Atleast Rs 1 Lac Per Annum
      2. through this skill development will be given. One Lac Per SHG
Way Forward
  1. Capacity Building and Skill Development
  1. Gender Neutral Vocations
  1. Better Financing Mechanisms
Extra Data
Amitabh Kant - G 20 Sherpa & Ex CEO of NITI Aayog → said that Future Face of Economic Growth depends on Credit Growth
Issues of Falling Savings Rate in Indian Economy
According to Ald HC - SHG are Loose Legal Entities and they cannot be held accountable for some work given to them → Case of PDS Implementation
Question
Emergence of SHG’s in contemporary times points to the slow and steady withdrawal of the State from developmental activities examine the role of the SHG’s in Developmental Activities and the measures taken by the government to promote SHG’s
 
Copyright 2022 UPSC Vision