Poverty Alleviation through Self-Help Groups in Anantapur District of Andhra Pradesh
©2017
Textbook
335 Pages
Summary
In developing economies and particularly in rural areas, many activities that would be classified in the developed world as financial are not monetized: That is, there is no money used to carry them out. This is often the case when people need the services money can provide but do not have dispensable funds required for those services, forcing them to revert to other means of acquiring them. People find creative and often collaborative ways to meet the needs, primarily through creating and exchanging different forms of non-cash value. Common substitutes for cash vary from country to country but typically include livestock, grains, jewelry and precious metals.
In the 2000s, the micro finance industry’s objective is to satisfy the unmet demand on a much larger scale, and to play a role in reducing poverty. While much progress has been made in developing a viable commercial micro finance sector in the last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand.
In the 2000s, the micro finance industry’s objective is to satisfy the unmet demand on a much larger scale, and to play a role in reducing poverty. While much progress has been made in developing a viable commercial micro finance sector in the last few decades, several issues remain that need to be addressed before the industry will be able to satisfy massive worldwide demand.
Excerpt
Table Of Contents
4
List of Abbreviations
S.No
Abbreviations
1
AAY
Antyodaya Anna Yojana
2
AP
Andhra Pradesh
3
APARD
Andhra Pradesh Academy of Rural
Development
4
APMACS
Andhra Pradesh Mutual Aided Co-
Operative Society
5
APMAS
Andhra Pradesh Mahila Abhivruddi
Society
6
APO
Assistant Project Officer
7
APRLP
Andhra Pradesh Rural Livelihood Project
8
ATCs
Associations of Thrift Co-Operatives
9
BASIX
Bhartiya Samruddhi Finance Limited
10
BDS
Business Development Services
11
BPL
Below Poverty Line
12
CADP
Command Area Development Programme
13
CASHE
Credit and Savings for Household
Enterprise
14
CDF
Co-Operative Development Foundation
15
CDS
Community Development Societies
16
CEGC
Central Employment Guarantee Council
17
CIF
Community Investment Fund
18
CPO
Chief Planning Officer
19
DCCB
District Commercial Co-Operative Bank
20
DDP
Desert Development Programme
21
DFID
Department for International Development
22
DHAN
Development Human Action
23
DPAP
Drought Prone Areas Programme
24
DPEP
District Primary Education Project
25
DPIP
District Poverty Initiative Project
26
DRDA
District Rural Development Agency
5
27
DRIP
District Rural Industries Project
28
DWCRA
Development of Women and Children in
Rural Areas
29
EAS
Employment Assurance Scheme
30
EC
Executive Committee
31
EGA
Employment Guarantee Act
32
EGA
Employment Guarantee Act
33
EGS
Employment Guarantee Scheme
34
EIUS
Environmental Improvement of Urban
Slums
35
EO
Extension Officer
36
FADU
Farmers Development Union
37
FCI
Food Corporation of India
38
FFWP
Food For Work Programme
39
GKY
Ganga Kalyan Yojana
40
Govt
Government
41
HCR
Head Count Ratio
42
HR
Human Resource
43
HYV
High Yield Variety
45
IAAP
Intensive Agriculture Area Programme
46
IADP
Intensive Agriculture District Programme
47
IAY
Indira Awas Yojana
48
ICICI
Industrial Credit and Investment
Corporation of India
49
IGA
Income Generating Activities
50
IKP
Indira Kranthi Patham/Velugu
51
IRDP
Integrated Rural Development Programme
52
IRMA
Institute of Rural Management Anand
53
ITI
Industrial Training Institute
54
IWDP
Integrated Watershed Development
Programme
55
JGSY
Jawahar Gram Swarozgar Yojana
56
JLGs
Joint Liability Groups
6
57
JRY
Jawahar Rozgar Yojana
58
KCBP
Kalanjiam Community Banking
Programme
59
LEAP
Livelihood Enhancement Action Plan
60
MACTS
Mutually Aided Co-Operative Thrift
Societies
61
MF
Micro Finance
62
MFALDA
Marginal Formers and Agricultural
Labourers Development Agencies
63
MFDEF
Micro Finance Development and Eq2uity
Fund
64
MFI
Micro Finance Institution
65
MNP
Minimum Needs Programme
66
MS
Mandal Samakhya
67
MT
Million Tones
68
MTCs
Mens Thrift Co-Operatives
69
MWS
Million Wells Scheme
70
MYRADA
Mysore Resettlement and Development
Agency
71
NABARD
National Bank for Agriculture and Rural
Development
72
NAC
National Advisory Council
73
NCMP
National Common Minimum Programme
74
NEGF
National Employment Guarantee Fund
75
NFBS
National Family Benefit Scheme
76
NGO
Non Governmental Organisation
77
NHG
Neighbor Hood Groups
78
NIRD
National Institute of Rural Development
Agency
79
NMBS
National Maternity Benefit Scheme
80
NOAPS
National Old Age Pension Scheme
81
NREP
National Rural Employment Programme
82
NRY
Nehru Rozgar Yojana
7
83
NSAP
National Social Assistance Programme
84
NSDP
National Slum Development Programme
85
PD
Project Director
86
PGI
Poverty Gap Index
87
PMGSY
Pradhan Manthri Gram Sadak Yojana
88
PMIUPEP
Prime Ministers Integrated Urban Poverty
Eradication Programme
89
PMRY
Prime Minister Rozgar Yojana
90
PO
Programme Officer
91
POP
Poorest of the Poor
92
PRI
Panchayat Raj Institution
93
PS
Panchayat Sammitee
94
RBI
Reserve Bank of India
95
RBI
Reserve Bank of India
96
RCS
Rice Credit Scheme
97
RF
Revolving Fund
98
RGB
Representative General Body
99
RLEGP
Rural Landless Employment Guarantee
Programme
100
RMK
Rastria Mahila Kosh
101
RMNP
Revised Minimum Needs Programme
102
RPRP
Rural Poverty Reduction Project
103
RRB
Regional Rural Bank
104
SBI
State Bank of India
105
SC
Scheduled Caste
106
SEGC
State Employment Guarantee Council
107
SERP
Society for Elimination of Rural Poverty
108
SFDA
Small Farmers Development Agency
109
SGRY
Sampoorna Gramin Rozgar Yojana
110
SGSY
Swarna Jayanti Gram Swarozgar Yojana
111
SHARE
Society for Helping, Awakening Rural
Poor through Education
8
112
SHASU
Scheme of Housing and Shelter
Upgradation
113
SHG
Self Help Group
114
SHPI
Self Help Promoting Institution
115
SIDBI
Small Industries Development Bank of
India
116
SITRA
Supply of Improved Toolkits to Rural
Artisans
117
SJSRY
Swarna Jayanti Sahari Rozgar Yojana
118
SKS
Swayam Krushi Sangam
119
ST
Scheduled Tribe
120
SUME
Scheme of Urban-Micro Enterprises
121
SUWE
Scheme of Wage Employment
122
TCs
Thrift Co-Operatives
123
TDP
Telugu Desam Party
124
TRYSEM
Training of Rural Youth for Self-
Employment
125
UBSP
Urban Basic Services for the Poor
126
UNDP
United Nations Development Programme
127
UNICEF
United Nations Integrated Children's
Emergency Fund
128
UPA
United Progressive Alliance
129
USEP
Urban Self Employment Programme
130
UT
Units
131
UTI
Unit Trust of India
132
VO
Village Organisation
133
WEP
Wage Employment Programme
134
WTCs
Women Thrift Co-Operatives
135
ZP
Zilla Parasite
9
Chapter-1
Introduction
Introduction of Poverty
In India poverty is in its worst form, particularly in the rural areas,
where more than 70 per cent population of the country resides. Many of them
do not have any source of income or means of livelihood and hence access to
basic necessities of life such as food, shelter, drinking water, and sanitation is
negligible or marginal. Poverty in India has been defined on the basis of
poverty line, which refers to annual income of a family. As per the latest
report available, 36 per cent of the country's population is still living below
poverty line, which means millions of people in the country do not have
sufficient food to eat, water to drink, shelter to live and clothing to wear. The
situation is quite alarming and reality is in the very sad state of affairs
1
.
Needs + Fulfillment = Social Function
Failure of needs
fulfillment results
Stocks
Flows
Fig: 1.1: The Structure of Poverty
Source: Jackson, Dubley, Poverty, London, The Macmillan Press Ltd, 1972.
Education
Housing
Security
Being employed
Maintaining a
family
Engaging a social
life
Nutrition
Having a
standard life
expectancy
10
Meaning and Definition of Poverty
Poverty can be defined as a social phenomenon in which a section of
the society is unable to fulfill even its basic necessities of life. When a
substantial segment of society is deprived of the minimum level of living and
continues at a bare subsistence level, that society is said to be plagued with
mass poverty. The countries of the third world exhibit invariably the existence
of mass poverty, although pockets of poverty exist even in the developed
countries of Europe and America.
Attempts have been made in all societies to define poverty, but all of
them are conditioned by the vision of minimum or good life obtaining in
society. For instance, the concept of poverty in the U.S.A would be
significantly different from that of the concept of poverty in India because the
average person is able to afford a much higher level of living in a society and
as such these definitions reflect the existence of inequalities in a society and
the extent to which different societies are prepared to tolerate them for
instance, in India, the generally accepted definition of poverty emphasizes
minimum level of living rather than a reasonable level of living. This attitude
is born out of realization that it would not be possible to provide even for
minimum quantum of basic needs. As a result the absolute standard of poverty
is expressed in terms of minimum requirements of cereals, pulses, milk,
vegetables, butter, clothing or calorie intake.
Thus two types of standards are common in economic literature: the
absolute and relative. According to the relative standard, income distribution
of the population in different fractile groups is estimated and comparison of
levels of living of the top 5 to 10 per cent with the bottom 5 to 10 per cent of
the population reflects the relative standards of poverty. The defect of the
latter approach is that it indicates the relative position of the different
segments of the population in the income hierarchy. Even in affluent
societies, such pockets of poverty exist. But for underdeveloped countries, it
is the existence of mass poverty that is the cause of concern.
11
Robert Hunter
2
has defined a poor man as a, "person who for whatever
reason was unable to provide himself and his dependents with a decent
standard of living". For developing country like India, poverty may be viewed
from the subsistence angle and may be defined as failure to meet the norms of
basic requirements of life. This norm consists mainly of nutritional elements,
such as food, clothing and education the most basic to all human needs.
Types of Poverty
In general terms, poverty can be divided into two categories:
(i) Absolute Poverty and (ii) Relative poverty.
Absolute Poverty
3
Absolute poverty has been defined as income levels below which even
the minimum standards of nutrition, shelter and personal amenities cannot be
maintained. Absolute poverty is essentially concerned with the provision of
immediate subsistence requirements of an ordinary individual / household and
is measured in norms of calorie requirements per capita and the expenditure
that is to be incurred to secure the minimum calorie requirements of food.
Often a provision is made for the component of clothing and housing on this
basis, the poverty line income is computed, and persons / household falling
below the poverty line are considered to be in absolute poverty. The poverty
line normally differs across countries because of variation in socio economic
as well as cultural patterns.
A person in want is some one whose poverty "below the breadline,
who is forced into such a degrading and consuming struggle with life that it
seriously interferes with any spiritual concerns". From this point of view, to
be poor is to be incapable of calling on one's resources to meet physiological
needs of selt and one's family. Those who suffer from `absolute' poverty have
the guarantee that they will be able to meet the fundamental costs of living as
a human being.
12
Relative poverty
Relative poverty, another dimension of poverty is reflected by the
extreme differences in levels of living between different strata of the society.
Relative poverty is the extreme form of inequality in standards of living and
degree of protection against insecurity. In this case, poverty applies to
individuals and families whose income and other resources, are far below the
average level of the society in which they live.
In contrast to the income measures of poverty, human and
environmental poverty is a matter of deprivation in terms of education,
information, health and sanitation. The number of persons caught up in human
poverty was estimated by the UNDP to be 1.5 billion in 1999
4
. The concept of
poverty thus, is multi-dimensional and touches us on economic, human and
environmental aspects of society.
Poverty in the World
5
The bulk of the world's poor about 750 million (85 per cent of the
people), live in rural areas. Half of the people in south Asia, mainly in India
and Bangladesh, live in absolute poverty. A sixth live in East and Southeast
Asia, mainly in Indonesia; another sixth in Sub-Sharan Africa. The rest about
100 million people are divided among Latin America, North Africa and the
Middle East. With the partial exception of Latin America (where about 40 per
cent live in towns), the poor, who are dependent on agriculture are primarily
rural dwellers. A majority of then are small and marginal farmers (50 per cent)
and landless labourers (25 per cent). Some minority groups, for example, the
Indians in Latin America and the Scheduled Caste, Scheduled Tribes and
Backward Classes in India are also over-represented among the poor.
Majority of the population in less developed-countries are subject to
relative poverty indicated by gross inequalities among different sections of the
society. The studies carried out at the international level by the World Bank
and the Food and Agricultural Organisation (FAO) of the United Nations have
brought in to focus the severity of the poverty, particularly poverty in the rural
areas and high lighted the need for anti-poverty programmes.
13
Poverty in India
6
In India, even after fifty five years of planned economic development,
there is the problem of mass poverty. From the studies of Prof. Dandekar and
Prof. Rath, it is perceived that 40 to 50 per cent of the Urban population lived
below poverty line during sixties. According to the sixth plan (1980 85), 51
per cent of the rural population and 38 per cent of the urban population live
below the poverty line and it was 48.4 per cent for the country as a whole.
During the seventh plan period these percentages were 21.68 and 11.55
respectively for rural and urban areas.
In the light of the norms of poverty, it has been established that
landless agricultural labourers, marginal and small farmers constitute the class
of poor of the rural areas. The class of urban poor constitute those who
migrate from rural areas to urban areas in search of employment and settle
down as rickshaw pullers, headload carriers, domestic servants, sweepers etc.
Dimensions of Rural Poverty in India
Agriculture continues to be the primary sector of the Indian economy
even after more than five decades of planned development. Three-fourths of
the India's population lives in rural areas and earns its livelihood through
agricultural and allied occupations. Rapid growth of population coupled with
slow growth of non-agricultural rural sector led to excessive dependence on
agriculture. Indian agriculture is still a gamble of monsoons as three-fourths
of its net area sown is depending on rainfall which is very often uncertain,
unevenly spread and deficient to meet the requirement of crop growth
resulting in instability in agricultural production. Due to rapid growth of
population the number of cultivators and agricultural labourers has been
increasing at an alarming rate. The average per capita size of holding has been
declining leading to increase in the number of small and marginal holdings.
There has been spectacular rise in the number of agricultural labourers without
any asset base purely depending on wage employment in agriculture. As a
consequence of industrialization, almost all the rural artisans have lost their
jobs and joined the ranks of rural labour. The low wages, seasonal
14
unemployment and underemployment push these unfortunate sections in to the
vicious circle of poverty, unemployment and indebtedness.
After India got independence and started on five-year plans, the
expectation was that with rapid industrialization, surplus rural labour would be
absorbed in non-agricultural activities and automatically benefit from
agricultural growth.
Economic growth by itself does not lead to a proportionate increase in
employment opportunities for those sections of the working population who
do not have access to assets. Secondly, economic growth does not lead to an
improvement in the standard of living of the disadvantaged sections of the
society. Economic growth is not a sufficient condition for ensuring the
improvement of consumption levels and the employment status of the under-
privileged in a poor country. Growth of an enclave variety, by which we mean
growth concentrated in space (say mainly in large metropolitan towns) or in
selected sectors (say mainly of export goods and / or of luxury goods
consumption), would by itself not lead to employment and income generation
for the relatively poorer sections of the society. With a rate of growth of
around 3.5 per cent compound per annum, the Indian economy has not been
able to create any appreciable impact on either the employment levels of the
poorer sections or their standard of living.
Agriculture has been the main occupation for bulk of its workforce in
India. According to 2001 census, the agricultural sector provides employment
to about 60 per cent of the total working population. In the absence of
corresponding increase in the employment in the urban non-urban sector, there
is surplus man power available in the rural areas. Inspite of high rate of
agricultural growth, agricultural sector has failed to generate additional
employment opportunities. This has led to widespread unemployment and
underemployment increasing intensity of poverty and indebtedness.
15
Causes of Poverty
The various factors responsible for poverty are as follows:
I. Personal factors
No one can deny the importance of personal capacity, efforts and
characteristics, in the economic status of the person. The important personal
causes of poverty are
7
:
Sickness
Mental disease
Accidents
Illiteracy
Idleness
Demoralization
Extravagance
II. Geographical factors of poverty
The following geographical factors are also responsible for existence
of poverty. They play an important role and become great hurdles in national
development. The factors are explained below:
Unfavorable climate and weather
Favourable climate and weather is very much necessary for work as
well as for production both agricultural and industrial. In the extremely cold
and hot climatic conditions, the amount of work turned out is considerably low
because the workers cannot work for longer hours. This increases the
intensity of poverty.
Absence of natural resources
Absence of natural resources is another reason for existence of
poverty. No country can become rich in the absence of sufficient natural
resources eg. Fertile land, sufficient water, minerals, marine and forest
products. In the absence of natural resources, the inhabitants of the deserts,
high mountains generally remain poor.
16
National calamities
Besides, unfavorable climate and weather, natural calamities, such as
the eruptions of volcanoes, typhoons, floods, earthquakes and lighting cause
serious damages to property and agriculture. In Japan earthquakes cause
serious damage to property. In China, floods are the major causes of damage
to agriculture. In India, the absence of timely rains, excessive or deficient
rains cause serious damage to agriculture.
Pests
Pests are the major cause of damage to agriculture and movable
property such as books, furniture etc.
III. Economic factors
Economic factors also play an important role among different causes.
The important ones are explained here under:
Agricultural causes
Absence of sufficient manure, improved tools, implements and
machines, means of irrigation and cattle of high-bread, diseases, absence of
sufficient means to protect the fields from pests and animals, superstitions,
exploitation of farmers and labourers by the landlords and constant
fragmentation of land are some of the important causes in the rural parts of
India which increase the poverty among people who are engaged in
agricultural sector.
Unequal distribution
Even if production is sufficient, millions of farmers and labourers
remain poor in the country where distribution of wealth is unequal. In the
capitalist society the rich becomes richer and the poor poorer.
Economic depression
Economic-depression factor such as decrease in trade and commerce,
lockout of mills and factories and unemployment of millions of persons and
small traders and multiply serious setback in the eradication of poverty.
17
Unemployment
Unemployment is the most serious causative economic factor of
poverty. In India, it is the major cause of the lower standard of living of the
people, both in urban and rural areas.
Unproductive Hoarding
If a major portion of the wealth of the country is hoarded in
unproductive forms, such as jewelry, furniture etc., the economic development
of the country is seriously handicapped. This is a serious cause of poverty in
India.
Unwise Economic Policy
Sometimes, inspite of the presence of sufficient resources and man
power in a country, the people remain poor because of the unwise economic
policy of the Government. This was an important factor of economic
backwardness in India under the British rule.
IV. Social factors
The following social factors also increase poverty. They can be stated
below:
Faulty educational system
Faulty and insufficient housing
Absence of training in home science
Evil customs and Traditions
Insufficient provision of Medical Aid and
War
The above mentioned personal, geographical, economic and social
causes do not exhaust all the causes of poverty. In fact, they differ from man
to man and society to society. But, the above mentioned are the important
causes of poverty every where. Eradication of poverty requires removal of all
these causes. This involves titanic efforts not only by the Government but also
from the people.
18
Estimation of poverty
The earlier approaches in the issue of poverty because on the
interrelationship between economic growth, income inequality and poverty.
There are two types of indices for measuring the extent of poverty.
The most common index is the percentage of population in poverty or the
head-count ratio, popularly referred to as the incidence of poverty. This can
be express as:
Q = n/p ...
(1)
Where
`Q' denotes the proportion of population below the poverty line,
`n' denotes the absolute number of people or persons in poverty and
`P' denotes the population of the country and the state or the region.
To find the value of Q, one has to define first what constitutes poverty
so that value of `n' can be ascertained.
A second index of poverty aims at measuring the poverty gap or the
incomegap ration. This is the aggregate income needed to bring all the poor
above the poverty line. The incomegap ratio can be expressed as:
1 = 1/Q Q/1-1 (Z Yi) ... ... (2)
Where
1 denotes the income gap ratio,
Q denotes the number of persons below the poverty line,
Z denotes the poverty line and
Yi denotes the income of the ith persons the below poverty line.
The incomegap ratio is useful for estimating the amount of income
transfer needed to lift the poor above the poverty line.
19
References
1.
Planning Commission, Government of India, New Delhi, 2000.
2.
Venkata Reddy, C., Dimensions of Rural Poverty in Anantapur District
of Andhra Pradesh A Special Reference to IRDP, Un Published Ph.D
Thesis, S.K.University, Anantapur, 2004.
3.
The World Bank, Assault on World Poverty, London, The Johns
Hopking University Press, 1975, pp.19.
4.
UNDP Report, 2000.
5.
World Bank Paper, Regional Disparities, the Role of Saving and
Wealth in the Southern Asia and the West, (UNESCO: 1963), pp.307.
6.
Varugness, K.V., The Problem Poverty! Indian Economy, Ashis
Publishing House, New Delhi, pp.218-219.
7.
Lakshmi, P.S., Role of Financial Institution in Alleviation of Poverty
with Special Reference to Hindupur Mandal of Anantapur District, Un
Published M.Phil Thesis, S.K.University, Anantapur.
20
Review of literature
This chapter deals with a review of literature. Review of literature is
divided into two parts-Part A and Part B. In the part A a review of literature
on poverty is given and in part B literature on SHGs has been reviewed.
A. Review of literature on Poverty
A study group of the Government of India (1962)
1
recommended the
rationally desirable minimum level of consumer expenditure of Rs. 20 per
capita per month at 1960-61 prices. This recommended figure was criticised
on the ground that it was an underestimation as it excludes the expenditure on
health and education assuming that they are provided free of cost by the state
according to constitution.
Chatterjee and others (1963)
2
in their paper "A Preliminary Study on
the Dietary Levels of Households in Rural India" found that about 53 per cent
of the rural population fall below the norm of 2400 calories per capita per day.
He uses NSS consumption data which does not take into account the non-food
expenditure. Thus they have under-estimated the extent of rural poverty in
India.
In his study "Size and Areal Distribution of Level of Living in India"
Mukherjee (1969)
3
with a different methodology and considering the
country's population as a whole (without any bifurcation of rural and urban)
has arrived at the conclusion that in terms of the density of the poor, Orissa,
Kerala, Bihar, Mysore and Andhra Pradesh are Poorest States in 1963-64. But
he did not consider the price variation, type, nature and intensity of
activities, cropping pattern and climatic factors in different regions of the
country. He has used uniform measure for all regions to measure poverty.
Martin Rein (1970)
4
regarded poverty as subsistence, inequality and
externality. Most economists define poor as those people who are unable to
maintain the minimum level of subsistence. In other words, the poor are
incapable to maintain a defined level of consumption or income at that
particular time. The main idea of defining poor or distinguishing between
21
poor and non-poor is to analyze the socio-economic aspect of poverty. The
line of draw between poor and non-poor is called poverty line.
Minhas (1970)
5
slightly modified the study groups figure as Rs.200
per capita per annum relating to rural areas on the ground that urban cost of
living tends to be somewhat higher at 196061 prices. Using the norm, he
found that between 1956-57 and 196768, the rural poor declined by 19
million though the number of poor tends to rise in bad harvest years. Minhas
was also subject to criticism by the study group as he failed to take into
consideration the expenditure on clothing, fuel, light, health, education, etc.
Ojha (1970)
6
, adopting a different methodology, estimated the poor
both in rural and urban areas for two different years. Using calorienorm of
2250 per capita per day for an average Indian he worked out the minimum
required food consumption as 518 grams for rural areas and 432 grams for
urban areas. According to his estimates 51.8 per cent of the rural population
and 7.6 per cent of urban people fell below poverty line. For the year 1967
68, he concluded that 70 per cent of the rural population were below the
minimum level of food grains consumption. Ojha too has excluded the
expenditure on health, education and housing.
Bardhan (1970)
7
used minimum level of income (i.e. Rs. 15 per capita
for rural and Rs. 21 per capita for urban areas) as norm and examined the trend
of rural poverty over the years 196061 to 196869. Bardhan estimated that
of the total population 38 per cent in rural areas and 44 per cent in urban areas
during the year 196061 at same year prices fell below poverty line. During
1968-69 at 1960-61 prices Bardhan estimated that 54 per cent of the rural
population and 41 per cent of the urban population fell below poverty line.
Bardhan found that the rural poor have increased at a staggering rate (i.e. by
95 million between 196061 and 196869).
Dandekar and Rath (1971)
8
emphasized that poverty is a problem of
low national income and its unequal distribution, of the slow pace of
development and inequitable distribution of the small gains of development.
22
They used estimates of consumption expenditure and adopted a nutritional
norm to define the poverty line.
Vyas (1972)
9
observed that proportion of rural poor fell from 45 per
cent in 1954-55 to 38 per cent in 196061, though there was no agricultural
growth and no sectoral changes.
Panikar (1972)
10
in his study of Kerala, without mentioning the figures,
examined the reliability of minimum consumer expenditure norm at Dandekar
and Rath under Kerala's conditions. His basic conclusions are that by
ignoring regional factors, they reached wrong conclusions about the cost of
nutritionally adequate diet in Kerala. By using national-minimum norm
Dandekar and Rath have over estimated the number of the poor in Kerala. It is
found that the diet for Kerala to attain minimum norm at 197071 prices
would cost Rs. 28.30 per head per month and the total per capita consumption
expenditure corresponding to his diet would be Rs. 37.80.
Vidyanathan (1974)
11
in his paper "Some Aspects of Inequality in
Living Standards in Rural India", by using Rs. 21.44 as average per capita
consumption per month at 1960-61 prices, found that about 15.65 per cent
were living in poverty. With regard to trend, based on NSS data, he observed
that rural poverty had gone up from 59.5 per cent in 196061 to 67.9 per cent
in 1967-68.
Bhatty (1974)
12
estimated the poverty levels for different categories at
different income levels for 1968-69 by using the techniques of Sen's poverty
index and head count ratio. He observed that incidence of poverty was
maximum among agricultural labourers category (89.56 per cent) followed by
non-agricultural workers (78.77 per cent) and cultivators (70.28 per cent).
Planning Commission (197778)
13
in its draft plan estimated that 48
per cent of the rural population and 41 per cent of the urban population in
India fell below poverty line.
23
In a study, Ahluwalia (1978)
14
using the norm of the per capita
consumer expenditure of Rs. 15 per month at 1960-61 prices for both country
as a whole and different states examined the trends in the incidence of rural
poverty for about two decades from 195657 to 1973-74. He concluded that
the time trend is insignificant but the series shows that the incidence of
poverty fluctuates in response to variations in real agricultural output per head.
He found that there is an inverse relationship between rural poverty and
agricultural performance for the country as a whole. The same trend was also
noticed in several individual States. There was also evidence that there are
processes at work which tend to increase the incidence of poverty
independently of variations in agricultural output per head.
According to Sen (1979)
15
this defined level (poverty line) explains
poverty partially. He stated that poor are those people who are living below
poverty line. But one cannot isolate the poor and non-poor in real term.
Therefore, poverty should include absolute poverty and relative poverty in
context of society. Concept of poverty can further be implied as
individualized poverty i.e., those individuals who cannot meet the minimum
expenditure of essential items (basic necessities) like food, shelter and
clothing. Further, collective or mass poverty is the product of social system
and can be analyzed at aggregate level. This situation is commonly observed
in the developing countries.
Kakwani (1981)
16
suggested alternative measures of intensity of
poverty rather than the conceptual problem of poverty and made use of the
three poverty indicators, the percentage of poor, the aggregate poverty gap and
the distribution of income among the poor. While using NSS data (16
th
round,
July 1960-61), he observed that 11.2 per cent of the total income must be
transferred from the non-poor to the poor to eliminate the poverty.
Food and Agriculture Organisation (1982)
17
has reviewed poverty in
rural areas in developing countries and the means of poverty alleviation. The
study, based on absolute poverty norms has come to the conclusion that one of
the origins of this poverty must lie in inadequate access to land and other
24
factors leading to insufficient production. By projecting World Agricultural
Perspectives and Policy issue up to the year 2000 A.D. with particular
attention to developing countries, the study found that over the next two
decades the developing countries could double their food and agricultural
production but it observed that improved food production must go hand in
hand with a more equitable distribution of this larger output. The study
concludes that sustained effort is needed on many fronts. Limited access to
land due to unequal distribution of land or population pressure is undoubtedly
a major contributory cause of insufficient production but the inherent quality
of the land and quantity of labour and capital are also the determinants of the
level of farm output. Case studies prepared for A.T.2000 (FAO 1981
Agriculture towards 2000) show that the incidence of poverty in rural areas in
highest among landless labour and small holder households.
The study has further observed that mere economic growth in general
or agricultural growth in particular will not be sufficient to solve the problem
of rural poverty. The alleviation of poverty within an acceptable time scale
requires a political commitment to the reshaping of the pattern of national
economic growth and new distribution of its benefits.
In a study of Karnataka, Thimmaiah (1983)
18
using primary data
collected by the Institute for Social and Economic Change concluded that
poverty is inversely associated with the level of development of the districts.
He found that rural poverty is confined only to agricultural labourers, marginal
and small farmers.
Tendulkar and Sundaram (1985)
19
in their study "Growth Trickle
Down Effects and Poverty", have concluded that the percentage of population
below poverty line has fluctuated without any trend towards increase or
decrease both for the rural and the urban population. The absolute population
of the poor has, however, been rising at an annual average rate of 3.5 million
in case of rural areas and 1.45 million in respect of urban areas. Further, they
found that there was no relation between growth rate and poverty.
25
Parthasarathy (1985)
20
in his presidential address at a National Seminar
on "Growth, Stability and Equity within the Agrarian Sector of Andhra
Pradesh" held that poverty ratios in Andhra Pradesh are sensitive to growth
performance in agriculture although it is not significantly true in the case of
bottom classes. Growth lowerness, benefited much more the top cultivators
group rather than the bottom cultivators group in the State.
Radhakrishna and Sudhakar Reddy (1986)
21
in their paper on "Class
Composition, Poverty and Agricultural Development", using Rs. 50 per capita
expenditure per month as poverty-line, have concluded that rural poverty is
concentrated among the agricultural labourers in almost all the districts and
cultivators and self-employed in back-ward districts.
The Bureau of Economics and Statistics (1986)
22
in its report (1981
82) found that 44.6 per cent of rural population in Andhra Pradesh fall below
poverty line (Rs. 61.30). Average monthly per capita expenditure has been
used as the cut-off point. It is found that the highest percentage of families
below this poverty line was in Chittoor district (61.3 per cent) while this
percentage was lowest (28.6 per cent) in East Godavari district.
Perraju Sarma (1987)
23
examined the dimensions of rural poverty with
reference to agricultural labourers in Andhra Pradesh. The intergenerational
decline in occupational status and access to land have been the important
factors explaining poverty among agricultural labourers. But there is no
association between income, poverty and generation change.
Kohli (1987)
24
argued that there are regional differences in the
performance of distribution policies. This diversity has arisen because of
various regime characteristics in the states. He suggested that only organized
left of centre regimes are capable of facilitating reforms of a distributive
nature within India's seriously constrained political economy.
Sudhakar Reddy (1989)
25
In his paper `Poverty in Andhra Pradesh'
concluded that though there is a declining trend in the incidence of poverty in
26
seventies and eighties the people below poverty line in the year 198687 were
still higher (41.85 per cent) in rural Andhra Pradesh. The studies which were
conducted up to 1992 have concluded more or less on similar lines.
In a World Bank study (1995)
26
entitled "Assault on World Poverty",
MC Namara former World Bank President observed that growth is not
equitably reaching the poor and the poor are not significantly contributing to
growth. Development strategies, therefore, need to be reshaped in order to
help the poor to become more productive. The study suggests that agricultural
credit and land reforms are the key elements in helping the rural poor to
become more productive. Unfortunately, the flow of credit to poorer sections
has been inadequate due to lack of sufficient collateral and high administrative
costs of small loans to them.
Alagh (1995)
27
while studying the poverty alleviation programmes
suggested that an information system is required to effectively follow up food
security and related employment guarantee scheme, policies and the role of
estimates of the proportion of the population below the poverty line.
Gaur (1998)
28
depicted that there should be a direct attack on poverty
by adopting micro level target approach. A complete package of
infrastructural facilities to the poor be provided to run the scheme
successfully. He also pointed out that the antipoverty porgrammes should have
further and fuller understanding of the social and physical environment
including its organizational aspect.
The Ninth five year plan (1997-2002)
29
has proposed to tackle poverty
in two ways; first is to involve the poor masses themselves and secondly to
clearly define and proper by implement the poverty alleviation programmes.
Further, the plan has also emphasized on poverty alleviation, and women and
child development in integrated manner.
Chellaiah and Sudarshan (1999)
30
have analyzed various aspects of
poverty like extent, nutrition level, impact of poverty alleviation programmes,
27
poverty trends, etc. The analysis has brought forward the situation of poverty
in fifteen major states and indicated that weighted average Head Count Ratio
(HCR) declined by eight per cent from forty per cent in 1983 to thirty two per
cent in 199394. The HCR declined by 19 per cent, depth of poverty based on
Poverty Gap Index (PGI) by 23 per cent, and severity of poverty based on
relative squared gap (FGT) by 26 per cent over the decade from 1983 to 1993-
94. The nutrition and food level consumed by the poor people was very low in
most of the cases. Further the poverty alleviation porgrammes need mass
participation, action and involvement of the poor at all levels.
Desai (1999)
31
underlined the importance of development policies in
order to identify the steps needed for poverty increase with special reference to
women and examined the effects of the policies on women, work and poverty
eradication. It was concluded that the poverty alleviation porgrammes should
lay priority for women in all perspectives and gender awareness be generated
by neutral, specific and redistributives or transformative policies. This will
ensure satisfactory livelihood and poverty eradication.
Kannan (1999)
32
studied the income poverty aspect and the
achievements in advancing basic human capabilities with reference to Kerala
and discussed the achievements in relation to All-India. It was emphasized
that public participation and action enabled Kerala to achieve considerable
reduction in poverty. Further, economic growth, improved infrastructure, flow
of remittance from abroad, increased literacy has helped in poverty alleviation
but through public participation and action.
Sundaram (1999)
33
studied various poverty alleviation programmes
implemented and its impact on poverty. It was depicted that the anti-poverty
programmes and policies rely on Government to create the primary structure
so that the poor can avail the goods and services. These programmes have
played an important role in reducing poverty but the proportion is small
because
i)
Ineffective monitoring and evaluation of the programmes.
ii)
Multiplicity of programmes and their implementation
28
iii)
Lack of will to take action against inefficiency and corruption.
Further, it was suggested to stabilize the population, provide minimum
basic services and employment.
Srivastava (1999)
34
pointed that the poverty is perceived as the well
being of the people along with the living conditions and these vary in groups
of people, locality, gender, areas, region etc. Thus, the people should
collectively recognize the attribute of poverty which will provide the base and
starting point for the development programmes for poverty alleviation. The
NGO's, political parties, various organizations, bureaucrats, should catalyze
the whole chain reaction.
Kamata Prasad (2000)
35
in their study stated that panchayats have
neither the power nor funds to function as independent institutions to work for
eradication of poverty. There is also very little space for `Gram Sabhas', in
the present scheme of decentralization. A decentralized system cannot
function effectively as long as these deficiencies are removed. The author
asks for a fresh took at the issue. Agriculture alone, however, would not be
adequate to raise the income levels of all the rural poor. The scope for rapid
development of agriculture is limited in dry, drought prone and flood prone
areas, where poverty is more concentrated. Hence, there is need for
occupational diversification by increasing rural industries and support
services, which should be so designed as to enable the weaker sections to
derive maximum benefits.
Agriculture alone, however, would not be adequate to raise the income
levels of all the rural poor. The scope for rapid development of agriculture is
limited in dry, drought prone and flood prone areas, where poverty is more
concentrated. Hence, there is need for occupational diversification by
increasing rural industries and support services, which should be so designed
as to enable the weaker sections to derive maximum benefits. There is said to
be an elitist bias at all levels of local administration and this is not conducive
to successful implementation of programmes for the benefit of the poor.
Plausible reasons like "poor record" of use of benefits extended, bad debts,
29
lack of receptivity to new ideas and lack of "education" to use them, are often
advanced by those in authority for not being able to serve the poorer sections
better.
Pattanaik (2001)
36
in their study women have a decisive role to play in
the alleviation of household poverty. Empowering women with property
rights and with savings and investment facilities would contribute much more
to the household income. Moreover women work participation in the income
earning activities would raise the gender per capita income. It can be
recommended that income in the hands of women would contribute much
more to the household food security than the income controlled by men. The
economic empowerment of women is sine-qua-non for eradication of poverty
in general and rural poverty in particular.
Lakshmi Narasaiah (2001)
37
in his study opined that the attempt to
formulate an objective and generally valid definition of poverty must be
abandoned. It is a complex and multi-faceted problem. Since it can be caused
by deprivation in different areas, there are in reality different poverty profiles.
There is a multitude of different poverty groups with different interests and
needs, such as women and children, the rural and the urban poor, members of
various ethnic groups and religious communities. This can lead not only to
conflict between different poverty groups but also to discord within the
respective groups, thus hampering the formulation of consistent strategies for
redusing poverty.
Krishna Anirudh (2003)
38
in their study apart from this, transforming a
given rate of economic growth, higher poverty reduction warrants a thorough
investigation of factors that act as incentives and obstacles. And nature of
these incentives and obstacles is likely to change in relation to the local
political economy. Applying scarce development resources more effectively
will necessitate investigating more closely what factors are associated with
decline in and what factors are associated with escape from poverty in any
particular local context. Some case studies suggest the diversification of
income resources is the most important factor associated with households
30
escaping poverty. People on the just margin of poverty line are very much
volatile to slip in to poverty due to health care cost, social expenses and high
interest private debt.
According to Jawed Akhtar (2005)
39
the alleviation of poverty has
been a major objective of India's development plans. The "Garibi Hatao"
slogan given by Indira Gandhi in the early 1970s marked the beginning of an
intensified approach to help the poor as reflected in a wide range of
programmes for direct intervention to benefit the backward and poor sections
of the society. These programmes have had some notable achievements to
their credit, such as public distribution system with a wide rural coverage,
employment programmes with significant impact on the rural poor and
improvement in rural amenities and infrastructure like roads, schools, health
centres, banks, communication facilities etc. A good indicator of the impact
of the anti-poverty programmes in India is the reduction in the extent of
poverty. The percentage of population living below the poverty line has
declined from 55 per cent during 197374 to 36 per cent during 199394 and
further to 26.1 per cent during 19992000 for the country as a whole.
However, it may be noted that the whole of the decline in the poverty cannot
be attributed to anti-poverty programmes alone but there appears to be a
consensus among the researchers that these programmes have been an
important factor in the reduction in poverty over the last three decades.
Rangachar (2005)
40
suggested that the Bank's new strategy has not yet
contributed much to the reduction of poverty. World-wide poverty has in fact
increased since the beginning of the 1990s, with the notable exception of
China where the Banks has the little, if any, influence on the Country's
development Strategy. In countries of the former Soviet Union, the Bank's
advice has contributed to the emergence of large-scale and persistent poverty.
In other cases, especially Africa, the bank had no significant influence on
often chaotic political and administrative conditions.
Equally limited was the impact of bank interventions designed to
invest in the qualification of poor people and foster their participation in
31
development. Education and health programmes continue to be biased in
favour of the more affluent population groups, and suffer from severe
shortages to finance recurrent expenditures. Even less successful were
attempts to sponsor small grass root projects at the community level, the
reason being that in its present organizational structure the World Bank lacks
the capacity to prepare and supervise micro-projects that would directly
address poverty in rural and urban areas.
.
Surendra Kumar and Singh (2005)
41
say that their experience with the
implementation of poverty alleviation programmes has not been encouraging.
Leakages, corruption, lack of sectoral integration and absence of people's
participation have contributed to their limited impact. An effective delivery
system is an essential pre-requisite for the success of such programmes.
Further policies will have to emphasize higher growth rate since they are
essential for poverty reduction. Besides it has to be simultaneously ensured
that higher growth is accompanied by job creation at a higher rate than the rate
of growth of labour force. This would require encouragement to labour
intensive sectors of the economy. For this purpose the reform process will
have to encourage micro enterprises and small and medium entrepreneurs to
expand their business. Employment in small-scale sector can be encouraged
by providing credit and other support measure to this sector. Finally the
poverty alleviation programmes have a chance of success only when the nexus
between corrupt bureaucrats, politicians and village landlords is broken and
real beneficiaries are put incharge of these programmes.
Sidhu, Toor and Dhadli (2006)
42
observed that rapid urbanization has
been a worldwide phenomenon in 20
th
century in developing countries like
India. The challenge of urbanisation became even more serious in the context
of urban poverty, which is largely an extension of rural poverty. India's
population was about 438 million in the year 1961 which increased to about
548 million in 1971, about 685 million in 1981, about 846 million in 1991 and
about 1027 million in 2001. During the year 2005, our total population has
been about 1099 million. The urban population was about 18 per cent of the
total population in the year 1961 which increased to about 28 per cent in 2001.
32
The number of urban poor was 60 million in the year 1973-74 which increased
to 67 million in 1999-2000 but in percentage terms, the ratio of urban poor had
declined from 49 per cent to about 24 per cent in the corresponding period.
The reduction in urban poverty has been possible due to increase in the
income of the urban poor during the last three decades. The Government has
also taken a number of welfare measures regarding reduction of poverty in the
rural and urban areas.
The urban poor did not enjoy modern facilities of life. This happened
mainly due to their poor economic condition. It is suggested that additional
financial resources should be mobilized by the Government for the upliftment
of the poor. The 21
st
century is an era of development with a human face
otherwise the poor will not forgive all of us.
Rajan (2006)
43
in his paper "Post Reform Poverty Trends: An
Analysis," have concluded that the structural adjustment programme
(Reforms) initiated in 1991 is concentrated on Liberalization, Privatization and
Globalization (LPG). The reforms have serious implications for the country's
economic growth in general and for the poverty in particular. The impact of
reforms on poverty is examined in terms of the extent and incidence of
poverty. The study reveals that economic during the post-reform period
compared to the pre-reform period. The growth rate of the tertiary sector has
been much greater than that of primary and secondary. Although there are
many factors in growth, economic reforms are an important factor in growth.
Hence the higher rate of growth of the economy during the post-reform period
has resulted in reducing the incidence of poverty.
However, the reform has failed to increase employment opportunities
in general and the rate of unemployment has increased in the agricultural
sector. Our study also shows that there are favourable effects of reforms on
equality as income inequality and consumption inequality have slightly gone
down. This is the reason behind the reduction in poverty in spite of the rise in
unemployment rate. The decrease in the food subsidies during the post-reform
period has resulted in rising in the early post reform period, but the price level
33
has declined in the latter years of economic reforms. This has also helped in
reducing the incidence of poverty in India.
Thus the conclusion that the emerges from the analysis is that the
economic reforms in India has resulted in accelerating the very low economic
growth of the pre-reform India that has resulted in significant reduction in the
incidence of poverty during the post-reform period. The analysis also shows
that inequality in income and consumption expenditure have declined during
the post-reform period. Thus there are ample evidences to show that the
economic reforms initiated in India are pro-poor and not anti-poor.
B. Review of literature on SHGs
The study conducted by Krakar (1995)
44
revealed that as the
programme was effectively implemented, the monthly income of the
beneficiaries had increased substantially. A large number of groups had
become mini-banks reducing the dependence on moneylenders. It had also
resulted in improving their standards of hygiene and nutrition. The major
findings were that the urge for literacy especially for the girl child and
adoption of family planning measures had increased. The process of group
dynamics strengthened the networking, homogeneity, and self-esteem of
women. The "We can do it "syndrome is part of their psyche to day. The
scheme had also provided women the opportunity to sit together, discuss and
share their long-pending problems, and seek joint solution through
sympathetic co-operation and advice. The group thus acts both as a pillar of
strength and an information window.
An article Graminvikas (1995)
45
highlights the role of an innovative
saving/credit programme called Podupu Lakshmi that had been successfully
launched and carried out in the Nellore district of Andhra Pradesh. Podupu
Lakshmi is based on a very simple principle of saving a rupee per day / per
member. The erstwhile submissive, docile, silent and week women changed
their psyche into assertive, confident, mobile, articulate, questioning and
demanding pressure lobby groups. The aspirations of women for economic
prosperity went up and they started climbing up the social ladder through the
34
programme. The other factor for the success was the timely intervention of the
government machinery. The careful identification of key government
functionaries also led to the success of the programme.
Kotaiah and chairman NABARD (1995)
46
in his foreword to "Linking
SHGs with Banks Indian Experience". The self-help groups (SHGs) have been
the social innovations of the poor particularly in the under developed regions.
They have a long history and universality. "The savings and credit functions
of SHGs have a great appeal to the rural financial institutions. They offer an
outstanding market opportunity as the poor are concerned with the
opportunities for earnings than the cost of capital. I am sure that the SHGs
with there unique strengths of autonomy, discipline, flexibility and an inherent
bias for poor women will attract greater attention from the developmental
financial institutions and commercial banks. I also foreses the SHGs building
up their own federal structure which then can offer a package of financial and
non-financial services to the poor".
Chowdary (1996)
47
in her study stressed the need for sharpening
women's empowering strategies to make them effective and result oriented.
She pointed out that money earned by poor women is more likely to be spent
on the basic needs life than that by men and that this realisation would bring
women as the focus of development efforts. She also examined the advantages
of organising women groups there by creating new sense of dignity and
confidence to tackle their problems with a sense of solidarity and to work
together for the cause of economic intendance.
Jain and Satish (1996)
48
in their paper had described the factors
affecting group dynamics and group functioning such as feeling of solidarity
and pervasive benefits from group formation, increased awareness of group
members, self reliance, and transparency. They feel that dependence an
outside source either in material or human term exist and so the group
autonomy is not attained in many cases.
35
Shylendra (1998)
49
in his paper attempted to evaluate the performance
of eight women SHGs promoted in the vidaj village by the Institute of Rural
Management, Anand (IRMA). Here the SHGs failed to enable members to
realise their potential benefits the reasons identified for the failure were the
wrong approach followed in the SHG formation by the team, misconceptions
about SHG goals both among the team and the members, and lack of clarity
about the concept. The main lessons drawn from the project are the need for
creating SHGs based on clear assessment of the needs of different sections of
the society, ensuring clear understanding of the concept of SHG among team
members involved in promoting SHGs, and enhancing the relevance of SHGs
to their members by enabling them to meet effectively their requirements, be it
savings or credit or income-generating activities.
An attempt is made by Hemalatha Prasad (1998)
50
to understand the
aptitude of members of DWCRA Groups towards economic enterprises. For
this purpose 60 women DWCRA Groups belonging to DWCRA Groups were
interviewed. Based on the study results the author was of the view that age,
ability, aptitude and awareness were crucial for lunching skill based unit, the
author was of the view that. Arbitrary selection of unit is against the spirit of
the group activities. The author was also found that women ware not
independent in participating the SHG activities. In the absence of proper
mechanism for monitoring and guidance of the SHGs desired success cannot
be achieved.
Yaswanth Sinha (1998)
51
the central government budget speech for the
year announced on allocation of five hundread crore rupees to NABARD for
refinancing SHG bank linkages. Around ten million rural poor women are
expected to be covered by SHG Linkageing programmes over the next five
years.
Karmakar (1999)
52
has studied among other things the performance of
women SHGs (formed with the financial support of MYRADA) in T.N and
found that SHGs have been formed with the agricultural labourers and
marginal farmers and found that rotation of leadership has been followed.
36
Further, the group accounts have been prepared by an educated member of the
SHG, and the same member was in charge for documenting the proceedings of
the weekly meetings of the group. Further, the same member was being
appointed as animator by MYRADA. Own savings the amount contributed by
MYRADA and the interest occurred forms the main financial sources of the
SHG which have been rotated by the members. Group decides the members to
whom the loan is to be sanctioned and other terms and conditions. However
the purpose wise borrowings show that of the total 24 loans only 2 were
utilised for productive purposes and other loans were utilized to meet urgent
family requirements viz. Health, consumption, marriage.
As far as bank linkage is concerned Indian bank branch has sanctioned
loan for under taking allied activities. The recovery performance of the bank
loan was found highly satisfactory with 93 per cent. All this clearly shows that
SHG has followed self help and mutual help principle in true spirit.
Krakar Singh and Jain (1999)
53
in their working paper `Evaluation and
survival
of SHGs: Some theoretical and empirical evidences' explained that
there are four stages of group formation: forming, storming, norming, and
performing. They identified factors, which have an impact on group formation
as full participation of all members, quality in leadership, some short
homogeneity among the members, and transparency in operations and
functioning of the groups.
Mohan (2000)
54
in his research paper has emphasized the role of thrift
and micro credit activities in women empowerment. The paper further reveals
that through participatory approach the women child could share their
problems. The researcher of the view that NGOs have adequate capabilities
and infrastructure to organise the training programmes and may also stand
guarantee to the loans accessed from the formal banking institutions. More
over NGOs could facilitate resource mobilization for the benefit of the
women. Even in facilitating the micro credit the role of NGOs need to
emphasis. It only means that micro credit programme will show truitful results
if the SHGs are supported by reputed NGOs.
37
An evaluation study conducted by Satya Sai and Puhazhendi (2000)
55
have primarily examined the Socio-economic background of SHG members
and its impact on income and assets. The study results shows that after
becoming the member of SHG three-fifths of the sample SHG members could
acquire assets on one-hand and consumer durables on the other.
Satya Sai (2000)
56
has examined the saving pattern among the SHG
members. The study results shows that it was only after becoming the
members of SHG they have been habituated to save compulsorily and as a
result the per capita saving showed an increase compared to the pre formation
stage of SHG.
Antaon Simanowitz (2001)
57
found that much impact assessment work
in the past has been donor driven, and mostly serves donor needs. He opined
that the emphasis was said on is an instifying funding rather than improving
their work. The author was of view that more practitioner-oriented approaches
are required.
Namboodiri and Shiyani (2001)
58
in their study have examined the
impact of SHGs linkage with Banks in promotion of thrift and purveying
credit to the weaker sections belonging to the rural areas. They study revealed
that majority of the SHGs are women based and exhibited homogeneity in
their economic and social status. The study results have revealed the fact that
SHGs Promoted by NGOs have shown better results in terms of savings, credit
etc. The analysis has shown that due to predominance of consumption loans
scope for undertaking income generating (IG) activities has been reduced. The
formation of SHGs has led to women participation in development activities.
Samar, Datta and Raman (2001)
59
have conducted an empirical study
covering 355
SHG members at 30 randomly selected women SHGs from 8
clusters in the Tirupati area of A.P. The study results show that in all three-
fifths of the members belongs to backward classes, 6 per cent to schedule caste
(S.C) category and the remaining represents the other castes. As nearly one
third of the SHG members have no formal education, the authors felt that
38
absence of formal education doesn't come in the way of working SHGs.
Further, it was found that there was no homogeneity as for as occupation is
concerned. The data and income distribution reveals that nearly two-thirds of
the SHG members have income of less than Rs 500 per month each. The
empirical data has also shown that SHG members known each other even
before they could become the members of SHGs, which resulted in timely
repayment by each member. More over they help each other even in case of
repayment. Due to close proximity members could convene SHG meetings at
any time of their convenience. Through the empirical study it was found that
credit is being extended to SHG members various purposes viz. Consumption,
repayment of old debts, business, and other loans, and as a result the
dependence of SHG have control over members on external finances has been
considerably reduced and also due to higher loan and lower expenditure
contributed the higher SHG net income per member. All this clearly shows
that SHGs have shown positive impact, which led in realizing the primary
objectives for which SHGs have been formed. Similar exercises needs to be
carried-out periodically to examine the functioning of SHGs.
Gohilavani (2002)
60
has examined the need for empowering women
which has been emphasized by the women's conferences held at the
international levels important among them were held at Mexico 1975,
Copenhagen 1980, Nairobi 1985 and Beijing 1995. All these conferences have
highlighted the need for empowering the women so as to address the women
problems with inequality, violence, access to women welfare services.
Mobilization of women to carry out team work in a participatory manner may
pave the way for commanding equal status to women leading their
empowerment individually and the group empowerment at a later stage. The
author was of the view that thrift and credit activities will in a way facilitate
the women empowerment. Further, the author of the view that empowerment
can be brought out only when changes are brought out in social institutions viz
family, marriage, religion, economy, education, polity, etc. The author
concludes that empowerment of women can be achieved only when a series of
efforts are made and changes in the institutions have to be brought in.
39
A comparative study has conducted by Rao (2002)
61
deals with SHG
member's involvement and their perception about SHGs. For this purpose 120
SHG members belonging to 23 SHGs spread over 6 districts of 2 states have
been selected. The study results shows that majority of the women have joined
SHGs from low income groups but have a strong willingness to improve there
economic status. Against this background the sample self-help group member
in A.P. have obtained credit mostly for meetings consumption purposes, while
the finance available by the sample SHG members of Karnataka was for
meeting the expenditure of social functions and purchase of agriculture inputs.
It only means that the SHG members have borrowed mostly for unproductive
purposes. Further, the study indicated that certain SHGs have already involved
in creating social awareness among the SHG members.
Shetty (2002)
62
while summarizing the working and impact of rural
self-help groups has stated that micro finance institutions have improved the
asset base and also brought a sea change on the levels of the living of the
beneficiaries. Further, the women participation has also improved in thrift and
credit options. Moreover the author stressed the need for micro level field
studies to examine the working of SHGs. Hence, the present empirical
research will add to the existing literature.
Kumaran (2002)
63
has studied the structure and function of SHGs in
terms of saving delivery of credit and recovery of loan and also examined the
role of self-help group promoting agencies. For the purpose of the field study
90 SHG members belonging to 15 SHGs of Pune district were randomly
selected. Based on the empirical study the author has found that monthly
meetings were regularly conducted by the chosen SHGs. Further, members
participation in the meetings was found to be very high.
Vijayanthi (2002)
64
in her research paper has analyzed awareness
levels of women after joining the SHGs. The study also focused on the impact
of SHGs on individual and group empowerment. For this purpose a sample
survey (covering 102 members) was conducted with the help of a structured
interview schedule. The study results have shown positive changes. The
40
resource base of the SHGs has been strengthened which led to self-reliance.
The women members have benefited through savings and acquired
management skills as the SHGs have allowed women to plan and execute their
ideas. More over the women have come in contact with the government
departments and the financial institutions. The SHGs also have facilitated the
women in acquiring leadership skills leading to community skills leading to
community and self-development programmes.
Bharathi Panda and Sagarika Mohanty (2003)
65
in their paper have
highlighted the need for formation of self-help groups in order extend easy
finance to the women belonging to poorer sections of the society. The authors
were of the view that the women, with specific reference to rural women do
not have control over different resources and as such they have little or no
decision making power. To overcome this malady self-help approach is
advocated to empower the rural women. Further, the authors have also
examined SHG-Bank linkage programme in India, highlighting how the
linkage will felicitate in obtaining the necessary financial support, which may
influence the living conditions of the SHG members.
Ramakrishna and Krishnamurthy (2003)
66
have examined the impact of
SHGs on the social and economic empowerment of the sample households and
studied the role of SHGs in obtaining formal credit and found that the SHGs
have a Positive impact on women beneficiaries. The study results have also
shown positive impact on the economic conditions of the beneficiaries.
Further, the living standards of the beneficiaries in terms of food intake,
children education, health status, and financial independence have also been
improved.
Usharamkumar (2003)
67
made an attempt to analyze the importance of
education in empowering the women. The author has found that the
percentage of girl's enrolment in high school has increased leading to reduce
the gap between the girl and boys in the enrolment. The author has argued that
education serves as powerful agent in empowering the women. The author has
established the fact that literacy-linked women development programmes
41
paved the way for formation of SHGs. In the light of empirical results the
author concludes that education enabled women in participating the
developmental programmes.
Rao (2004)
68
in his research paper made an attempt to examine the
working of SHGs in the tribal areas of Andhra Pradesh. The study results
shows that two-thirds of the respondents were participating in the group
activities. Saving was said to be the reason for joining the SHG. About two
thirds of the respondents have availed the loans after joining the SHG. Further,
it was revealed that nearly two thirds of the borrowings have been used for
productive purposes. The results show positive results in Girijan areas where
exploitation and backwardness of the people is more. The efforts of NGOs,
Government departments and social workers have facilitated the effective
functioning of SHGs in the study area.
Adeole, Ayanwale and Taiwo Alini (2004)
69
have examined the impact
of micro-credit on poverty alleviation and in reducing gender disparities. The
study result shows that the monitoring and evaluation by the NGO ensured a
very high repayment rate. NGO efforts have also resulted in higher savings,
after joining the NGO. The analysis has also revealed that both men and
women could obtain higher incomes when compared to the situation prior to
availing the micro-credit. Further, the NGO namely FADU (Farmers
Development Union) has provided women an easy access to farm finance. One
important conclusion that emerged from the study was that the micro-credit
has enabled the beneficiaries to cross the poverty line.
Vasudeva Rao (2004)
70
in his study has examined the impact of the
SHGs/DWCRA on the status and the quality of the poor women in the rural
areas and also examined the extent of women participation in the group
activities. The study results showed that nearly 95 per cent of the members
attend the group meetings regularly and four fifths of the SHG members have
actively participated in the proceedings of the SHG meetings. A note worthy
factor is that there is a positive relationship between saving and repayment.
The study has also revealed higher levels of awareness on issues directly
42
related to social development. Attitudinal change has also been brought among
the members of SHGs. The formation of SHGs have led to financial linkages
with NABARD, Bank and such other financial institutions. It only means that
self-help groups have a positive effect on tribals.
Amal Mandal (2005)
71
research paper examines the importance of
SHGs in Poverty alleviation as the groups are organized on the basis of self
help and mutual help. The author was of the view that the earlier anti-poverty
programmes (Prior to SGSY) have mainly followed individual approach and
have not given serious throught on the need for sustainable income generation.
In the light of the past experiences the author believed that the group approach
based on self help and mutual help may facilitate the sustainable development
of women. The author was the view that the group approach is only the way to
meet the financial needs through thrift and inter- loaning (on rotation basis)
and in taking up IG activities. If SHGs are guided by external agencies the
results will be encouraging.
Need for the Study
Self-help groups are necessary to over come exploitation and to create
confidence for the economic self reliance or rural and urban poor, particularly
among women who are mostly invisible in the social structure. These groups
enable them to come together for a common objective and gain strength from
each other to deal with exploitation, which they are facing, in several forms. A
group becomes the basis for action and change.
Self-help groups (SHGs) are usually informal groups whose members
have a common perception of need and importance towards collective action.
These groups promote savings among members and use the pooled resources
to meet the urgent needs of their members, including consumption needs. The
number of members in SHGs is normally ranged from 10 to 20. it is expected
that, within the group, there should be true democratic culture in which all the
members must participate actively in the decision making process by taking
part in the debate rather he should say discussion. Though the cohesiveness
among the members would be increased due to homogeneity of the groups in
43
terms of education, occupation, income distribution, sex, consumption, but in
the long term, stability of SHGs depends on their member's loyalty to it and
the adequacy of SHGs to meet the growing needs of the members. The basic
objective of self-help groups is to develop saving capability among the poorest
sections with primary education to all women, men and children, primary
health, rural or urban roads, safe drinking water, sanitation and strong public
distribution system.
Objectives of the Study
The specific objectives of the study are:
1.
To review the poverty alleviation programmes in Anantapur District,
2.
To analyse the working of the Self-Help Groups in the District in
general,
3.
To examine and analyse the functioning of the selected SHGs in
Anantapur District,
4.
To study and analyse the perceptions of selected Self-Help Group
Members, and
5.
To draw conclusions and to give suggestions wherever necessary for
the purpose of improving the working of the Self-Help Groups in the
District.
Methodology and Sampling
The Anantapur District is divided into three Revenue Divisions. They
are Anantapur Revenue Division with head quarters at Anantapur,
Dharmavaram Revenue Division with head quarters at Dharmavaram,
Penukonda Revenue Division with head quarters at Penukonda. There are 20,
17 and 26 revenue mandals in Anantapur, Dharmavaram, Penukonda Revenue
divisions respectively. In total there are 63 revenue mandals in the District.
SelfHelp Groups are there in all the 63 mandals.
As it is not possible to select all the selfhelp groups located in the
district. Hence it has been decided to select a sample for the purpose of the
study. Hence the purposive multi stage random sample technique method has
been used.
44
1
st
stage:
In the first stage two Mandals have been selected at random from each
revenue division.
II
nd
stage:
In the second stage ten self-help groups have been selected at random
from each sample Mandal thus making a total of 60 self-help groups.
III
rd
stage:
In the final stage from each sample self-help group five members have
been selected thus making a total of 300 beneficiaries. Both secondary and
primary data have been collected, analyzed and presented in the form of
tables.
Secondary data have been collected from the records of DRDA office
Anantapur, NABARD regional office Hyderabad, and CPO office Anantapur.
Primary data have been collected from the selected 60 self-help groups
and 300 beneficiaries by using two separate schedules one for the self-help
groups and the other for beneficiaries
Tools and Techniques
The data, so collected, have been analysed and presented in the form of
tables and charts. Simple averages, percentages and weighted scores have been
widely used in the process of analysis.
Limitations of the Study
In fact the sample respondents do not have adequate recorded
information (readily not available) with them and as such these respondents
were unable to recollect the factual information and data. Even some of the
SHGs do not possess up-to-date records. Further, certain SHGs have not been
maintaining the records as per the stipulation and as such the researcher could
not cross verify the collected data in a systematic manner. During the focused
group discussions many members have not come out with their individual
Details
- Pages
- Type of Edition
- Erstausgabe
- Year
- 2017
- ISBN (PDF)
- 9783960676614
- ISBN (Softcover)
- 9783960671619
- File size
- 2.3 MB
- Language
- English
- Publication date
- 2017 (June)
- Grade
- 1
- Keywords
- Micro-finance Socio-Economic profile Financial intermediary Self help group development policy Development of Women and Childrens in Rural Areas Poverty Alleviation Poverty Eradication Programmes
