Women Empowerment

Introduction The concept of empowerment is defined as the process by which women take control and ownership of their choices The core elements of empowerment have been defined as agency (the ability to define ones goals and act upon them), awareness of gendered power structures, self-esteem, and self-confidence (Kabeer,2001). Empowerment can take place at a hierarchy of different levels individual, household, community and societal and is facilitated by providing encouraging factors (e.g. exposure to new activities , which can build capacities) and removing inhibiting factors (e.g. lack of resources and skills). In this connection Micro -finance with Self Help Groups play an effective role for promoting women empowerment. It is not only an efficient tool to fight agai nst poverty, but also as a means of promoting the empowerment of the most marginalized sections of the population, especially women. According to Ellie Bosch it is just old wine in a new bottle (Bosch, 2002). It consists of a group of people of three to ei ght persons on the condition that each of them would be assuming responsibility for the development of all. Micro Finance institution started in India in 1980s through Self Help Groups (SHGs) model. It is the Grameen replication model of Bangladesh. There is nearly 3,00,000 SHGs working whole over India. It is true that the concept of microfinance is yet to spread its wings all over India, but at the rate in which it is expanding its branches, very soon it would be reaching at the doorsteps of the poor hous es. The most successful region for microfinance is the Southern part of India; Andhra Pradesh has become the example for the other states in this case. Th e pre s e n t s tu dy is an atte mpt in th is dire ction to an aly s e th e i mpact of mic ro -cre dit on p oor wome n in G ajap ati dis trict of O ri s s a.

Meaning
Before thinking about the empowerment of women, one needs to understand the exact meaning of the word empowerment. According to Cambridge English Dictionary empowerment means "to authorize". In the context of the people they have to be authorized to have control over their lives. When applied in the context of development the particular segment of population, the poor, the women, the vulnerable, the weak, the oppressed and the discriminated have to be "empowered" to have control over their lives to better their socioeconomic and political conditions,. But the questions raised are, who empowers them and how to empower them? Ideally speaking no one empowers any one, the best way us self empowerment', by the segments of population mentioned above are handicapped both structurally and culturally to empower themselves without any outside help
1

and affirmative action by the State and others. But still as long as these segments of population does not make any effort at self employment. It would be long and arduous task and process for the outsiders to empower them.

ii) Objective of the study

The study focus the present condition of the women empowerment in Gajpati. To know the position of women empowerment in Gajpati. To create a area of awareness regarding women empowerment.

iii) Methodology
This item based upon secondary data collected form published literature which has collected primary data through field observation as structured questionnaire.

iv) Scope of the study

Scope of the study is limited to only the women empowerment in Gajpati.

(V) CHAPTER DESIGN

Chapter-1 Chapter-2 Chapter-3 Chapter-4 Chapter-5 Deals with introduction, objectives of the study of chapter design. Deals with review of literature related to the study. Deals with data analysis economic activities covered by SHG members & Benefits derived by SHG members Deals with findings of the study Deals with conclusion, suggestion, policy implication, reference

Review of Literature
Few studies are available on SHG and micro -finance and women empowerment. The researcher has tried to review the following: Osman (2000) in his article remarked that micro -finance schemes alone can not alleviate poverty. The battle for total eradication of poverty requires combining programmes micro -finance addressing schemes social with and parallel, cultural complementary the

dimensions of want, privation, impoverishment and dispossession. Kapur (2001) in her study tried to discuss, analyse and answer the challenging questions as to why despite all the efforts and progress made, still there continues to be so much of gender di scrimination and what strategies, actions and measures to be undertaken to achieve the expected goal of empowerment. She opined that womens empowerment is much more likely to be achieved if women have total control over their own organisations, which they can sustain both financially and managerially without direct dependence on others. Pattanaik (2003) in her study reveals that SHGs are continuously striving for a better future for tribal women as participants, decision makers and beneficiaries in the dom estic, economic, social and cultural spheres of life. But due to certain constraints like gender inequality, exploitation, women torture for which various Self Help Groups are not organised properly and effectively. Malhotra (2004) in her book has examined how women entrepreneurs affect the global economy, why women start business, and how to womens what extent business women associations promote entrepreneurs,

contribute to international trade. It explores potential of micro finance programmes for empower ing and employing women and also discusses the opportunities and challenges of using micro -finance to tackle the feminisation of poverty. According to her, the micro -finance programmes are aimed to increase womens income levels and control over income leading to greater levels of economic independence. They enable womens access to networks
4

and

markets,

access

to

information and possibilities for development of other social and political role. They also enhance perceptions of womens contribution to househ old income and family welfare, increasing womens participation in household decisions about expenditure and other issues leading to greater expenditure on womens welfare. Narasaiah (2004) in her study mentioned that the change in womens contribution to society is one of the striking phenomena of the late twentieth century. According to him micro -credit plays an important role in empowering women. Giving women the opportunity to realise their potential in all spheres of society is increasingly important. Cheston & Kuhn (2004) in their study concluded that micro -finance programmes have been very successful in reaching women. This gives micro-finance institutions an extraordinary opportunity to act intentionally to empower poor women and to minimise the pote ntially negative impacts some women experiences. Manimekalai (2004) in his article commented that to run the income generating activities successfully the SHGs must get the help of NGOs. The bank officials should counsel and guide the women in selecting a nd implementing profitable income generating activities. He remarked that the formation of SHGs have boosted the self -image and confidence of rural women. Sahu and Tripathy (2005) in their edited book views that 70 per cent of worlds poor are women. Acces s to poor to banking services is important not only for poverty alleviation but also for optimising their contribution to the growth of regional as well as the national economy. Self Help Groups (SHGs) have emerged as the most vital instrument in the proce ss of participatory development and women empowerment. The rural women are the marginalized groups in the society because of socio -economic constraints. They remain backward and lower position of the social hierarchical ladder. They can lift themselves fro m the morass of poverty and stagnation through micro finance and formation of Self -Help Groups.Das Gupta (2005) in his article commented that a paradigm shift is required from financial sector reform to micro - finance reform. While the priority sector
5

needs to be made lean, mandatory micro credit must be monitored rigorously. Simultaneously space and scope have to be properly designed for providing competitive environment to micro -finance services. Extensive database needs to be created by the RBI for understanding micro-finance. Sinha (2005) in his study has observed that micro-finance is making a significant contribution to both the savings and borrowing of the poor in the country. According to him the main use of micro -credit is for direct investment. There is of course some fungibility, depending on household credit requirements at the time of loan disbursement. Some studies reveal that micro finance programmes have had positive as well as negative impacts on women. Some researchers have questioned how far micro-finance benefits women (Goetz and Sen Gupta, 1996). Some argue that micro finance programmes divert the attention of women from other more effective strategies for empowerment (Ebdon, 1995), and the attention and the resources of donors from alt ernative, and possibly more effective means of alleviating poverty (Rogaly, 1996). In some cases womens increased autonomy has been temporary. It only benefits women who are already better off. But in most cases the poorest women are least able to benefi t because of their low initial resources base, lack of skill and market contact.

Women Empowerment Thorough Self Help Groups- A Case Study

Abstract The present study is an attempt to analyse the role and performance of SHGs in promoting women's empowerment in Gajapati District of Orissa. The broad objective of the study is to analyses the operating system of SHGs for mobilization of saving, delivery of credit to the needy, management of group funds, repayment of loans, in building up leadership, establishing linkage with banks and examine the social benefits derived by the members. In order to collect and gather primary data, field observation and structured questionnaire survey methods were employed. In addition, information was also collected through discussions and interviews with local NGOs and government's grass roots level workers. There are 281 SHGs working in Gajapati district. Here the researcher has chosen 10 SHGs from each block of the district. In total the study covers 50 SHGs with 800 members. The study reveals that SHGs had set a new agenda for financial intermediation by banks in the form of micro-credit. By the formation of SHGs, credits are demanded for various purposes (domestic, health, festivals, repayment of old debts, investment, etc.). Similarly different economic activities (collection, processing and marketing of minor forest products, individual business, goatery, dairy etc.) are undertaken by the SHG members after joining the group. Habits of savings, economic independence, self confidence, social cohesion, asset ownership, freedom from debt, additional employment, etc. benefits are derived by the SHG members. Thus, SHGs have served the cause of women empowerment, social solidarity and socio-economic betterment of the poor for their consolidation.

Brief Profile of the Study Area Gajapati district is located in the southern part of Orissa. The district of Gajapati was formed on the basis of 1981 census , taking the old Paralakhemundi Subdivision of Ganjam district and the lowest level units for recognition of Ganjam into Ganjam and Gajapati districts. The district of Gajapati comprises of one subdivision, three tahasils and seven C.D. Blocks, two towns, o ne Municipality, one NAC, one hundred and six Panchayats and fourteen hundred sixty inhabited villages. This is one of the backward districts of Orissa. It is a part of so to say KBK districts known for underdevelopment and starvation deaths. This is a tri bal dominated district. About 30 per cent of the inhabitants are tribal. Though they comprise 30 per cent out of the total population, they are scattered over all the territories of the district. It is needless to say that tribals are underdeveloped and malnourished. So the economy of Gajapati district is reflected the same naked picture.

Table 1.1 Total Population, Rural and Urban Population by Sex in Different Blocks and Urban Areas of Gajapati District

S.N o.

Block/Urban

Geogra phical area sq/km 1048. 94 477.9 9 655.1 439.6 9 494.1 7 466.5 9 961.5 1 10.36 3.63

Male

Female

Total

Sex Ratio

1 2 3 4 5 6 7

Gumma Kasinagar Mohana Nuagada Gosani R.Udayagiri Rayagada Urban

31484 24022 56964 22761 33986 27356 31308

33801 24603 58089 24147 34822 27153 33423

65285 48625 115053 46908 68808 54509 64731

931.4517 976.385 980.6332 942.6016 975.9922 1007.476 936.7202

1 2

Kasinagar Parlakhemundi(M)

4780 21748

5002 21243

9782 42991

955.6178 1023.773

The population of the Gajapati district in the year 2001 was 518,448 (Table 1.1). The rural population was 465,675 and urban population was 52,873. It occupies 2.78 per cent of the total land area of Orissa. In 1991 census there were 40,000 inhabitants belonging to Scheduled Castes and 218,000 belonging to Scheduled Tribes. The sex ratio was found to be 1031 females per 1000 males as shown in Table 4.1. This is due to large number of mobility of male workers into the neighbouring states like Andhra Pradesh and Madhya Pradesh. The density of population of Gajapati district was 120. The literacy rate of Gajapati district was 41.73 per cent in 2001 census. Out of which 55.14 per cent males and 28.91 per cent are females. The literacy rate of Scheduled Castes and Scheduled Tribes were

21.74% and 15.88 per cent respectively (District Statistical Handbook, 2001). The workforce of the district as obtained from 2001 census were 276,000, out of which 180,000 were main workers, 96,000 were marginal workers, 91,000 wer e cultivators and 125,000 were agricultural labourers. About 16.50 per cent employment is generated under SGRY, out of which 4.87 per cent were SCs, 8.85 per cent were STs and 2.78 per cent were OBCs. There are 2819 groups working throughout the district of Gajapati and the number of women participants was 37,032. Out of them 959 groups are working under NGOs, 1821 groups are working under the ICDS (Integrated Child Development Schemes), 22 in Block level and 80 groups are working independently. Review of Literature Few studies are available on SHG and micro -finance and women empowerment. The researcher has tried to review the following: Osman (2000) in his article remarked that micro -finance schemes parallel, cultural alone can not alleviate poverty. The battle the for social total and and eradication of poverty requires combining micro -finance schemes with complementary dimensions of programmes want, addressing privation, impoverishment

dispossession. Kapur (2001) in her study tried to discuss, analyse and answer the challenging questions as to why despite all the efforts and progress made, still there continues to be so much of gender discrimination and what strategies, actions and measures to be undertaken to achieve the expected goal of empowerment. She opined that womens empowerment is much more likely to be achieved if women have total control over their own organisations, which they can sustain both financially and managerially without direct dependence on others. Pattanaik (2003) in her study reveals that SHGs are continuously striving for a better future for tribal women as participants, decision -makers and beneficiaries in the domestic, economic, social and cultural spheres of life. But due to certain
10

constraints like gender inequality, exploitation , women torture for which various Self Help Groups are not organised properly and effectively. Malhotra (2004) in her book has examined how women entrepreneurs affect the global economy, why women start business, how womens business associations promote e ntrepreneurs, and to what extent women contribute to international trade. It explores potential of micro-finance programmes for empowering and employing women and also discusses the opportunities and challenges of using micro-finance to tackle the feminisa tion of poverty. According to her, the micro- finance programmes are aimed to increase womens income levels and control over income leading to greater levels of economic independence. They enable womens access to networks and markets, access to information and possibilities for development of other social and political role. They also enhance perceptions of womens contribution to household income and family welfare, increasing womens participation in household decisions about expenditure and other issues leading to greater expenditure on womens welfare. Narasaiah (2004) in her study mentioned that the change in womens contribution to society is one of the striking phenomena of the late twentieth century. According to him micro -credit plays an important role in empowering women. Giving women the opportunity to realise their potential in all spheres of society is increasingly important. Cheston & Kuhn (2004) in their study concluded that micro -finance programmes have been very successful in reaching women. This gives micro-finance institutions an extraordinary opportunity to act intentionally to empower poor women and to minimise the potentially negative impacts some women experiences. Manimekalai (2004) in his article commented that to run the income gene rating activities successfully the SHGs must get the help of NGOs. The bank officials should counsel and guide the women in selecting and implementing profitable income generating activities. He remarked that the formation of SHGs have boosted the self -image and confidence of rural women. Sahu and Tripathy (2005) in their edited book views that
11

70 per cent of worlds poor are women. Access to poor to banking services is important not only for poverty alleviation but also for optimising their contribution to the growth of regional as well as the national economy. Self Help Groups (SHGs) have emerged as the most vital instrument in the process of participatory development and women empowerment. The rural women are the marginalized groups in the society because of socio-economic constraints. They remain backward and lower position of the social hierarchical ladder. They can lift themselves from the morass of poverty and stagnation through micro finance and formation of Self -Help Groups.Das Gupta (2005) in his ar ticle commented that a paradigm shift is required from financial sector reform to micro - finance reform. While the priority sector needs to be made lean, mandatory micro credit must be monitored rigorously. Simultaneously space and scope have to be prop erly designed for providing competitive environment to micro -finance services. Extensive database needs to be created by the RBI for understanding micro-finance. Sinha (2005) in his study has observed that micro-finance is making a significant contribution to both the savings and borrowing of the poor in the country. According to him the main use of micro -credit is for direct investment. There is of course some fungibility, depending on household credit requirements at the time of loan disbursement. Some st udies reveal that micro finance programmes have had positive as well as negative impacts on women. Some researchers have questioned how far micro -finance benefits women (Goetz and Sen Gupta, 1996). Some argue that micro finance programmes divert the attent ion of women from other more effective strategies for empowerment (Ebdon, 1995), and the attention and the resources of donors from alternative, and possibly more effective means of alleviating poverty (Rogaly, 1996). In some cases womens increased auton omy has been temporary. It only benefits women who are already better off. But in most cases the poorest women are least able to benefit because of their low initial resources base, lack of skill and market contact.
12

Objectives of the Study The broad objective of the study is to examine the role and performance of SHGs in promoting womens empowerment in the study area. However, the study has some specific objectives. They are: 1. To analyse the economic gains derived by the members after joining the SHGs. 2. To examine the social benefits derived by the members. 3. To analyse the operating system of SHGs for the mobilization of saving, delivery of credit to the needy, management of group funds, repayment of loans, in building up leadership, and establishing linka ge with banks 4. To suggest appropriate performance of SHGs. Methodology Selection of Study Area and Sample Units: The study was carried out in selective clusters spread over five blocks of Gajapati district in Orissa. It is noteworthy to mention here that the Self -Help Groups in Gajapati district are promoted by NGOs as well as Government agencies. Due to time constraint the researcher has selected the SHGs promoted by a particular NGO i.e., Centre for Community Develop ment (CCD). At present CCD is working in 5 community development blocks namely Gumma, Rayagada, Nuagada, Gosani and Kasinagar. There are 281 Self-Help Groups promoted by CCD in the five blocks (Appendix 2). The researcher has chosen 10 SHGs each from Gum ma, Rayagada, Gosani and Kasinagar depending upon location -specific condition. As Nuagada block has only 9 SHGs promoted by CCD, all these 9 SHGs were taken for study. In total the study covers 49 SHGs with 800 members. Table 1.2 Sampling Frame of the Stu dy Block SHGs Gumma 10 Gosani 10 Kasinagar 10 Rayagada 10 Nuagada 09 Total: 49
13

policy

intervention

for

the

effective

SHG Members 150 170 170 160 150 800

Data Collection and Analysis: In order to collect and gather primary data, field observation and structured questionnaire survey methods were employed. In addition, information was also collected through discussions and interviews with local NGOs and governments grass roots level workers. Secondary data gathered from the records of SHGs and NGOs and government offices were supplemented by the primary data collected from the group. A wide range of information such as composition of membership, savings mobilised, loan disbursed, interest rates, recovery procedures, assets created, external assistance received etc. were ascertained from the SHGs and their members. Besides, different books, newspapers, articles, journals, magazines and web sites were also referred for the purpose. The data collected from each block regarding the structure and profile of SHG members, savings and loans of SHGs, economic and social benefits derived by SHG members, etc. has been processed separately and averages of each block are being taken. The analyses obtai ned from different blocks are compiled and compared to draw the inferences about the performance of the SHGs in the study area. DATA ANALYSIS Structure of SHGs Th e s tru ctu re an d ch aracte ris tics o f S e lf -He lp G rou ps in the s tu dy are a is pre s e n te d in Table 2 . 1 . It is n ote d th a t th e av e ra ge me mbe rs h ip pe r S H G was 1 6 .26 . Th e s tu dy re v e als th at in th e K as i n agar block , t h e average me mbe rs h ip of th e Se lf -H e lp G rou p i s h i gh e s t (1 7 ) an d G u mma block h ad lo we s t me mbe rs h ip (1 5 ). Mos t of th e me mbe rs agre e d th at th e ir motiv e s in join in g S H G s we re to s av e . S ome s aid th e y join e d th e SH G to ge t cre dit to me e t th e u n e x pe cte d cas h de man d f or con s u m ption an d o th e r p u rpos e s . Fe w opi n e d th a t it le d to s oci al e mpowe r me n t. Th e av e ra g e s av in gs pe r S H G was Rs . 1 0 ,6 9 3 . It v arie d f ro m Rs . 2 0 9 7 in N uaga da to Rs . 1 6 12 5 in G os an i block . Th e pe r me mbe r s av in gs was arou n d Rs . 667. The frequency of group meeting by SHG indicated that fortnightly meetings were the most common followed by monthly and weekly.
14

Meetings are arranged regularly by NGO and Groups. It is held in the middle of the street. The absentee member has to pay a fine of Rs. 2. The average amount of loans per SHG was Rs. 12345. The h ighest being Rs.19752 in Gumma block and the lowest of Rs. 8758 in Nuagada block. Table 2.1 Structure of SHGs in the Study Area Item Gumma Gosani Kasinagar Membership average 15.00 16.78 17.00 (No.) Savings per SHG (in 14517 16125 13633 Rs.) Loan (Avg.) 19752 17177 16040 (in Rs.) Frequency of group meeting (percentage): Weekly: 25 15 13 Fortnightly 65 68 72 Monthly 10 17 15 Source: Compiled by the author. Profile of SHG Members The average age of SHG members in the study area is presented in Table 2.2 it is observed that the average age of SHG members was 34.2 years, lowest being 32 years in Gosani block and highest being 37 years in Nuagada bl ock. Regarding the caste profile of SHG members, the table shows that majority of members belong to tribal community. In Rayagada block it is 97 per cent, followed by 90 per cent in Gumma. Educational background of the SHG members shows that most of them are illiterate. Only 7 per cent of them have studied up to primary level. So far as the occupation of the members are concerned, majority of them are engaged in agricultural activities. As regards to average income per SHG, it was around Rs. 7918. It was highest in Kasinagar block (Rs.10057) followed by Gosani block (Rs. 9223) and lowest in Nuagada block (Rs. 5861). Rayagada 15.86 7093 8758 0 35 65 0 28 72 Nuagada 16.66 2097 Overall 16.26 10693 12345 10.6 53.6 35.8

15

Table 2.2 Profile of SHG Members Item Age (years) Percentage of STs Percentage of SCs Percentage of Other Castes Literacy (%) Occupation Agriculture (percentag e) Others Income (Average) Gumm a 34 90 10 Gosa ni 32 07 39 54 Kasinag ar 33 46 03 48 Rayagad a 35 97 03 Nuagad a 37 77 17 12 Overa ll 34.2 62.2 14.4 22.8

5.11

11.23

13.26

3.69

3.88

7.43

71.89 28.11

36.55 63.45

38.89 61.11

69.89 30.11

62.57 37.43

47.41 53.59

7867

9223

10057

6582

5861

7918

Source: Compiled by the author. Purpose of Credit Demanded and Utilised Generally, after six months operation of savings account, the saving is pooled and used for internal lending among the members. The amount of loan and number of loans are decided by the members themselves depending on their need and urgency. Table 2.3 Purpose-wise Credit Demanded by SHG Members Purpose Domestic consumption Health Festivals Repayment of old debts Investment Others Gumma 57.66 3.22 6.11 15.67 10.89 6.45 Gosani 12.91 6.87 9.78 10.66 12.57 47.21 Kasinagar 15.57 9.50 8.71 11.52 11.66 43.04
16

Rayagada 66.54 -2.39 5.68 14.05 11.34

Nuagada 47.89 2.27 2.18 10.59 8.67 28.4

Overall 30.53 4.37 5.83 10.82 11.56 27.28

Note: Figures in the table indicate percentages. Source: Compiled by the author. The purpose -wise credit demanded by the SHG members from the SHGs is given in Table 2.3. It is observed that most of the members have demanded credit for domestic consumption purposes. highest in Rayagada block (67%) followed by Gumma It is (57.66%).

Reasonable proportion of SHG members have demanded credit for other purposes. This percentage is highest in Kasinagar (43.04%) and lowest in Gumma block (6.45%). About 11.56 percentage of credit is demanded for investment purposes. A proportion of credit was demanded by the SHG members for payment of old debts. A less proportion of loan is demanded for festival and health purposes. From the table it is clear that a larger share of credit demanded by SHG members is being utilised for domestic consumption purposes followed by repayment of debts and others. Economic Activities Covered by SHG Members Table 2.4 revels that most of the SHG members are engaged in the collection and processing of minor forest products. These products include broom making, cashew, mahul, turmeric, tamarind, khalli (leaf plates), raw broom, amla, etc. Some of the members are engaged in individual businesses like preparing pickle, bodi , papad, haldi powder, wax, making bags, vegetable business, tailoring, pan shop, etc. They are also engaged in poultry, dairy and goatery business. Some are engaged in other activities. As there is a good demand for milk products, they are preparing sweet s with milk, ghee, etc. and are getting good price. They earn about Rs. 600 to Rs. 1000 per month through these activities.

17

Table 2.4Economic Activities Covered by the SHG Members Item Collection and marketing of Minor Forest Products Individual business Goatery Dairy Others Gumma 75 Gosani 55 Kasinagar 40 Rayagada 70 Nuagada 60 Overall 60.00

5 10 10 5

10 12 18 5

25 10 10 15 table

10 15 5 5 indicate

5 15 15 5

11.00 12.4 12.6 7.00 percentages.

Note: Figures in the Source: Compiled by the author. Loan Support to SHGs by Banks

There is a bank linkage programme established to SHGs. The SHG members opened their accounts in various nationalised banks such as State Bank of India, Indian Bank, Bank of Baroda, Union Bank of India, Andhra Bank, etc. and also some local banks like Rushi kulya Gramya Bank and Cooperative Banks. SHG members are getting both internal loans and external loans under the security of NGOs. They are paying Rs. 2 as interest per Rs. 100. They are also maintaining cashbook, membership register, loan register, individual passbook register, etc. They are taking loans for both production and consumption purposes. Rushikulya Gram Bank has advanced loans of Rs. 2,96,428 to Gumma Block, followed by Rs. 2,66,611 to Gosani block (Table 2.5). So far as loan repayment is concerned, the SHG members of Gumma Block have repaid 80 per cent of their loans followed by Rayagada block with 74 per cent. But in Gosani and Kasinagar blocks, though they are urban based, the repayment position is not encouraging. In these two blocks the members repaid only 50 per cent of their loans.

18

Table 2.5Loan Support to SHGs from Rushikulya Gramya Bank Name of the Block Gumma Gosani Kasinagar Rayagada Total SHGs 10 10 10 10 Loan availed Rs. Rs. Rs. Rs. 2,96,428 2,66,611 2,00,000 1,30,000 Loan Repayment 79.80 % 58.91% 52.28% 73.50%

Source: Annual Report of CCD, 2003 -04. Benefits Derived by SHG Members Variety of benefits are derived by the members of SHGs as presented in Table 2.6. Table 2.6 Benefits Responses) Benefits Habit of Savings Economic independen ce Selfconfidence Social cohesion Asset ownership Freedom from debt Additional employment Gumm a 75.44 70.00 Derived by SHG Members (Multiple Overa ll 76.00 67.36

Gosa ni 79.11 70.00

Kasinag ar 68.22 65.00

Rayagad a 76.66 66.80

Nuagad a 80.66 65.00

81.00 70.00 48.33 49.00 21.11

85.86 80.88 52.34 66.00 32.80

82.88 71.11 24.40 75.08 41.80

78.00 68.88 54.99 67.00 38.40

80.00 85.00 58.22 59.76 58.90

81.54 75.17 47.65 63.36 38.60

Note: Figures in the table indicate percentages.(Source: Compiled by the author.) One of the outstanding benefits reported by all the members is the development of self -confidence (81.54%) ranked first, followed by savings habit (76%), economic independence (67.36%), social cohesion (75.17%), freedom from debt (63.36%), asset ownership (47.65%), additional employment (38.60%).

19

Findings of the Study

Based on the interviews and discussions with the group members, field workers of the local NGO and group questionnaire survey results, the following findings emerged. The social profile of SHG members indicates that majority of members are tribal, i.e., their overall average is 66.2 per cent. The overall literacy rate is only 7.43 per cent as against the district tribal female literacy rate of 15.88 per cent. It is found that the operational efficiency and group dynamics of the SHG is not same in all blo cks. This could be attributed to several factors like background of SHG formation, internal problem, support provided by the promoters, effective leadership, etc. It is observed that the average membership in SHG was around 16.26. Membership is highest in Kasinagar block and lowest in Gumma block. This may be due to the urban -base of Kasinagar in contrast to Gumma, where 90 per cent of members are tribals. The members had joined the group in order to earn more income, promote savings habits and to develo p collective economic and social activities. So far as the frequency of group meetings are concerned, it is observed that fortnightly meetings were the most common. In Gumma, Gosani and Kasinagar block the SHG members arrange their meetings twice in a mo nth. But in Rayagada and Nuagada, the meetings are held once in a month. The Groups maintain cashbooks, passbooks and attendance

registers. The members in -charge of accounts are being given training in bookkeeping by the CCD. But the member who looks aft er all these secretarial work is not paid any financial incentive. From the study, it is found that individual members contribute Rs. 10 to Rs. 50 per month. 70 per cent of SHG circulated thrift and their
20

period of circulation was monthly. Accumulated sa vings by members to group funds per SHG were to the tune of Rs. 10,693, against this loan disbursed amounted to Rs. 12,345. The SHG disbursed loans both for consumption and production purposes. Purpose -wise disbursement of credit by SHG indicates that, domestic consumption received maximum share of 30.33 per cent, followed by others (27.28%). It is found that credit demanded for investment purpose is very low. As far as external loan is concerned, the Rushikulya Gramya Bank has advanced loans to the tune of Rs. 2.96 lakh to Gumma block followed by Rs. 2.66 lakh to Gosani block. The members have invested the loan in different economic activities like broom making, khalli stitching (leaf -plates), preparing eatables like bodi , papad , etc. They are also engaged in poultry, dairy and goatery business. In Gosani block, the members are preparing milk products like sweets, ghee, khoa , etc. and getting good price. They earn about Rs. 600 to Rs. 1000 per month through these activities. The study reveals that the members are not skilled enough to run various units. Members perceived several benefits through their membership in SHGs such as economic independence and self -confidence (81.54%), promotion of savings habits (76%), social cohesion (75.17%) and freedom from debt (63.36%). The study also reveals that SHGs had set a new agenda for financial intermediation by banks in the form of m icro-credit. It has infused dynamism among its members to climb up socio -economic ladder in the development process. Thus, SHGs have served the cause of women empowerment, social solidarity and socio -economic betterment of the poor for their consolidation.

21

Conclusion and suggestions Considering the findings of the study, the following suggestions were prescribed. Literacy and numeric training is needed for the poor women to benefit from the micro-credit schemes. Training in legal literacy, rights and gender awareness are important complements to micro-credit for the empowerment of women. The members should be given necessary training and guidance for the successful operation of the group. The members of the SHG s hould be more active, enthusiastic and dynamic to mobilise their savings by group actions. In this process NGOs should act as a facilitator and motivator. The office bearers managing the group should be given nominal financial benefits, which will enable them to be more involved in the activities of the Group. The bank should advance adequate credit to the SHG according to their needs. Uniformity should be maintained in formation and extension of

financial assistance to them by banks in all blocks. The procedure of the banks in sanctioning credit to SHG should be simple and quick. Marketing facilities for the sale of products of SHG may be created. Periodical exhibitions at block -level may be organised where the products of SHG can be displayed. Meetings and Seminars may be organised where the members will get a chance to exchange their views and be able to develop their group strength by interactions. Active intervention by district administration, professional bodies and voluntary organisations is precondition for the successful conception

22

of micro enterprises in terms of skill training, designing products, providing new technology and access to market .

Policy Implications In this twenty-first century, we must take along an active people-centred and growth -oriented poverty alleviation strategy a strategy which seem to incorporate womens aspirations, dynamism and involvement. It is envisaged that s elf-help groups will play a vital role in such strategy. But there is a need for structural orientation of the groups to suit the requirements of new business. Micro credit movement has to be viewed from a long -term perspective under SHG framework, which underlines the need for a deliberate policy implications in favour of assurance in terms of technology back -up, product market and human resource development. Hence, there is a need for the development of an innovative and diversified micro -finance sector , which will make a real contribution to women empowerment.

23

References Annual Report of CCD, 2003 -2004 Bosch, Ellie (2002), Micro-finance: New Wine in a New Bottle, A Supplementing

Role for Cordaid and IICO, March.

Censuses of India, C series, RGI, New Delhi, 2001. Cheston, Susy and Lisa Kuhn (2002), Empowering Women Through Microfinance, Unpublished Background Paper for the Micro-credit Summit 15, New York, 10-13 November (www.microcreditsummit.org). Dasgupta, Rajaram (2005). Microfinance in India: Empirical Evidence, Alternative Models and Policy Imperatives, Economic and Political Weekly, 19 March.

District Statistical Handbook, Gajapati (2000).

Kabeer, N. (2001), Resources Agency Achievements: Reflections on the Measurement of Womens Empowerment Theory and Practice, SIDA Studies, No. 3. Kapoor, Pramilla (2001), Empowering the Indian Women, Publications Division, Ministry of Information and Broadcasting, Government of India. Malhotra, Meenakshi (2004), Empowerment of Women, Isha Boaoks, Delhi. Manimekalai, K. (2004), Economic Empowerment of Women Through Self-Help Groups, Third Concept, February. Narasiah, M.L. (2004), Women and Microcredit , Sonali Publications, New Delhi. Osman, Khalil, Microfinance Institutions: Effective Weapon in the War against Rural Poverty, www.muslimedia.com. Pattanaik, Bijoy Kumar, Smaranika, 2003, Gajapati at a Glance. Pattanaik, Sunanda, Smaranika, 2003, Empowerment through SHG: A Case Study

of Gajapati District.
Sahu and Tripathy (2005), Self-Help Groups and Women Empowerment, Anmol Publications Pvt. Ltd., New Delhi. Sinha, Frances (2005), Access, Use and Contribution of Micro-Finance in India: Findings from a National Study, Economic and Political Weekly, April 23.

sa

24