Comprehensive poverty eradication through social mobilisation and empowerment of

rural poor women -A.P experience of a statewide programme

T. VIJAY KUMAR, I.A.S, C.E.O, Society for Elimination of Rural Poverty

Dept. of Rural Development, Govt. of A.Pvjthallam@gmail.com

26-09-09

Vision of A.P: each family in the state should be out of poverty, and, enjoy:-

Life with dignity, ‘voice’Intra family equity – equal status for womenFreedom from hungerDecent Income: >Rs.5000 per month, 3 - 4

sourcesPlanned household expenditureRisk management - life, health, assets and

incomesShelter, Health and Education

Core beliefs about poor• Poor have a strong desire and innate ability to come out

of poverty

• Poor have a strong sense of self-help and volunteerism

Obstacles – psychological, social, economic, political - suppress their innate capability

• Social mobilization to unleash their innate abilities

• Poor can come out of poverty only through their own institutions

• Social mobilization – not automatic, needs to be induced

• Hence, need for sensitive support institutions for poor

Genesis of A.P programmeA long term strategy for poverty eradication • Women S.H.Gs in A.P–mass literacy campaigns from

1990 - 95 - initiative of District Collectors

• Simultaneously N.G.Os fostering S.H.Gs

• N.A.B.A.R.D directions to banks to finance S.H.Gs in 1992

• S.A.A.R.C Colombo Summit 1992

• First Independent South Asia Commission on Poverty Alleviation - 1993 (‘Meeting the challenges’)

• S.A.A.R.C Dhaka Summit 1993

Critical role of Govt. of A.P • Implementation of SAPAP Project (1995 – 2000)• Scaling up SAPAP success to the whole state –

through World Bank fund support

• Setting up of S.E.R.P - an autonomous society dedicated to social mobilization

• District level initiatives of Collectors

• Support from all line departments and convergence with all key ongoing Govt. programmes

• Strong and sustained commitment of successive Chief Ministers of A.P to this process

2004 – 2009: saturation approach - to cover all the poor in the state

Scaling up through World Bank funding

Fund support: Rs.1700 crs – 2000-2009 Key components:– Institution and human capacity building (26%)– C.I.F (66%)– 80% of C.I.F as seed capital– Physical productive infrastructure– Fund for social needs – gender, health, nutrition, etc.– Skill upgradation of youth and placement – Risk management

Since 2005-06, Govt of India’s S.G.S.Y in the same pattern

Role of S.E.R.P

Sensitive support organization for the poor

– Autonomous society, set up by Government in 2000

– Chief Minister – Chairman of General Body of S.E.R.P

– Statewide mandate

– firm conviction in the capability of poor, and, in organizations of the poor

– To induce social mobilization

– To provide facilitation support to institutions of poor

– To sensitize all line departments to be inclusive of the needs of the poor

– To sensitise banks, insurance companies

S.E.R.P Structure

1. Executive Council: 5 members, M-RD as President, other members: Secy, RD, Commissioner, RD, Commissioner – TW, CEO-S.E.R.P (Member-Secretary)

2. State Project Management Unit: C.E.O, Addl.C.E.O, subject specialists – institution building, tribal development, microfinance, insurance, pensions, sustainable agriculture, dairying, jobs, non-farm livelihoods, construction, gender, health and nutrition, disability, and education.

3. District Project Management : Headed by P.D, DRDA, Addl.P.Ds and Subject specialists ( 12 – 15).

S.E.R.P Structure

• Area Coordinators – 10 – 12 per district – each responsible for 5 - 6 mandals. Supported by 3 master trainers in accounting

• Mandal Coordinators – 1 per mandal ( 50 in a district), supported by 2 master trainers for accounting

• In addition subject specialists in agriculture, dairying, health, disability, agriculture marketing, etc in programme mandals

S.E.R.P Structure P.D, DRDA is on deputation to S.E.R.P. He has no other

responsibility other than women empowerment. Separate officers for NREGA, Watersheds, Rural Housing, and, Drinking water

In A.P, no other department organises S.H.Gs. It is the exclusive responsibility of RD Department.

All departments collaborate with RD department in linking their programmes to the S.H.G members

Strategy

Social mobilization and empowerment

Organize rural women’s groups

& their federations

Knowledge & awareness

Investment support

Govt. departments

Fin. institutions

Panchayat Raj institutions

Markets and others

Institution building process• S.E.R.P helps poor to build their own institutions

• Recruited dedicated personnel – young professionals (1 per 2000 members) – to initiate the process

• Subsequently through C.R.Ps and the Federations

• Starts with poorest of poor women - forming Self Help Groups (SHG) - 10 to 15 members, based on affinity

• Capacity building and facilitation of group meetings

• Thrift and credit, collective action around key issues

• Guidance on collective action, formation of federations

Group activities strengthen members, and, vice versa

Federations of poor – force multipliers

• Social mobilization does not stop at SHG level

• Federating all S.H.Gs at village level – multiplies strength of the poor

• A federation understands better problems of the vulnerable

• Higher level of federations – block and district level

• Network with other village level and higher order institutions

• Principle of subsidiarity

• Self management – reduce dependence on support organization – they transform into support organizations

• Nurture member organizations

• Advocacy - Influence policies, programmes in favour of poor

• Scale – aggregating ‘demand’

• Linking key organizations with poor – banks, markets

• Greater pressure on service delivery

• Dynamic – roles change in response to member aspirations, opportunities, experience

Pressure on S.E.R.P to continuously evolve and assume new roles and responsibilities

Role of federations

Mandal Samakhyas and V.Os plan and implement the various

project components

– Each Mandal is divided into three Clusters of 10-12 habitations.

– A development professional, called Community Coordinator (CC) is placed in each Cluster. S/he stays in her cluster.

– SERP selects and trains them. After completion of training, they are contracted by the MS and are accountable to MS.

– M.S responsible for social mobilisation, institution building and funding the microplans of S.H.Gs/V.Os from C.I.F

– Micro credit plans are evolved by the S.H.Gs in each village. These plans are funded by their own savings, CIF fund and Bank Linkage.

– V.Os responsible for appraising the microplans and recommending them to M.S for financing from C.I.F

– V.Os appraise microplans and also finance them from the recycled C.I.F

C.B.Os implement the projectA.P Federation Model

SHGs

•Thrift and credit activities

•Monitoring group performance

•Micro Credit Planning•Household inv plans

• E.C -2 from each S.H.G, 5 Office bearers

•Strengthening of SHGs

•Arrange line of credit to the SHGs

•Social action

•Village development

•Marketing and food security

•Support activists – 3 -5

• E.C -2 from each V.O, 5 Office bearers

•Support to VOs

•Secure linkage with Govt. Depts.

fin institutions, markets

•Auditing of the groups

•Micro Finance functions

10 - 15

SHGs SHGs SHGsSHGs SHGs

V.O

150 -200

MMS

6000 9000 -

Z S300,000500,000

Village Organization

Mandal Samakhya

Zilla Samakhya

SELF HELP GROUPS

Key impacts of social mobilisation

1. Institution building

– 10.2 million women organised into 850,000 S.H.Gs,

– All Villages covered

– S.H.G Federations: village – 35,525 V.Os, mandal – 1098 M.M.S, and, district – 22 Z.Ss

– Universal coverage of poor - 90% of rural poor households organized

- across states

* World Bank study

2. Social capital created

– 17,00,000 trained grassroots women leaders managing S.H.Gs and federations

– 180,000 para professionals at village level – accountable to women’s groups

– 20,000 Community resource persons – scaling up and deepening social mobilisation

3. Community financing institutions

Seed capital support to Mandal samakhyas:• Project facilitated financial intermediation by

federations – M.S – V.O – S.H.G – member • Rs.950.0 crores disbursed to 1097 mandal

samakhyas from 2001 – 2009• C.I.F (World bank project) and S.G.S.Y funds

channelled to federations• Catalytic role of the fund:

―Enable poorest of poor to get a sizeable loan and build their credit record ―Innovate and develop new financial products: food security, marketing, health, education

Financing model

Village Organizatio

n

Mandal Samakhya

SHG SHG SHG

Terms of Partnership (VO –

MS)

Terms of Partnership (SHG –

VO)

Terms of Partnership

(Member – SHG)

Repayment Period

Members

Prioritization of Needs and MembersMicro Credit Plan

100 - 120 Months

40 - 60

months

12-24 months

Banks

4. Micro finance : SHG-Bank linkage

– S.H.G’s own accumulated savings and corpus Rs.3150 cr

– Bank loans to S.H.Gs –Rs.6967 cr in 2008/09 : almost 50% of the entire country

– Per capita S.H.G-bank linkage – Rs.142,500 per group

– Per member linkage : Rs.12000

Key impact: S.H.G-bank linkage5. Major policy changes in banks and Government

‒ From savings linked lending to lending based on micro credit planning by S.H.Gs

‒ Total Financial inclusion - Bank finance for debt swapping, social needs and income generation

‒ 6000 villages covered. Balance 29000 by 2011/12

‒ Upto Rs.500,000 per group under debt swapping

‒ From 2004 – interest subsidy for on-time repayment - ‘Pavala vaddi’ scheme. Outlay for 2009/10: Rs.315.0cr

6. Leveraging APRPRP and S.G.S.Y investments

W.B project outlay (2000 – 2009): Rs.1700 crs

Govt of India S.G.S.Y – Rs.600 cr

– S.H.G’s own corpus Rs.3150 cr – Cumulative lending from banks: 2004-09:

Rs.19200 cr

– State Govt’s incentive for prompt repayment: 2004-09: Rs.900 cr

SHG-Bank Linkage in AP

198454

7531018

2001

3064

5883

6967

01-02 02-03 03-04 04-05 05-06 06-07 07-08 08-09

Target 2009-10: Rs.9000 crores

* World Bank study

• Geographical disparity in the credit gap – Just over 19 percent of the total credit

received by all of the lagging states combined

• Poor must resort to costly sources of finance with high interest rate (interest rates anywhere between 60% to 120% per annum)

7. Prerequisites for a family to come out of abject poverty

6 to 8 years of continuous nurturing and handholding of women members by Self Help Groups and their federations

Adequate investment: minimum investment of Rs.100,000/- per family ( by way of numerous ‘small’ and ‘big’ loans) over 6 – 8 years

A.P Govt. plan to raise Rs.100,000 cr by 2015/16 covering 1.0 crore S.H.G members

Key livelihoods impacts8. Sustainable agriculture initiative

– Low external input sustainable agriculture – based on local natural resources (‘Zero budget farming’)

– covering 14 lakh acres in Kharif 2008 – largest initiative in the country

– Community managed extension system

– Cost savings: Rs.3000 – Rs.15000 per acre

– Seen as a national model for sustainable agriculture in the context of adaptation to climate change and mitigation

– Kharif 2009 – 20 lakh acres coverage (10% of State’s cultivable area)

Key livelihoods impacts9. Collective marketing of agriculture produce

− Village level procurement centres for paddy, maize, red gram, soybean, etc

− V.O as franchisee of A.P.State Civil Supplies Corporation for procurement of paddy at minimum support price

− 2008-09 paddy turnover: Rs.450 crores – from 497 V.Os

10. Women dairies: franchisees of A.P State Coop dairy − 156 Bulk milk cooling centres run by Mandal samakhyas

− 2784 village milk collection centres

− 250,000 litres of milk per day (flush season)

− 140,000 dairy farmers

Risk mitigation

11. Social risk management

– 81 lakh members/spouses covered under life insurance

– largest in the country

– Front end managed by the S.H.Gs federations

– Low admin costs: Rs.10/ per member

– Target for 2009-10: 1.7 crores

12. Food security credit – covers 2.1 million families. Specific focus on tribal areas, coastal areas, and drought prone areas

Key social impacts

13. Health and nutrition initiative

– 660 villages - comprehensive nutrition and health care support to pregnant women and lactating mothers

– healthy mothers and healthy babies – ‘zero’ low birth weight babies

14. Education

– Pre-school centres managed by V.Os

15. Gender initiative – intra family equity, ‘no to domestic violence’, family counselling centres run by Mandal samakhyas

Key impacts16. Persons with disability: 2,12,888 persons with disability

organised into 23,069 SHGs. Supported for livelihoods enhancement, medical treatment and rehabilitation, accessing entitlements from Govt.

17. P.R.Is: Women’s network a strong lobby for the poor, strong influence on PRI functioning, strengthens Gram sabhas

18. Innovative ways of working with N.G.Os – partnership between N.G.Os and S.H.G Federations

19. Women’s network a platform for convergence of all anti-poverty programmes: housing, land access, civil supplies, urban development, forest management

20. Line departments modified implementation procedures in consultation with S.H.G federations

1. N.R.H.M – National Rural Health Mission

2. Rural Water supply and sanitation

3. R.K.V.Y – Rashtriya krishi vikas yojana ( Agriculture)

4. A.P.D.D.C.F – Dairy federation

5. Youth Empowerment department

6. Rural Housing Corporation

7. Sarva shiksha abhiyaan (Education)

21. Funds mobilised from other departments for S.H.G federations

22. S.H.G – Co-contributory pension – introduced in Feb 2009, to cover 1.0 crore rural and urban poor women in S.H.G networks

• Pension from 60th year – minimum Rs.500/ per month• Insurance cover upto the age of 59• Scholarships to children studying in 9th – 12th class

Key lessons

1. A long term strategy for poverty eradication, based on social mobilisation and women empowerment

2. State level mission and dedicated project management unit at state level, district level and block level

Key lessons

3. A single department to take overall responsibility for S.H.G formation and strengthening

4. Social mobilisation requires intensive handholding support – staff requirement cannot be underestimated

5. National Rural Livelihoods mission a unique opportunity

Key lessons

6. Investment on demand side critical for effective implementation of programmes of all line departments

7. Convergence with key line departments – critical

8. Building strong institutions of poor women provides the last ‘metre’ solution to each and every poor family

Key lessons

9. A.P experience can reduce the learning curve for new states. S.E.R.P providing need based technical support to many states

10.Community resource person strategy – low cost and sustainable strategy. Reduces staff requirement

11. Intensive approach in the first 3 years – develop internal social capital for scaling up for the whole state