Skip to main content

Self help groups vital for ending poverty, improving women's financial security



By Moin Qazi*
We live in a world in which women living in poverty face gross inequalities and injustice from birth to death. From poor education to poor nutrition to vulnerable and low pay employment, the sequence of discrimination that a woman may suffer during her entire life is unacceptable but all too common. Societies that invest in and empower women are on a virtuous cycle. They become richer, more stable, better governed, and less prone to fanaticism.
Yet women face significant constraints in maximizing their productivity. They often do not have equal access to productive inputs or to markets for their goods In addition to economic factors, the rigidity of socially ascribed gender roles and women’s limited access to power, education, training and productive resources as well as other emerging factors. The women need a raft of services to move the economic ladder.
Over years of wandering the villages, I have been compelled to revise much of my received wisdom about what our rural priorities should be. We must be challenged to see the reality of poverty and vulnerability through the eyes of a particular individual, typically a woman, and to understand how that person strives to overcome it. This way we can at least get some feeling of her daily worries and needs.
It needs great emotional intensity to break through age old barriers .This can possible only through groups who share the same emotional values and are driven by strong impulses of mutual goals. In India, community groups have been set up in villages and slums to tackle specific problems. They are known as self-help groups .One of the primary objectives is of course to avail loans which the women access by cross guaranteeing each other’s liability.
These loans are part of a financial philosophy called microfinance. When women are reached, they gain the courage and skills to break the cycle of inter-generational poverty. We create the most powerful catalyst for lasting social change. Microfinance interventions aim not only to provide poor people the financial means to improve their lives, but also stimulate local economies through the creation of micro-entrepreneurship.
With the help for starting businesses, impoverished women can earn money and support their communities as well as their families. They represent perhaps the best hope for fighting global poverty. According to a Harvard Business Review study, women in emerging markets reinvest 90% of every dollar earned into “human resources”— their families’ education, health and nutrition — compared to only 30 to 40% of every dollar earned by men.
Commerce has a profound ability to make people put aside their differences and interact with each other. “Before the Self Help Group came on the scene, I was zero,” Kamla told us. “We were share-croppers. We could not find food to feed our children or clothes to dress them. Now we can buy food and lease land and send our children to school. I have repaid Rs. 5,000 for the loan I was given by my Self Help Group. I have money left over from which I want to buy a goat.”

Experience worldwide shows that when accessible finance reaches women, the benefits are particularly sustainable. Savings rates are higher; group life is more intensive; repayment rates are remarkable; enterprise growth and graduation are stronger; and there are measurable improvements in child nutrition and education, family health and household sanitation, shelter and general welfare.
Suvarna Moharle found livelihood difficult in her native village, 10 kilometres from Warora n Chandrapur district of Maharashtra. She shifted along with her husband and set up her dwelling in this jungle. With Bank’s help, she set up a small poultry business and her husband purchased a cycle rickshaw. Within a year she has saved enough for erecting a house that, though not a concrete structure, is strong enough to withstand the pressure of monsoon. She recounts those miserable days when she would buy scraps of bread with mould on them. They were meant for animals, but she would scrape off the mould, pound the bread into powder and give it to children. She spends her day selling bakery products on her wheelbarrow, and enjoys the evening with children.
I was completely blown as I listened to the stories of these tenacious women. They have sophisticated credit algorithms: “Does the woman own a buffalo? Some chickens? Does she have a toilet in her home? What kind of roofing material does her home have? Does she bring a shawl to the village meeting? Does she come barefoot to the meeting, or does she wear slippers? Do her children come to the school properly washed and dressed?”
If you go to Charurkhati today, you will find that life in the village quite different from what it was a few years ago. Not substantially richer, because there is still drought, no industry save rain-fed agriculture—but the overall quality of life is better. There’s a bank, a school, biogas plants; farmers drive around on motorcycles. Women are out of the house and working on village improvement projects such as sanitation systems and vegetable gardens. They have started small businesses. The fields are heavy with grain.
Even more remarkable is the social transformation that the movement has wrought. No one drinks. Only a handful smoke. There hasn’t been a crime here in years. Even the practice of untouchability has weakened. Dalits suffer far less discrimination than before, as do women and girls. The village is brisk and prosperous. Signs of rural modernity abound.
Self help groups have proved to be vital institutions for ending poverty through sustainable solutions that build resilience, improve financial security, and open opportunity for lives of dignity, health and hope.
What we need today are innovative solutions that can take into account the peculiarities of the people at the bottom of the pyramid. We need to use your natural powers-of persistence, concentration, insight, and sensitivity to do work, think deeply, and solve problems and incorporate lessons of successful social programs.
Replication should not be a cookie-cutter process and should avoid wholesale cloning. The objective should be to reproduce a successful program’s results, not to slavishly recreate every one of its features. Replicating programs that do not produce results is at best a waste of precious resources and a source of active harm to the participants. We should not just rush in to replicate programs ..Change must be gradual; all good innovations are never made in haste. Gradualism is the best and surest way to get the buy in of every stakeholder.

*Author of the bestseller “Village Diary of a Heretic Banker”, has worked in the development finance sector for almost four decades

Comments

TRENDING

Mental health: We talk of poverty figures, but not increase in suicides since 2014

By IMPRI Team Highlighting  the issue of mental health and addressing the challenges involved, # IMPRI Gender Impact Studies Center (GISC) , IMPRI Impact and Policy Research Institute, New Delhi organized a panel discussion on Institutional Support for Mental Health and Wellbeing under the #WebPolicyTalk series The State of Gender Equality – #GenderGaps . The discussion was chaired by Prof Vibhuti Patel, Visiting Professor, IMPRI and Former Professor, Tata Institute of Social Sciences (TISS), Mumbai . The distinguished panel included – Prof Anuradha Sovani, Former Professor and Head, Department of Psychology, and Former Dean, Faculty of Humanities at SNDT Women’s University, Mumbai and National Core Committee member and Ethics Committee Chairperson, Association of Adolescent and Child Care India ; Dr Soumitra Pathare, Director, Centre for Mental Health Law & Policy at Indian Law Society, Pune ; Dr Swati Rane, Founder CEO at SevaShakti Healthcare Consultancy, Mumbai and Founder V

How India, Bangladesh perceive, manage Sunderbans amidst climate change

By IMRPI Team The effects of climate change have been evident, and there have been a lot of debates around the changes to be made locally to help and save the earth. In this light, the nations met at the COP 26 conference recently. To discuss this further, the Center for Environment, Climate Change and Sustainable Development (CECCSD) , IMPRI Impact and Policy Research Institute, New Delhi , organized a panel discussion on “COP 26 and Locally Led Adaptations in India and Bangladesh Sunderbans” under the #WebPolicyTalk series- The State of the Environment – #PlanetTalks . The talk was chaired by Dr Jayanta Basu, Director, Non-profit EnGIO, Faculty at Calcutta University and an Environmental Journalist, The Telegraph , ABP . The Moderator of the event, Dr Simi Mehta, CEO and Editorial Director, IMPRI , started the discussion by stressing the talk on the living conditions of people living in the Sunderbans Delta from both the countries, i.e. India and Bangladesh. According to the report

NEP: Education must shift away from knowledge, move to teaching students

Dr Anjusha Gawande* The Education sector in the globe is changing dramatically. Many manual jobs may be captured over by machines as a consequence of multiple spectacular advances in science and technology, including the machine learning, and artificial intelligence. A professional workforce, particularly one that includes mathematics, computer science, and data science, as well as multidisciplinary competencies in the sciences, social sciences, and humanities, will be in incredibly popular. As a result, education must shift away from knowledge and toward teaching students, how to be creative and transdisciplinary, and how to innovate, adapt, and process information differently in innovative and rapidly changing sectors. The education development agenda at the global level is represented in Goal 4 (SDG4) of India's 2030 Agenda for Sustainable Development, which was adopted in 2015. Ministry of Education has announced the National Education Policy 2020 (NEP 2020) on 29.07.2020. In J

Dishonesty, corruption, manipulation and sustainable growth of mediocrity

By Arup Mitra* The theory of mediocrity would suggest that the meritorious who are always small in number as a nature’s gift will be dominated by a vast number of mediocre as the latter cannot withstand the inferiority they suffer from. By subjugating the merit, they derive a pleasure of having established their superiority. Such processes are functional in all spheres in life though the field of art is the worst sufferer. An artist mind is most sensitive and those who are meritorious in this lot possess exceptionally different traits. This makes them more vulnerable and, on the other hand, it paves the path of the mediocre to cast their shadows all around. Unjust and strong criticisms are sufficient to detract many. In developing countries, the modes of subjugation are many. Individuals do not hesitate to take recourse to criminal means as the subconscious prevalent with vengeance, accesses easily the outlets for execution. The lack of civility and the power of money form a unique com

Migrant problem during Covid and the role of equality for cohesive development

By IMPRI Team  The covid-19 pandemic has deepened the pre-existing inequalities across socio-economic groups, the distressing images of migrants’ exposure remained attached in our minds but not a lot has changed in terms of data collection and policy making since then to understand the role of equality for cohesive development. Cohesive development also means that human beings should respect the boundaries of nature which they cross at their own peril and the peril of other living beings on earth. In lieu to this, The State of Development Discourses – #CohesiveDevelopment, #IMPRI Center for Human Dignity and Development (CHDD) , #IMPRI Impact and Policy Research Institute , New Delhi organized #WebPolicyTalk with Prof Amiya Kumar Bagchi, on The Role of Equality for Cohesive Development. The session is inaugurated by Ms Mahima Kapoor, researcher and assistant editor at IMPRI. Ms Mahima Kapoor extended her gratitude to the speaker, moderator and the discussant. The moderator for the eve

Parallel govts: How unity of various streams of freedom movements took shape in India

By Bharat Dogra  In one of the most inspiring examples of highly courageous spontaneous actions based on the unity of people, parallel governments were formed by freedom fighters in several parts of India in the course of the Quit India Movement in 1942. Although generally four such leading efforts have been identified in Satara (Maharashtra), Talcher (Odisha), Tamluk (West Bengal) and Ballia (Uttar Pradesh), there were some other smaller efforts as well such as those in Bhagalpur (Bihar) and Gurpal (Balasore, Odisha). It is very interesting to see in most of these efforts (also very significant for understanding the freedom movement) that there was constant merging of the various streams of the freedom movement, with more militant activities openly taking place with the help of quickly mobilized militias and this being combined with various constructive programs emphasized by Mahatma Gandhi such as anti-liquor efforts and anti-untouchability movements. In addition we see actions in

West Bengal police inaction in immoral trafficking case of a Muslim woman

Kirity Roy, Secretary, Banglar Manabadhikar Suraksha Mancha (MASUM) writes to the Chairman, National Human Rights Commission, on Muslim woman victim trafficking, police inaction, and need immediate rescue: I am writing to inform you about a case of illegal trafficking and profuse police inaction regarding the same of a marginalized Muslim teenager named Anima Khatun (name changed), daughter of Mr. Osman Ali. The victim and her husband had been residents of the village Daribas, under Dinhata police station Cooch Behar district since their marriage in 2014. Six months following their marriage, Anima Khatun along with her husband, sister-in-law, sister-in-law's husband as well as her in-laws shifted to Delhi in search of work. They stayed there for 2 years after which they all came back to their native village. They stayed at their native residence for about one month and then they went back to Delhi. In Delhi, Anima was in touch with her family till the next six months, after which t

Impact of climate change on Gujarat pastoralists' traditional livelihood

By Varsha Bhagat-Ganguly, Karen Pinerio* We are sharing a study[1] based learning on climate resilience and adaptation strategies of pastoralists of Kachchh district, Gujarat. There are two objectives of the study: (i) to examine the impact of climate on traditional livelihood of pastoralists of Gujarat state; and (ii) to explore and document the adaptation strategies of pastoralists in mitigating climate adversities, with a focus on the role of women in it. In order to meet these objectives, the research inquiries focused on how pastoralists perceive climate change, how climate change has impacted their traditional livelihood, i.e., pastoralism in drylands (Kr├Ątli 2015), and how these pastoral families have evolved adaptation strategies that address climate change (CC)/ variabilities, i.e., traditional livelihood of pastoralists of Kachchh district, Gujarat state. Pastoralism is more than 5,000 years old land-use strategy in India; it is practised by nomadic (their entire livelihood r

Bangladesh sets shining example of communal peace, harmony in South Asia

By Dr. Abantika Kumari Bangladesh is made up of 160 million people who are multi-religious, multi-ethnic, and multi-lingual. The Constitution of Bangladesh guarantees all citizens the freedom to freely and peacefully practice their chosen religions. Religious minorities make up roughly 12% of Bangladesh's present population, according to conservative estimates . Hindus account for 10% of the population, Buddhists for 1%, Christians at 0.50 percent, and ethnic minorities for less than 1%. As an example of how people of different religions can live together, cooperate together, and simply be together, Bangladesh is regarded. Bangladesh is a country that values religious liberty, harmony, and tolerance. Bangladesh's population is made up of a diverse spectrum of religious groupings and ethnic groups. Such communities and groups live in harmony, putting aside their differences and learning to embrace and respect the diverse and diversified culture that has contributed to Bangladesh

Political leaders' actions are causing decontextualisation of democracy

By Harasankar Adhikari In India, does democracy become a matter of prescription, i.e., to follow the footpath left? Isn't it, in some ways, the adoption of certain prescribed procedures and mechanisms, such as timely election and populist schemes for the poor, etc.? In some cases, acts of government and governance turn democracy into a myth. It is full of political party-based agendas. This continuous hegemonic practise creates a conditional situation for the people of India. People elect their representatives who are not their representatives. They are only representatives of a particular political party that nominated them in the election. Democratic decentralisation of power is undoubtedly a unique step towards the grass roots. But a Panchayat member has no free will to act without the party’s instruction and approval. Michael Saward, a political philosopher, defines democracy as a matter of correspondence in state-society relationships. But India’s parliamentary democracy is un