SELF
HELP GROUPS FOR WOMEN
The
goal of the experiment of establishing Self-Help Groups is to create
suitable robust community based institutions which will not only nurture
economic growth and development but will also form the basis of a
sustainable interface between formal systems and the informal setting within
which poor women face harassment, violence and lack of status.
What
is a Group?
It is essential to have a common appreciation of what is
meant by "Group" and what the Commission is aiming. Traditionally
Delhi does not have group formation as part of its implementation strategy
under any scheme as in vogue elsewhere in the country. The term group is
utilized when beneficiaries are to be identified in specific numbers. In
this instant case when we refer to group we mean an affinity group where the
poorest women would come together for emergency, disaster, social reasons,
economic support to each other, have ease of conversation, social
interaction and economic interactions.
How will a group be
formed?
Generally, a group which is a Self Help Group would be
formed by an intervenor, in this case Commission's staff or NGOs
collaborating with the Commission. The intervenor would start with a larger
group and then over a short period of weekly meetings the core group would
be identified and which would be reduced to the actual number of people who
would ultimately work together. From experience it is known that groups
start with a larger number of 40 to 50 and group rapidly to a number between
15 to 25. Over time such a group then consolidates its membership to around
12 to 25. Those who have real affinity will stay over a series of meetings.
For the purposes of the Commission an ideal group would be between 15 to 20.
Socially
viable or financial groups which possess low financial capital but have a
social capital in their network of relationships are likely to have a high
degree of economic homogeneity. As such, groups would achieve effective
participation of each members. The intervenor can provide special training
for building confidence and for taking responsibilities thus leading to
self-reliance and sustainability.
Why the group should not be
registered?
The groups being voluntary would have more reasons to
come together unlike in a Govt. programme. The groups will not be encouraged
to register as a society as this would lead to loss of freedom and becoming
vulnerable to the demands of petty officials.
Difference from
Lottery Fund/Chit Fund
It is also expected that each group will be
involved in raising savings, deciding the amount of loan including rate of
interest, schedule of payments, recovery and sanctions for non compliance.
The groups will also establish a Common Fund which will be kept in personal
account. Members can take loans for consumption and small emergency loans at
any part of day and night. Several members can take a loan. This differs
dramatically from the management of Auction and Lottery Chits. The
responsibility of recovery and managing of use of loan will rest with the
entire group unlike a "foremen" who stands guarantee in the chit
model and unlike the chit model where the number of members determines the
life of the group. Such a group which is an affinity group, which comes
together for social interaction is more likely to continue. The experience
of management for managing group affairs by representatives will help the
poor and make it difficult for leaders to "use" groups in their
quest for political power. Decision making also would be by all and not be
delegated to a few.
Criteria for Poor
As restriction of
the membership will also be to only the poor and the method and criteria to
be used to identify which are poor families will be designed by the groups,
it is likely to be more accurate than if imposed by the Commission or any
other outside organization.
Saving from surplus
The
group will also encourage need to save regularly and acquire the habit of
thrift. Savings will be from necessity and not from surplus.
Conducting
business
The formation of the group will be done through
intervention. The purpose of setting up for thrift and for credit will be
explained over time to the group by the intervenor. Weekly meetings would be
regularly monitored and participation by the intervenor will take place at
specific days and times which will be settled in advance in the group. It
will be at times which are most convenient to the group's participants.
Participation in the meeting will be recorded in formal minutes. Assistance
for recording minutes will be taken by the group, initially. Sanctions will
be encouraged, for example fines will be levied for late coming.
The
weekly thrift programme will be generated with specific amounts to be
collected from each members by the Secretary/Treasurer. A Chairperson will
be appointed. Office bearers will rotate after every six months. The
training of the officials will be done for taking attendance, minutes and
the cashier for counting the cash on the spot and marking the pass book of
each members on the spot. The money collected will be deposited in a Bank.
Over time the issue of giving loans from the money collected from the
daily/weekly savings will be discussed in the meetings and priority will be
allocated by the groups.
The specific income generating activities
which are manageable and not only viable will be discussed and ability of
the loan to implement for the purpose of the loan will be analyzed by the
group. Loans will also be permitted for non income generating activities.
The interest to be levied on the loan will be decided in advance by the
group and will also be collected along with thrift/saving on a weekly basis.
The first collection will be the thrift saving, second the interest on loan
and third collection will be the installment of principle of the loan.
Loans
In
a period of six to nine months it is expected that Self Help Group will be
able to access the loan from banks for purpose of further income generation
activities. The loan will be taken by the group and the group will give the
same to the individual. Collection of installments against loan will be done
by the group and deposit will be done in the Bank. Two persons will be
authorised by the group to handle the Bank work and all receipts and
expenditure will be done by cheque.
Decision making skill
Over
a period of time it is understood that this approach will lead to adequate
participative decision taking. The system will also ensure de-centralized
management of micro credit and decentralized monitoring of utilization as
also refund of the loans.
Regularity
Regular meetings,
preferably once a week (Literacy and Numeracy will become important). This
effort can be supplemented by the literacy programme of Dept. of Education
or Govt. of India. Attendance of meeting should to be over 85 per cent.
Book
keeping
Basic books and records would be kept like attendance
register. maintenance of books and records of all decisions. As a temporary
measure outsider can be used for record which would be read out in each
meeting. With time the group will record the meetings itself.
Phase
1
The formation of Self-Help Groups would flow from intervention. A
sustainable group will be formed which has given itself a name and has
identified the place for meeting; specific days and timings for meetings
settled, and where basic records are maintained. On phase one it is also
expected that account will be opened in the nearest Bank; roles
responsibilities of all will be clearly understood; and two persons will
function as Chairperson and Secretary/Treasurer and signatories of cheques
and other documents will be identified.
Phase 2
In
phase two in the 6 to 15 months period group stabilization would take place
within which it is expected that group would begin to lend from its own
funds and members will be provided opportunities to acquire the skills to
provide scarce resources and timings of loans and schedule of repayment and
interest rates would have been settled. Basic literacy and numeracy would
have been achieved by phase two and groups could institutionalize the needs
to issue sanctions for deviant behavior. In this phase the group will also
interact with other groups in the city and with Govt. Bank and other private
institutions.
Training
The intervention of the
Commission through its own self and NGO's would ensure that appropriate
training has been conducted to sustain the group which have been formed. At
the end of phase two, it is expected that a summary of loans and recovery is
pasted in public place with regular updating and the Common Fund is
revolving and steadily increasing. Recovery rate should be well over 90% and
attendance over 80%. Groups would also have by this time confidence to deal
with Govt. institutions, Bank and private institutions would have experience
of organizing and being involved in one or two common action programmes and
would have been able to resolve conflict within the groups and out side.
