Question #
'The emergence of Self Help Groups(SHGs) in contemporary times points to the slow but steady withdrawal of the state from developmental activities'. Examine the role of the SHGs in developmental activities and the measures taken by the Government of India to promote the SHGs.
Answer by Chad #
Self-Help Groups (SHGs) have emerged as an effective model for grassroots development activities in India. The statement that their emergence points to the withdrawal of the state from developmental activities is partially true, as it reflects the shift towards a more decentralized approach where communities take charge of their own development. However, it is important to note that the Government of India has actively promoted and supported SHGs as part of its development agenda.
The role of SHGs in development activities is multidimensional and encompasses social, economic, and political aspects:
1. Economic Empowerment: SHGs enable marginalized individuals, particularly women, to access credit and financial services. They promote savings, provide micro-loans, and facilitate income-generating activities. By providing opportunities for entrepreneurship and self-employment, SHGs contribute to poverty reduction and economic empowerment.
2. Social Mobilization: SHGs act as platforms for collective action and social mobilization. They promote awareness about health, education, sanitation, and other social issues, leading to improved access to basic services and better social cohesion within communities.
3. Skill Development and Capacity Building: SHGs provide a supportive environment for learning and skill development. Members gain knowledge in various areas such as financial management, agriculture, livestock rearing, and enterprise development. This enhances their capacity to make informed decisions and engage in income-generating activities effectively.
4. Governance and Women's Empowerment: SHGs often have democratic structures with elected leaders and rotate positions. This allows members, especially women, to gain leadership skills and participate in decision-making processes at the community level. SHGs contribute to the empowerment of women by challenging patriarchal norms and providing a space for their voices to be heard.
The Government of India has taken several measures to promote and strengthen SHGs:
1. National Rural Livelihood Mission (NRLM): NRLM is a flagship program of the Ministry of Rural Development, which aims to alleviate rural poverty through the promotion of SHGs. It provides technical and financial support to SHGs, establishes federations of SHGs, and facilitates their linkages with banks and markets.
2. Access to Credit: The government has encouraged commercial banks to make loans available to SHGs by setting targets for priority sector lending. It also provides refinance support through specialized institutions like National Bank for Agriculture and Rural Development (NABARD) and Small Industries Development Bank of India (SIDBI).
3. Support for Capacity Building: Various government agencies and non-governmental organizations provide training and capacity-building programs to SHGs. These programs focus on skill development, leadership, financial literacy, and entrepreneurship.
4. Market Linkages: Efforts have been made to link SHGs with market opportunities to ensure sustainable livelihoods. Government schemes like Deendayal Antyodaya Yojana-National Urban Livelihoods Mission (DAY-NULM) and National Urban Livelihoods Mission (NULM) support the formation of SHGs in urban areas and enable them to establish linkages with markets.
In conclusion, while the emergence of SHGs does indicate a shift towards community-led development, it does not imply a complete withdrawal of the state. The Government of India has actively supported and promoted SHGs through various programs and initiatives, recognizing their potential as catalysts for inclusive and sustainable development.