It is doutful whether this institution will serve the objective. India has several such institutions, such as for minority communities, Schedules Castes, Scheduled Tribes etc. which need independant evaluation to confirm their achieving the enshrined objectives. Unless the institution is separated from politicians & bureaucrats and fully headed & manned by professionals it will have the same fate as other institutions are.
Government has, since April 1, 1999, been implementing Swarnjayanti Gram Swarojgar Yojana to assist BPL families to become Swarozgaris with sharp focus on the concept of SHGs. However, major deficiencies observed, among others, were [i] weaknesses in the planning and implementation process, formation, nurturing and working of SHGs [ii] subsidy acted as a tempting factor rather than enabling one to acquire income generating assets through bank credit resulting in unsatisfactory loan repayment as compared to SHG-Bank-Linkage Program [iii] estimated income was not generated because of lack of effective coordination and systematic monitoring of SGSY implementation [iv] heavy concentration on agriculture and that too milch animals [v] inadequate use of funds earmarked for capacity building and skill development training, infrastructure development and marketing support. Deficiencies were observed in varying degrees in all States but were more pronounced in States of North-East region, Uttar Pradesh, Uttrakhand, Himachal Pradesh, Rajasthan, Madhya Pradesh, Chhatisgarh, Bihar, Jharkhand, Orissa and West Bengal in particular.,
On 2 October 1978 Government had launched Integrated Rural Development Program aimed at alleviating rural poverty by providing self-employment opportunities to the rural poor through capital subsidy and bank credit to help them acquire productive assets to cross the poverty line on a sustainable basis. The District Rural Development Agencies were specifically established for implementing IRDP. Between 1980-81 and November1999, about 535.22 lakh beneficiaries [including 44.7% SC/ST & 25.4% women] were provided Rs.11796.01 crore capital subsidy & Rs.21336.63 crore bank credit. However, implementation of IRDP till November 1999 and SGSY since April 1999 could not alleviate rural poverty as expected, as according to NSS round [2004-05], 41.8% rural population had monthly per capita expenditure of Rs.447, which some economists consider Below Starvation Line instead BPL. Besides, according to Multidimensional Poverty Index [MPI] worked out by UNDP & Oxford University, July 2010, about 645 million people [55%] in India are poor. As against 410 million MPI poor in 26 of the poorest African countries, eight Indian States [Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal] have 421 million MPI poor. The MPI reveals a vivid spectrum of challenges facing the poorest households. MPI considers 10 sharp indicators, namely Education [child enrolment and years of schooling]; Health [child mortality and nutrition] and Standard of living [electricity, drinking water, sanitation, cooking fuel, flooring and assets]. A global report on poverty eradication of the U.N. Secretary-General [2010] shows that economic growth is evident for the progress in China in reducing extreme poverty and raising living standards, whereas India is expected to be home to more than 300 million in poverty out of 900 million predicted to be in extreme poverty in 2015. This, therefore, sharply focuses on the need for initiating measures to integrate the planning and implementation of programs involving SHGs with ongoing programs of health, education, drinking water, sanitation, housing, fuel, transport and communication [instead being implemented in isolation] so as to create direct impact on the quality of life of rural households in terms of human development index. As on today a pleathora of Financial Institutions are assisting SHGs in one form or the other and this will be one more addition to add confusion.
Dr Amrit Patel, NJ 08837 USA[732-553-0825]