Status of Self Help Groups in West Bengal

Status of Self Help Groups in West Bengal

2009 - 10

PREFACE

The Self Help Group (SHG) bank linkage programme was initiated by NABARD in 1992 primarily as a financial outreach programme to provide access to financial services to the poor who are by passed by the formal banking system for various reasons. Over the years the Self Help Groups [SHGs] have witnessed phenomenal growth. The Government departments, local bodies, banks, co-operatives, and NGOs have promoted lakhs of SHGs in rural and urban areas with different dispensations and difference in emphasis on thrift, credit, group dynamics and development of self sustaining community based organisational structures. However, thrift and credit has been the entry point activity in almost all cases. The result is that under the generic term SHG, there are thrift and credit groups of different quality hues and colours depending upon the agenda, resources, commitment and the vision of the promoting institutions.

In the emerging paradigm of development emphasizing the potential of group mechanism, the role of financial access thus contributing towards the enhancement of income for economic upliftment, SHGs based development approaches through their proven performance in micro-finance and emerging capability in social and economic areas have been found to be a formidable strategic intervention.

Briefly speaking, SHG movement in West Bengal has experienced exponential growth since 2000 covering nearly 9 lacs SHGs of mostly poor and women. This amounts to about 1 crore families being covered under SHGs. It was largely influenced by SHG-Bank Linkage Programme and Swarna Jayanti Gram/ Sahari Rozgar Yojana. The movement was supported by a number of agencies like NABARD, banks, co-operatives, government, panchayats, resource institutions and community- based organizations.

SHG Promotional Forum as a state level network in West Bengal has since its inception, endeavored to capture the status of SHG at periodic intervals. While the status reports on 2003 and 2006 are available for the sector, the present study captures the status of the SHGs in 2009-10 period.

The objective of the present study is to capture the status in 2009-10, critically assess the issues as revealed in various studies and interactive discussions with SHG’s conducted by SHGPF and other organizations like the State Commission for Women in West Bengal and the State Institute of Panchayats and Rural Development, and to find out possible way out for realizing the full potential of SHG movement.

This report was preceded by 4 important studies undertaken by SHGPF –

a)SHG Federations in West Bengal,

b) Government and NGO Collaboration towards Promotion of SHG Movement in West Bengal

c) SHGs in Backward Villages of West Bengal

d) SHG and PRI convergence in West Bengal.

The study by Smt. Susmita Chowdhury and Dr. Debabrata Basu of SIPRD also helped us to get insight in to SHG PRI relationship

SHGPF has conducted large number of field workshops, orientation cum facilitation workshops at many places across the state involving grass root people and all kind of stakeholders. In addition, there were policy workshops – on NRLM, MF bill, State Policies, etc. The deliberations on the state SHG conference have also given us many cues and information.

The report is based on secondary data collected from different sources including eports, and studies made by Government and Non Government Organizations.All primary data are based either on studies conducted by SHG PF or other organizations from fieldsample surveys.

The secondary sources utilized are a) State Focus paper by NABARD, 2009-10; b) Annual Report by P&RDD, 2009-10; c) Status of MF 09-10 of NABARD, d)Economic Review by Government of West Bengal, 2009-10.

SHGPF’s involvement in formulating the Policy framework as suggested by State Women commission and also in the functioning of Expert Committee for state SHG Policy helped in getting insight into the policy environment.

SHGPF takes the opportunity to thank ENABLE, NABARD, P&RDD, SHG&SE Department, Banks, Co-operatives, Member-Organizations, non –government Organisations and Panchayat bodies as well as many individuals for assisting us in the study.

We hope that the report will be of interest and useful to all those who are associated with and involved in SHG movement.

Tarun Kumar Debnath

Secretary

SHG Promotional Forum

101A, Kankulia Road

Kolkata 700029

Abbreviations

Contents

List of Tables