SHG Model under TRIPTI Scheme - 2

SITUATIONAL ANALYSIS:- The social inclusion process will include two steps; first to identify the left out poor, those who are not a part of any SHG/ other CBOs, and second to ensure their participation in different community-based organizations [SHGs, GPLF, etc.] at the village/ Gram Panchayat level. In this process, the project also needs to identify the extremely poor and vulnerable groups (EPVG) in the community that typically suffer from severe economic and social impediments.

For this purpose, the project adopted a community-based participatory approach to identify and prioritize project beneficiaries, including ‘extreme poor and vulnerable groups, persons with disabilities, and the ‘left out poor’. The proposed methodology for the same is called situational Analysis in the project which will comprise of the following exercises:

1- Participatory identification of Poor(PIP):

o Social mapping/ collection of baseline of beneficiaries

o Well Being Grouping

2- SHG Grading

3- Institution Mapping

4- Livelihood mapping

FUNDS:- For operational sustainability of the GPLF, it needs different kinds of funds like the start-up fund, Institution Building (IB) fund, and Community Investment Fund (CIF). Start-up funds and IB funds are basically meant for office establishment and capacity-building activity. The Community Investment Fund (CIF) acts as a catalyst to help poor households meet their demand for improved access to credit for investment needs. The Community Investment Fund will be an infusion from the TRIPTI Project to the Gram Panchayat Level Federation (GPLF) down to the members and is expected to revolve among SHG members for taking loans and repay loans from this fund.

The SHG may provide loans for individual-based livelihoods preferably for reducing vulnerabilities and shocks, income-generating activities, meeting social needs, and supporting investments in housing, education, etc. based on the priorities fixed by the communities in their Micro Investment Plans (MIP). Member borrows from its SHG for implementing Household Investment Plan and repays the loan amount in full with agreed terms and conditions. The amount of loan received as CIF will be first available to the neediest and vulnerable. On repayment and accumulation of group funds, the other ranked members will avail funds from the group. The other sources of funding MIP are SHG’s own funds and bank finance.

Pro-Poor Inclusion Fund (PPIF) is a part of the Community Investment Fund (CIF) which will focus on activities aimed at identifying the extremely poor and vulnerable groups (EPVG) and enhancing their productive capacity. The fund size of PPIF is Rs 5000/- per eligible SHG.

Panchasutra- SHGs were well aware of the Panchasutra are the five principles of maintaining an SHG and includes: 

• Regular Meeting

• Regular Saving

• Bookkeeping

• Timely Repayment

• Internal Lending

SHG Model under TRIPTI Scheme - 1

Targeted Rural Initiatives for Poverty Termination & Infrastructure (TRIPTI) aims at enhancing the socio-economic status of the poor, especially women and disadvantaged groups, in ten districts of Orissa over a period of five years, beginning 10 February 2009. The project is assisted by the International Development Agency of the World Bank and implemented by Orissa Poverty Reduction Mission, a society under the Panchayati Raj Department of Government of Orissa. TRIPTI project under World Bank Assistance is running in 38 blocks in 10 districts that will be treated as pilot blocks for NRLM.

The SHGs are at the first tier of the community institution structure. One SHG is formed constituting 10-20 women members (in case of disability or dispersed location the group size may be 5 to 20). The second tier of the structure is called Cluster Level Forum (CLF) which is an aggregation of 5 to 15 SHGs at the village/hamlet level. GPLF is the third tier of SHGs which is formed taking representation from all CLFs at the GP level.

I have the privilege of working closely with TRIPTI block level team and SHG Federation at Kharidpipal GP for 21 days in Balasore. Bhograi is one of the blocks in Balasore that falls under the TRIPTI project. It consists of 32 Gram Panchayats out of which I was placed at Kharidpipal. Kharidpipal GP consists of eight villages. The GPLF federation of SHG is constituted of 13 CLF and 152 SHG. The detail of the structure is given in the diagram. That gave me a decent understanding of the SHG model that will be implemented in NRLM scheme with a slight tweak. I will draw the conclusion that the creation of dedicated machinery (staff support) &  Universalisation of SHGs has made it more sustainable than SGSY.

Looking on the data of Annual Exp of Average Poor – Rs.40-60K; 35-55% Food; 10-30% Health; 15-20% Education; 10-20% C&E (MGNREGS 2011). Most of the schemes related to the poor fail because the poor spend their money on urgent needs such as health rather than asset building. It is not only economic poverty but lack of financial planning that also plays a crucial aspect. Hence, TRIPTI focuses on the Micro Investment Plan (MIP) which is a household investment plan prepared by individual households and their consolidation at the SHG level.

MIP has socio-economic information will include critical factors such as income, assets and liabilities, needs and problems, number of earners and dependents, single woman, physical/mental disability amongst the members in their family if any, health problems, livelihoods and opportunities, skills, saving capacity, social backwardness, literacy, etc. It will look for the income and expenditure statement of members. The SHG at the outset ranks its members according to their wealth. The Self Help Groups will then be facilitated to prepare a list of all SHG members along with their loan requests indicating both activity/purpose and loan amount. The group would appraise each loan request and determine the loan terms like the amount of loan, installment amount, repayment period, etc. Here, the group would take into consideration the potential for chosen activity in the local area and the competence of the members to carry out the same gainfully.

Governance and Accountability: A to Z

This Governance and Accountability (GAC) is taken directly from the PPT of world bank team.

A: Awareness on GAC - Good project management is promoted by adopted governance and accountability. However one needs to generate awareness on GAC .

B: Benchmarking - The benchmarking on what can be delivered has to be done with due consultations with stakeholder who would deliver the service.

C: Capacity Building - A training module needs to be developed which empowers the entire project staff and participating institutions at all level with basic activities under GAC, tools to be used under GAC.

D: Deterrence - A clear cut policy which includes measures for prevention, detection and punitive action needs to be defined.

D: Documentation - Documentation of procured assets, field processes, accounts, book keeping etc. are integral part of GAC.

E: Effective Service Delivery - The deviation against the benchmarks have to be captured regarding the service delivery.

F: Focal Point for GAC - It would be necessary to identify a focal point for GAC at each level right from State, district, block and community.

F: Feedback System - An effective feedback system has to be evolved in the project. Community Score card is one such feedback tool.

G: Grievance Redress System - GRS will include complete redress mechanism, which can be used by community members also to report on any form process deviation , corruption and complain.

H: Human Resource Policy - Human Resource Policy and Codes of Conduct needs to be defined.

H: Help desk - Help Desks are necessary to provide help / information to stakeholders.

I: ICT - ICT will serve the backend support for improving governance and accountability.

J: Joint efforts - The GAC initiatives have spread across multiple sectors and verticals hence all efforts have to be jointly done by the project staff at the respective levels.

K: Knowledge Management - Knowledge Management helps in learning , sharing and thus necessary for better governance.

L: Learning - Doing by learning is necessary for GAC by a gradual learning-by doing approach.

M: Monitoring for GAC - Monitoring systems have to be in place good governance.

N: Non–Negotiable - Project non–negotiable are key to GAC.

O: Operational guidelines - It would require operational guidelines to be prepared and disseminated at all levels for the staff and community institutions to understand the entire gamut of GAC.

P: Process Audit - Process assessment can become a participatory method to understand the processes adopted at the community level.

P: Public Disclosures - Public Disclosure will be ensured with desired frequency, medium and responsible units.

Q: Quality Control - Quality control is necessary for improved service delivery.

R: Right to Information - RTI emphasizes on complying with provisions on suo-motto disclosure of information under RTI Act, 2005, rather than limiting to only on-demand access to information.

S: Sanction Policy - Clear sanction policy for fraud, corruption, and other malpractices needs to be outlined. Reporting cases from the field and mandatory checks needs to be institutionalized.

T: Transparency - Transparency will have to be ensured strictly at the procurement, financial and project implementation level.

U: User Report Card - The user report card can be done annually or at a regular frequency to capture the feedback from the SHG members through a survey or group discussion method on service delivery in the livelihood project.

V: Verification mechanism - A foolproof verification mechanism has to be developed under GAC for verifying key risk areas like social inclusion, adherence to non negotiable, transparency in project etc. and to identify the loopholes.

W: Window for GAC - A window for GAC concept has to be promoted to provide insight into the practices and innovations in GAC.

X: Xtra Ordinary efforts - Governance and accountability requires an Xtra Ordinary effort.

Y: Yes to GAC - Governance and Accountability is mandatory part of the project and cannot be termed as extracurricular activity, hence each stakeholder has to fall in the line of saying Yes to GAC.

Z: Zeal for GAC - Taking up measures related to governance and accountability requires a Zeal for GAC, amongst the project decision makers and management.

Change the World !

My Belief - “Yesterday I was clever, so I wanted to change the world. Today I am wise, so I am changing myself.” ― Rumi

Little is not little, enough is not enough.

I have decided to loan 25$ each month from my salary to the people in need of credit. This will be done through KIVA. KIVA is a platform of lending that has a 99.03% repayment rate for 340,986,325 transactions in ended loans. This loan repayment rate is much higher than any bank. I will decide later with repayments that how much part of my money will be further used either as loan or development aid. This is my Profile at KIVA so that one can always check the authenticity of the claim.

A story of how a small loan from you can change the life of a family

How Kiva Works (http://www.kiva.org/about/how)

1- Make a loan : You make a loan on KIVA. All KIVA loans are made possible by our Field Partners, who vet, administer, and disburse each loan.

2- Get updates : Throughout the life of the loan, you will see progress updates from Kiva through your email, and if you come back to the site.

3- Get paid back : As the borrower repays the loan, the money becomes available in your account. This is called your Kiva Credit.

4- Repeat : You can now use it to fund another loan, donate it to Kiva, or withdraw it to spend on something else.

Why did I choose KIVA?

Development aid has been flowing for decades, but the results have been absolute dismal. Instead, recipients have merely become dependent. There is a long chain of "middlemen" i.e. the consultants and the companies involved in this "trade" between donor and beneficiaries. Hence, I find microfinance as a better instrument to alleviate poor than a poorly designed development aid. People should decide how to help those in need. It needs a very big database of demand and supply of credit with the purpose of loan clearly mentioned. KIVA is doing just that thing. Hence, we will far less likely to complain that their money is being wasted or misused if we chose where it went.

I believe that our society cannot sustain , unless we contribute back in someway or the other. I strongly feel if even one person does his bit towards social good, there will be positive change. I am not giving anyone lot of theories, clever strategies or concepts. I am asking for direct cash transfers to the needy as a loan. In helping others - Little is not little, enough is not enough.