REPORT ON THE PARTICIPATORY RURAL APPRAISAL OF THE

TAMILNADU WOMEN’S DEVELOPMENT PROJECT

Ranjani.K.Murthy, IFAD Consultant

With

Bernard J.P And Rupa Bernard, Independent Consultants

Karunakaran, Dhanraj, Mutharasan, Purnakumar, Selvakumar & Srikala, APO-Credit/Schemes

Paramasivam, Rajendran, Rosalind, and Mangaiyarkarasi, APO-Training

Gnanasekaran, Venkatesh, Murugan, Loganathan, Jayaram, Nagaratna and Parimala (NGO partners)

November, 1999

Chennai

4.0 FINDINGS

The findings are presented under the following categories:

• Targeting and coverage of the poorest amongst the poor, and women headed households.
• Impact on poverty of members (and their households), and on women’s empowerment
• Group formation, groups dynamics, and training
• Savings and lending operations
• Group sustainability, and project sustainability

Inter-district differences, inter-age differences, and inter-grade differences are elaborated as and when appropriate.

4.1 TARGETING AND COVERAGE

Profile of SHG members

• Targeting of women in poverty: Approximately 68% of the members of the 24 SHGs were below the poverty line at the time of group formation, and 43% of members of SHGs were very poor. This suggests that the performance of the TNWDP with respect to targeting may be significantly better than targeting under the Integrated Rural Development Programme-IRDP. However, it also points to the fact that self-help groups cannot automatically be assumed to be self-selecting. The PRA exercise suggests that the targeting efforts could be strengthened in the future by specifically focusing on deserted women, scheduled caste women, eligible widows heading households, women who are landless and engage in unskilled work, women heading households because of male sickness, settled single women, and women with disabilities.

• Targeting of women headed households: Approximately 17% of SHG members are de-jure women-headed and 4.5% are de-facto women headed, i.e totalling 21.5%. These figures are higher than the representation of de-jure (13%) and de-facto (3%) of women headed households in the covered villages, showing a pro women-headed household orientation of the project. The figures also compare favourably with targeting of women headed household under the IRDP or the national level women-specific programme: the Development of Women and Children in Rural Areas However, there is scope for further improvement when new SHGs are formed in the same villages, as overall only 33% of de-jure and 50% of de-facto women headed households in the villages have been covered under SHGs (majority of them being below the poverty line). In particular, targeting with respect to single (adult) women heading households-though few in number-may need to be strengthened in the future. The tendency of different stake holders to stick literally to the indicative guideline that the members of SHGs should be married, rather than the principle that the members should be adult and poor residents in the village, could have led to their marginalisation.

• Targeting of scheduled castes and women landless labourers: Approximately 21% of SHG members were from the Scheduled Castes, which is higher than their representation in the villages covered (18%). Thus the targeting practices of the TNWDP have been pro-dalit women in orientation. Neverthless, the pro-dalit orientation is not very marked (and perhaps lower than under the IRDP, and needs to be strengthened further in future. Given that 80 % of dalits are also very poor or poor, strengthening their inclusion in SHGs formed in the future would automatically improve the overall targeting by the project. A point of concern is that representation of women unskilled labourers without access to land in SHGs is slightly lower than their representation in the village (51% and 54% respectively). Conscious efforts need to be made to target this group of women in future group formation, and remove institutional barriers to their participation (for example holding meetings at a time convenient for women landless labourers)

• Coverage of households in poverty: 34 % of households below the poverty line and 27% of households who are very poor in the eight villages seem to be represented in the SHGs. The coverage of scheduled castes households stands at 37%, landless households dependent on unskilled labour at 39%, households headed by women due to desertion at 46%, households headed by women due to male sickness at 47%, households headed by widows at 29%, and households headed by settled single women at 22%. The coverage of these economic and social groups amongst women is better in small villages with mutliple groups, and weaker amongst large villages with single groups. As the very poor tend to be risk averse (elaborated later), a saturation policy to group formation, along with better targeting, seems the most appropriate.

• Regional variation in targeting: Targeting is by and large better in Ramnad (76% below the poverty line) and Dharmapuri districts (71% below the poverty line), when compared to Madurai district (57% below the poverty line), which is comparatively a more prosperous district. Greater attention to targeting may need to be paid in better off-districts, when compared to backward districts. Within the two backward districts, targeting seems to have been slightly better in Ramnad than Dharmapuri district. This is attributed by the project holders due to the fact that the TNWDP staff had the opportunity to learn from the Dharmapuri experience and greater focus was placed on targeting dalits or the scheduled castes. Nevertheless, it should be noted that neither the age of the group nor whether the group has been formed under IFAD project or Mahalir Thittam seems to have impact on targeting of the poor. Targeting of the poor is weak in both the groups formed after 1997 (47% in the case of Kannimar Kalanjiyam, Ulaganeri, Madurai district, and 55% in the case of Omshakti Mahalir Mandram of Ramnad district).

• The excluded women by project design/principles: The project, by design, excludes two vulnerable groups of women from the SHGs. Firstly, elderly women in poverty who are heading households, who have little ability to save and engage in productive activities. With age and widowhood many women slip into poverty. It seems important that the SHGs which are in place help this group access widow pension and other welfare programmes which they are entitled to. Additionally forming SHGs exclusively for this group of women and providing them with capital development fund (for purely consumption purposes) could be attempted on an experimental basis in one of the districts. If it works out, women from regular SHGs could graduate into these groups on a voluntary basis when they cross the age of 55 years. A second group which is excluded from SHG membership are girls/women in the age group of 17-20 years belonging to poor households. Informal discussions with them revealed that they are in a very vulnerable situation, and do not have any resource to negotiate their interests within their natal households, or prospective marital households. If they are not sensitised, they are likely to be married into poorer families than their natal households for want of dowry. Forming groups of these girls, with shifting membership, is a possibility, along with gender sensitisation inputs. They could also act as change agents if they leave their natal village after marriage.

• The excluded households managed by single men: 63% of the (men) widowers, deserted men, single but settled men in the village were in poverty. However, they constitute less than 1.2% of total households. As the SHG is exclusively for women they are automatically excluded from the SHGs. For legitimate reasons the women members felt that including them in the women's SHGs would spoil the group dynamics. At the same time discussions revealed that forming exclusive men's groups would cut into women SHGs savings and repayment performance, as well as not be socially viable as there are many divisions amongst men on the basis of party politics. A possible strategy would be for the DRDA to form such men into single-men SHGs under the SGSY.

• NGO variation in targeting: As only one SHG group organised by each of the eight NGOs was studied it is a bit premature to comment on the variation in targeting across SHGs. However, the information base suggests that NGOs working with a more "rights and entitlement" approach tend to be better at targeting the poorest economic and social groups, than NGOs working with a more "incremental development" based approach. This hypothesis needs to be tested more rigorously against ground realities through a larger study.

• Variation in targeting across Grades: The C grade groups seem to have had more members belonging to poor and very poor households at the time of formation when compared to the A and B grade groups. This preliminary finding needs to be validated through a study based on a larger sample size. If found true, SHGs comprising of a significant proportion of very poor women may require greater support than those that have lesser representation of very poor women. The preliminary finding also suggests the need for refining the present grading system so as to include targeting as one of the variables for assessment.

4.2 IMPACT ON POVERTY AND WOMEN’S EMPOWERMENT

• Impact on household poverty: A comparative analysis of "wealth ranking" of households (represented in the SHG) before group formation and at the time of this exercise revealed that around 35% of the member households had witnessed a significant improvement in status. In contrast, only 7.5% of non-members had recorded an improvement. If one takes into account "A" grade IFAD groups which had accessed bank loans the figure stands at a higher level of 52% (around 45% if one takes into account improvement in only the very poor and poor SHG members). This indicates that access to bank loans for productive activities and the effectiveness of the functioning of the group both have a key impact on poverty reduction. The importance of bottom-up group functioning is also amply highlighted by the fact that the figures on poverty-reduction impact of non-group based self employment programme (IRDP) or top-down group approach are lower (DWCRA). No remarkable inter-district variations were observed. Infact, an "A" grade SHG in the backward district of Ramnad better than their counterpart in Madurai. No major differences in performance were noted between NGOs of different ideological orientation.

• Impact on vulnerability of households to poverty: The PRA exercise indicates that very poor, poor, moderate and even rich rural households are vulnerable to sudden social and environmental calamities like illness or death of family members (in particular, an earning member), desertion of husband, loss of crop, loss of livestock, fires within the house and so on (also see Chambers, 1988, 1998). Events like marriage of daughter (often with dowry) and breaking down of a joint family with marriage of sons also increase vulnerability of households to poverty. The fact that only 4% of SHG members witnessed deterioration in status after joining the SHGs, in comparison with the figure of 10% in the case of non-members indicates that SHGs act as a buffer against calamities and events. No marked variation was seen with respect to vulnerability-reduction between groups which had accessed bank loans (IFAD groups) and those which had not (both IFAD and MT groups) revealing that internal-loans of SHGs have a critical role to play in preventing deterioration of member-households when faced with contingencies. NGO orientation and economic background of districts seem to have little bearing on the SHG impact on reducing vulnerability to calamities and social events.

• Impact on women’s poverty- with a focus on access to basic needs: The participatory analysis of intra-household access to benefits amongst 34 member households indicates that women’s consumption of food and nutrition and women’s access to health care has increased along with the general improvement in household-consumption. So has the access of girl children to food and health care, as well as education. However, gender disparities in access to food, health care or education persist in the case of 44% of households of mixed composition; indicating that female members perhaps benefit less in terms of physical well-being than the male members of households. This is particularly a point of concern as women’s workload has increased more than men’s work load through these activities. Disparities are higher amongst male-headed households, than women headed households. Disparities higher in times of economic crisis, than the normal times. No major difference in this respect was seen between groups accorded different grades, groups formed by different NGOs, groups of different age, and groups in different districts. Though slightly premature, the available evidence indicates that the education level of the women members (beyond primary level) reduces such gender-differentials. Greater attention to the intra-household distribution of benefits may be essential in the training programmes, evaluation studies, and in the grading system.

• Impact on women’s poverty - with a focus on the causes of poverty, household entitlements and issues of sustainability: Yet another issue is whether these gains from bank loans for women members are sustainable. Studies in the context of other development projects in the country indicate that the sustainability of economic gains for women out of IGPs is contingent on the support they receive from the husband related to the activity (especially in carrying out tasks which need to be done outside the village), women’s continuation in the institution of marriage and the informal terms and conditions of the conjugal contract (see Sinha, forthcoming, Mayoux, 1988). The PRA exercise indicates that the above findings are equally true in the case of most male-headed households. Only 30% of women in male headed households are engaged in activities like purchasing raw materials and selling of produce. 50% of women in male headed households have total or equal (customary or legal) control over the assets created through the programme (or on which the activity is dependent), and 50% have total or major control over income generated through the activity. The figures are higher for middle aged women in male headed households, when compared to young women in male headed households- reflecting the disadvantaged position of the latter group. Women heading households because of widowhood, desertion, not getting married participate in managerial aspects to a greater extent, and have greater degree of control over assets and income than women members of male headed households. The position of women heading households because of male sickness and male migration in these respects stands between these two extremes. Thus targeting of women heading households is important from the view of targeting the poorest amongst women, as well as from the view-point of sustainability of impact and women’s empowerment

• Impact on Women’s Empowerment: Women’s empowerment can be seen as the extent to which members exercise control over their labour, mobility, interaction, resources, decision making processes, and their identity.

• Mobility and interaction: The PRA exercise reveals impressive gains in terms of expanding women’s mobility and interaction. 50 % of women members interviewed had visited new places and had traveled a longer distance, and 94% of women members had interacted with new institutions like banks, NGOs, TNWDP Project Implementation Units, Block Development offices and the District Rural Development Agency. In most cases women members traveled independently of men, and interacted on their own with Officers representing these institutions. The degree of expansion in women’s mobility and interaction seems to depend on:

i) the nature of household and age of the member. The mobility of women members heading households has expanded more than women members in male headed household, of older women more than younger women.

ii) the importance accorded to training of members of SHGs: The groups wherein not only the animators and representatives, but also members had participated in training programmes recorded a higher increase in mobility than those in which only the animators and representatives had received training,

iii) whether the groups and members had accessed bank loans or not. Accessing bank loans has brought the members in touch with Bank officers, PIU staff and other government officials to a greater extent,

iv) whether the group had undertaken community action programmes and had undertaken efforts to mobilise government programmes,

v) whether the NGO or PIU had organised the groups into a federation and encouraged their participation in events like the International Women’s Day, Rural Women’s day, information fairs and so on. The greater the attention to these efforts the greater the favourable impact on mobility and interaction of members.

- impact on the gender based division of labour: The PRA exercise reveals that reproductive work- child care, domestic work, cooking and cleaning continues to be predominantly the domain of women. However, men do seem to help in fetching water and gathering fuel. This change cannot be solely related to the formation of SHG, a general trend in this direction was observed by the women. Nevertheless, the group meetings and events seem to push many men to atleast temporarily look after children and serve food for themselves, and few men even into cooking. The process of change has thus begun, and the SHGs have pushed the boundaries of change that is possible in society. The degree to which men help out in reproductive work depends on the physical well being of the women members (higher if the women are sick), age and education of the member (higher amongst young educated women), the kind of household (higher in nuclear, and lower in joint families), and the gender and age composition of the children (lower if girl children are present).

Comparatively greater change in the gender-based division of so called productive tasks could be observed. 30% of women members who had taken bank loans recorded marked change in gender-roles related to productive activities (70% reported a small change). The change was more marked amongst de-jure women headed households and de-facto women headed households, when compared to male-headed households. Age and education were other factors that had a role to play. Amongst non-literate women members, the older ones participated more in non-traditional activities than the younger ones. The educated women (predominantly young) undertook more non-traditional activities than the non-educated. Though women’s participation in purchasing materials, marketing, and collecting cash had increased in male headed households, these activities continued to be the domain of men. Greater attention may need to be paid to portrayal of men and women in non-stereotypical reproductive roles in communication materials (including Mutram) and within training programmes for different stakeholders. Expanding non-literate women’s access to literacy may also be helpful.

No regional, group-grade, group age, or NGO variation was found with respect to gender based division of reproductive and productive work. Neither did this aspect seem to be influenced by access of SHG members to training. But a larger sample size is required before coming to firm conclusions.

- Change in work-load, nature of employment, and skill levels: 69% of women members who were unskilled wage labourers have either moved to self employment or are less dependent on wage labour as a result of the activity. 65% of members have acquired new technical skills with respect to income generation, and 20% percentage have strengthened their existing technical skills. These figures are very impressive. Nevertheless there are a few areas of concern and a few areas for improvement. i) In the case of a majority of women members in male-headed activities the activities through bank loan tend to overall be male managed. As a result their occupational status may in reality have just changed from wage employment to unpaid family labour. Studies carried out in the past reveal that the latter women have greater bargaining power than the former women within the household do. Whether their exclusive access to bank credit (under this project) off-sets this disadvantage needs to be further studied. ii) Workload of 94% of women members who have accessed bank loans has increased when compared to what they were previously doing (The increase in workload of men in member households is comparatively lower). It may be useful to explore possibilities of strengthening access to gas stoves and gas connections at cheap rate for women members through bulk order by the government. This was a strong demand in three of the self help groups (surprisingly even in backwards districts of Ramnad and Dharmapuri). Infact one of the NGOs is strongly pursuing this plan of action. Encouraging women members to go in for wet-grinder enterprises, power laundries, and rice-mills are other options. Already there are a few examples in this direction within the TNWDP. They need to be suitably recorded and widely disseminated.

- access to and control over resources: Already the findings on women’s access to and control over income, assets and benefits through the loan activity have been reported. Here the concern would be on non-loan-related resources and benefits. Of the seven groups with whom discussions were held in-depth five had expanded members and villagers access to some basic need or the other like drinking water, electricity, road, health care services, and child-care facilities. Two groups had closed arrack shops in the village, thereby expanding members and other villagers access to household income. At a more strategic level, one group had participated in Federation efforts to conduct mass marriage without dowry, thereby reducing the vulnerability of poor households with female children. Another group had intervened in a member’s household wherein the husband was in the habit of selling assets due to male alcoholism, and persuaded him to transfer the meager land that was left on the name of the member. Last but not the least, one group had intervened strategically to give internal loans to women members to take land on lease on their names and cultivate. Informal discussions with a women animator in Dharmapuri District who had stood and won a seat into the Panchayat Council, revealed that the SHG had even influenced allocation of resources by the Panchayat, apart from helping widows access widow pension. Such practical and strategic examples may be recorded and disseminated widely through communication materials, group and federation meetings, and training programmes. The grading system may be revised to allocate a higher proportion of points to such social-action programmes (in particular, the more strategic ones mentioned above). NGOs and the TNWDP staff may also be encouraged to pay greater attention to these aspects.

• - impact on intra-household and public decision-making (including Panchayats): As mentioned earlier there seems to be a wide variation in the quality of information on this aspect. There seems to be a slight increase in intra-household decision making powers of members in male headed households, more prominent in the areas of deciding on credit purposes, credit source, children’s education, health care of family member, and disposal of household assets. However, strong gender divisions in decision making persist within the household. Decisions with respect to food preparation continues to be the domain of women, and decisions with regard to purchase of land and assets, mortgaging of land, purchase of inputs and selling of produce continues to be the domain of men. As in other areas, older women, educated women and women managing their own productive activities played a greater role in decision making when compared to other members.

4.3 GROUP FORMATION, GROUP FUNCTIONING AND TRAINING:

• Group formation and replication: Of the eight groups studied in-depth with respect to group functioning, seven were formed by the NGO, and the Animator (chosen by the NGO) formed one. This is a positive sign, as the Animator’s caste background does seem to influence the caste composition of the group. Further, five women’s SHGs have emerged in four villages as a ripple (model) effect of the groups functioning in that area. Of these, four approached the concerned NGO for assistance, and one has been initiated by the Balwadi teacher. This is a very encouraging sign, and indicates that women’s SHGs are emerging as socially accepted institutions in the village for poverty reduction.

• Group-decision making: On most issues- membership, appointment and rotation of Animators and representatives, time and frequency of meetings, savings and lending, community action- all the group-members take decisions collectively in seven of the eight groups. However, in one group the Animator (belonging to a Backward Community) was reported to play a domineering role in group functioning, being the lone literate member in the group. The group was solely dependent on her for maintaining books of accounts and records. She even removed a literate Scheduled Caste representative on the pretext that she could not attend an important meeting; though the reasons were unavoidable. Such dominance needs to be discouraged, and in fact rotation of Animators should be promoted. Access of members to training and basic literacy skills, caste composition of the group, income differences between group members, timing and venue of meetings (elaborated later) do have a bearing on the extent to which decisions are truly arrived at collectively in the group. Another concern is that even when discussions were going on with group members during the PRA exercise, the more literate and better off members seemed to speak more vocally, than the non-literate members belonging to the labouring class do. Future training programmes for members may need to pay greater attention to the latter group. Yet another concern is the role of NGOs in decision making. NGOs were reported to play a key role in decision making in five of the eight groups, especially on issues like timings and venue of meetings, savings, selection & rotation of Animators and representative. Ideally NGOs should play a facilitating role- facilitating debates on the pros and cons of different options- rather than a decision-making role.

• Rotation of posts of Animator and Representative: In 7 of the eight groups there was no policy in place for rotation of Animators and Representatives. In one group, however, the Representative was forcedly changed by the Animator due to inter-personal problems. The NGOs need to play a facilitative role in this respect. On the one hand they should not force the group to rotate the Animator or Representative, but at the same time they need to explain to the group the necessity to rotate responsibilities to build group capacity in the long run. Care also needs to be paid to build the capacity of the new Animator and Representative so that periodical rotation do not adversely affect group functioning. One NGO infact refers to the Animator as the bookkeeper which seems a less powerful and hence more democratic designation.

• Formation of sub-committees: Two of the eight groups had experimented with sub-committees. In the case of one of the two groups it was a transitory phenomenon linked to a housing programme that the group had taken on. The second group continues with the system of sub-committees that look into the issue of attendance, savings, repayment and community action programme. This group functions very efficiently, and has been accorded a grade of A. Sub-committees may be encouraged in other groups as well, including one on addressing women strategic concerns in the village, and one on addressing basic needs. This was in fact suggested by few SHGs during the PRA exercise.

• Venue, time and frequency of meetings:

• Attendance in meetings: Leaving aside one SHG that had not met during the last nine months (reasons elaborated later), the average attendance in meetings was 81%. The attendance in meetings was found to be lower in the C/D grade group when compared to the A/B grade groups. Two groups infact imposed fine for not attending, but even then one of these groups recorded only 60% attendance- indicating that this is perhaps not the best solution to boosting attendance (group dynamics, time and venue of meetings may be more important). Inter-district variations in attendance of meetings were not found. Two groups (of seven groups that were asked this question) reported seasonal variation in attendance. Surprisingly, attendance was not influenced by seasonal variation in rainfall (perhaps needs to be studied with a large sample size). It was more influenced by seasonal fluctuations in income and expenditure levels. In particular, some members reported that they avoided attending all the meetings in the months of June, July and August as they had little ability to save with the group. This reveals that in the case of these groups, the group is associated only with savings and credit. This needs to be avoided, and further savings should be made optional (elaborated in detail later).Attendance in meetings was reported to vary with occupation of members and their economic background in two of the seven groups on which this information was asked. Women members working as wage labourers found it more difficult to attend meetings regularly when compared to members who were self-employed or working as unpaid family labourers. This difficulty was compounded by the fact that in one group the meetings were held during the daytime.

• Group participation: Attendance cannot be equated with participation. Group participation in the PRA exercises (group discussions in particular) was found to be higher in the three groups in which not just the Animator and representatives, but all the members had participated in training programmes around generic issues like the need for SHG, confidence building, leadership development etc. Nevertheless, the economic background of the member, and their literacy levels did have a bearing on the levels of participation. Participation was higher amongst the better off than the very poor, and amongst the literate when compared to the non-literate. It was encouraging that in the case of most group discussions within the PRA exercise, the members adopted a round seating arrangement that aids eye to eye contact. Greater attention may need to be paid to participation of underprivileged members within the group, and giving training to members as well in IFAD groups (members of MT groups have access to member training). If necessary, additional funds may be provided by the IFAD/Government of Tamil Nadu in this direction. Training to Animators and Representatives has to stress the need to encourage greater participation in SHGs.

• Drop-outs from the SHG: The average drop-out rate in the eight group studied was 20% (varying between 0 to a maximum of 40%), and the reasons cited by the group included:

• - death of the member (18% of the drop-outs),
• - rule stating that women beyond 55 years should be removed from the group (18% of drop outs),
• - inability to save the stipulated amount (13% of the drop-outs),
• - fall in household income (13% of dorp outs),
• - lack of trust on the Animator (13% of drop outs),
• - lack of interest as they were not getting internal loans (8% of drop outs),
• - disheartenment at not getting bank loan (6%),
• - out migration (6% of drop outs),
• - non-cooperation of husband (1%) and
• - other miscellaneous reasons (14%).

It is encouraging that very few members drop out because of non-cooperation of husbands. This shows that the group is pushing the boundaries of change gradually, without a male backlash. At the same time the above data suggests various corrective actions which may need to be taken. Rules may need to be formed by SHGs with regard to what happens in the event of death of members. To the extent possible the daughter or daughter-in law may be inducted into the group. Care may also need to be taken at the time of group formation itself with regard to the age factor. Women beyond 55 years should be allowed to continue with the group as long as they are in a position to save (however small amount) with the group. Groups may also be encouraged to support members whose household incomes have fallen due to contingencies, rather than allowing them to leave the group. The idea behind only one-third members getting bank loans through the group may need to be explained clearly. Banks should also be encouraged to reconsider their policy that those women whose husbands or fathers-in law have overdues are not eligible for loans.

• Training: Training and capacity building of the SHGs seems to be one of the unique aspects of the Project. The Animators of the eight groups recalled the issues covered in the training programmes better than the Representatives and members (in the case of the three groups wherein members had also received training). Most of the participants in the activity-specific training (linked to the bank loan) also recalled attending the same. All members reported that the training imparted was useful for them. While the Animator and Representative reported concrete benefits in terms of improvement in maintenance of registers and accounts, few members were able to say how they had concretely benefited. In one group the Animators and Representatives were able to produce materials they were given, but members could not (as they were given no material). Development of materials for neo-literate may need more attention during the post-Ifad/Mahalir Thittam period. One old C grade group also received "weak group" training, but it seems to have not helped in improve the group functioning. Weak group training may need to be made more context specific, and suited to the particular functioning of the group. One A grade group had also received "sustainability training", but apart from sustainability training "refresher training" programmes may also be required. Of the two groups which had changed representatives (due to a variety of extraneous factors, rather than policy), only one was able to access representative training for the new representative. Along with rotation of Representatives and Animators, a strategy for giving new representatives and Animators training needs to be evolved. The logistical arrangement for training were found to be agreeable- the timing (10 A.M -4 P.M), location, and non-residential nature)- and perhaps should be continued. Though child-care facilities were not provided in most cases, the members met were quite happy to leave their children for a day and attend training. However, in one village women members did state that better seating arrangements and additional/prompt food arrangements would make it more convenient for pregnant women to attend. Future training needs which were expressed by the members included: i) Enterprise selection and management, ii) Producer co-operatives for collective purchase and selling of produce, iii) Value addition of produce, iv) Exposure to group income generating activities, iv) Exposure to groups which have addressed strategic gender interests like closing arrack shop, addressing male violence, etc. v) Functioning literacy and numeracy (more in Ramnad district), vi) Federation building. Though training of members tends to be very expensive because of their larger number, its importance cannot be over-emphasised.

• Improvement and deterioration in group dynamics: This aspect was studied in seven of the eight groups. Four medium aged groups had seen a linear improvement in group functioning, two old groups had seen an improvement in initial stages and deterioration later on and one group had seen a mix of deterioration and improvement right from the beginning. Factors which seem to improve group dynamics include:

1. homogeneity of the group (economic) in terms of composition,
2. size of the group: the maximum size was considered to be 20,
3. regularity and frequency of meetings
4. absence of drop out phenomenon,
5. regularity of savings, lending and repayment, and rotation of group capital,
6. equity in access to internal and bank loans,
7. the qualities of the Animator (in particular) and the Representative and whether she has understood that her role is facilitative in nature,
8. initiation of community action programmes and group asset building programmes,
9. access of members to training,
10. the quality and continuity of NGO and PIU supervision (earlier IFAD supervisors),
11. participation in inter-group meetings: federation, international women’s day celebrations and so on.

The reverse obviously leads to deterioration in group dynamics. Certain additional factors also seem to lead to deterioration in group functioning. These include:

1. expansion of area of supervision of NGO staff, and hence reduction in the quality of support to individual groups,
2. non-literacy of members, allowing room for corrupt practices,
3. prevalence of caste conflicts within the village,
4. inconvenience of timing and venue of meetings,
5. lack of group participation in selection of first batch of IFAD loans,
6. malpractice by Animators, Representatives or Supervisor,
7. absence of support from federation.

• Men’s involvement in group functioning: Five of the eight groups reported high degree of male-interference during the initial stages. Such interference took a variety of forms: suggesting who should be included and excluded the group, actually attending meetings, trying to influence decision-making processes of the group, or monitoring financial matters. Some men relatives also tried to pull their women relatives from the meetings during the initial stages. However, with time and with firm handling by the group members, Animators, Representatives and NGOs such interference reduced. At the time of the PRA exercise, none of the groups mentioned that men interfered destructively in group processes. In-fact four groups reported that they received positive support and encouragement from the men. Men also helped women members to repay the loans that they took from the group out of their own earnings. In three of the eight groups, the members stated that men took care of the children and fed themselves and their children when they attended group meetings.

• Grading system: The criteria suggested by the groups for assessing the functioning of the group were more functional in nature: attendance in meetings, participation in meetings, unity amongst members, regular savings, issue of receipt for savings, prompt repayment, maintenance of registers and books of accounts, building of group assets, and involvement in community action progammes. One group mentioned that transparency in functioning, absence of corrupt practices and absence of domination by Animators should also be considered while assessing a group. These criteria more or less match the criteria adopted. Poverty sensitivity and empowerment sensitivity of the group did not figure in the discussions, pointing to the fact that awareness on these issues needs to be built up. In the case of six groups, the rank accorded by the group according to their criteria matched the ranking by the PIU (with or without NGO involvement). But in two cases the group members felt that their group was functioning better than the grade accorded to them. A more participatory and visual approach to grading the groups may be required, and participation of all group members is a must. In some groups, only the Animator was aware of the grade accorded and not the others. NGOs should also take part actively, as they are the main facilitators of group strengthening. Following the assessment, the NGOs should also be encouraged to organise training programmes that address the weaknesses of the group.

• Collective action: A variety of collective actions have been undertaken by the eight SHGs that were met. These include I) welfare activities like disbursal of clothes for orphans, infrastructure for school, and clothes for poor widows ii) infrastructure development like desilting tank, building bridges, construction of kutcha roads and community halls iii) mobilisation of government programmes like pension for widows, iv) collective lobbying with the government for electricity facilities, supply of drinking water, and medical facilities, v) struggles and campaigns around strategic gender interests like closing of arrack shops, conducting of mass marriages without dowry, prevention of child-marriage, campaign against female infanticide and so on. Collective action to mobilise government programmes and struggles around strategic interests may require added attention by the groups in the future. In particular, the issue of dowry.

4.4 SAVINGS AND LENDING OPERATIONS:

• Rules on savings: Of the eight groups, seven had opted for fixed savings. Two reasons were cited for this choice: i) to avoid conflicts and tensions amongst group members, ii) to follow NGOs’ advice in this respect. The fixed savings amount normally increased with the age of the group. At the time of the PRA exercise, it ranged from Rs 20 to Rs 60 per month, being lower in Ramnad district, and higher in Madurai district; with Dharmapuri falling in-between the two extremes. The sole group which allowed flexible savings, did however stipulate a minimum amount which must be paid by the member (RS 40 per month). On the positive side, the group savings was highest in this group though the group began only in 1995 (it had saved an amount of RS 1,49,138), and not many members reported saving outside the group. On the other hand, the internal loan amount which a member was eligible for was linked to her saving (twice the amount) which reduced the credit flow to the poorest member. The challenge seems to be to allow flexible savings, while at the same time ensure that internal lending is not linked to the amount saved. A minimum savings amount may nevertheless be required, but it may be set at a low level which everybody can afford.

• Interest on Savings and Maturity of Savings: Of the eight groups, only one paid interest or dividend to group members on the savings amount on a regular basis. This needs to be encouraged for two reasons: i) to encourage members to save with the group, and reduce savings outside the group (elaborated later), ii) to motivate very poor women who feel that they cannot take the risk of availing loans to join the group, and slowly increase their risk-taking capacity. As such none of the groups had a policy on whether the members can at some point withdraw the savings. Clearly laying out policies in this direction may be useful. A male village leader was skeptical about where all the amount of savings was going, and whether the women in his extended family who were members of the group would at any point be able to access their savings. Withdrawal of savings after a certain amount (keeping in mind that the amount should be adequate to meet routine consumption needs of members) and provision of dividend on the savings should be actively encouraged.

• Source of savings: Two groups reported that none of the members found it difficult to save the stipulated month (RS 50 per month), as they were earning well through the activity undertaken with bank loon. The remaining six groups mentioned that the very poor members in their groups did find it difficult to save during low work and high expenditure seasons. Very poor members adopted multiple strategies to meet the savings requirement: i) cutting down their own consumption of food (all the six groups), ii) cutting down recreation expenditure (all the six groups), iii) borrowing from relatives and friends (all the six groups), iv) borrowing from money lenders with interest (two groups). Introducing optional savings or setting a low level of minimum saving would ensure that none of the members adopted negative strategies to meet the rule governing savings.

• Savings outside the group: Seven of the eight groups mentioned that some of its members saved outside the group as well. . The fact that some members find it difficult to save during particular months, and some members save outside points to the different economic status of the group members. On an average, forty three percent of the group members saved outside the group. The place of savings included: i) Post office ii) Chits, iii) Banks, iv) Home. No marked inter-regional variations were found in the extent to which members saved outside. The reasons stated for saving outside the group were: i) The rule of fixed savings within the group, ii) The inability to withdraw savings when required from the group, iii) To avoid putting all savings in one institution, and thereby reduce risk of losing the same. This points to the need for flexible management to tap such savings for faster growth of SHGs and perhaps including some strategies in the Training Manual.

• Poverty sensitivity of internal lending practices: All the groups reported that while considering a variety of requests for internal loans, they prioritized giving loans to those who were poor, who required funds urgently and who required for useful purposes. Two groups stated that they also considered capacity and willingness to repay the loan before considering the request. One group even stated that when they felt that a member could not pay back the amount, they (the better off members) prefer to pool three own funds and give it to the person as a grant. Most internal loans had been given for meeting consumption needs (health, education, food shortage, purchase of clothes etc.), small production needs (purchase of seeds, purchase of fertilisers, expanding petty shop etc.) and autonomy needs (reducing indebtedness with money lenders, releasing assets with money lenders and so on). The rate of interest charged by the group was significantly lower than the rate charged by money lenders. It varied from 24% to 36% per annum, while the interest rates charged by moneylenders varied from 60% to 120%. Thus the internal lending does play an important role in reducing the vulnerability of the members to poverty. A point of concern is that groups have also lent money for anti-women purposes like dowry and buying jewels for daughter’s children when they come for jewelry. This should be actively discouraged. Yet another concern is that the sole group which adopted flexible savings policy linked internal loan amount to the amount saved. This also needs to be avoided. In none of the groups the interest rates vary with economic background or the purpose for which loan is taken, placing a lot of burden on very poor women. A study may be made of the few groups that have attempted this, to understand the pros and cons of such rules.

• Actual distribution of internal and bank loans: At the time of PRA exercise, 53% of the internal loans given by the eight groups had gone to very-poor and poor members and they had accessed 52% of the loan amount. These figures are cumulative in nature. Four groups revealed more pro-poor lending with time, while the reverse was true in the case of three other groups on which comparative data across time was available. At the time of the PRA exercise only 5% of members of the eight group had not taken any internal loan (of whom 21% belonged to poor or very poor categories). The reasons cited by the group for not giving loans to particular members included: lack of creditworthiness, irregularity in attendance, and the fact that they were not from the same village. A few members preferred not to take loans from the group, as they felt that the interest rate was high.

• Repayment performance: The repayment rate in "A" grade groups was over 90% for both bank and internal loan, while the repayment rate was much lower in the C grade groups. No marked difference in repayment rates across different activities was noted. In two groups the repayment performance of the poor and very poor members was better than the repayment performance of the comparatively moderate and rich members. In two groups it was the other way around. The former is a point of concern, as non-repayment by the better off could unnecessarily hamper the circulation of loans.

• Source of repayment: Consumption loans taken from the group were paid through member’s regular income, accessing husbands’ income, reduction of consumption (in particular members own consumption), working over-time, borrowing from relatives and fiends without interest and at times even borrowing from money lenders. The negative repayment strategies are a point of concern. Instead the groups should be encouraged to revise the repayment schedule. Production loans were repaid back more easily, provided the venture succeeded. However, in the few instances wherein the activity failed the members were forced to borrow from money lenders and take recourse to the other negative strategies mentioned above. Thus it may be important to monitor not just repayment rate, but also source of repayment.

4.5 SUSTAINABILITY

• Inter-generation sustainability: Except one more or less defunct group, all the other 7 groups perceived that their groups would continue beyond their generation. Their membership would be taken up by their daughters-in-law or by new entrants after their death. A study of the groups formed in the early years of the project to study what rules the groups have evolved to deal with continuity upon expiry of members would be useful. The lone group whose members did not see the group continuing into the future, felt that the group’s (and individual members’) accounts should be settled through the intermediation of an outsider, and one or two new and more homogeneous groups should be formed inducting new people into the group. A change in Animator was also recommended. The rate of survivial of IFAD and MT groups does appear to be much better than the survivial of DWCRA groups. One national level non-governmental study revealed that only 37% of DWCRA groups survivied beyond a few years.

• Ability to meet credit needs into the future: Of the seven groups which were meeting regularly, six had more or less enough capital to meet regular-consumption needs of members with regard to food, routine medical expenses, and routine school fees. However, they did not have the kind of capital required to meet major consumption expenses like marriage of daughters, dowry expenses, major health expenses or major capitation fees for higher studies. Expenses on marriage of daughters, dowry and major health problems were often the cause cited for deterioration amongst members. None of the seven groups had built up enough capital to meet production needs of members (other than for small expenses like purchase of seeds and fertilizers). The older A grade groups stated that they had enough capital to meet 50-75% of the production needs of members, while all the C grade groups and the newly formed A grade group reported that they had enough capital to meet only 25% of the member’s productive needs. They depend on money lenders, chits, and relatives is for meeting the balance requirement. In the case of A grade greater attention could be paid to exploring group income generating activities. Further, offering the possibility of optional savings would also increase the group capital, as a significant proportion of members reported holding savings outside the group (given the group rule of fixed savings)

• Ability to support Animator’s honorarium: Of the seven groups which continue to function, four (both young and old groups) were already supporting the Animator’s honorarium. The fifth group said that it would be in a position to support in five years time. A sixth group formed under Mahalir Thittam was supporting the Animator for eight months, but with change in rules in this direction they are expecting support from the Mahalir Thittam to pay honorarium. In the case of the seventh group, the Animator maintained group records on an honorary basis as she was working elsewhere. This may however reduce her accountability to the group. It would be best that groups be encouraged to pay a nominal honorarium from the beginning. Sudden shifts in policies may leave the group members confused.

• Institutionalizing linkage with commercial banks: None of the groups had entered into a formal Memorandum of Understanding with commercial banks on continuity of credit flow subject to proper repayment by the groups. Banks even now tend to channel credit to SHGs on the recommendation of NGOs or PIU staff. The TNWDP should pursue this aspect actively with commercial banks in the future, as otherwise the group members may not be able to make a quantum leap in their incomes and well-being.  

• Dependency on NGO and PIU personnel: None of the eight groups felt that they could manage without the support of NGOs. Three groups reported they required low levels of support from NGOs (essentially moral support and guidance in lobbying with government & banks), one group reported the need for moderate level of support (to also build group capacity), and four groups expressed the need for high levels of support (even for supervising records, monitoring group functioning, address issues of misappropriation, resolving group conflicts and so on). The grade and age of the group have a bearing on the extent of support required form NGOs, with the older/or A grade groups requiring lesser support, than the younger/or C grade group.

• Institutionalising federations: Five of the eight groups were members of a cluster level federation. Federations were yet to be formed in the clusters in which the groups were located. Of the five groups which were linked to a federation, two had received support in increasing recovery rate. One group was helped by the Federation to strengthen its accounts and book-keeping systems. The role envisaged for federations by group members included: resolving group conflicts, resolving cases of financial mismanagement, improving savings and recovery of loans, mobilising government programmes, and addressing common basic needs of the villages in the cluster. On being prompted, the group members stated that the Federation should also play a role in addressing atrocities against women and in collective value-addition and marketing activities. Some groups mentioned that the federations could also play a financial role, in terms of mobilising capital from some groups and channeling it to others with interest. Others were not in favour of Federations playing a financial intermediation role. Given the maturity of most SHGs at the village level, the time is now ripe for strengthening cluster level federations, forming Block and District level federations and building their capacity to address common needs and interests of group members.

5.0 INFERENCES

The PRA exercise suggests that the Tamil Nadu Women’s Development Project has indeed strengthened the struggles of poor women in the state against poverty and gender-based discrimination. While gender-based discrimination continues to persist in the project area, the project has slowly but steadily pushed social boundaries, thereby expanding women’s mobility, control over their labour, control over resources and sphere of influence within the family and outside. As the Project has allowed the women themselves to define the pace of change, very little male or social backlash could be noticed. The strategy of empowering women through a strong economic component has made the project acceptable to men and the broader society. It is indeed an alternative model to addressing the issue of feminisation of poverty and the broader issue of gender-discrimination in Indian society to the dominant model of women’s development followed by the Indian government till recently (individual self-employment programmes, or top down group formation). It also suggests that poverty reduction and social change can be more easily brought out by a combination of social and economic strategies, than just a social-mobilisation approach, or a pure economic approach like one time provision of credit and subsidy.

At the same time, the PRA exercise suggests several areas for improvement in the future under Mahalir Thittam, and offers several lessons for the national level micro-finance programme proposed by the IFAD and the Indian’s government’s SGSY. The key ones are summarised below:

• Targeting and Coverage: Greater attention may be required to the issue of targeting, vis targeting of villages and targeting of the very poor and marginalised women within a village. In the case of the national level micro-financing programme attention to targeting of states and districts would also be pertinent. Otherwise there is a danger that they very poorest and marginalised women may be excluded from such projects. A gap at the macro level is the absence of detailed human and gender development reports on all states in the country. At the micro level wealth ranking and social mapping methods may be used for targeting the poorest. A list of possible vulnerable groups in the context of Tamil Nadu has already been suggested in the report, but these cannot be generalised across India. Along with better targeting, a saturation policy may also help in reaching out to the poorest amongst women; as they tend to be more risk aversive and tend to join groups once they see some working effectively.

• Institutionalizing pro-poor group practices, savings and lending practices, and activity-selection practices: While thrift and savings groups tend to better meet the credit needs of poor women than commercial banks and private money lenders, they cannot automatically be assumed to function in a pro-poor manner. Rules on time, venue and frequency of meetings, rules on membership fees and savings, rules on internal lending, and rules on repayment all have to be designed in such a way that they are pro-poor/pro-poorest. The PRA study suggests that women themselves are the best people to decide what purpose they should take a bank loan for and what should be the unit size. As they are the people who bear the risk related to the activity, it is best that outside agencies resist deciding the economic activity or unit size for which bank/group loans should be given. The wide range of successful activities taken up by women in each Block, and the wide range of unit sizes associated with each successful activity suggests the need for promoting diversity rather than uniformity in selection of activities within each Block. Further bank loans to individuals/groups should only be given when the group is mature enough to handle the funds (group cohesion, ability to manage internal savings and lendings), and should be tailor made to the needs of the particular member/group. Back-ended subsidy may be better than forward-subsidy as it promotes selection of viable activities and building of small assets (like jewelry) by women with the subsidy amount.

• The need to address the gender-specific causes of women’s poverty: The PRA exercise suggests the need for micro-finance projects to address the gender-specific causes of poverty, otherwise the gains to women (especially in male headed households) may be contingent upon male support and short lived. Some of the strategies in this direction include: i) promoting joint ownership of land (for example, by making it compulsory for land to be held jointly for accessing agriculture/horticulture loans) and access to common property resources, ii) promoting joint ownership of houses, iii) breaking barriers to women entering markets and non-traditional domains, iv) strengthening technical and literacy skills of women, and linking women’s groups to corporate industries v) encouraging men to share reproductive work, and reducing the work burden of women through promoting gas-stoves, wet-grinding enterprises, power laundries on a trial basis vi) changing intra-household distribution of resources, in particular distribution of food, health care and education expenditure. vii) promoting collective strategies to reduce the practice of dowry (already there are examples like conducting of mass marriages without dowry by federations), viii) collective purchasing, marketing and storage service centers for reducing leakage to middlemen and individual/collective value addition enterprises for increasing returns to produce. Tthe space available in the office premises at Chennai could be used as a marketing outlet and act as a permanent exhibition ground. ix) promoting women members participation in Panchayats.

• Strengthening federations and networking at all levels: With a working model on formation of SHGs is in place in most of the IFAD districts as well as most of the other districts, the time may be ripe for strengthening cluster level federations, forming them into Block and district level federations and ultimately Federation at the state level. Studying different models of federation which are emerging on their own under this scheme and outside, and pros and cons of these would be useful. Ultimately it would be useful if networks of NGO representatives and federation representatives could be initiated at different levels along the Swayam Sikhsan Prayog model, and such networks could be used for dialoguing with the government and Panchayat bodies at different levels. The present office of the TNWDC at Chennai should be available for holding any meetings of such networks at the state level, as well as emerge as a place which women members can use as their own.

• Strengthening capacities related to poverty reduction, women’s empowerment and collective ventures: A key to the success of the TNWDP has been the capacity building of different stake holders especially on the concept of SHGs, group functioning and savings and lending operations. Now perhaps the time is right for broadening the thematic focus in capacity building to include i) gender, micro-finance and poverty, ii) women’s empowerment, iii) service centers in the area of marketing, procurement and storage, and iv) individual/collective value addition enterprises. A quantum leap in the capacities of NGOs is a must to meet the new challenges. In addition, capacity building of Federations needs to receive a greater emphasis.

• Strengthening research, documentation and dissemination: In many ways the PRA exercise has touched only the tip of the iceberg of experiences within the project. It is hence important to strengthen the research, documentation and dissemination infrastructure and systems of the project. Some of the research areas include: study of existing service centers in the state which are functioning effectively, possible value-addition enterprises related to the activities which the groups are involved in, existing opportunities to link women’s groups to corporate houses, asset building strategies for women, and experiences in addressing violence against women. Another area where attention may be required is producing materials for neo-literates. Production of audio-visual aids for capacity building is also necessary. A video unit within the TNWDP would also be useful, along the Self-Employed Women’s Association model. To carry out all these functions, the existing documentation centre in the PMUs and PIUs may need to be strengthened so that they emerges as a centres for accessing information on women’s development (especially in Tamil). The existing office space in Chennai could also be used for this purpose.

• Strengthening institutional systems and structures: Some of the institutional factors which contributed to the success of the project (under the IFAD phase) were: I) the absence of a target orientation, ii) formation of strategic partnership between government, NGOs and bank officials, building on each institutions comparative advantage: reach & resources, commitment and closeness to women, and efficiency respectively, iii) scope for periodically relooking at the project design, iv) scope for diversity in implementation of the project, and v) institutionalising decentralised and participatory monitoring processes (PLCCs/BLCCs). The challenge would be to continue these principles with expansion. In Particular, the involvement of NGOs is a must with expansion, as they are the best suited for reaching the poorest, group mobilisation, and group strengthening. Further, strengthening monitoring and evaluation systems of the project may warrant greater attention in the coming years. Greater attention may need to be paid to develop qualitative indicators of impact on women’s poverty and empowerment. As the project expands institutionalising learning and self monitoring and evaluation systems from group to PMU level may be essential. Vertical meetings may be organised annually at the district and state levels bringing different stake holders to brainstorm on specific problems confronting the district or the (specific) state like strengthening literacy in backward areas of Ramnad, addressing female infanticide/feticide in Salem and Dharmpauri and so on. Federations at the Block level onwards may need to be equipped with computers, and the computer related skills of members of Federations may need to be built in the coming years so that they can monitor the group functioning and access resources of other institutions effectively.

The PRA exercise also throws light on the ongoing debate on the pros and cons of group based micro-credit as a strategy for poverty reduction and women’s empowerment. The PRA exercise suggests that neither are micro-credit programmes (with a focus on women) solutions by themselves to women’s poverty and dis-empowerment, nor do they just act as a simple channel of credit to men through women. The reality is perhaps messier. Group based micro credit programmes can reduce women’s poverty and empower them provided: i) process based approach is followed, ii) emphasis is placed on capacity building and gender sensitisation of all stake holders (including men), iii) strategies are put in place to expand poor women’s assets base, iv) women are helped to overcome diseconomies of small scale procurement and marketing by forming service centers, and value addition activities, vi) women and men are encouraged to assume non-traditional tasks, vii) linkages are built between SHGs and different institutions, and between the SHGs themselves at all levels.

ENDNOTES

In instances wherein the wealth ranking of the woman was found to be lower than the wealth ranking of her husband due to male alcoholism or marital discord, the wealth ranking of the woman member was used for classifying her economic condition.

IFAD groups were formed between 1989 and 1996, while Mahalir Thittam groups were formed in subsequent years. During the training of trainers exercise two SHGs in Palaniyarnagar village, Madurai East Block, Madurai District were covered. As the results of the social mapping/targeting were not tallying in the case of one group, and discussions on group dynamics, savings and lending, sustainability were incomplete in the case of the second group the coverage with respect to these two aspects is lower than the coverage with respect to intra-household impact. This group was started towards the end of the IFAD project, and has now been merged with MT.

Estimated to be 60% by the World Bank in Uttar Pradesh in 1989, and placed at as low as 33% by other non-governmental sources Refers only to access to land. Most Indian rural women are landless with respect to control over land, as land is predominantly owned by men in India.

87% of deserted women in the PRA villages were either very poor or poor. The comparative figures for other categories mentioned above stand at 80% for scheduled caste women, 74% for widows heading households, 72% for women landless unskilled labourers, and 67% for women heading households because of male sickness and settled single women. It should be noted that only 50% of women heading households because of male migration were poor or very poor.

13% are widows heading households, 3% are deserted women heading households, and 1% are never married adult women heading households.1 % are heading households because of male migration and 3.5 % are heading households because of male sickness.

According to a study on the DWCRA programme carried out by MODE in the early 1990s in 11 districts only 15% of the members of DWCRA groups were women headed.

There is no difference between the representation of single never married women in the SHG and in the households in the village showing no pro-single women affirmative policy.

A World Bank study in UP found that 43% of the IRDP beneficiaries were from SC/ST background. Non-governmental micro-studies in other states indicate that between 28% and 43%. of IRDP beneficiaries were from the SC/ST communities.

Data on targeting under IFAD and MT groups in four villages indicate no significant differences between the two different schemes. In the case of two villages the IFAD groups were more pro-poor, while in the case of two villages the MT groups expressed greater pro-poor targeting.

Refers to a shift in wealth status from one category to another.

According to Pulley (1989) 44% of beneficiaries under IRDP witnessed an increase in income in UP as a result of the programme.

Measured through change in the gender division of labour, shifts in nature of employment, new-technical skill acquisition, and impact on workload.

The figures indicated in brackets may total to more than 100% as some of the members left due to multiple reasons.

In the case of one group, a high drop out rate was noticed due to conflicts between two NGOs working in the same village and with the same group members.

The PRA exercise points to the need for including the following criteria in the grading system: i) targeting of the poorest amongst the poor, women headed households, and settled single women, ii) equity in access to bank loans and internal loans, iii) the difference between the SHG interest rate and the money lender’s interest rate, iv) source of savings and recovery, v) gender-sensitivity of members, vi) efforts by members to address strategic gender interests. It also suggests that higher score should not be accorded to groups which save more. Regular savings should be the criteria used.

For example, a study carried out by Madura Swaminathan in 1990 of IRDP in two Indian states revealed that the wealthiest 9% cornered 22% of the total loan and subsidy amount, and the bottom 79% received only 63% of the total loan and subsidy amount.

REFERENCES

Kabeer, N and Murthy R.K., 1996, "Compensating for Institutional Exclusion? Lessons from Indian Government and Non-Government Credit Interventions for the Poor", IDS Discussion Paper, No. 356

Mode, 1990, Development of Women and Children In Rural Areas: An Evaluation of DWCRA: A report Prepared for UNICEF India, MODE, India.

Pulley, R.V., 1989, "Making the Poor Creditworthy: A Case Study of the Integrated Rural Development Programmes in India", World Bank Discussion Papers 58, World Bank, Washington.

Swaminathan, M, 1990, The Village Level Implementation of IRDP: Comparison of West Bengal and Tamil Nadu, Economic and Political Weekly, March 31st, pp A17-27