Empowering Communities towards Poverty Free Andhra Pradesh G.V.S.Reddy, MD STHREE NIDHI 2 Nov 2012

SHG CENTRIC APPROACH FOR POVERTY ALLEVIATION EFFECTIVE STRATEGY FOR POVERTY ALLEVIATION POVERTY IS MULTI-DIMENSIONAL SAVINGS WAS ENTRY POINT BUT NOW… POOR ARE BANKABLE LARGEST MICROFINANCE PROGRAMME IN THE WORLD

STATE WISE DISTRIBUTION OF SHGs Andhra Pradesh lakh Tamil Nadu 8.27 lakh Maharshtra 7.71 lakh West Bengal 6.47 lakh Karnataka 5.35 lakh Orissa 5.03 lakh UP 4.30 lakh Kerala 3.94 lakh Assam 2.18 lakh Rajasthan 2.13 lakh MP 1.78 lakh Gujarat 1.68 lakh Bihar 1.40 lakh

COVERAGE ALL INDIA AND AP ALL INDIA 79 Lakh SHGs 10 crore households South India major share 30% of the population covered Per Group- Rs at all India level ANDHRA PRADESH 1.09 crore women in 9.80 lakh S.H.Gs – All Villages and 90% of rural poor covered – Almost 50% population is covered – Per group –Rs in – Accounts for 48% of the loan outstanding at All india level

NEW INITIATIVES LWA districts NRLM Replication of AP model

SHGs-Rural Transformation Economic development Social development General empowerment-Rights based approach Institutional development

EMPOWERMENT REDUCING VULNERABILITY OPPORTUNITIES Mobilization of the poor Member managed C B O Social capital Education Employment Credit Access to natural Resources Social Security-Insurance Pension Scheme Health Debt swapping AP-SERP Model

Impact of SHG appraoch Social empowerment of women Savings by the poor Access to financial services-Money Multiplier effect Emphasis on education Improvement in health Entering decision making bodies Movement against social evils Reduced dependency on informal money lenders and other non-institutional sources Increased assets and income

OUTCOMES OF INTERVENTIONS – Leveraging the power of the Collectives Bank linkage: Rs 43, Crores given to SHGs (members are individually non-bankable) CMSA: NPM of farming-NPM, SRI Paddy, 36’X36’ Model, NADEP, NPM Shops-Mobilization of lakh farmers across lakh acres Dairy: Women SHGs and their federations have ensured minimum support price to milk in 4200 villages. Marketing: VOs earn income by way of commission lakh tons of agricultural produce worth Rs.2131 crores has been collected by VOs. Health and nutrition: 4200 NDCCs -98% safe deliveries, 97% complete ANC recorded across all intervention areas in the state. Social security: Isurance cover to 91 Lakh rural households. Coverage of 43 Lakh under Co- contributory pension.

OUTCOMES OF INTERVENTIONS – Contd Disability: Enhanced quality of life and opportunities for nearly 3 Lakh people with disabilities. Education-Balabadi Land related issues Focus on PoP for development ODF Villages through active involvement of VOs in convergence with the RWS and NREGS Gender related issues-SAC Family welfare measures-birth rate Usage of IT

11 36 X36 Models Seven tier intensive cropping model Model developed based on principles of photo candle requirement and companion crops Tool to achieve nutritional security at the households level Achievements: So far 33,008 models established across state The incomes from this model range from Rs.4,000-Rs.12,000 p.a The highest income so far is Rs.19,000 p.a

12 Key elements of the NDCC Balanced diet Provision of breakfast, lunch & dinner as per standards Prepared by trained cook, the SHG member Regular use of millets (150g) Community gardens for regular use of leafy vegetables Internal lending 2.5 lakh as one time grant to NDCC Interest generation through SHG lending NHED Regular training & health education - Counseling at Growth monitoring

STHREE NIDHI Community owned financial institution Timely and adequate credit Credit delivery in 48 hours Focus on poor Low cost credit delivery system

Welcome