1. Comprehensive poverty eradication through social mobilisation and empowerment of rural poor women - A.P experience of a statewide programme T. VIJAY KUMAR, I.A.S, C.E.O, Society for Elimination of Rural Poverty Dept. of Rural Development, Govt. of A.P vjthallam@gmail.com 26-09-09

2. Vision of A.P: each family in the state should be out of poverty, and, enjoy:-  Life with dignity, ‘voice’  Intra family equity – equal status for women  Freedom from hunger  Decent Income: >Rs.5000 per month, 3 - 4 sources  Planned household expenditure  Risk management - life, health, assets and incomes  Shelter, Health and Education

3. Core beliefs about poor Poor have a strong desire and innate ability to come out of poverty Poor have a strong sense of self-help and volunteerism Obstacles – psychological, social, economic, political - suppress their innate capability Social mobilization to unleash their innate abilities Poor can come out of poverty only through their own institutions Social mobilization – not automatic, needs to be induced Hence, need for sensitive support institutions for poor

4. Genesis of A.P programme A long term strategy for poverty eradication Women S.H.Gs in A.P–mass literacy campaigns from 1990 - 95 - initiative of District Collectors Simultaneously N.G.Os fostering S.H.Gs N.A.B.A.R.D directions to banks to finance S.H.Gs in 1992 S.A.A.R.C Colombo Summit 1992 First Independent South Asia Commission on Poverty Alleviation - 1993 (‘Meeting the challenges’) S.A.A.R.C Dhaka Summit 1993

5. Critical role of Govt. of A.P Implementation of SAPAP Project (1995 – 2000) Scaling up SAPAP success to the whole state – through World Bank fund support Setting up of S.E.R.P - an autonomous society dedicated to social mobilization District level initiatives of Collectors Support from all line departments and convergence with all key ongoing Govt. programmes Strong and sustained commitment of successive Chief Ministers of A.P to this process 2004 – 2009: saturation approach - to cover all the poor in the state

6. Scaling up through World Bank funding Fund support: Rs.1700 crs – 2000-2009 Key components: –Institution and human capacity building (26%) –C.I.F (66%) –80% of C.I.F as seed capital –Physical productive infrastructure –Fund for social needs – gender, health, nutrition, etc. –Skill upgradation of youth and placement –Risk management Since 2005-06, Govt of India’s S.G.S.Y in the same pattern

7. Role of S.E.R.P Sensitive support organization for the poor –Autonomous society, set up by Government in 2000 –Chief Minister – Chairman of General Body of S.E.R.P –Statewide mandate –firm conviction in the capability of poor, and, in organizations of the poor –To induce social mobilization –To provide facilitation support to institutions of poor –To sensitize all line departments to be inclusive of the needs of the poor –To sensitise banks, insurance companies

8. S.E.R.P Structure 1.Executive Council: 5 members, M-RD as President, other members: Secy, RD, Commissioner, RD, Commissioner – TW, CEO-S.E.R.P (Member-Secretary) 2.State Project Management Unit: C.E.O, Addl.C.E.O, subject specialists – institution building, tribal development, microfinance, insurance, pensions, sustainable agriculture, dairying, jobs, non-farm livelihoods, construction, gender, health and nutrition, disability, and education. 3.District Project Management : Headed by P.D, DRDA, Addl.P.Ds and Subject specialists ( 12 – 15).

9. S.E.R.P Structure Area Coordinators – 10 – 12 per district – each responsible for 5 - 6 mandals. Supported by 3 master trainers in accounting Mandal Coordinators – 1 per mandal ( 50 in a district), supported by 2 master trainers for accounting In addition subject specialists in agriculture, dairying, health, disability, agriculture marketing, etc in programme mandals

10. S.E.R.P Structure  P.D, DRDA is on deputation to S.E.R.P. He has no other responsibility other than women empowerment. Separate officers for NREGA, Watersheds, Rural Housing, and, Drinking water  In A.P, no other department organises S.H.Gs. It is the exclusive responsibility of RD Department.  All departments collaborate with RD department in linking their programmes to the S.H.G members

11. Strategy Social mobilization and empowerment Organize rural women’s groups & their federations Knowledge & awareness Investment support Govt. departments Fin. institutions Panchayat Raj institutions Markets and others

12. Institution building process S.E.R.P helps poor to build their own institutions Recruited dedicated personnel – young professionals (1 per 2000 members) – to initiate the process Subsequently through C.R.Ps and the Federations Starts with poorest of poor women - forming Self Help Groups (SHG) - 10 to 15 members, based on affinity Capacity building and facilitation of group meetings Thrift and credit, collective action around key issues Guidance on collective action, formation of federations Group activities strengthen members, and, vice versa

13. Federations of poor – force multipliers Social mobilization does not stop at SHG level Federating all S.H.Gs at village level – multiplies strength of the poor A federation understands better problems of the vulnerable Higher level of federations – block and district level Network with other village level and higher order institutions Principle of subsidiarity

14. Self management – reduce dependence on support organization – they transform into support organizations Nurture member organizations Advocacy - Influence policies, programmes in favour of poor Scale – aggregating ‘demand’ Linking key organizations with poor – banks, markets Greater pressure on service delivery Dynamic – roles change in response to member aspirations, opportunities, experience Pressure on S.E.R.P to continuously evolve and assume new roles and responsibilities Role of federations

15. Mandal Samakhyas and V.Os plan and implement the various project components –Each Mandal is divided into three Clusters of 10-12 habitations. –A development professional, called Community Coordinator (CC) is placed in each Cluster. S/he stays in her cluster. –SERP selects and trains them. After completion of training, they are contracted by the MS and are accountable to MS. –M.S responsible for social mobilisation, institution building and funding the microplans of S.H.Gs/V.Os from C.I.F –Micro credit plans are evolved by the S.H.Gs in each village. These plans are funded by their own savings, CIF fund and Bank Linkage. –V.Os responsible for appraising the microplans and recommending them to M.S for financing from C.I.F –V.Os appraise microplans and also finance them from the recycled C.I.F C.B.Os implement the project A.P Federation Model SHGs Thrift and credit activities Monitoring group performance Micro Credit Planning Household inv plans E.C-2 from each S.H.G, 5 Office bearers Strengthening of SHGs Arrange line of credit to the SHGs Social action Village development Marketing and food security Support activists – 3 -5 E.C-2 from each V.O, 5 Office bearers Support to VOs Secure linkage with Govt.Depts. fin institutions, markets Auditing of the groups Micro Finance functions 10-15 SHGs V.O 150- 200 MMS 6000 9000 - Z S 300,000 500,000 Village Organization Mandal Samakhya Zilla Samakhya SELF HELP GROUPS

16. Key impacts of social mobilisation 1.Institution building –10.2 million women organised into 850,000 S.H.Gs, –All Villages covered –S.H.G Federations: village – 35,525 V.Os, mandal – 1098 M.M.S, and, district – 22 Z.Ss –Universal coverage of poor - 90% of rural poor households organized

17. - across states * World Bank study

18. 2. Social capital created –17,00,000 trained grassroots women leaders managing S.H.Gs and federations –180,000 para professionals at village level – accountable to women’s groups –20,000 Community resource persons – scaling up and deepening social mobilisation

19. 3. Community financing institutions Seed capital support to Mandal samakhyas: Project facilitated financial intermediation by federations – M.S – V.O – S.H.G – member Rs.950.0 crores disbursed to 1097 mandal samakhyas from 2001 – 2009 C.I.F (World bank project) and S.G.S.Y funds channelled to federations Catalytic role of the fund: ―Enable poorest of poor to get a sizeable loan and build their credit record ―Innovate and develop new financial products: food security, marketing, health, education

20. Financing model Village Organization Mandal Samakhya SHG Terms of Partnership (VO – MS) Terms of Partnership (SHG – VO) Terms of Partnership (Member – SHG) Repayment Period Members Prioritization of Needs and Members Micro Credit Plan 100 - 120 Months 40 - 60 months 12-24 months Banks

21. 4. Micro finance : SHG-Bank linkage –S.H.G’s own accumulated savings and corpus Rs.3150 cr –Bank loans to S.H.Gs –Rs.6967 cr in 2008/09 : almost 50% of the entire country –Per capita S.H.G-bank linkage – Rs.142,500 per group –Per member linkage : Rs.12000

22. Key impact: S.H.G-bank linkage 5. Major policy changes in banks and Government ‒ From savings linked lending to lending based on micro credit planning by S.H.Gs ‒ Total Financial inclusion - Bank finance for debt swapping, social needs and income generation ‒ 6000 villages covered. Balance 29000 by 2011/12 ‒ Upto Rs.500,000 per group under debt swapping ‒ From 2004 – interest subsidy for on-time repayment - ‘Pavala vaddi’ scheme. Outlay for 2009/10: Rs.315.0cr

23. 6. Leveraging APRPRP and S.G.S.Y investments  W.B project outlay (2000 – 2009): Rs.1700 crs  Govt of India S.G.S.Y – Rs.600 cr –S.H.G’s own corpus Rs.3150 cr –Cumulative lending from banks: 2004-09: Rs.19200 cr –State Govt’s incentive for prompt repayment: 2004-09: Rs.900 cr

24. SHG-Bank Linkage in AP Target 2009-10: Rs.9000 crores

25. * World Bank study

26. Geographical disparity in the credit gap –Just over 19 percent of the total credit received by all of the lagging states combined Poor must resort to costly sources of finance with high interest rate (interest rates anywhere between 60% to 120% per annum)

27. 7. Prerequisites for a family to come out of abject poverty 6 to 8 years of continuous nurturing and handholding of women members by Self Help Groups and their federations  Adequate investment: minimum investment of Rs.100,000/- per family ( by way of numerous ‘small’ and ‘big’ loans) over 6 – 8 years  A.P Govt. plan to raise Rs.100,000 cr by 2015/16 covering 1.0 crore S.H.G members

28. Key livelihoods impacts 8. Sustainable agriculture initiative –Low external input sustainable agriculture – based on local natural resources (‘Zero budget farming’) –covering 14 lakh acres in Kharif 2008 – largest initiative in the country –Community managed extension system –Cost savings: Rs.3000 – Rs.15000 per acre –Seen as a national model for sustainable agriculture in the context of adaptation to climate change and mitigation –Kharif 2009 – 20 lakh acres coverage (10% of State’s cultivable area)

29. Key livelihoods impacts 9. Collective marketing of agriculture produce −Village level procurement centres for paddy, maize, red gram, soybean, etc −V.O as franchisee of A.P.State Civil Supplies Corporation for procurement of paddy at minimum support price −2008-09 paddy turnover: Rs.450 crores – from 497 V.Os 10. Women dairies: franchisees of A.P State Coop dairy −156 Bulk milk cooling centres run by Mandal samakhyas −2784 village milk collection centres −250,000 litres of milk per day (flush season) −140,000 dairy farmers

30. Risk mitigation 11. Social risk management –81 lakh members/spouses covered under life insurance –largest in the country –Front end managed by the S.H.Gs federations –Low admin costs: Rs.10/ per member –Target for 2009-10: 1.7 crores 12. Food security credit – covers 2.1 million families. Specific focus on tribal areas, coastal areas, and drought prone areas

31. Key social impacts 13. Health and nutrition initiative –660 villages - comprehensive nutrition and health care support to pregnant women and lactating mothers –healthy mothers and healthy babies – ‘zero’ low birth weight babies 14. Education –Pre-school centres managed by V.Os 15. Gender initiative – intra family equity, ‘no to domestic violence’, family counselling centres run by Mandal samakhyas

32. Key impacts 16. Persons with disability: 2,12,888 persons with disability organised into 23,069 SHGs. Supported for livelihoods enhancement, medical treatment and rehabilitation, accessing entitlements from Govt. 17. P.R.Is: Women’s network a strong lobby for the poor, strong influence on PRI functioning, strengthens Gram sabhas 18. Innovative ways of working with N.G.Os – partnership between N.G.Os and S.H.G Federations 19. Women’s network a platform for convergence of all anti- poverty programmes: housing, land access, civil supplies, urban development, forest management 20. Line departments modified implementation procedures in consultation with S.H.G federations

33. 1.N.R.H.M – National Rural Health Mission 2.Rural Water supply and sanitation 3.R.K.V.Y – Rashtriya krishi vikas yojana ( Agriculture) 4.A.P.D.D.C.F – Dairy federation 5.Youth Empowerment department 6.Rural Housing Corporation 7.Sarva shiksha abhiyaan (Education) 21. Funds mobilised from other departments for S.H.G federations

34. 22. S.H.G – Co-contributory pension – introduced in Feb 2009, to cover 1.0 crore rural and urban poor women in S.H.G networks Pension from 60th year – minimum Rs.500/ per month Insurance cover upto the age of 59 Scholarships to children studying in 9th – 12th class

35. Key lessons 1.A long term strategy for poverty eradication, based on social mobilisation and women empowerment 2.State level mission and dedicated project management unit at state level, district level and block level

36. Key lessons 3.A single department to take overall responsibility for S.H.G formation and strengthening 4.Social mobilisation requires intensive handholding support – staff requirement cannot be underestimated 5.National Rural Livelihoods mission a unique opportunity

37. Key lessons 6.Investment on demand side critical for effective implementation of programmes of all line departments 7.Convergence with key line departments – critical 8.Building strong institutions of poor women provides the last ‘metre’ solution to each and every poor family

38. Key lessons 9.A.P experience can reduce the learning curve for new states. S.E.R.P providing need based technical support to many states 10.Community resource person strategy – low cost and sustainable strategy. Reduces staff requirement 11.Intensive approach in the first 3 years – develop internal social capital for scaling up for the whole state