“THE IMPACT OF STREE SHAKTI SELF HELP GROUPS ON THE EMPOWERMENT OF

WOMEN IN KARNATAKA: A CASE STUDY OF GADAG DISTRICT”

Reference No. : UGC Letter No. MRP(H)-0755/13-14/KAKA072/UGC-SWRO 28th March 2014

FINAL REPORT OF MINOR PROJECT

SUBMITTED TO

UNIVERSITY GRANTS COMMISSION

BANGALORE

By

Shri. Chambanna S. Angadi

Principal Investigator

Associate Professor

Department of Political Science,

KLES Jagadguru Tontadarya College, Gadag

Re-Accredited with ’A ‘Grade by NAAC

(KARNATAKA)

NOVEMBER- 2015

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Chapter-VI

CONCLUSIONS AND SUGGESTIONS

The present study is focused on the exploration and analysis of

the Stree Shakti Self Help Groups of the Gadag District in Karnataka.

The study is conducted with primary and secondary data obtained

from the study unit for a period of over two years from 2014 to

Sept.2015. The major thrust of the analysis is related to the Grade-

wise Distribution of SHGs, Types of Members, Distribution regarding

Educational Qualifications, Age Distribution of Members, Marital

Status of Members, Change in Family Occupation of SHG Members,

Family Desires of Members of SHGs, Family Toilet Facilities, Type of

Living House, Distribution of Agricultural Implements, Distribution of

Members of SHGs by Frequency, Adoption of Family Planning

Methods in the Selected Samples, Distribution of Members of SHGs by

Source of Motivation in the Selected Samples, Holding of Ration

Cards, Impact of SHG Members vs Earning Members of the Family,

Purposewise Bank Loans to SHGs – Amount Requested and Amount

Received, Occupational Change of Families of Members After Joining

SHGs, etc over the study period is made here. This exploratory,

descriptive and analysis study has revealed some useful findings. The

summary of major findings of the research study has been provided

here.

6.1 Status of women in India is not up to the desired level

and it has become necessary for successive incumbent governments

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to devise novel ways to uplift half of the population gradually and later

their condition for better. Among such schemes, Stree Shakti Self Help

Groups (3SHGs) to the needy poor people.

6.2 Micro finance is an organized economic development

strategy that offers several types of financial services aimed at

assisting large numbers of low income people; establish/grow their

small and medium businesses in order to generate sustainable income

for the reduction of poverty and achievement of quality of life

6.3 The Grameen Bank (Bangladesh) came in with a unique

solution to this problem. In 1970, the practice of peer group

monitoring to reduce the lending risk was introduced as an alternative

to physical collateral.

6.4 In India, SEWA, which as a trade union for women and

later entered the field of micro credit, has grown into the biggest

women’s cooperative bank in the country. In South India, MYRADA

was the first NGO to introduce micro credit in the eighties.

6.5 In India, SEWA, which as a trade union for women and

later entered the field of micro credit, has grown into the biggest

women’s cooperative bank in the country. In South India, MYRADA

was the first NGO to introduce micro credit in the eighties.

6.6 The entry of NABARD into this field in 1990 has changed

the scenario drastically among the formal financial institutions. Under

this programme, commercial, rural and cooperative banks lend to

3SHGs, and NABARD refinances these loans at a subsidized interest

rate.

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6.7 The programme was launched during 2000-01 and it is

being implemented throughout the state to empower rural women and

make them self reliant. Stree Shakthi Groups are formed at the village

level to inculcate the savings habit in the members empowering the

women economically.

6.8 Presently there are 1.40lakhs groups functioning in the

state approximately 21 lakhs women members are organized.

6.9 SHGs provide poor women an opportunity to take

decisions involving themselves, their groups and their lives. Savings

and credit is normally used as an entry point for formation of SHGs

since it gives the members a chance to participate in decision-making

and satisfies their short-term credit needs. Realising that they can be

a promising tool in capacity building of rural poor especially women,

central and state have vigorously supported the SHG-centric model of

development in India.

6.10 Swa-Shakti Project of Department of women & child

Development (DWCD) which was launched in 1998, many other

agencies have taken up programmes for supporting women’s SHG

movement.

6.11 Rashtriya Mahila Kosh (RMK, an autonomous

organisation promoted by DWCD), Swarnjayanti Gram Swa-rozgar

Yojana(SGSY) and Watershed Development Projects of Ministry of

Rural Development, Mahila Samakhya of Department of Education,

Women in Agriculture, Swayamsiddha of DWCD, Jeevika Project of

Government of Gujarat, Stree Shakti, Mission Shakti, SHG Missions

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in some other states are supporting formation and strengthening of

SHGs in a big way.

6.12 Women’s empowerment has five components: These are

(1) Women’s sense; (2) their right to have and to determine choices; (3)

their right to have access to opportunities and resources; (4) their

right to have the power to control their own lives, both within and

outside the home; (5) and their ability to create a more just social and

economic order, nationally and internationally

6.13 SHG members are also using SHG loans for regular

economic activities like animal husbandry, agriculture and petty

business which is evident from the fact that nearly 74 per cent of SHG

members in Tamil Nadu have invested in creating various assets like

land, livestock and household durables after joining SHGs.

6.14 The programme was launched during 2000-01 and it is

being implemented throughout the state to empower rural women and

make them self reliant. Stree Shakthi Groups are formed at the village

level to inculcate the savings habit in the members empowering the

women economically. About 15 to 20 women members who are from

below poverty line families, landless agricultural labourers, SC/ST

women join together. Stree Shakthi Groups are formed through

Anaganwadi workers and taluk federations. At present there are 1.40

lakhs groups functioning in the state. Approximately 20.00 lakhs

women members are organized

6.15 Streeshakthi group members have saved Rs. 1470.19 crores

since inception. 125713 groups have availed bank loans to the extent

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of Rs. 1477.45 crores and have done internal lending of Rs. 3886.61

crores to take up various income generating activities.

6.16 A large number of SHGs Promoting Institutions (SHPIs),

all the banking agencies and MFIs are pursuing this programme for

the upliftment of the poor. This is also recognized as a priority sector

lending and normal banking business by the Reserve Bank of India.

6.17 Small financial institutions are providing microfinances to

the poor in Indonesia. These institutions are the units of Bank Rakyat

Indonesia (BRI). The poverty alleviation programme in Indonesia was

started in 1970 when BRI – a state owned commercial bank had

established 3600 units. They formed part of the government’s

agriculture development programme BIMAS. The Bank Credit Desa (BKD)

a sister institution of BRI is one of the oldest programmes of micro-

credit catering to the rural poor with emphasis There are several

microfinance programmes in Nepal. Small farmers development

programme launched in 1970 is the largest microfinance programme.

The programme is implemented by the Agriculture Development

6.18 Bank of Nepal (ADBN). It is the implementing agency. The

government of Nepal in 1994 initiated Micro-credit Project for Women

(MCPW) with assistance from Asian Development Bank.

6.19 Microfinance in Philippines is generally referred to as

providing loan to poor who work in agriculture and allied activities.

Microfinance involved providing credit support in the range of 1000 to

1400 Pesos for various activities including agricultural production.

The concept of microfinance is changing in recent years. It now

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connotes providing access to saving, credit and other services to the

poor.

6.20 The government in Thailand is playing a leading role in

the area of microfinance for community development and improving

the employment opportunities in the country through various

programmes. The Community Development Department (CDD) is

implementing a large poverty alleviation programme covering 2 lakhs

households.

6.21 The Government of Sri Lanka has entered the microfinance

area in recent years. The National Development Trust Fund (NDTF)

was established in 1991 as an apex lending institution for microfinance

institutions to lend to the poor. The Samruddhi Programme is the

main poverty reduction programme. It has two components viz.,

Samruddhi Development Credit Scheme (SASANA). The Samruddhi

Enterprises Credit Scheme (SAVANA) and Samruddhi Lending

Scheme.

6.22 Argentina has been able to reduce poverty significantly in

the early 1990s as a result of successful micro-economic stabilization

programme. An NGO funded in 1992 by a group of Argentinean

business leaders provides basic tools access to credit and business

training

6.23 Gadag a unique district located in western part of

northern Karnataka. Malaprabha river in the north and Tungabhadra

in the south from the natural boundaries. Gadag is bounded by six

districts namely Dharwad on west, Belgaum on the north west,

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Bagalkot on the North, Koppal on the East, Bellary on the south East

and Haveri on the South west.

6.24 Gadag is a major industrial centre next to Hubli-

Dharwad. Gadag district consists of five talukas. Those are Gadag,

Mundaragi, Naragund, Ron and Shirahatti.

6.25 The district is ideally located in Northern part of the state

with well spread out industrial infrastructure with Gadag being a

third major industrial center in the state next only to Bangalore. The

district has as many as 7550 small scale industries in the district with

an investment of Rs. 10481.23 lakh employing 28725 people.

6.26 The initial provisional data released by census India 2011,

shows that density of Gadag district for 2011 is 229 people per sq.

km. In 2001, Gadag district density was at 209 people per sq. km.

Gadag district administers 4,657 square kilometers of areas.

6.27 Average literacy rate of Gadag in 2011 were 75.12

compared to 66.11 of 2001. If things are looked out at gender wise,

male and female literacy were 84.66 and 65.44 respectively. For 2001

census, same figures stood at 79.32 and 52.52 in Gadag District.

Total literate in Gadag District were 700,177 of which male and female

were 397,178 and 302,999 respectively. In 2001, Gadag District had

551,362 in its district.

6.28 The functional aspect of SHG include small savings being

contributed towards a common fund out of which productive and

contingent credit requirement of members of group are reached. Self

reliance is the focus of SHG. Members may belong to the same

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occupation, they may belong to same caste and sub-caste and living

in the same village. The genesis of the SHG is traced to the mutual aid

in Indian village community. In traditional rural societies self help

takes different forms. Activities like housing, farm operations need

mutual help. Likewise people share implements in agricultural

operations, sharing of irrigation water, bullocks, etc. which necessitates

a management based self help. Self help is a form of cooperation,

cooperatives are formal bodies where as SHGs are informal.

6.29 The NGO have facilitated the organization of SHGs for a

common cause through a process of social mobilization with varying

entry points like removal of social ills, resolutions of social conflict,

protection of environment, thrift and credit.

6.30 A local person shall take lead in the formation of SHG. He

is known as the animator or facilitator. The animator for an SHG can

be a health worker, field officer, staff development agency or

department of state government, staff members of commercial bank, a

member of NGOs, an unemployed, educated anganwadi teachers, etc.

Anyone of these would be suitable animator or facilitator for an SHG.

6.31 The findings of survey show that SHG generally consists

of only men or only women members. The members have same social

and financial background. So it is possible to interact each other.

Some common features are observed among SHG members.

1. Women from very poor family.

2. Those having dry land holding

3. Those who depend on money lenders

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4. Living in kutcha houses

5. Having no sanitary latrine

Those who have only one or no one employed in the family, etc.

6.32 Major functions of SHG covered under survey in

Ranebennur taluk are:

i) All SHG members regularly save a small amount. The amount may

be small, but savings have to be regular.

ii) “Savings first – credit later” should be the motto of every SHG

member.

iii) SHG members take a help towards self dependence when they start

small savings.

iv) The purpose, amount, rate of interest, schedule of repayment, etc.

are to be decided by the group itself.

v) The SHG should be encouraged to discuss and try to find solutions

to the problems faced by the members of the group. It becomes

easier for them to face the difficulties and come up with solutions.

The process of forming SHG involves three phases. They are:

Phase I – Identification and formation of the SHGs 0-5 months

Phase II – Group stabilization 6-10 months

Phase III – Withdrawal of the intervener 16-36 months

6.33 A project known as Stree Shakti scheme has been

initiated in 2000-01 for the empowerment of women. A total of

1502824 rural women have been organized into 1 lakh Stree Shakti

SHG in Karnataka state.

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6.34 Education qualification is not important role for members

of SHG. From the below table average of illiteracy is 6.3 and average

members having only 1.3 degree holders.

6.35 Most of the members belong to 31-40 years. Minimum

members belong to less than 20 years and greater than 50 years.

6.36 Most of the members are married. All SHG gave importance

to the widows. From the table married members are on average of

13.4 and widows are on an average of 3.3

6.37 Members of the Stree Shakti Self Help Groups shifting

from low income activities to high income activities. There has been

change in occupation of the members of SHGs. This is a very positive

impact of membership of SHGs.

6.38 We observed that 126 members are having TV before

joining the SHGs. But after joining the SHGs 247 members are having

TVs. Similarly overall 61% members have purchased amenities like

TV, Radio, Tape Recorder, Fan, etc.

6.39 Most of the rural households do not have their own toilet

facilities. So most of them go out and use open space. But after

joining SHGs lot has changed in the members.

6.40 Most of all the category members used open space for

toilet before joining SHGs. After joining the SHGs 30% decline for

using the open space. Further the number of those using public

toilets has gone up from 20% on average.

6.41 Change in the living conditions relating to the toilet

facilities among SHG members. Members of SHG living in own house

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has increased from 12.2% to 24.3%. Government allotted houses are

only 16.8% before joining the group, after joining the group it has

increased upto 228.%. This shows members of SHG involve in social

activities. Members are living in RCC has increased from 2.0% to 10.2%.

6.42 The number of SHG members owning bullocks, buffaloes

and cows, tractors, sprayer machine has gone up considerably. But

members owning sheep.

6.43 Members are interested to invest more profit implements.

This shows the positive impact of membership of self help groups.

6.44 A vast majority of the members 56.0% reported that they

attended once in a month. This shows that minimum of 11.8% of

members have attended every meeting.

6.45 All the respondents who reported the family planning

methods, but they require some knowledge about the vasectomy

method. It is clear that 55% of the respondents are not interested in

family planning method because of illiteracy.

6.46 Anganwadi teachers canvas and encourage women to

form into SHGs, other major part of motivation is from NGOs. But

individual motivation is nil. A little over one-fifth of the respondents

reported that their husbands motivated them to join the SHGs.

6.47 The survey has revealed that the number of those

members who held APL card rose from 30 in the pre-membership

period to 40 in the post-membership period. But there is no change in

the BPL ration cards. we find that number of Anthoday cards is

decline in the members joining the SHG

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6.48 It confirms that benefits of SHG membership in terms of

gainful employment of their family members is more. Thereby there is

increase in the number of earning members.

6.49 Dairy units are set up by members of the SHGs and SHGs

finance them through bank borrowings. Financing of small trade has

also been another activity by SHGs as indicated by 20 respondents

(2.00%). SHGs borrowed money for providing loan to members for

households purposes as indicated by 110 SHGs (11.00%). Health and

agriculture loans through bank borrowing have been indicated by 70

(7.0%) and 40 (4.0%) SHGs respectively. A very small number of SHGs

have obtained bank loan to finance SSI units, consumption

expenditure of members and for repayment of old loans.

6.50 Banks have not been providing the required quantity of

loan amount requested by the SHGs. Majority of 330 SHGs (55%)

received the amount requested by them. However a substantial

number of 670 SHGs (45.00%) mentioned that they did not receive the

actual amount they had requested from the banks. the banks need to

provide adequate loan to the SHGs if the latter have to active better

results in terms of the socio-economic development of their members.

6.51 There is little change in the members’ family occupation of

agriculture after they joined their respective SHGs in the 5 talukas

covered by the study. The trend is almost uniform in all the 5 talukas.

6.52 The change in the business occupation of families of

members after their joining SHGs indicates a substantial increase in

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the number of members involved in business in all the 5 talukas. The

increase is more pronounced in the talukas of Gadag and Nargund

6.53 A significant difference was found between before and

after occupational changes of families of SHG members joining their

groups in Gadag (2=38.347, P=0.0000, S), Mundaragi (2=30.659,

P=0.0000, S), Nargund (2=42.133, P=0.0000, S), Ron (2=53.271,

P=0.0000, S) and Shirahatti (2=43.445, P=0.0000, S) at 5% level of

significance. It means that a significant occupational change of

families of SHG members joining their groups was seen.

6.54 The change is more perceptible among those who were

engaged in coolie work. It is observed that substantial number of SHG

members have left the occupation in favour of more remunerative

occupations. This trend is observed in all the 5 talukas covered by the

study. The decline in the number of members involved in coolie work

after joining the SHGs is more pronounced in Gadag taluka. A largely

similar pattern of change in occupation after joining the SHGs is

noticed in case of those who were involved in domestic work.

6.55 The change in occupation of members after joining SHGs

is limited and marginal in case of those who were involved in helping

in their own agriculture in the family. In fact there is no change in the

number of members involved in their own agriculture even after they

joined the SHG in Gadag taluk and the decline in the number of

members in Nargund taluk is negligible. The change in this line of

occupation is more pronounced among members of SHG in Ron

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6.56 A steep increase in the number of members who have

involved in income generating occupation in the post membership

period. This trend is observed in all the 5 talukas. The occupational

change among the members of SHGs after joining the SHG indicates a

movement away from low paid occupation to better learning

occupations.

6.57 The trend of a single member earning income in the

families has declined while there has been a substantial increase in

the number of earning members in the family after the respondent

members joined the SHGs in the different talukas of the district. This

indicates the positive impact of membership of self help groups in the

study area. Membership of SHGs has created opportunities for self

employment and the number of families involving in earning income

generating activities has gone up.

Conclusions

There is a remarkable mobilisation of women taking place due

to the growth of 3SHG,s movement. This movement has a great

potential to contribute towards the social and economic independence

of women. There is a great responsibility on all those involved in SHG

promotion and development to intensify their efforts to enable SHGs to

reach a mature stage. In order to make 3SHGs as real tool for women

empowerment and to make them economically independent and also

to associate them with these programmes for long, these groups will

have to emphasise on education, literacy and capacity building

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processes. Then only these groups can really become the effective

tools of women empowerment and poverty alleviation.

Stree Shakti Self Help Groups are playing an important role in

social transformation and are serving the cause of women

empowerment. The performance of self help groups under the Stree

Shakti scheme not only improved the economic status of the women

in the district but there is also a drastic change in their social status.

The scheme has conferred human dignity and higher status to the

rural poor women.

Members of the Stree Shakti Self Help Groups shifting from low

income activities to high income activities. There has been change in

occupation of the members of SHGs. This is a very positive impact of

membership of SHGs.

Change in the living conditions relating to the toilet facilities

among SHG members. Members are interested to invest more profit

implements. This shows the positive impact of membership of self help

groups.

All the respondents who reported the family planning methods,

but they require some knowledge about the vasectomy method. From

the above table it is clear that 55% of the respondents are not

interested in family planning method because of illiteracy.

BPL cards indicate the people who belong to below poverty line.

10% of the Anthoday card holders decline after joining the SHG. This

shows the positive indication of development in the economic

activities.

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The benefits of SHG membership in terms of gainful employment

of their family members is more. Thereby there is increase in the

number of earning members. The study has revealed the positive

impact of the membership of Stree Shakti Self Help Groups covered by

the study.

The incidence of coolie work among the members of the SHGs

has gone down after they joined the groups and took up to self

employment scheme financed by the SHGs/banks. Similarly

dependence of members on agriculture has been reduced and the

involvement in business has gone up after they joined the SHGs.

Large number of SHG members have engaged in income generating

activities after joining the SHGs. This pattern of shift in family and

personal occupation after joining SHGs is found through field survey.

The positive impact of joining the SHGs is further indicated by

an increase in the number of members living in their own house and

decline in the number of members living in rented houses or decline

in the number of those living in huts and increase in the number of

those who lived in Government provided houses.

The joining of the Stree Shakti Self Help Groups has resulted in

an increase in the number of earning members of the families of the

respondent members of the groups.

Success of micro finance in different countries like Bangladesh,

Indonesia, Nepal, Philippines, Thailand, Srilanka and Latin America

countries was also partly responsible for the spread of the micro

finance system in India.

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Borrowings of SHGs from banks were related to different

purposes of members to whom the bank loans were given. Majority of

the respondents indicated banks loans were obtained for financing

dairy business of members followed by those indicating bank loans for

household purposes, cottage and small scale industries, health

expenses, agriculture, trade, consumption expenditure and for

repayment of old loans, etc.

The bank loans to SHGs are provided without any collateral

security. However the self help groups maintain the savings of their

members with the banks in their accounts as deposits. Thus the

deposits of the SHGs are considered as security for bank loans.

Members of the Stree Shakti Self Help Groups are shifting from

low income activities to high income activities. There has been a

change in occupation of the members of SHGs. This is a very positive

impact of membership of Stree Shakti SHGs.

Change in the living conditions relating to the toilet facilities

among SHG members has been a significant contribution of Stree

Shakti SHGs towards ensuring women dignity and safety.

Members are interested to investment more in profit oriented

implements. This shows the positive impact of membership of Stree

Shakti Self Help Groups in economic empowerment of rural women.

All the respondents have reported the adoption of family

planning methods. They however require some knowledge about the

vasectomy method. Hence, there is need for proper measures by the

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Health Officials to educate the poor rural women in the family

planning methods to make the family planning a success.

BPL cards indicate the people belonging to below poverty line.

10% of the Antyodaya card holders declined after joining the SHG.

This shows the positive indication of improvement of the economic

status of the poor. The benefits of Stree Shakti SHG membership in

terms of gainful employment of their family members have been

substantial. Thereby there is an increase in the number of earning

members.

Economic and social empowerment of women members of the

Stree Shakti Self Help Groups would be more effective and substantial

with an active and vigorous involvement of the Government agencies,

local leadership like the Panchayat Raj Institutions and the NGOs.

The women members need to be motivated about their rights and

privileges in the family hierarchy apart from their involvement in

economic activities financed through institutional finances.

Suggestions

1. Women empowerment through Stree Shakti SHGs needs more

involvement of the Government agencies, NGOs and Banks by way

of motivating the women members to participate actively in the

deliberations of their SHGs. This needs regular attendance at the

meetings of the SHGs and involve actively in the discussions. This

will help the women members in developing leadership qualities

and in making their SHG memberships more productive.

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2. Women members of the Stree Shakti SHGs should try to diversify

their economic activities by availing loan finance instead of confining

to their traditional family occupations. More remunerative

investments like dairy farming, manufacturing food items, etc.

would enhance their economic status.

3. The study has revealed that the loan finance from banks to women

members is inadequate. Hence, there is need for the financing

agencies to provide adequate loans on liberal terms to women

members of the Stree Shakti Self Help Groups.

4. Members of Stree Shakti SHGs should try to involve more in social

activities to enhance their ability to develop social leadership and

thereby social empowerment.