General Lessons

Observations made from site visits crystallize into five general findings that the participants consider integral to the successes of the groups visited.

i. Savings culture : Central to almost all groups visited was a savings (and loan)/micro finance activity. In the context of the rural economy of India (money lenders offering extortionate interest rates, a higher degree of market integration of the rural producers, better service infrastructure, costly social obligations) the propensity for capital accumulation appears to be much higher than in Africa providing a motive to initiate S&L activities. Management of savings and credit is seen as an empowering tool that could lead to greater social cohesion and initiatives.

ii. Profit orientation : All income generating activities initiated seemed to be clearly profit driven and were calculated and implemented in a way that would not require continuous external injections for maintenance.

iii. Social mobilization and role of women : Women in Self Help Groups(SHG) – with the intermediation of external agents, such as NGOs - not only pursued economic interests but also strong social development objectives around ideologies common in India (socialism, Gandhian movements) that emphasize the importance of human rights.

iv. Putting institutions first : Fostering the growth of institutions of the poor leads to greater poverty reduction and empowerment. Participation of the poor does not lead directly to their empowerment ; it would lead to building institutions and linkages. The experience gained in building these structures and networks and maintaining them is a major instrument of people’s empowerment. Empowerment , therefore is based on and grows out of people’s own institutions ; it is not bestowed upon them by anyone or by any attempt to decentralize,

v. Mainstreaming IK : While not necessarily formalized, IK was central to the successes of the various projects. This includes the intrinsic, gradual transformation of the traditionally restrictive caste system where women now find themselves, as a result of their activities, in a position to negotiate their rights and become equal partners in their communities’ development efforts.

These five aspects appear to converge in a remarkable sense of ownership of activities and achievements by SHG members, which in turn ensures a high level of transparency, governance and accountability that leads to “quality results on the ground:

Specific Lessons

Approaches to Community Engagement

i. The starting point for community-based activities are community interests, needs, demands as established through a variety of means, varying from classical PRA methods to the concept of member-based organizations (all beneficiaries are also members of the NGO providing assistance e.g. SEWA).

ii. Identification of targeted (vulnerable) groups is not a one-time exercise; flexible methodology is adopted depending upon the circumstances in different communities ; periodic re-evaluation of the target groups as social and economic conditions tend to change at the individual household level over time. Communities are actively involved at all levels of planning and implementation.

iii. Women groups whose members are linked by a network of relationships which enables them to perform certain traditional, support functions are known as Affinity Groups. This affinity, which exists prior to any outside intervention, is based upon mutual trust, reciprocity, functional support and homogeneity among members and reflects a common concern that goes beyond income generation. These groups also form the basis of savings and loans groups or for other specific activities such as weaving, land reclamation or dairy farming. Their potential for sustainability as a group lies primarily in the common concern rather than in the income generation activity. Some participants referred to this aspect as a transformation from social to economic capital.

iv. As a result of the above, all activities at the community level tend to be multi-sector, integrated and holistic. This even applies to seemingly single-sector approaches such as the conservation of medicinal plants that could not have ensured the participation of communities without considering their often more pressing needs.

v. Sustainable approaches to poverty reduction rest to a considerable degree on making the poor part of the institution building process (SEWA, MYRADA, BRAC). The poor become members (even Board members) of those institutions that serve them.

Implementation arrangements

i. The role of government in all instances has been supportive technically, institutionally and through providing a policy environment in which SHG and Micro-finance institutions can thrive. While cooperation on a daily basis may not always be easy, the relationship has in all cases been mentioned as very useful. In the case of traditional medicine, the indigenous practice (Ayurveda) has actually been institutionalized (e.g. through a Ministry for Indigenous Medicine in Sri Lanka), giving it standards, credibility, and reputability.

ii. Credit provision and management : The micro-finance arrangements are viable because the retail costs of operation are essentially carried by the women groups. Individual accounts record keeping, micro-loan approvals, assessment of collateral are all carried out by the groups themselves with remarkable recovery rates - well above 98% in most instances. However, this is not only established as a cost saving measure, it also empowers the participating women to manage their own monetary resources with ripple effects into other aspects of their social and economic lives. It is not surprising that in such an arrangement, debtors accept approximately 2% higher than market interest rates (which are still less than a third lower than money-lender rates).

iii. Linking Self Help Groups with banks, markets, private sector enterprises and with each other to form federations to develop products further to meet customer demand etc. increases the negotiation power of the association as a whole.

Technical Aspects

i. Local knowledge innovation : Gains made by those who document or add value to local knowledge, innovations or practices should be shared with the providers of knowledge and others who have contributed to value addition in a fair and equitable manner. This can be achieved by ensuring (a) legal protection of IK; (b) benefit sharing with providers of IK; (c) documentation, dissemination and networking with providers and communities in their native language; and (d) material transfer agreements with potential investors and researchers

ii. Potential bio-diesel : Potential alternatives to fossil fuel can be found by using oliferous plants such as “Pongamia”. Oil can easily be extracted by any simple oil-pressing techniques. These plants grow on dry or marginal land and their oil energy efficiencies are comparable to those of diesel with no changes to engine settings required. With the rise of fossil fuel prices, the economics are compelling for this non-edible oil. Spin-off rewards accrue from green cover, environmental rewards, increase in local incomes and nation level independence. The oil cake can be turned into a rich fertilizer slurry and methane reducing costs further. As this plant grows easily in tropical climates, this could very easily be adopted in Africa.

iii. Informatics for social services delivery : “e-Seva” has created a new paradigm by providing single-window computerized services to citizens by leveraging information technology using a public-private partnership model. It offers a variety of services, ranging from payment of utility bills to issuing of certificates, permits, licenses, reservation of buses to business-to-consumer (B2C) services. Real time transactions use technology linking the government, service providers and banks through a secure computer network. It is a win-win situation for all as citizens use a single window for multiple service providers, government departments can reduce paperwork and redeploy personnel while banks receive funds in a shorter cycle allowing them to defray transaction costs. Starting in 2001 with 10 services, the service has grown to over 75 services with new services being added periodically based upon demand from citizens.

iv. Medicinal plants conservation : Plans for the conservation and sustainable utilization of medicinal plants are successful if they are community driven. A collaborative and open approach to the exchange of information about medicinal plants and conservation concerns is key to increased awareness and improved co-ordination of conservation efforts between the government, NGOs and communities. Sustainable utilization and conservation efforts at community level thrive when there are appropriate local institutions whose structure and systems (organizational and financial) are designed locally. "Cultural diversity and biodiversity" go hand in hand and the erosion of local and mainstream cultures related to biodiversity can result in the loss of the biodiversity itself.