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Building the Institutions |
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| Building the Institutions |
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The first step in the building
of institutions of the poor is the formation of
the women’s SHGs through the process of social
mobilisation. RGMVP provides facilitation
support and an enabling environment that ensures
that every SHG gains access to microfinance by
being linked to nationalised banks which have a
commitment towards development of the poor. The
bank-linkage process has been streamlined by
special operative instructions from the Reserve
Bank of India that each commercial and regional
rural bank is obligated to follow with reference
to RGMVP.
The focus is on investing in building the
institutions, building the capacities of the
poor to access the entitlements and
opportunities available with the formal
institutions, in a manner that can be scaled up
to meet the growing needs of the poor. As a
result, there is focussed investment; investment
is being made where it is required and in
multiple doses, and the poor’s access to funds
continues in perpetuity.
The SHGs address several socio-economic aspects
such as arresting leakages in household cash
flows, increasing income, enhancing asset
status, building self-esteem and confidence of
women, fostering leadership qualities, etc. The
poorest of the poor thus find a solution to
poverty reduction and create safety nets through
thrift and credit activities coupled with
systematic access to capital and knowledge
provided by RGMVP. In the process, the poor
build their own community institutions that
provide a platform for the poor to meet on
weekly /fortnightly basis and discuss various
issues – health, education, gender, livelihoods,
social malpractices, sustainable agriculture,
even eco-friendly initiatives -- concerning
their lives and channelise their energies to
solve them.
The evolution of the SHG occurs on the basis of
a seven-step process.
Three-tier Institutional Structure
As the next step, 20-25 SHGs are federated into
a Village Organisation(VO/Gram Sangathan). The
VOs take action on issues that cannot be
resolved at the SHG level, work on strengthening
the SHGs, and initiate social action and village
development. When 10-15 VOs have been formed,
they are federated into a Block Organisation (BO
or Block Sangathan) which represents all SHGs at
the Block level and plans for future activities.
The BOs provide support to the VOs, secure and
maintain links with government and
non-government institutions, and audit the SHGs.
Institution building thus takes place in three
tiers: SHGs, VOs and BOs. In effect, these
institutions of the poor are a forum for the
poor to share their pain and problems. They
create a sense of unity and a rallying point
around a common purpose. The CIPs provide the
poor a voice, strength of unity and courage to
resolve problems and issues related to the
socio-economic milieu within which they exist,
and access rights and entitlements that are
their due.
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