Institution Building and Capacity Building in NRLM

Abstract

The main design principle behind self help groups (SHGs) organizations of rural poor women at the village level was to empower women by mobilizing them into small groups, facilitating interactions and financial literacy, and federating them into higher-order organization to unleash the potential of self help. The movement was initiated in the late 1980s by the Mysore resettlement and development agency (MYRADA) in Karnataka and by professional assistance for development action (PRADAN) in Tamil Nadu and Rajasthan. In 2000, the World Bank supported the Andhra Pradesh district poverty initiative project (APDPIP or VELEGU) project, which leveraged their existing work on SHGs, integrated new lessons and scaled-up the SHG program across the state. In order to leverage the World Bank experience of supporting livelihoods projects in states like AP, Bihar, Odisha and Tamil Nadu, the government of India (GoI) approved a World Bank supported National Rural Livelihoods Project (NRLP) to be implemented in thirteen major States in the country and aimed at creating proof. The World Bank designed the NRLP in the year 2011 with a vision to mainstream SHGs as the primary intervention strategy for rural development. The major pillars for SHG functions were defined as institution building, financial inclusion, livelihood strengthening, women’s empowerment, vulnerability reduction with partnerships and convergence as a cross-cutting theme. Experience suggests that triggering of women’s agency at the community level through provision of strategic inputs coupled with a conducive micro-environment not only enhances a woman’s well-being within her household but also has the potential to transform the community at large.