Answer:

Self-help groups are micro-finance intermediaries. They are generally facilitated by NGOs, and they advise and train members in a variety of on- and off-farm income- generating activities. Financial intermediation is generally a primary objective to realize larger goals like empowering women, developing leadership abilities, increasing school enrollments, improving nutrition, etc.

As can be seen, PRIs and SHGs have overlapping aims- from poverty alleviation to enhancing participative democracy. The two institutions sometimes compete with each other for space in development administration and political processes. SHGs are then seen as undermining the constitutional roles of PRIs. Following points illustrate the points of friction:

♤ SHGs are becoming a conduit for routing number of development schemes.

♤ Alignment of interests of MFIs, NGOs, corporations and donors with that of SHGs. They have been increasingly involved with SHGs rather than PRIs in capacity building.

♤ Political prejudice due to social compositions of PRIs and SHGs has weakened the relationship.

♤ Some States have mandated inclusion of SHG members in various committees (like Mid-day meal) of the PRI. However, no attempt has been made in this regard.

However, there are number of successful examples where SHGs and PRIs working in tandem have effected a positive change in the rural society. The Indira Kranti Patham Yojana by Society for Elimination of Rural Poverty (SERP) in Andhra Pradesh is very active in improving the livelihoods of rural poor families. These SHGs work under the Panchayat system for distribution of social security, pensions, wage labour under NREGS, etc. Kudumbashree (Kerala), a women based participatory poverty eradication programme, is an SHG movement into which there has been integration of various Panchayat tiers.

The nature and mandate of both these institutions requires that they operate in coordination to utilize resource efficiently and produce better outcomes. An institutional and functional linkage with the SHGs will enhance responsiveness, accountability and transparency in PRIs.

While at the Gram Panchayat level SHGs could be implementing, monitoring and evaluating agencies, at the Block and District levels, they can act as a pressure group, provide feedback and act as watchdogs. However, it is imperative that the capability and capacity of the SHGs and the PRIs be strengthened for a symbiotic relation.