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The Role Of Women’s Governance In Rural Self-Help Groups: Evolution And Ways For A Better Future Through Public Policy – IMPRI Impact And Policy Research Institute

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The Role of Women’s Governance in Rural Self-Help Groups: Evolution and Ways for a Better Future through Public Policy

Noholie Bonnerjee

Introduction

Self-Help Groups (SHGs) are voluntary associations that aim to improve the economic conditions of rural communities. Participants from various rural/local communities, including women, are involved in these groups, restricted to twenty participants by legal frameworks (Jose, 2023). They are associated with rural banks and can exist with or without registration (Gupta, 2020).

For the better functioning of Self-Help Groups (SHGs), a locally educated member, known as the animator, helps economically backwards groups and the illiterate population form groups. The animators are usually retired school teachers, government servants, health workers, field officers from commercial banks or development agencies of the state government, an unemployed educated youth, or a member of the Vikas Volunteer Vahini (VVV) Programme of NABARD (Jose, 2023).

However, Jose (2023) also states that women animators can play an impactful role in governing the SHG groups, due to the large participation of rural women. They alone cannot organise these groups without prior knowledge or training on these subjects. Therefore, public policy, as a tool, creates a space for inclusivity for women’s participation in grassroots governance. Through agencies such as NGOs, the development department of the State government, and the local banks, SHGs can get guidance, training, and knowledge, and improve their financial conditions at a local level.

Historical evolution of women’s governance in SHGs

With the establishment of the Grameen Bank in 1976, Bangladesh introduced the concept of microfinance (Pandey, 2013). Following this path, the SHGs also adapted the model of microfinance in their structure to promote women’s empowerment through the reduction of poverty. In 1972, Ela Bhatt, a social worker, formed the Self-Employed Women’s Association (SEWA) in Ahmedabad to improve the socio-economic conditions of women from economically backwards classes.

As mentioned by Pandey (2013), the SEWA Bank was the first of these organizations, followed by a variety of cooperatives and women’s groups engaged in farming, artistry, and the healthcare sector. The National Bank for Agriculture and Rural Development (NABARD) promoted the concept of ‘financial autonomy’ through SHGs, marking it as a launchpad for the pioneering initiative.

On a regional level, there are numerous success stories of rural SHGs. For instance, the Dihipara Monalisa Mahila Swarnivar Dal, a SHG of Sonamukhi block (Bankura, West Bengal), facilitated a door-to-door delivery system of freshly produced goods, eliminating market intermediaries during the COVID-19 pandemic. With the guidance of WBCADC Krishi Vigyan Kendra (KDK), the SHG members gained good income and reduced the risk of losses through skill development and organic farming. These stories, therefore, set prominent examples of women’s governance in SHGs.

Impact of Women’s Governance on Rural SHGs

Women’s leadership can be observed in numerous areas in the rural SHGs, helping them transform socio-economically and having relevance in political decisions as well as in the Panchayati Raj Institutions. With economic growth and poverty alleviation as objectives of SHGs, the women members improved the household living standards through micro management of finance and savings. Increased income, along with entrepreneurial opportunities, is also observed.

Under the guidance of a woman leader, the women members gain the courage to step out of their houses and create their social identities and networks. This also helped in increasing the women’s voter turnout, including women from marginalized classes. Now, they are also participating in the local-level village elections and leadership roles with supportive reservation policies (Basak, 2024).

With leadership and community development skills, women leaders attempt to bring an inclusive governance system with ethical considerations, such as accountability and transparency. Basak (2024) argues that this challenges the patriarchal norms followed through conservative traditions and customs. With monitoring, evaluation, and execution of development projects, a broader space for decision-making has been created for women in governance, with an inclusive approach.

Challenges Faced by Rural SHGs and the Role of Public Policy

Though women’s participation in the local-level decision-making process improved after SHGs, there are still challenges that can be addressed using public policy (Gupta 2020).
These challenges are as follows:

  1. Lack of awareness and training: Many women SHG members are hesitant to take up the leadership role in these communities due to a lack of awareness and training. Financial illiteracy leads to the misuse of domestic funds, hindering economic growth and the ability to operate at a larger scale.
  2. Growing dependency of external agencies: As there is involvement of NGOs and development agencies of the state government to help the SHG members, the independent decision-making takes a back seat due to the uncertainty of the process. This challenges the long-term sustainability of developmental projects in these communities.
  3. Limited access to financial services from Banks: Financial illiteracy and the growing dependence on external NGOs led to mistrust of banks among the local members of the SHGs. Members struggle to acquire loans for their projects or even to repay them, leading to financial insecurities. The PRIs also neglect these groups due to the patriarchal administration and orthodox mindset.
  4. Lack of Infrastructure: SHGs also struggle to transform from microfinance to full fledged entrepreneurship. The reasons include poor infrastructure, limited market facilities, and the role of market intermediaries in the process.
  5. Socio-cultural barriers: Women often face criticism, both as a leader and as a member, for their participation in SHGs. The reasons include a lack of education, conservative thinking, and orthodox traditions followed rigorously in the rural communities. The caste system also plays a major role in determining their position in society. These limit the potential of SHGs to bring a change and break barriers.

As Patel (2023) mentions, numerous government schemes, policies, and initiatives challenge
the issues of rural SHGs. The policies include:

  1. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA, 2005): To involve women SHG members in the decisions taken by the Gram Sabha, as auditors and supervisors. They can also administer as implementing agencies for various development projects.
  2. Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM, 2011): To provide economic resources for vocational training and financial inclusion for women’s participation in SHGs. Following SDG 2 of zero hunger and SDG 5 of gender equality, it focuses on capacity-building, financial autonomy, and gender equality at local governance (Basak 2024).
  3. Extensive use of Technology for digital marketing: The collaboration between the government and digital entrepreneurial platforms promotes the regional goods at both national and international levels, becoming a source of income through entrepreneurship.
  4. Skill Development Institutes: The Rural Self-Employment Training Institutes (RSETI) and Deen Dayal Upadhyaya Grameen Kaushala Yojana (DDU-GKY) help in developing skills and increasing awareness among the SHGs. These help them transform from microfinance to macro entrepreneurships.

Pathways for a Better Future: Recommendations and Conclusion

Rural women should be included in land ownership to gain financial independence and credit, enhancing the policy interventions for SHGs and marginalized communities. SHGs should be facilitated with direct banking benefits, in alignment with schemes such as NRLM, NABARD loans, and MGNREGA (Patel 2023). Along with these, bureaucrats should ensure initiatives such as setting up local committees and the reach of technology in these areas for grievance redressal and stakeholder analysis (Gupta 2020).

To conclude, women’s governance in rural communities is the need of the hour. They help in bridging the gap between the local needs and policy implementation, resulting in an ethical process. This amplifies women’s voices, leading to better resource allocation. They bring in concepts such as conflict resolution, social networking, sustainability, and innovation in grassroots-level governance. Therefore, when women are not only participants but leaders, they become agents of resilience, community development, and social change, respectively.

References

About the contributor: Noholie Bonnerjee is an undergraduate student in History at Jadavpur University, Kolkata, West Bengal, India. She is a fellow of the YWLPPF 3.0 – Young Women Leaders in Public Policy Fellowship, Cohort 3.0.

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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Acknowledgement: This article was posted by Rashmi Kumari, a research intern at IMPRI.

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