↑ Performance on Dev indicators & SDGs—↑ reach of Govt policies
Education—Pratham (ASER), K.C. Mahindra Edu Trust ( Promote higher edu)
Health— Public Health Foundation of India, Udaan welfare foundation—Help destitute—Cancer chemotherapy center.
Paryas Society (NGO)— started ‘Asptal – Sansad Mobile Swasthya Seva’ initiative to provide free PHC in the remotest locations of Hamirpur constituency in HP.
Extended Prohibition to accept foreign contrib to P.S along with earlier—election candidates, judges, Govt servants, MP/MLAs etc
Prohibits transfer of foreign funds to any other person (2010 act— can be transferred to person registered under FCRA)
Aadhar of all office bearers mandatory for Registration or its renewal
Now max 20% funds can be used for Adm purposes (2010 Act—50%)
Govt may conduct an inquiry before renewing the certificate
Foreign funds must be received only in an A/C designated by bank as “FCRA A/C” in notified branches of SBI, New Delhi.
Mandatory renew of licence every 5 yr—↑ Govt’s discretion
Criticisms of FCRA
Chilling effect on
Freedom of free speech—Allowing only some political groups to receive foreign donations & disallowing others
Freedom of ass under Art 19(1)(a) & 19(1)(c)
May be used to target political opponents & religious minorities.
As a tool to curb legitimate dissent —FCRA used as a tool of repression
Sec 5 gives Union “unchecked & unbridled powers” to declare an org as of political nature & deny it access to foreign funds—Misused
Why amendment?
To enhance T/P & A/C in receipt & utilisation of foreign contri + facilitating “genuine” NGOs which are working for welfare of society.
Cut adm expenses to ensure that NGOs not use donations for personal use & to prevent siphoning of funds
Conclusion
SC— A balance has to be drawn b/w the objectives of legislation & rights of VOs to have access to foreign funds.
Role of SHGs in Development
Introduction
A ‘self-governed, peer controlled voluntory Ass of people with similar S-E background who aspire to improve their living stds & address their common problems’
Origin—ROSCA (Rotating savingd & Credit Ass)—> Gained momentum after 1992 (SHG Bank Linkage Project)
Importance of SHGs
Poverty alleviation & Rural Dev —
Financial inclusion– Facilitates access to credit & Micro Finance to poors + SHGs members act as “Banking Correspondent” (Bank sakhi prog)
Provide Livelihood (By vocational training, skill dev)– Improved living standards
Promotes savings & investments
Promotes Entrepreneurship—self-employment through setting of micro-enterprise
Awareness generation + Efficacy in implementation of Govt schemes
DAY-NRLM, MGNREGA
Social Audits
Many +ve externalities
↑ literacy, Nutrition– Operates PDS shops (MH)
↑ Maternal & Chilld health– By implementing ICDS & MDM
Better health care, family planning
Voice to marginalized—Social justice + Inclusive growth.
Inculcates leadership skill—participate actively in gram sabha & elections
SHGs bonds women into a collective force–> Act as PGs—Prohibition of liquor in Bihar bcz of pressure from women SHGs.
Facilitate–
Democratic Deepening & Grassroot empowerment ( Act as PGs at Village level)
Creation of Social capital
Combating Social ill— Close liquor shops
Imbibing spirit of Self Help, Democracy, Social Solidarity & social cohesiveness
Role of SHGs during COVID-19
MoRD— 132 lakh+ masks were produced by 14.5 k SHGs
Women SHG members (Bank Sakhis)— provided doorstep banking services— pensions etc
Kudumbashree—Dispelling fake news + disseminating authentic information through WhatsApp groups + Delivered free ration + Running kitchens around state
Prerna SHG (UP)—communicated on social distancing by street art & wall paintings.
Kudumbashree (Kerala)—Skill training & poverty eradication of women
Sorath Mahila Vikas Mandali (Gir region) fighting social taboos by helping widows
TN used SHGs to inculcate sanitation habits among people under SBM
Haryana used for increasing sex ratio & BBBP
SHGs like SEWA, Lizzat papad promotes entreprenurial culture among women.
TANWA ( TN Women in Agri) by TN govt
Govt steps
NABARD efforts–
SHG-Bank Linkage Prog—For providing micro-finance / Collateral-free loans to SHGs.
By providing grant for training, capacity building, skill upgradation.
“Women SHGs Development Fund” (NABARD) with a corpus of 500 cr
e-shakti initiative– for Digitisation of SHGs
Rashtriya Mahila Kosh—acts as a facilitating agency & provides loans to NGO-MFIs
Budget 2019-20
Women SHG interest subvention prog to be expanded to all districts
Women SHG having a Jan dhan a/c to be allowed a overdraft of ₹5000.
NRLM, DAY –NRLM— To promote self-employment in rural areas through formation & skilling of SHGs.
Recent Announcement–
To create 75 lakh SHGs by 2022
2x collateral free loans to WSHGs from 10 lakh to Rs 20 lakh.
Challenges for SHGs
Socio-cultural hurdles—
Embedded Patriarchy, Caste Rigidities
Illiteracy— Information asymmetry
Lack of financialliteracy—Creates Mgt & Governance issues
Lack of proper training regarding production tech, quality, packing, etc—No competitive adv.
Problems related to Raw Materials, Marketing—Bcz of
Lack of linkages with marketing agencies
Inadequate sales promotion
Issues of quality & Tough Competition
2nd ARC
Most of their activities are still based on primitive skills related mostly to primary sector enterprises—Poor value addition—No substantial increase in the income of group members
SHG has led to definite social empowerment of poors but economic gains rnot adequate to bring a qualitative change in their life.
Way forward
Est separate SHG monitoring cell in every state
Awareness camps about schemes of assistance available to SHSGs
Invest in digital-financial literacy & Entrepreneurship Dev
With increasing Urban poors—Need to develop & strengthen SHG network in urban areas.
2nd ARC—SHGs needs to be extended to urban & peri-urban areas
SHGs are imperative for economic revival & reconstruction in post covid order
