NRLM : GOAL - POVERTY ELIMINATION

Poverty elimination through social mobilization, institution building, financial inclusion and a portfolio of sustainable livelihoods.

VISION: Each poor family should have an annual income of at least Rs.50,000 per annum

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NRLM

Task: to reach out to 7.0 crore rural poor households, and, stay engaged with them till they come out of abject poverty

Mission - to do this in a time bound manner

N.R.L.M - LESSONS FROM LARGE SCALE EXPERIENCE IN THE COUNTRY

Even an ultra-poor family can come out of abject poverty in 6 - 8 years Provided they are organised, nurtured, and, given

continuous support by a dedicated support structure, both external and their own.

Provided they are enabled to access financial support in repeat doses, min. Rs.1.0 lakh per family

Paradigm shifts required

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PARADIGM SHIFT – MINDSET ABOUT POOR

• Poor:

– innate capabilities

– self-help and volunteerism

• Social mobilisation and institutions of poor – key to poverty eradication

• Sensitive support institutions for poor – to induce social mobilisation 4

PARADIGM SHIFT

• Poor as ‘engines’ of growth and not dependent on ‘trickle down’

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PARADIGM SHIFT

• Core investment of Govt. – investment in institutions of poor

• Poor people’s institutions drive the programme – Govt/N.G.Os as facilitators

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Human and Social Capital(Leaders, CRPs,

Community Para-Professionals)

Dedicated Support Institutions

(Professionals,Learning PlatformM & E Systems)

Institutional Platforms of

Poor

(Aggregating and Federating Poor, Women, Small &

Marginal Farmers, S.C s and S.Ts)

Name : Vijayalaxmi Swayam Sahayak SanghamAddress : B.K. Samudram, Ananthapur District, A.PDate of starting : 26 – 09-1996Period of study : 26.09.19196 to31.03.2009 (13 Years)No. of members : 10 No. of weekly meetings :594Percentage of members Attendance in the meeting : 92%SHG bookkeeper’s monthlyHonorarium : Rs. 150/-Total saving in the group : Rs. 1,47,000Total group corpus : Rs .3,46,945

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S.No. Agency Year Loan amount

1 Bank 2000 20,000

2 Bank 2005 30,000

3 Bank 2007 1,50,000

4 Bank 2008 5,00,000

5 Bank 2008 40,000

Sub Total 7,40,000

6 MS/VO 1998 70,000

7 MS/ VO 2004 81,000

8 MS/VO 2005 12,000

9 MS /VO 2006 1,20,000

10 MS/VO 2008 50,000

Sub Total 3,33,000

Grand Total

10,73,000

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S.No

Small Loan

Purpose

No.of small loans

Total loan

amount (in Rs.)

S.No

Investment Loan purpose

No.of Big

loans

Total loan amount (in Rs.)

1 House hold expenses

492 445000 1 Weaving 24 364000

2 Health 127 85000 2 Business 48 839000

3 Agriculture 95 115000 3 Autos 5 229000

4 Education 135 123150 4 House construction

3 800000

5 Milch animals 18 180000

6 Agriculture 7 53000

7 Land 4 160000

8 Vermicompost 7 157000

9 Education 9 60000

10 Miscellaneous 32 353000

Total 848 768150 24%

Total 157 2475000 76% 10

1 Total No. of Small loans 848

2 Total loan amount in Rs. 768150

3 Total No. of Investment loans 157

4 Total loan amount in Rs. 2475000

5 Total No. of loans 995

6 Total loan amount in Rs. 32,43,150

7 Per capita no .of loans 100

8 Per capita loan amount 3,24,315

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S.No.

Name of the Member

Monthly income beforejoining the group

amount(in Rs.)

Present monthly

Income amount(in Rs.)

1 V. Ramanamma 825 7100

2 S. Subbamma 1000 8000

3 M. Gangamma 825 7500

4 Prameelamma 825 8500

5 Chennamma 1200 8250

6 M. Naga Laxmi 1250 7500

7 Papulamma 1250 8200

8 Lingamma 1250 7250

9 P. Savitri 800 8200

10 Nagamani 900 7500 12

N.R.L.M - GUIDING PRINCIPLES

Organising the poor – a prerequisite to poverty eradication – a woman from each family

Inclusion of the poorest, and meaningful role to them in all processes

Institutions of poor, greatest source of strength for the poor

Dedicated, professional, sensitive and accountable support structure to initiate the process

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Poor to drive all project initiatives – key role of social capital: S.H.G and federation leaders, community professionals

Scaling up through community best practitioners

Transparency and accountability Community self reliance and self dependence

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GUIDING PRINCIPLES OF N.R.L.M

BUILDING PRO-POOR FINANCIAL SECTOR

Access to credit key to coming out of poverty.

Out of Rs.100,000 per family required – around 90% has to come from financial institutions.

Financial inclusion at affordable cost holds the key

NATIONAL RURAL LIVELIHOODS MISSION

Four streams of livelihoods promotion:

coping with vulnerabilities – debt bondage, food insecurity, migration, health shocks

existing livelihoods – stabilising and expanding, making them sustainable

self employment - micro-enterprise development

skilled wage employment - opportunities in growing sectors of the economy

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STRENGTHENING EXISTING LIVELIHOODS

Critical livelihoods are: agriculture, livestock, forestry and non-timber forest produce

Promote institutions around livelihoods

Promote end-to-end solutions, covering the entire value chain

Key – knowledge dissemination. Development of community professionals in a large number

AGRICULTURE AS VIABLE LIVELIHOODS

Community managed sustainable agriculture holds immense promise

A family can secure additional annual incomes of Rs.50,000 with 0.5 – 1.0 acre of land ( 0.25 to 0.50 acre irrigated + 0.50 to 0.75 acre rainfed lands )

Natural farming, multi layer, poly crop models for food security and sustainable livelihoods

Convergence with MG NREGS to improve soil and moisture conservation, and, soil fertility

SKILL DEVELOPMENT AND PLACEMENT

Up-scaling of Skill development through public-private partnerships – critical

Plan to reach out to 1.0 crore youth Community professionals –

programmes for skilling local youth in agriculture, livestock, watersheds, N.T.F.P, etc.

SELF EMPLOYMENT AND MICRO ENTERPRISE DEVELOPMENT

Entrepreneurship development among local youth to generate in situ employment

50 – 60 lakh micro-enteprises

Successful RUDSETI model will be replicated

Convergence – institutions of poor provide a platform for convergence and optimisation of all anti-poverty programmes

Linkages with PRIs Partnerships with N.G.Os and CSOs Partnerships with industries, industry

associations

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KEY FEATURES OF N.R.L.M: CONVERGENCE AND PARTNERSHIPS

LINKAGE WITH PRIs

Establish healthy relationship between institutions of the poor and the PRIs – based on mutual respect and understanding

Institutions of the poor have a regular dialogue with PRIs, provide all information to them, and, actively participate in the Gram sabhas.

PRIs understand the role that S.H.Gs and federations play in the life of the poor, and, include pro-poor initiatives in their plans

Intensive capacity building of PRIs and S.H.Gs in micro-planning

PARTNERSHIPS: N.G.O N.G.Os – pioneers in the country in grassroots

social mobilisation, building institutions of poor Will play a key role to develop and nurture

social capital of the poor Partnership with NGOs based on: mutual

respect, core principles of NRLM, accountability to institutions of the poor, outcomes based

Dedicated sensitive support structures at all levels to trigger social mobilisation.

A national mission management unit State wide sensitive support structure, full

time dedicated head of the mission Positioning multi-disciplinary team of trained

and competent professionals at state, district and sub-district level

Quality human resources from open market and from Govt. 24

KEY FEATURES OF N.R.L.M: SENSITIVE SUPPORT

Technical support to State missions from the national mission management unit

Monitoring , learning and evaluation to include process monitoring, impact evaluations, ICT based MIS systems, and, social audit

Funding pattern: Centrally sponsored scheme. Fund allocation to states broadly on the basis of poverty ratios, and, based on their plans

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KEY FEATURES OF N.R.L.M

Implementation: Process intensive – hence phased

implementation Intensive implementation starts with

10% blocks in the country – they are developed as resource blocks.

Social capital from the 1st phase blocks enables organic scaling in the rest of the blocks in a phased manner – all 6000 blocks in 7 years 26

KEY FEATURES OF N.R.L.M

ACCOUNTABILITY

Extensive use of I.T for transparency and real time monitoring

Accountability Systems• Regular meetings of S.H.Gs and

federations – financial transactions read out in the meeting

• Social audit for transparency and accountability

RESULTS MONITORING Computerised MIS : submission and sanction of

proposals and online monitoring – centre to states to districts

Periodic monitoring by teams of experts visiting states

Baseline and impact evaluation by independent agencies

Large scale independent study – panel data - monitoring same households, once a year over 10 years

Build and sustain strong institutions of poor – affinity based organisations

Groups around narrow interests – not sustainable

Federating the institutions at village, block and district level

No shortcuts – process oriented

Institutions of poor – not a substitute for strengthening and empowering PRI s

They supplement and strengthen PRIs

Not parallel bodies

Community finance institutions o Capitalisation of federations, as

opposed to subsidies to householdso Makes C.B.Os financially self relianto In remote tribal areas – makes up for

absence of bankso Innovations: development of need

based products

Govt and C.B.Os - partnership Peoples’ institutions ( C.B.Os)

provide the best last mile solution Govt. – wholesale, C.B.Os – retail Partnership leads to developing

appropriate strategies, and, implementation arrangements

Scale: Scaling up without loss of quality,

possible only in partnership with C.B.Os Scaling up – both horizontal and

deepening - by community best practitioners

Management by C.B.Os and their staff ( paid by them and accountable to them)

Knowledge dissemination: Management by C.B.Os Demystify knowledge – train

village para professionals Accountability of staff to C.B.Os Transfer of knowledge,

technology to newer areas through community best practitioners

Continuous innovations in such a model of empowerment

Learning from people Iterative Ideas to implementation – learning

curve crashed – end to end solutions Training by best practitioners, (not

by disinterested staff) Infectious enthusiasm

Support structures to reinvent themselves

Empowerment model leads to support structures becoming a ‘learning’ organisation – whatever we do today, should be done by the C.B.Os tomorrow

Work increases manifold – but staff does not increase

Staff reskilled for new responsibilities Focus on new requirements