Status of women in rural India

Governmental laws to support women and improve their status in society

Deep traditions• Women discrimination

roots in Hinduism• Only role given by

society: motherhood and family member

• Discrimination through patriarchic family structure

No essential improvement in women’s reality

Forms of discrimination

• Dowry system• Discrimination of widows• Exploitation through employer

Status of women in rural India

Women SHGsA sustainable concept

Women…

… are responsible for the organization and maintenance of the family

…can only survive through a functioning family

…will therefore put every strength into the family

They carry the largest potential for a positive family development

…contribute a big part to the family income

…usually do not have the control over the usage of the money

It is necessary to strengthen their role and self-confidence to make them able to defend against their husbands in order to support their family

Self Help Groups…

…organize women into communities – “together we are powerful”

…give women the feeling of group identity and enthusiasm on a common idea

…strengthen the status of women in the village community and give them influence

…serve as idols and motivate others to form groups…pass information and knowledge into the village community

In SHGs, women find the courage and the right platform to CHANGE

Women SHGs - A sustainable concept

The Mahalir Thittam Project

Based on the cooperation of the government with local NGOs and banks

“Tamil Nadu Women’s Development Project Mahalir Thittam”

A governmental development project

Vision

Organize 1 Mio. women under the poverty line in 60.000 independent and sustainable SHGs

Clue

“Empowerment”

• Social Empowerment– Women build up an equal status with men in family and village

community– Women participate in decision making in every sphere– Decline of social, cultural and religious barriers which restrict

women’s development

• Economic Empowerment– Growing income of women and their families– Self-control over income– Reduction of weakness in emergency cases

• Capacity Building– Growing consciousness in the spheres of education, health,

environment

The Mahalir Thittam Project

Construction and functioning of a SHG

Foundation

Cluster Coordinators of a NGO • Identify the poores women in the villages as potential

members and motivate them to form a SHGconditions:

– 12-20 women– below poverty line (yearly earning under 18.000 Rs.,

~ 1.500 Euro)– In the age between 18 and 60 years – From different families and communities

• Choose a group leader- the village animator- and two representatives

Instructions for a newly founded SHG

Construction and functioning of a SHG

Village Animator

• Takes part in regular trainings conducted by the NGOGains knowledge in group leadership, bank and loan

business, maintaining accounts, hygiene, education, health

• Passes the information to the SHG members in weekly

meetings

Construction and functioning of a SHG

Micro Bank

• women open a bank account on their SHG name• Every member pays a weekly amount which is collected

during the SHG meetings• Every member brings the money to the bank (according

to a rotation system)• All money transactions are documented by the Animator

in 9 different books and read out during SHG meetings

Women build up mutual savings which they can use in emergency cases

Independence of money lenders and high interests

Construction and functioning of a SHG

Loans

After 6 months, the NGO and the ministry for development check the books

correct book keeping

Permission for taking a bank loan

First loan

50.000 Rs. (~736 Euro)

40.000 Rs. Bank loan 10.000 Rs. Governmental subsidy

Divide loan among members for bulding up a business

Construction and functioning of a SHG

Repayment of complete loan (50.000 Rs.) within 2 years

10.000 Rs. subsidy is given back to the group

State rewards the SHG only after visible success

Possibility to take further loans with higher amount

Construction and functioning of a SHG

Examples for SHG business

Construction and functioning of a SHG

Relationships

• to local companies and traders for better conditions• Participation in competitions, exhibitions, fairs etc.• Organization of SHG bazaars

SHG Bazaar

Construction and functioning of a SHG

Withdrawal of NGO

• Within 5 years, the support of the NGO has to be withdrawn step by step

• after, the SHG has to work independent with firm structures and an eminent position in the village community

Sustainability

Successful SHG

Construction and functioning of a SHG

Problems

Micro Finance Institutions • Immediate loan on the

doorstep• No control on money

handling• Economical purpose

Only economical empowerment

NGO

• Loan…

…connected with saving measures

…given after 6 months

…connected with trainingsEconomical, social

and political empowermentAttractive alternative for

poor women