Language
Country/Area
No result found
The magic of self-help groups: why they hold the key to escaping poverty?
In India, the National Rural Livelihoods Mission (NRLM), since its launch in 2011, has become an important program for reducing poverty and promoting self-employment. The main purpose of the program is to organize poor communities through Self-Help Groups (SHGs) and assist them in developing self-employment capabilities. As the world faces the challenge of poverty, the self-help group model is seen as an effective solution that deserves further exploration.
Background
The NRLM is a realignment of the previous scheme, the Golden Access Rural Self-Employment Scheme (SGSY), to overcome the shortcomings of the old scheme. The core of the program was to form groups and assist them in launching entrepreneurial activities. However, early self-help groups were not as successful as expected.
Methodology
The implementation of NRLM operates on three pillars: enhancing and expanding existing livelihood options for the poor, developing skills for off-market employment opportunities, and developing self-employment and entrepreneurship. The core of this plan is to provide poor people with the necessary capital, technical knowledge, skills and market linkages.
The purpose of self-help groups is to create spaces where poor people can face challenges together and become economically self-sufficient.
Through the support structure established, NRLM not only strengthens the organizational platform of poor communities, but also promotes the improvement of financial services, products and production technologies for its members. The program attempts to assist underprivileged youth by providing skills development and mentoring them to match job requirements so that they can find well-paying jobs. At the same time, the self-employed and entrepreneurial-oriented poor will be provided with the necessary skills and financial connections to promote the growth of micro-enterprises.
Demand-driven strategy
NRLM’s demand-driven strategy allows states to develop their own livelihood-based action plans for poverty reduction, focusing on delivery of outcomes and timeframes. This flexibility means poor people can navigate this action plan to ensure their needs are met.
When plans are self-led from the ground up, all efforts are dynamic and able to continuously adjust to reflect actual needs and challenges.
Criticisms and Challenges
Although the NRLM is an important poverty reduction program, experts point to a number of problems. Some scholars such as Malcolm Harper pointed out that several challenges faced by self-help groups include: the process of establishing a group is time-consuming and may exclude individuals who are eager to innovate and take risks; men tend to have poorer teamwork than women and may Affect the stability and efficiency of the group.
In some states in India, such as Andhra Pradesh and Kerala, self-help group programs have produced remarkable results due to the good support and long tenure of professional local government staff. However, this success may not necessarily be replicated in all regions because conditions and resource availability vary from state to state.
Conclusion
The success of self-help groups not only relies on external support, but also requires internal motivation and self-awareness of the poor. Through such collective action, it is possible to change the living conditions of many people and gradually move towards the path out of poverty. But the question remains, can this model be applied broadly across communities and cultures to further reduce poverty rates around the world?
