1 Structural refinement in CBOs for self-reliant development - Emerging options

2 Category of existing CBOs Credit and thrift based CBOs Cooperative societies Natural resource based CBOs

3 Credit and thrift based CBOs Self Help groups (of women and men) Rythu Mithra Groups (of farmers) Federation of SHGs at village level and higher levels

4 Cooperative Societies Commodity based Cooperative Society (such as Fisherman Cooperative Society, Shepherd Cooperative Society, Horticulture Cooperative Society, Agriculture Cooperative Society, etc) Credit Cooperative Society (such as Multi-purpose credit and single purpose credit cooperative society, etc) Marketing Cooperative Society (such as Multi-purpose and commodity based marketing cooperative society, etc)

5 Natural resource based CBOs Water Users Association (WUA) Watershed Association (WA) Vana Samrakshana Samithi (VSS) User Group (UG)

6 Structural refinement in the credit and thrift based CBOs (e.g. Self Help Groups)

7 Analysis of existing framework SHGs have shown successful performance over a wide range of situations for proper management of external funds This is happening essentially because of proper functioning of internal group pressure for adoption of disciplinary norms (e.g. fine for late comers, penal interest for defaulters, restriction on sharing of common fund with those who are unwilling to abide by the norms, etc.)

8 Analysis (contd.) This has helped in improving their sustainability By and large SHGs are found to be successful on the following aspects  Social capital formation  Equity for resource poor families  Empowerment of women

9 Analysis (contd.) Presently majority of SHGs are having only women members and they concentrate mainly on micro-enterprises The members within the SHGs are having homogeneity in socio-economic status but heterogeneity with respect to adoption of livelihoods / enterprises

10 Such type of membership helps in managing the external funds in a proper manner but does not provide conducive institutional framework for facilitation of external technology Recently at many places, SHGs have been federated at village as well as higher levels and these are operated through their executive committees Analysis (contd.)

11 Existing framework of SHGs and their federation Unorganized community at village level (with large variation in socio-economic status) Members within SHGs have similarly in socio-economic status SHG 1 SHG 2SHG 3 Federation of SHGs * Executive committee Federation of SHGs * Executive committee

12 Emerging framework – organization of Common Interest Groups (CIGs) There is a need to organize separate CIGs for each type of commodity This may provide conducive institutional framework for facilitation of external technology For this purpose, respective CIGs may emerge from the existing SHGs

13 Unorganized community at village level (with large variation in socio-economic status) CIG-1 CIG-2 Members within SHGs have similarly in socio-economic status SHG 1 SHG 2SHG 3 Emerging framework: CIGs emerging out of SHGs Member within CIGs are having similarly in enterprises

14 Emerging framework: Blending the concept of SHG with CIG This will help in integrating the strengths of the two types of CBOs (i.e. SHGs and CIGs) Under this set-up financial transaction should be carried out within the respective SHGs but non-financial transactions (e.g. technical and management discussions) may be carried out within the CIGs

15 For proper functioning of CIGs, their executive committees may be organized at village as well as higher levels These executive committee (of CIGs) may also be considered as thematic sub-committees of SHG federations at respective levels Emerging framework: Executive committee of CIGs

16 Federation of SHGs * Executive committee * Executive committee Federation of SHGs * Executive committee * Executive committee Members within a particular CIG have similarly in the enterprise CIG - 1 CIG - 2CIG - 3 Emerging framework: Thematic sub-committee of SHGs federation Thematic sub-committee

17 Emerging framework: Organization of producers company This type of institutional set-up may provide non- threatening space for other members of the families to participate in CIGs for collective processing of technical and management aspects If needed, the CIGs may be federated at village as well as higher levels and registered into producers company

18 Structural refinement in the cooperative societies (e.g. Commodity based cooperatives)

19 Analysis of existing framework These societies have by and large been created by developmental departments to help in implementation / facilitation of government funded projects Most of the cooperative societies consist of only men members with low levels of gender concern There is a large variation in socio-economic status of its members in the general body resulting into low levels of equity

20 The executive committee is usually dominated by its president or the secretary resulting into low levels of democratic processes Members of these societies have homogeneity with regard to a particular enterprise but heterogeneity with regard to socio-economic status Analysis (contd.)

21 These societies provide conducive institutional framework for development of livelihood but they are not suitable for facilitation of credit and thrift activity Hence these societies have very low levels of credit worthiness in the eyes of banks / MFI, etc Many of them are currently non-functional Analysis (contd.)

22 General body Unorganized members of cooperative society (with large variation in socio-economic status) Cooperative Society * Executive committee * Executive committee Cooperative Society * Executive committee * Executive committee Existing framework

23 The functioning and sustainability of these societies can be enhanced by organizing their general body members (men as well as women) into small size SHGs Afterwards existing executive committee members of above societies may be modified by gradually replacing its members with representatives of above SHGs Emerging framework

24 General Body Unorganized members of cooperative society (with large variation in socio-economic status) Members within SHGs have similarly in socio-economic status SHG 1 SHG 2SHG 3 Emerging framework Cooperative Society * Modified executive committee Cooperative Society * Modified executive committee

25 The SHGs of above societies may be federated at village level as well as higher level for carrying out financial transactions (in situations where it is difficult to replace executive committee members of societies with representatives of SHGs) Emerging framework (contd.)

26 Structural refinement in the natural resource based CBOs (e.g. Water Users Association)

27 Analysis of existing framework These CBOs have by and large been created by developmental departments to help in implementation / facilitation of government funded projects Most of the above CBOs consist of only men members with low levels of gender concern There is a large variation in socio-economic status of its members in the general body resulting into low levels of equity

28 The executive committee is usually dominated by its president or the secretary resulting into low levels of democratic processes Members of these CBOs have homogeneity with regard to a particular enterprise but heterogeneity with regard to socio-economic status Analysis (contd.)

29 These CBOs provide conducive institutional framework for development of livelihood but they are not suitable for facilitation of credit and thrift activity Hence the above CBOs have very low levels of credit worthiness in the eyes of banks / MFI, etc Many of them are currently non-functional Analysis (contd.)

30 General body Unorganized members of WUA (with large variation in socio-economic status) Water Users Association (WUA) * Executive committee * Executive committee Water Users Association (WUA) * Executive committee * Executive committee Existing framework

31 The functioning and sustainability of these CBOs can be enhanced by organizing their general body members (men as well as women) into small size SHGs Afterwards existing executive committee members of above CBOs may be gradually replaced with representatives of above SHGs Emerging framework

32 General Body Unorganized members of WUA (with large variation in socio- economic status) Members within SHGs have similarly in socio-economic status SHG 1 SHG 2SHG 3 Emerging framework Water Users Association (WUA) * Modified executive committee Water Users Association (WUA) * Modified executive committee

33 The SHGs of above CBOs may be federated at village level as well as higher level for carrying out financial transactions (in situation where it is difficult to replace executive committee members of CBOs with representatives of SHGs) Emerging framework (contd.)

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