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 SHGs A 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 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 SHG conditions: –12-20 women –below poverty line (yearly earning under Rs., ~ 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 NGO  Gains 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 Rs. (~736 Euro) Rs. Bank loan Rs. Governmental subsidy Divide loan among members for bulding up a business Construction and functioning of a SHG

Repayment of complete loan ( Rs.) within 2 years 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 trainings  Economical, social and political empowerment Attractive alternative for poor women