Topic: Development processes and the development industry —the role of NGOs, SHGs, various groups and associations, donors, charities, institutional and other stakeholders.
4. Discuss the role of Self-help groups as a necessity in rural development of the country.(250 words)
Reference: Indian Polity by Lakshmikant
Why this question:
The question aims to ascertain the role of Self-help groups as a necessity in rural development of the country.
Key demand of the question:
Explain the role of Self-help groups as a necessity in rural development of the country in detail.
Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.
Structure of the answer:
Define what SHGs are.
Self Help Groups are groups of 10-20 people in a locality formed for any social or economic purpose. Most of the SHGs are formed for the purpose of better financial security among its members. SHGs can exist with or without registration. SHGs in India often work in association with Banks (SHG – Bank Linkage Programme). Briefly explain their benefits to the society in general. Then explain why SHG are a necessity in rural development?
- In India there is a substantial percentage of rural and urban poor, who if tried individually cannot break their chains of poverty, and hence collective action is required.
- For self-employment and financial independence, poor sections need credit.
- Bank credits are not easily accessible to individual poor, but by forming a SHG, there are make better prospects for bank credits. (Often without collateral).
- The chance of successful income generation is high with SHGs than individual attempts.
Conclude with way forward.