To reduce poverty by enabling the poor households to access gainful self employment and skilled wage employment opportunities resulting in improvement in their livelihoods on a sustainable basis through building strong grass root institutions of the poor. NRLM mandate is also to reach out all the poor families, link them to sustainable livelihood opportunities and nurture them till they come out of poverty and improve the quality of life.
AN OVERVIEW OF NRLM NIRD,Hyderabad NRLM MISSION To reduce poverty by enabling the poor households to access gainful self employment and skilled wage employment opportunities resulting in improvement in their livelihoods on a sustainable basis through building strong grass root institutions of the poor NRLM mandate is also to reach out all the poor families, link them to sustainable livelihood opportunities and nurture them till they come out of poverty and improve the quality of life NRLM Guiding Principles • • • • Poor have a strong desire to come out of poverty, and they have innate capabilities Social mobilization and building strong institutions of the poor is critical for unleashing the innate capabilities of the poor An external dedicated and sensitive support structure is required to induce the social mobilization, institution building and empowerment process Facilitating knowledge dissemination, skill building, access to credit, access to marketing, and access to other livelihoods services underpins this upward mobility NRLM Values The core values which guide all the activities under NRLM are as follows: Inclusion of the poorest, and meaningful role to the poorest in all the processes Transparency and accountability of all processes and institutions Ownership and key role of the poor and their institutions in all stages – Planning, Implementation, Monitoring Community self-reliance and self-dependence NRLM WORKS ON THREE PILLARS Enhancing and expanding existing livelihoods options of the poor Building skills for jobs market for outside; and Nurturing self employed and entrepreneurs (for micro enterprises) TASK • In the states, there is a widespread acceptance of the need for poor to be organized into SHGs as a prerequisite for the poverty reduction • Out of the estimated 10 crore rural vulnerable households, 2.5 crore rural BPL households have been organized and brought into SHG network, 7.5 crore households still need to be organized into SHGs • Even the existing SHGs need further strengthening and greater financial support • It was in this background the Government has approved the restructuring of SGSY as NRLM to be implemented in mission mode across the country Key Differences in SGSY & NRLM S.No SGSY NRLM Governmental Structure Dedicated Structure (Departmental – DRDA) SRLM DPMU BPMU SGSY vs NRLM CC, CRP, PRP’s Poor will identify the poor By Govt – BPL 2a Identification of poor - PIP - CC, CRP - Community Involvement SHG formation – basis is common activity Affinity groups Contd… S.No SGSY NRLM Weak SHG’s Strong SHG’s (CB, Bank linkage, Regional variations) - More discipline - Shows a way through formation of SHG’s & Bank linkage Group approach No compulsion of group activities Starts with SHG Federations Ends with SHG No Institutional Structure Locked in Institutional Structure (If one layer does not work, other layer works) (SHG – VO – CLF – BLF – DLF) 6a No Micro Plans (MCP) MCP – SHG will prepare S.No SGSY NRLM Convergence (Line Departments) - Development Programmes running parallely No Convergence - Mid day Meal - Distribution of Pensions - Watershed Management - Insurance Programme - IAY - Planting trees – Afforestation programmes Uniformity in all states States have flexibility (CB, Interest subvention) Target Oriented Process Oriented Social Mobilization Egg SHG Formation Butterfly Larva Pupa CB & IB SHG – Bank Linkage S.No 10 SGSY NRLM Departmental Staff leads Poor has to lead – CRP, CC, PRP Government to Community - Community to Community 11 All blocks – on par - Intensive & Non-Intensive blocks - Resource blocks 12 No Involvement of NGO’s Involvement of NGO’s/ RO/Own (Intensive blocks) (PP – CP approach) 13 No Project Cycle Project cycle in a block for 10 years HH – SHG – VO – CLF 14 Major Investment on IGA Major Investment on CB - 20% on livelihoods - Business of Collectives – Producer groups – Companies S.No 15 SGSY Credit for IGA NRLM Credit Consumption Debts Existing livelihoods New livelihoods 16 No follow up Follow up and Monitoring - Facilitation - CRP, CC, PRP, DPM, SPM (supporting team) - Only then bankers will come forward to lend 17 Target approach Saturation approach (In a village – All the poor into SHG block will be supported for 10 years) S.No 18 SGSY Insufficient Capital NRLM Enough Capital to survive (Absorption Issues) (22% - access bank credit for IGA) 18a Every meeting – agenda (savings, internal lending) -Social change, Social capital - Credit plans - Education, Health, IGA etc One time subsidy No Capital Subsidy Ex:- Fish 19 Only money transactions Ex:- Skill of catching Fish - At all stages – birth, education, agriculture, livelihoods, death etc 20 Only Subsidy Linked Loan Variety of Funds (Repeat Finance) - RF (10,000) - Seed capital – CLF (1 crore) - VRF – VO (1.8 lakhs) RF – Follow panchasutras – months S.No 20 SGSY Only Subsidy Linked Loan NRLM - VRF – After formation - Panchasutras – months – 1st installment - After year - 2nd instalment - After 2-3 years – 3rd instalment (Food security, Insurance activities etc.) - CLF – Seed Capital nd year – 25% (formation) rd year – 25% (VO’s getting funds from them) th year – 25% (activities) th year – 25% (activities) 21 Sustainability aspect is absent Sustainability (Fish, Fishing, Meta fishing) 22 No role for Gram Panchayat - In the presence of Gram Sabha - Gram Panchayat has to wet the PIP S.No 23 SGSY Capacity Building within the states NRLM - Successful states as Capacity Building agencies (EGMM, SERP, BRLP, Kutumbashree, TNWDC) - National Resource States Self Employment - Self Employment (RSETI’s) - Skilled wage employment (ASDP) Group Activities 24 livelihood collectives (Optimize their limited) Livelihood 25 Multiple Lvelihoods Development of a HH Comprehensive Development of a HH - Increase in income - Decrease in expenditure - Increase in savings - Decrease in risks S.No 26 SGSY No CB manuals NRLM Every State should have COM –approval from state government - Perspective Plan – Next years - Annual Plan – Every year 27 No facilitators for SHG – Bank linkages System of Bank Mithras - Banking Correspondent - Facilitators from Community 28 No MIS MIS 29 Limited sources of credit (SHG, Banks, SGSY) -Multiple sources of credit -(SHG, VO, CLF, BLF, Banks) Capital subsidy linked loan is given once Loans are given repeatedly 30 S.No SGSY NRLM 31 Errors of exclusion and inclusion - BPL Minimize the errors – PIP 32 Launched all over the country Tasted & Standardized in states (AP, Bihar, Kerala, TN) Lessons learned There is a need for a sensitive support structure right from State level to district and subdistrict levels The sensitive support structure has the responsibility for inducing social mobilisation and building strong grassroots institutions of the poor, particularly women These institutions Provide continuous nurturing support which a poor household require during this Journey to come out of poverty For a poor family to come out poverty nurturing and handholding support of its own organisations for a period of - years is extremely critical Rural poor households of women, organised into SHGs require repeated doses of finance at affordable rates such that over a period of – years they have accessed at least Rs.100,000/- • The strength of individual SHG in providing support to their members is multiplied when all the poor in a village are organised into SHGs and all the SHGs come together at the village level and form a federation • A second tier of federation of the village federations at the block or sub-block level is required to provide necessary linkages with ongoing Government programmes and to link with the subdivisional level structure of the State Livelihoods Missions • The poor need to overcome livelihoods risks by developing a variety of livelihoods This enables them to survive from the shocks to any particular livelihoods streams • Poor are very vulnerable to tackle the shocks and they need safety nets in their organisations to access safety needs entitlements under various Government programmeslike MGNREGA, Social Assistance Programmes, PDS etc 19 NRLM: KEY AMENDMENTS/ENDORSEMENTS Phased expansion - years to reach all districts/blocks Institutions, Internal Animation, Dedicated Support Support for 10 years in a Block Participatory identification of Poor (PIP) Financial allocations based on inter-se poverty ratio Funds, Linkages, Enabling Environment Capitalization of all IOPs [Resources in Perpetuity] Interest Subvention Capacity Building includes Professional Costs 25% Skills and Placement National Society HR Best Practices State Support • State Anchoring – – – – – – – – • • • • 7/4/16 Team of Professionals from NMMU support each SRLM in NRLP States: State Anchor-led Team State Anchor to spend at least a week per month in the state Support by Senior development worker(s) as part of the team State Anchors from NROs; staff each from NSO in states Participation in the monthly reviews of SRLM and de-briefing of CRPs Mentoring of SRLM by Academic/Management Institution- planned Half-yearly Missions Monthly/bi-monthly Video Conferences with SMDs/SMMUs Monthly/bi-monthly thematic meetings with States Quarterly planning and review meetings with SRLMs Facilitating planning, review and learning systems in SRLMs TA and Partnerships • • • • • • • NROs – SERP, Kudumbashree, BRLPS, TNSRLM/PVP, EGMM, NIRD; BIRD as NRO in financial inclusion SERP’s role expanded to include Financial Inclusion - MIS PRADAN on board as NRLM Support Organization in Livelihoods Initiated discussions with FAO for collaboration on sustainable agriculture and livestock No cost Partnership with NGOs – guidance finalized Partnership Blocks – guidance being issued Partnership with CBAs and other organizations – consultations are on - guidance to be issued shortly 7/4/16 Induction Modules Phase Sub-block staff BMM, District Specialists State Team, District Leads Phase 1, Preparation Initial orientation on NRLM; followed by 2-4 week village stay and 1-2 week exposure visit [plus 1-2 week block stay for state team/district leads] Phase 2, Class Room plus Understanding the Context: Poverty, Vulnerability, Livelihoods and Participation (Processes, Tools), followed by 4-5 Fieldwork week of Fieldwork, accompanying CRPs [at least 1-2 week for state team/district leads] Phase 3, Class Room plus Institutions – Focus on SHGs; Planning and Management Skills Project Management Tools and Skills Beyond Institutions , Layering Visioning; Thematic/District Management Fieldwork Phase 4, Class Room plus Fieldwork Thematic/ Management Focus Orientation; attachment with counterpart leads in advanced states Phase 5, Classroom 7/4/16 Consolidation & Action plan Thank You One and All NRLM Resource Cell NIRD,Hyderabad