LINKS
Brief History of Cooperative Movement in India
Cooperative movements in India are in existence much before the independence. This was mainly to help the farmers in mitigating their debts from the moneylenders who charged exorbitant interest. The then governments appointed committees to look into the cooperative movement. “illiteracy and ignorance of the masses, misappropriation of funds, rampant nepotism, inordinate delay in granting loans and viewing co-operative movement as a Government movement were some of the glaring defects of the co-operative movement” (Sir Edward Mac Lagan Committee-1914). However, over a period of time, efforts have been made by various governments to build the cooperative movement and made them more helpful to the needy section of the society. Needless to say that the cooperative movement helped the people in different ways and millions benefitted out of it. There have been several efforts after the independence to strengthen the cooperative movement. Various committees had been formulated and legislations were promulgated to ensure that the cooperative movement will be beneficial to a larger sections of the people.
The International Cooperative Alliance (ICA) and the International Labour Organization (ILO) paved the way for emerging Indian cooperatives that needed more comprehensive and clearer legislation in order to develop as autonomous and democratic institutions.
National Cooperative Union of India (NCUI) www.ncui.coop
The National Cooperative Union of India, (NCUI) is the apex organisation representing the entire cooperative movement in the country. It was established in 1929 as All India Cooperative Institutes Association and was re-organised as Indian Cooperative Union through the merger of Indian Provincial Cooperative Banks’ Association with All India Cooperative Institutes Association and later in 1961 as National Cooperative Union of India. The objectives of the Union are “to promote and develop the cooperative movement in India, to educate, guide and assist the people in their efforts, to build up and expand the cooperative sector and to save as an exponent of cooperative opinion in accordance with cooperative principles”.
National Federation of Urban Cooperative Banks and Credit Societies (NAFCUB)
The main objective of the National Federative is to promote Urban Cooperative Credit movement in the country. www.nafcub.org
Coady International Institute: coady.stfx.ca
SEARSOLIN : http://www.xu.edu.ph
ICA : http://www.ica.coop
Brief History & Development of Self-Help Groups (SHGs) in India
Self-help group is a method of organising the poor and the marginalized to come together to solve their individual problem. The SHG method is used by the government, NGOs and others all over the world. The poor collect their savings and save it in banks. In return they receive easy access to loans with a small rate of interest to start their micro unit enterprise.
Villages are faced with various problems such as poverty, illiteracy, lack of skills, health care, etc. These are problems that cannot be tackled individually but can be better solved through group efforts. Today these groups known as Self help groups have become the vehicle of change for the poor and marginalized. Now-a-days, SHGs have become one of the major means of empowerment of women anywhere.
Self-Help Groups are non-formal, voluntary organisations formed by like-minded individuals to fulfil immediate or long-term financial, emotional, or community needs. Examples of SHGs are support groups for alcohol addicts, neighbourhood welfare groups, non-political labour, and agriculture interest groups. In India however, SHGs have come to imply financial empowerment for the weaker sections of society.
The Self-Help Group (SHG) has been defined by National Bank for Agricultural and Rural Development (NABARD) as a group of about twelve to twenty members from a homogeneous class, who come together for addressing their common problems. They are encouraged to make voluntary thrift on a regular basis. They use their pooled resource to make small interest-bearing loans to their members. The process helps them imbibe the prioritization of needs, setting terms and conditions and accounts keeping. The bank loans are given to them without any collateral and at market interest rates. The Self-Help Group is considered as a voluntary association of poor people. They mostly have the same socio-economic background, and are involved in solving their common problems through self-help and mutual help. It creates small saving among the members and the amounts are kept with any bank.
SHGs in Puducherry
For the past several years, the women SHG movement has gained momentum in various parts of the Union Territory, especially in the tsunami-affected coastal areas. Increased opportunities and adequate training has helped thousands of women in Puducherry to earn a livelihood.
With help coming from various quarters including banks and number of non-governmental organisations, the SHGs have been trained in manufacturing toys, making artificial jewellery, vermi-composting, incense sticks, woollen and jute products, screen printing, candle-making, tailoring and pickles.
SHGs in Puducherry have played important role in empowering women by strengthening their earning ability, promoting regular savings and thus boosting their self-confidence.
SHGs in Tamilnadu and Karnataka and the support given by state and central Governments
When Govts. change, priority of SHGs also change, and most of the SHGS suffer without Bank loans.
When they are linked to FAMCO they grow with FAMCO and their financial needs are met. Further, when the SHGs are alone, they cannot help other SHGs. When they are with FAMCO they can help each other under the cooperative philosophy “All for One and one for All” In the process of empowerment, SHGs i.e the women are empowered.