Study on Institutional Building

21st Aug. 2006

Society for Elimination of Rural Poverty (SERP)

Hyderabad May – June 2006

Structure of Presentation

Scope of the Study The TWIN-IB Strategy Methodology of the Study Observation and Analysis

Quality of the Institution Sustainability Impact

Scope of the Study

Overall objective To assess the quality,

sustainability and impact of the institution building processes adopted by the project.

Scope of the Study

Assumptions for validation Adoption of an intensive process

oriented approach to IB has significantly contributed to sustainable institutions of the poor.

Sustainable institutions of the poor had significant impact on the QOL of the Poor.

Twin – IB Strategy : Intensive and Moderate

Intensive CRPs from SAPAP mandals Support from APMAS Exclusive Institutions (Chenchus) and

CRPs support Moderate

General IB strategy

Methodology of the Study

Identification of Indicators Two day workshop Field testing in Ranga Reddy

Quality of Institutions Rating tools – SHG, VO and MS

Sustainability Financial Non-financial including management

Impact Quality of Life (7) Perceived Benefits – Financial and Non-financial Perceived changes in Informal Institutions.

A.

Methodology

B. Methods and Tools

S.No.

Levels of Data Collection Method Tool

1 • Members of Sample SHGs • Interview to assess Impact

• Interview schedule

2 • Institutions (SHGs, VO, MMS & ZMS)

• Interview FGD • Rating Tools

3 • Project District Functionaries

• Semi-Structured Interviews (SSIs) Secondary Data

• FGD Guide• Interview Guide• Secondary data

Analysis

4 • Stake Holder (Line departments, bankers, non-poor, etc.)

• Stakeholder analysis • SA Guide

Methodology

Particulars Sample per District Total

• District 1 1 1 3

• Mandals ( 2 per District) 2 2 2 6

• Village Organization (@3 per Mandal) 6 6 6 18

• SHGs• ( @3 per VO) 18 18 18 54

• SHG Members• (@ 3per SHGs) 54 54 54 162

C. Sample Size

Methodology

D. Criteria for selection of mandals

Essential indicators: Age of the Mandal Samakhya Inputs provided by the project for the institution building

process (intensive& moderate) Minimum 75% of entitlement of CIF released and having at

least 90% recoveryDesirable indicators: (apart from the above three any one of the

below given indicators) Engagement in activities like procurement, marketing, RCL,

health, disability, etc. Mandals that have excellent social capital and supporting

other mandals & districts. Mandals that have achieved financial viability (meeting their

costs).

Observations and AnalysisQuality of the Institutions in Warangal:CRP based approach Vs moderate approach1.SHGs:

Mandal Name “A” Grade

“B” Grade

“C” Grade

Intensive: Geesukonda

78% 22% 0%

Moderate:Lingala Ghanapur

33% 56% 11%

Observations and Analysis

Quality of the Institutions in Warangal:CRP based approach Vs moderate approach

2. VOs:

Mandal Name “A” Grade

“B” Grade

“C” Grade

Intensive: Geesukonda

34% 66% 0%

Moderate:Lingala Ghanapur

0% 66% 34%

Observations and Analysis

Future IB strategy has to give more focus on strengthening of VOs both in intensive and moderate models

3. MSs: Geesukonda (Intensive) – “A” Grade Lingalaghanapur (Moderate)- “B”

Grade

Sustainability

Financial

Introduction of AWFP, MCP and Repayment plan facilitate sustainability

All Structures viz., SHGs, VOs and MSs are moving towards sustainability and both operational and financial self-sufficiency can be achieved in two years time

One third of the MSs & about 50% of the VOs are in a position to meet 50% of their monthly office expenses

Sustainability

Non-Financial Meeting place :MSs and SHGs better placed

than VOs. Book-keeping, Financial Management,

Administrative Systems, member participation and complying Legal compliances provide scope for improvement

Linkages with Banks, Line departments and participation in government programs contribute to sustainability of institutions. Enhanced focus would go a long way.

Contributing factors for quality & sustainability of Institutions

Focused and systematic approach to IB Experiential and cross learning through CRP

strategy Bottom –up approach for IB Strengthening Effective methods adopted for problem solving

and conflict resolution Having weekly meetings Intensive member education by CRPs and

exposure visits influenced the performance of SHGs and VOs

Adoption of entitlement approach and 7 step MCP process for lending

Timely provision of credit

Contributing factors for quality & sustainability of Institutions

Staying in the villages and doing home visits Intensive monitoring and continuous follow-up

by staff (mandal, district and state) Promotion of Strong Social capital Concept of Sub-committees influencing the

quality of performance of SHGs and VOs Presence of SHG and VO bookkeeper is

enhancing the performance of SHGs and VOs SHG, VO masanivedikalu and DCB Targeted approach to coverage of POP & Poor

and in giving benefits

Impact on Quality of Life

Perceived changes after joining in SHGs: Increased house hold income and enhanced

physical well being in 70% of HHs 47% of members started getting income from

diversified income sources 82% of members acquired assets after joining

SHGs A positive change has come both in quantity and

quality of food consumption in 75% of members HHs and better clothing in 81% of members HHs

51% members reported improvement in overall health status (Institutional deliveries, childrens immunization and change in treatment seeking behaviour)

Impact on Quality of LifePerceived changes after joining in SHGs: Significant improvement in children education

especially girls education ( 82%) Significant improvement (85%) in members

knowledge and skills (group management, leadership development, bookkeeping, financial management, on various social, economic and political issues)

68% members felt that SHGs is acting as a safety net to tide over their difficulties

SHGs have significantly impacted child labour issues ( 56%)

Violence against women has diminished SHGs are also emerging as strong power groups

Way forward More focus on member managed and

controlled approach (administrative, financial and human resource management, MVTC management and in service delivery)

Adoption of CRP strategy in phased manner and creating demonstration sites for replication

More focus on promotion of operational (meeting office and staff expenses) and financial self-sufficiency in CBOs

Way forward More focus on registration of CBOs,

complying legal compliances and enhancing financial management and accounting skills of members

Strengthening of ZS and TTDCs Establishment of Area Coordinators

system under the overall guidance and control of ZS

Convergence with line departments, financial and non-financial agencies