(Online Course) Contemporary Issues for IAS Mains 2012: Yojana Magazine – Self Help Groups

Yojana Magazine

Foreign Trade – Self Help Groups—Lifeline of The Livelihood
Improvement Project

Q. Briefly discuss the role of self Help Groups and the
Significance of Livelihoods Improvement Project for the Himalayas (LIPH)

Answer: Away from the entire chaos of the elections,
in the foothills of Himalayas, silent efforts are being made to fight the
problem and that too by implementing the schemes launched by the government
itself. `Livelihoods Improvement Project for the Himalayas’ (LIPH) aims at
helping vulnerable groups in the rugged highlands of the Himalayas to improve
their livelihoods and develop alternatives for increasing their incomes.

Since independence, efforts of the government to curb poverty
and provide employment guarantee have grown. Some succeeded; others taught us
lessons with their failure. Thus, new plans inspired from the successes and
failures of previous projects were launched. Out of the lot, the projects which
endured the fruition of efforts did not just carve an identity of their own;
they also became an example for other development projects. `Livelihoods
Improvement Project for the Himalayas’ (LIPH) is one such project which has
brought several changes on the ground by empowering the locals. Launched by the
Central Government in the year 2004, this  project receives financial
support from the International Fund for Agricultural Development (IEFD) – an
active organisation devoted to eliminating poverty from the world. The objective
is to help vulnerable groups in the rugged highlands of theHimalayas improve
their livelihoods and develop alternatives for increasing their incomes. The
area of operations includes the most remote and underdeveloped districts in the
states of Meghalaya and Uttarakhand.

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In Uttarakhand, at the moment, this project is being
conducted in five development blocks – Almora, Bageshwar, Chamoli, Tehri Garhwal
and Uttarkashi. 959 villages have been included in its fold. In the initial
phase, the State Government asked local NGOs to work in the remote settlements
and sow the seed of awareness among the villagers. The NGO workers knew that
without the people’s participation, the project would not be a success. To
ensure active participation, the NGOs created 4000 Community Based Organizations
and Self Help groups.

Innovative and useful workshops were organised by the NGOs
for SHGs which further imparted this knowledge to the villagers. Interesting
training programs like SHGmodule, health module, transaction literacymodule and
gendermoduleswere created at the village level. Efforts were made to create a
sense of belonging amongst the members of the groups and adopt a positive
attitude towards self-employment.

Three development blocks of Almora – Dhaula Devi, Lamgara and
Bhausiyachana, have hugely benefited under the LIPH. Implemented andmonitored by
the SHG, Centre forHimalayan Studies, this project operates in 203 villages. The
members of the 722 SHGs formed so far, along with the coordinators, are given
exposure through trainings, field visits and awareness camps; and are encouraged
to join development and earning activities. Each group is essentially connected
to the bank. Thus, a total of 6 Crore Rupees CCL (loan as per the status of the
group) has been made available to 700 groups out of the total 722. 7304 members
of these groups are making the most of it, investing in various income
generating activities. At a modest level, enterprises like dairy, chicken-farm,
shops, vegetable production, etc. have been established in the village; which,
in turn, has promoted the income of the poor families by expanding their mutual

To provide a strong base to these groups, income-generating
activities have been enhanced at the macro-level. 10 cooperatives have been
formed in the district, which are registered under the 2003Act of Autonomous
Cooperatives of Uttarakhand. These Cooperatives have now started conducting
business based activities which helped them to transact business to the tune of
Rs. 22 lakhs during 2010-11.

“Connecting the cooperatives to business and employment on
the basis of a value chain is beneficial. Today, these cooperatives are busy in
seed production, broiler chicken farming, dairy development, maps, herbs,
tourism, organic farming etc.” The project not only improved the economic status
of the villagers but raised their social level by infusing self-assurance in
them. Today, with increase in employment opportunities in the area, the
migration rate has gone down. People who feared participating in gatherings now
lead them with great enthusiasm and fervour. They ask questions, are aware of
the situation around them and feel empowered. The encouraging participation of
women makes this project an example for others. “The Employment Project is on
its way to prove itself as a milestone in the field of local development. The
way work is being done under this project will make it an example for all other

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