2nd ARC Report – Social Capital: A Shared Destiny

The 2nd ARC Report on Social Capital: A Shared Destiny explores strategies and policy recommendations to strengthen societal bonds, emphasizing the collective responsibility for fostering a cohesive and inclusive social fabric.

THE CONCEPT OF SOCIAL CAPITAL

• Cooperative endeavors and collective actions have been inherent in human behavior since the early days of civilization. Initially manifesting in small habitations, communities, and villages, these efforts eventually extended to large cities and metropolises, giving rise to complex social groups and governmental organizations. However, as governments and societies grew larger and more formalized, they became somewhat detached from the common man, prompting a necessity for mutual networking and interactions to address various issues.
• The term ‘Social Capital’ was initially coined by L. J. Hanifan, a State Supervisor for Rural Schools in Virginia, in 1916. He introduced the concept in the context of a community’s involvement in the successful operation of schools. Today, Social Capital is widely acknowledged as a crucial element in development theory, often providing a compelling explanation for the shortcomings of economic policies. The idea that a set of macroeconomic policies, supported by appropriate institutions, would automatically transform an economy often proves ineffective in practice. Policies and institutions operate within a framework strongly influenced by sociological parameters. Socio-cultural elements play a significant role in shaping political and economic factors, altering the pace of economic processes. Social Capital and Trust act as cohesive elements in society and entrepreneurship, playing a vital role in initiating processes that enhance social, economic, and political opportunities. This, in turn, leads to the formation of specialized groups and organizations commonly referred to as Social Capital Institutions or the Third Sector.

The Roles of Social Capital Organizations in Society

• Service Role: Social Capital encourages individuals to address public problems at the grassroots level. Non-profit organizations often take the lead in responding to critical public needs, serving as a flexible mechanism through which concerned individuals can respond to social or economic problems without needing to convince the majority of their fellow citizens of the need for a broader government response. Non-profit organizations also cater to subgroups of the population seeking public goods beyond what the government or society is willing to support. They play a predetermined role in planning institutions such as hospitals, universities, social service agencies, and civil organizations.
• Value Guardian Role: The non-profit sector serves as a “value guardian” in society, exemplifying and embodying fundamental values for the public good, just as private economic enterprises champion individual initiatives for private goods. This role extends beyond specific purposes like improving health or enhancing school enrollment; it represents crucial expressions of a central feature of modern society. It provides a sphere for private action, allowing individuals to take initiative, express their individuality, and exercise freedom of expression and action, fostering pluralism, diversity, and freedom.
• Advocacy/Social Safety Valve Role: Non-profit organizations also play a crucial role in mobilizing public attention to societal problems and needs, serving as the primary vehicle through which communities can voice their concerns. Many social movements in Western society, such as the movements for women’s suffrage, civil rights, and environmental protection, originated within the non-profit sector. By highlighting social and political concerns and giving voice to underrepresented individuals, these organizations act as a safety valve, preserving democracy and maintaining peace in the contemporary polity and society.
• Community Building Role: Finally, non-profit organizations contribute significantly to creating and sustaining social cohesiveness through bonds of trust and reciprocity, essential for the effective functioning of a democratic society and a market economy. Social capital, developed through these organizations, enhances government performance by broadening accountability, facilitating agreement in polarized political preferences, inducing innovation in policy-making, and improving the efficiency of service delivery at the local level through resident involvement.
• The Evolution of the Third Sector: As social capital grows, a healthy civil society emerges as a distinct entity between the public sector (government) and the business sector (markets), often referred to as the third sector or non-profit sector. Depending on the strength and vibrancy of civil society, third-sector organizations can take four major forms:

1. Small community-based initiatives with modest funding, such as Resident Welfare Associations, often rely on voluntary group action but may require external financial support for expansion.
2. Large structured groups with well-defined organizational patterns and goals, working on a financially sustainable basis with external support, such as Societies, Trusts, and Waqfs.
3. Business-oriented organizations with specific social objectives, where surpluses are reinvested in the defined social activity itself, need interaction with the government, e.g., Cooperatives.
4. The fourth category of social capital institutions comprises regulatory professional groups or associations composed of qualified individuals who come together to govern their profession based on certain established principles and policies. Examples include the Bar Council of India and the Institute of Chartered Accountants.

EVOLUTION AND EXPANSION OF SOCIAL CAPITAL

• As mentioned earlier, the term “social capital” entered the Western vocabulary in the latter half of the 20th century, but in some form, it has been an integral aspect of agrarian life in India since the early days of civilization. The Rig Veda references elements of collective social entrepreneurship, manifested through charity and faith-based philanthropy as duties and responsibilities of conscious human beings. During the reign of the Mauryas and Guptas (4th century BC to 5th century AD) and beyond, a robust village community based on collective entrepreneurship and social cohesion thrived across the country. The modern concept of social capital can be seen as partially stemming from the tradition of collective social entrepreneurship: charity and faith-based philanthropy, and strong and cohesive community life.

SOCIAL ACTION GROUPS AND SELF-HELP MOVEMENT

• In subsequent years, with the onset of the Industrial Revolution in Europe, political ideas of equality, human rights, and social welfare led to the formation of intellectual groups and subsequently organizations addressing social concerns. In India, such social action groups emerged in the early 19th century. The socio-cultural regeneration in 19th-century India was influenced by the colonial presence but not created by it. Ideas of social reform combined with national sentiment resulted in the formation of societies and sabhas such as the Brahmo Samaj, Arya Pratinidhi Sabha, Arya Samaj, Prathana Sabha, and Indian National Social Conference, among others. Movements like Ahmediya and Aligarh, Singh Sabha, and Rehnumai Mazdeyasan Sabha represented the spirit of reform among Muslims, Sikhs, and Parsees respectively. Religion, being the dominant ideology of the period, somewhat influenced the growth of the reform movement in the country. During the struggle for Independence, the Gandhian movement emphasized self-help and cooperation, with the Swadeshi movement considered “the greatest constructive and cooperative movement in the country.”
• Corporate Foundations: Towards the end of the 19th century, the corporate community in India also began establishing organizations dedicated to the welfare and development of the underprivileged.

SOCIO-POLITICAL MOVEMENT, GROWTH OF CONSTITUTIONALISM AND EQUITY

• On the socio-political front, Vinoba Bhave’s Bhoodan and Jai Prakash Narain’s Sarvodaya movement were two major voluntary action initiatives that garnered attention across the country in the 1950s and 60s. These movements relied on a vast network of selfless and dedicated volunteers deeply committed to societal betterment.
• Inspired by the liberalization ideology of the aforementioned two influential figures, a voluntary movement gained momentum in the 1970s and 1980s, emphasizing the growth of constitutionalism and the emergence of economic ideals centered on equity, human rights, and expanded economic opportunities. During the early years of the 20th century, the government took steps to organize farmers collectively, forming groups that could protect them from usurious practices by money lenders. This led to the establishment of cooperative societies for farm credit, with the Cooperative Credit Societies Act of 1904 aimed at curbing exploitative practices.
• The inspiration for this Act was drawn from the success of cooperative movements in Europe, and its implementation in India received an excellent response from rural communities. Subsequently, a considerable number of cooperative societies emerged across the country. The Act’s success prompted various states like Bombay, Madras, Bihar, Orissa, and Bengal to make efforts to expand cooperatives in their territories, enacting laws modeled after the 1912 Act. The Reserve Bank of India, established in 1934, played a crucial role by making agriculture credit one of its primary functions and extending refinance facilities to the village cooperative system, contributing to the widespread reach of the cooperative movement.
• Post-Independence, the All India Rural Credit Cooperative Survey Committee (1951-54) reports and the establishment of District and Apex Cooperative Banks in the 1960s further propelled the cooperative sector. Both the Union and State Governments enacted laws related to Public Trusts, Waqfs, Producer Companies, voluntary sector/civil society organizations, and cooperative societies. Major existing laws on the subject include:

• The Societies Registration Act, 1860
• The Indian Trusts Act, 1882
• The Charitable Endowments Act, 1890
• The Trade Unions Act, 1926
• The Charitable and Religious Trusts Act, 1920
• The Bombay Public Trusts Act, 1950
• The Waqf Act, 1954
• Section 25 of the Companies Act, 1956
• Old State Co-operative Acts and the New Mutually Aided Co-operative Societies Acts (operative in nine States)
• The Multi-State Co-operative Societies Act, 2002

• Additionally, laws related to Self-Regulatory Authorities, such as the Indian Medical Council Act, of 1956, The Advocates Act, of 1961, The Chartered Accountants Act, of 1949, The Cost and Works Accountants Act, of 1959, and The Architects Act, of 1972, play a significant role. Various states have enacted Acts and amendments since 1947, recognizing the importance of Social Capital Organizations in alignment with India’s Constitution, which provides a distinct legal space for these civil society institutions.

1. Through Article 19(1)(c), which addresses the right to form associations or unions;
2. Via Article 43, which urges States to make efforts to promote cooperatives in rural areas;
3. Explicit mention in entries made in Schedule 7.

GOVERNMENT POLICY ON COOPERATIVES

• The Union Government, in its National Policy on the “Voluntary Sector” approved by the Planning Commission and endorsed by the Union Cabinet in May 2007, defines “Voluntary Organisations (VOs)” to include entities engaged in public service across ethical, cultural, social, economic, political, religious, spiritual, philanthropic, or scientific and technological domains. VOs encompass both formal and informal groups, including Community Based Organisations (CBOs), Non-Governmental Development Organisations (NGDOs), charitable organizations, support organizations, networks or federations of such entities, and Professional Membership Associations.

CIVIL SOCIETY AS A MAJOR ECONOMIC FORCE

• With the liberalization of the economy and globalization, there has been a remarkable surge in the number of non-governmental organizations (NGOs) worldwide in recent decades. India alone boasts over two million NGOs, Russia has four lakhs, and Kenya witnesses the formation of approximately 240 NGOs annually. In the United States, an estimated two million non-profit organizations employ over eleven million workers, constituting around eight percent of the nation’s total workforce. Supported by numerous unpaid volunteers (approximately six million), these organizations demonstrate strong individual initiative and commitment to social responsibility. The presence of NGOs ensures depth and resilience in civil society, providing citizens with a platform to express their voices, take responsibility for societal performance, and engage with their government in organized ways. In India, this sector is rapidly evolving.

This extensive network of socio-economic institutions holds the potential to significantly contribute to key governmental policy objectives:

• Scaling up productivity and competitiveness.
• Contributing to inclusive wealth creation.
• Enhancing the people-centricity of the government.

Classification of the Voluntary Sector

The third sector/civil society organizations foster cooperation through mutual cohesion, a common approach, and networking among two or more individuals. Democracies inherently encourage such cooperative behavior. The Indian Constitution explicitly recognizes the “right to freedom of speech and expression and to form associations or unions” as one of the core rights of its citizens under Article 19(1), thus promoting the formation of civil society groups and community organizations. Based on the law under which they operate and the activities they undertake, civil society groups in our country can be broadly classified into the following categories:

• Registered Societies established for specific purposes
• Charitable Organizations and Trusts
• Local Stakeholders Groups, Microcredit and Thrift Enterprises, SHGs
• Professional Self-Regulatory Bodies
• Cooperatives
• Entities without any formal organizational structure
• Government-promoted Third Sector Organizations

LEGAL AND INSTITUTIONAL FRAMEWORK

Legal Context: The legal landscape regarding Societies, Trusts, Waqfs, and other endowments in India can be categorized into three main groups:

• Societies were registered under the Societies Registration Act, of 1860, and various State amendments were made after 1947.
• Entities engaged in purely religious and charitable work, registered under the Religious Endowments Act, 1863; the Charitable and Religious Trusts Act, 1920; the Waqf Act, 1995, and similar State Acts.
• Trusts and charitable institutions registered under the Indian Trusts Act, 1882; Charitable Endowments Act, 1890; the Bombay Public Trusts Act, 1950; and similar State Acts.
• Societies: Modeled on the English Literary and Scientific Institutions Act, 1854, the Societies Registration Act was enacted in India in 1860. Around the mid-19th century, coinciding with the 1857 event, numerous organizations and groups were established in the country, focusing on contemporary issues of politics, literature, arts, and science. The law was enacted partly to grant legal standing to such organizations and partly to enable the colonial government to monitor them. However, the Act was non-intrusive, providing full freedom to societies/organizations that chose to register with the government.
• Purpose for the formation of Societies under the Societies Registration Act, 1860: It allows for the formation of a society for any literary, scientific, or charitable purpose, as described under Section 20 of the Act.
• Trusts, Religious Endowments, and Waqfs: Trusts, endowments, and Waqfs are legally established as property arrangements/settlements dedicated to definite charitable and religious purposes. These organizations can assume legal personality through various means:

1. Formal registration before the Charity Commissioner/Inspector General of Registration under the respective State Public Trusts Act (e.g., The Bombay Public Trusts Act, 1950, the Gujarat Public Trusts Act, the Rajasthan Public Trusts Act, etc.).
2. Invoking interference of civil courts to establish schemes for governing a Trust under Sections 92 and 93 of the Civil Procedure Code.
3. Registering the Trust deed of a Public Charitable Trust under the Registration Act, 1908.
4. Notifying an organization in the list of Charitable Trusts and Religious Endowments supervised by the Endowments Commissioner of the State or by a Managing
5. By forming a Committee under the Charitable Endowments Act, 1890, or under other State laws on Hindu Religious and Charitable Endowments; and By establishing a Waqf managed under the provisions of the Waqf Act, 1995.

• Trusts: A Trust is a unique organizational form originating from a will, where the maker exclusively transfers property ownership for a specific purpose. If the purpose benefits particular individuals, it becomes a Private Trust, and if it serves the common public or the community at large, it is termed a Public Trust. The Indian Trusts Act, 1882, enacted in 1882, was the first law governing Trusts and primarily focused on managing Private Trusts.
• Religious Endowments: Religious Endowments and Waqfs are variations of Trusts formed for specific religious purposes, such as supporting functions related to deities, charity, and religion among Hindus and Muslims, respectively. Unlike Public Trusts, they may not necessarily originate from formal registration and may not specifically emphasize the triangular relationship among the donor, Trustee, and beneficiary. Religious endowments arise from the dedication of property for religious purposes, while Waqfs involve tying up property and devoting the usufruct to people. The Religious Endowments Act, of 1863, focused on private endowments, placing a property under the management of Trustees under a will for a predefined set of beneficiaries.
• Non-Profit Companies (Section 25 of the Companies Act, 1956): Section 25 of the Companies Act, 1956, provides a mechanism for registering an Association as a Company with limited liability. This is applicable if the association is formed to promote commerce, art, science, religion, or any other useful object and intends to apply its profits/income toward promoting its objectives. The provision aims to grant corporate personality to such associations while exempting them from some legal requirements.
• Trade Unions: According to Section 2 of the Trade Unions Act, 1926, a Trade Union is defined as a combination, whether temporary or permanent, formed primarily for regulating relations between workmen and employers, or between workmen, or between employers. The objective of the Trade Unions Act is to provide legal existence and protection to defined Trade Unions. Trade Unions can be registered under this Act, along with rules outlining their objects, fund usage, member lists, appointment procedures for members and executives, dissolution methods, etc.

Need for a New Legal Framework for Charities in India

• The existing multiplicity of charity laws in India hinders the evolution and growth of a proper institutional framework in this sector. Voluntary organizations frequently face challenges due to the lack of a unified legal framework.
• The existing government compliance obligations for charitable institutions have been challenging to navigate, leading to a sense of harassment among these organizations in meeting various legal requirements. Additionally, the institutions overseeing this sector have not proven effective in regulating it and addressing legal issues. Instances of misusing tax provisions, fraud, and poor governance have become frequent, emphasizing the urgent need to create an institutional mechanism for the growth and proper governance of charities.
• In this context, lessons can be drawn from governance structures in other countries. Given India’s federal union structure, adopting a decentralized institutional setup for charities, akin to that in the USA, appears to be suitable. The power of registration and oversight should rest with the State Governments, providing them the authority to govern the sector effectively.

The Sampradan Indian Centre for Philanthropy conducted a study on charitable organizations’ administration in India, sponsored by the Planning Commission. The study proposed four models:

• Model 1: Maintain the status quo while enhancing existing institutional arrangements to improve performance, adopt recommendations for a more facilitative interface, increase transparency in the regulatory process, and implement measures for better compliance and a more effective appeals process.
• Model 2: Establish a functionally enhanced Charities Directorate in the Income Tax department, along with State-level registering agencies and an NPO Sector Agency. The Charities Directorate would serve as the main regulatory agency, while State-level agencies focus solely on registration. The NPO Agency, comprising representatives from the sector and professionals, would provide policy guidance, obtain sector feedback, and set up review mechanisms for compliance.
• Model 3: Establish a Charities Directorate and a mandatory NPO Sector Agency, where the government creates the autonomous NPO Sector agency with its own governing body. It would promote effective use of charitable resources, encourage better organizational management, provide advice, and handle compliance education. It would act as a permanent forum for dialogue between the government and the sector.
• Model 4: Create State-level Charity Commissions supported by an NPO Sector Agency and an Appeals Tribunal. This model suggests adopting a Charities Commission on the UK model, concerned not only with financial regulation but also with promoting and developing the sector.

REVENUES OF THE THIRD SECTOR:

• Third Sector Organizations in India primarily raise funds from four major sources: individuals, private foundations (national and global), business houses, and the government. In recent years, the diaspora has also played a significant role in contributing to social causes.
• Individual Contributions: In India, donations from individuals to charitable organizations have been modest. Despite a significant increase in funding from government and foreign donors to the voluntary sector over the past decade, private philanthropy from individuals, trusts, foundations, and corporations has not grown proportionately.
• International Aid and Bilateral Assistance: Various agencies, including the Department for International Development (DFID) from the British Government, the Swedish International Development Cooperation Agency (SIDA), the Norwegian Agency for Development Cooperation (NORAD), and the Danish International Development Agency (DANIDA), are permitted to directly support NGOs without specific project approval from the Government of India. While some agencies require project approval, bilateral funding often designates a percentage that must be channeled through non-governmental organizations. The recent surge in bilateral funding to the government has resulted in increased funds flowing to NGOs.

Corporate Philanthropy:

• Donations: Corporate donations for philanthropic activities have a historical precedent in India. In earlier times, merchants supported relief efforts during floods or famines, contributed to building temples, promoted schools, and endorsed artistic pursuits. Pre-independence, major business houses established trusts and foundations to support educational institutions and charitable hospitals. In later years, multinational corporations also became contributors.
• Corporate Social Responsibility (CSR): Corporate Social Responsibility is defined as a corporation’s commitment to the welfare of society and community, along with adherence to ethical values. Though the term may be relatively new in India, the concept is deeply rooted in traditions of trusteeship, giving, and welfare. The Indian ethos has always included the notion of social good. Throughout the 20th century, Indian businesses and industries have demonstrated attention to their societal obligations by establishing numerous schools, colleges, hospitals, and charitable institutions.
• Government Funding: Both the Union and State Governments provide substantial budgetary support to voluntary organizations across various activities such as rural technology, social welfare, primary education, maternal and child healthcare, adult education, women’s empowerment, and rehabilitation of the disabled. In addition to direct grants, the Government of India has established autonomous bodies like the Central Social Welfare Board (CSWB) and the National Institute of Public Cooperation and Child Development (NIPCCD) to empower and support Third Sector Organizations (TSOs) in the social welfare sector. These bodies play a crucial role in facilitating the interface between the government and NGOs.
• Rural Technology Financing Organization: CAPART (Council for Advancement of People’s Action and Rural Technology) is an agency that provides financial support to voluntary organizations, stimulating grassroots participation and encouraging the development of rural technology.

Third Sector Organizations at the Local Level: Self-Help Groups (SHGs):

• Self-Help Groups (SHGs) are informal associations of people who choose to come together to improve their living conditions. These groups play a crucial role in empowering the poor, especially women. Key objectives of SHGs include (a) encouraging and motivating members to save, (b) assisting them in creating a collective plan for generating additional income, and (c) acting as a conduit for formal banking services to reach them. SHGs function as a collective guarantee system for members seeking loans from organized sources, making them an effective mechanism for delivering microfinance services to the poor.
• In 2007, a Committee chaired by Dr. C Rangarajan was formed to prepare a comprehensive report on ‘Financial Inclusion in the Country.’ The Committee addressed issues related to banking in remote areas, the empowerment of SHGs, their linkages with financial institutions, and the revitalization of RRBs. One of the committee’s key findings was the wide regional and state variations in credit access. The report identified 256 districts across 17 states and 1 Union Territory facing acute credit exclusion with a credit gap of over 95%. The Committee pinpointed four major reasons for the lack of financial inclusion: inability to provide collateral security, poor credit absorption capacity, inadequate reach of institutions, and weak community networks.

Evolution of the Self-Help Group (SHG) Movement in India:

• The organized initiative began in Gujarat in 1954 when the Textile Labour Association (TLA) formed its women’s wing to train women in primary skills. In 1972, this effort took a more systematic form with the establishment of the Self-Employed Women’s Association (SEWA) as a trade union under the leadership of Ela Bhatt. SEWA organized women workers, including hawkers, vendors, home-based operators, weavers, potters, manual laborers, and service providers, with the primary objectives of increasing their income and assets, enhancing their food and nutritional standards, and strengthening their organizational and leadership capacities.

THE DEVELOPMENT OF SELF-HELP GROUPS (SHGs) SINCE 1992 AND NABARD’S ROLE

• A pivotal aspect of the SHG movement’s growth in our country has been the formation of small groups linked to bank branches for credit delivery. The SHG-Bank linkage program originated in 1989 as a test project when NABARD, the Apex Rural Development Bank, provided Rs. 10.0 lakhs to MYRADA as seed money assistance for creating credit management groups. The Ministry of Rural Development also supported PRADAN financially in the same year to establish Self-Help Groups in rural areas of Rajasthan. Building on these experiences, NABARD initiated a comprehensive project in 1992, forming a partnership among SHGs, banks, and NGOs. Apart from NABARD, four other major public sector organizations, namely Small Industries Development Bank of India (SIDBI), Rashtriya Mahila Kosh (RMK), Housing and Urban Development Corporation (HUDCO), and Rashtriya Mahila Kosh (RMK), provide loans to financial intermediaries for lending to SHGs.
• RASHTRIYA MAHILA KOSH (RMK): Established by the Government of India in March 1993, RMK operates as an Autonomous Body registered under the Societies Registration Act, 1860, under the Department (now Ministry) of Women and Child Development. Its objective is to facilitate credit support for the socio-economic upliftment of poor women.
• MICROFINANCE PROGRAMME OF SIDBI: SIDBI launched its microfinance program on a pilot basis in 1994, employing the NGO/MFI model of credit delivery. After learning from the pilot phase, SIDBI reoriented and expanded its microfinance program in 1999. The ‘SIDBI Foundation for Micro Credit’ (SFMC) was established to create a national network of strong, viable, and sustainable Micro Finance Institutions (MFIs) from the informal and formal financial sectors.
• KUDUMBASHREE MISSION IN KERALA: Initiated by the State Government of Kerala in 1998 with support from the Government of India and NABARD, the Kudumbashree Mission aimed to eradicate absolute poverty within ten years under the leadership of local governments.

WEAKNESSES IN THE SHG MOVEMENT:

• Contrary to the vision for SHG development, group members do not necessarily come from the poorest families.
• While the SHG model has led to social empowerment, the adequacy of economic gains to bring a qualitative change in members’ lives is debatable.
• Many SHG activities still rely on primitive skills related to primary sector enterprises, resulting in poor value addition per worker and subsistence-level wages, hindering substantial income growth for group members.
• Insufficient availability of qualified personnel in rural areas hampers the enhancement and acquisition of new skills among group members.

COOPERATIVES IN INDIA AND CHALLENGES:

• “A cooperative is an autonomous association of individuals united voluntarily to fulfill their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.” While cooperatives as business entities have inherent interests like ownership and control, these interests are directly vested in the hands of the users. Consequently, they adhere to broader values beyond mere profit-making, balancing the imperative for profitability with the needs of members and the broader community.

EXISTING CHALLENGES IN COOPERATIVES:

• Bureaucratization and Government Control: The Indian government, despite championing the cause of cooperatives, not only maintained a central position but also added a complex hierarchy of bureaucratic power centers to the existing structure. This government-controlled cooperative infrastructure contradicts the fundamental principles of the cooperative movement.
• Politicization of Cooperative Leadership: Many cooperative bodies’ boards are dominated by politicians, often participating in cooperatives to further their political ambitions. The sector has struggled to instill essential cooperative values, particularly self-help and member-centrality. Cooperatives, by nature, should focus inwardly on serving their member communities.
• Constitutional Context: Cooperatives are explicitly mentioned in the Indian Constitution in two places: (i) Part IV, Article 43 as a Directive Principle, urging state governments to promote cottage industry on an individual or cooperative basis in rural areas, and (ii) in Schedule 7 as Entries 43 and 44 in the Union list and Entry 32 in the State list.

Practice Questions

1. What is social capital and how has social capital led to the formation of specialized groups and organizations known as Social Capital Institutions? Discuss
2. What are the different roles of social capital organizations in society?
3. The modern concept of social capital is an offshoot of the Rig-Vedic tradition of collective social entrepreneurship. Discuss
4. Examines the origin of social action groups and self-help groups in India
5. The Swadeshi Movement was the greatest constructive and cooperative movement in the country. Analyze.
6. Discuss the various elements of the socio-political movements and the growth of constitutionalism and equity in India.
7. In a liberalized economy, civil society can play a major economic force. Discuss.
8. Discuss the classification of the voluntary sector in India in the context of legal and institutional architecture.
9. “The multiplicity of charity laws in India has prevented evolution and growth of a proper institutional framework in this sector.” Examine the statement by advocating the idea of new models to regulate charitable institutions.
10. What are the different revenue generation streams for the third sector in India?
11. What are Self-Help Groups or the SHGs? What role do they serve in the society? Trace the evolution of the SHG Movement in India.
12. What are the major reasons for the lack of financial inclusion in India?
13. Discuss the development of the SHG Movement in India since 1992 and analyze the role of the NABARD in the same.
14. Discuss the major weaknesses of the SHG Movement in India.
15. What are the challenges of Cooperatives in India

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