{"id":23670,"date":"2024-01-27T07:18:23","date_gmt":"2024-01-27T07:18:23","guid":{"rendered":"https:\/\/edukemy.com\/blog\/?p=23670"},"modified":"2024-01-27T07:18:25","modified_gmt":"2024-01-27T07:18:25","slug":"the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ","status":"publish","type":"post","link":"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/","title":{"rendered":"&#8220;The emergence of the Self-Help Groups (SHGs) in contemporary times points to the slow but steady withdrawal of the State from developmental activities.&#8221; Examine the role of the SHGs in developmental activities and the measures taken by the Government of India to promote the SHGs. (250 words, 15 marks)"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-gs-advance-and-mentorship-program-ampcsat?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=GS+Advanced\" target=\"_blank\" rel=\"noreferrer noopener\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1280\" height=\"300\" src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png\" alt=\"\" class=\"wp-image-43397\" srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/07\/Attempt-our-Daily-Weekly-Current-Affairs-Quiz-now-8-585x137.png 585w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/a><\/figure><\/div>\n\n\n<p>The emergence of Self-Help Groups (SHGs) in contemporary times reflects a noteworthy shift in the landscape of developmental initiatives, indicating a gradual retreat of the State from direct involvement in such activities. These groups, typically comprising individuals with common socio-economic interests, have become instrumental in fostering community-driven development, empowering marginalized sections of society, and addressing local challenges. The role of SHGs in developmental activities is multifaceted, encompassing areas such as women&#8217;s empowerment, poverty alleviation, and rural development. By pooling resources and leveraging collective strength, SHGs create a platform for financial inclusion through microfinance, skill development, and entrepreneurship, thereby contributing to sustainable socio-economic progress.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Tag: <\/strong>Governance.\u00a0\u00a0\u00a0\u00a0<\/p><\/blockquote>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6a7f33ed47914\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a7f33ed47914\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Decoding_the_Question\" >Decoding the Question:&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Answer\" >Answer:&nbsp;&nbsp;&nbsp;&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Positive_Role_of_SHGs\" >Positive Role of SHGs:&nbsp;&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Measures_Taken_by_the_Government_to_Promote_the_SHGs\" >Measures Taken by the Government to Promote the SHGs:&nbsp;&nbsp;&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Challenges_Faced_by_the_SHGs\" >Challenges Faced by the SHGs:&nbsp;&nbsp;&nbsp;&nbsp;<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#In_case_you_still_have_your_doubts_contact_us_on_9811333901\" >In case you still have your doubts, contact us on 9811333901.&nbsp;<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/edukemy.com\/blog\/the-emergence-of-the-self-help-groups-shgs-in-contemporary-times-points-to-the-slow-but-steady-withdrawal-of-the-state-from-developmental-activities-examine-the-role-of-the-shgs-in-developmental-activ\/#Visit_our_YouTube_Channel_%E2%80%93_here\" >Visit our YouTube Channel &#8211;&nbsp;here<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Decoding_the_Question\"><\/span><strong>Decoding the Question:<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>In the Introduction, try to briefly write about the Self-Help Groups (SHGs).\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>In Body,<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>Write the positive role of SHGs in developmental activities.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>Write about the challenges faced by SHGs and various measures taken by the Government of India to address the problems and promote the SHGs.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><li><strong>In Conclusion, try to write about the overall significance of SHGs and suggest measures to improve their role.\u00a0<\/strong>\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Answer\"><\/span><strong>Answer:&nbsp;<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Self-Help Groups (SHGs) are informal associations of people who choose to come together to find ways to improve their living conditions. Such groups work as a collective guarantee system for members who propose to borrow from organized sources. 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. . At present SHGs are growing at a rapid pace with an eye to <strong>helping women and marginalized communities<\/strong> to change their position within the society.&nbsp;&nbsp;&nbsp;&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Positive_Role_of_SHGs\"><\/span><strong>Positive Role of SHGs:&nbsp;<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Financial inclusion: <\/strong>It provides cheap collateral free loans, promotes saving and teaches financial management to people. It also helps in recovery of loans.\u00a0\u00a0\u00a0\u00a0<\/li><li><strong>Delivery of essential services: <\/strong>SHGs are effective delivery channels for various government schemes and programs. These also help in reducing corruption by conducting social audits.\u00a0\u00a0\u00a0\u00a0<\/li><li><strong>Women empowerment: <\/strong>It provides economic benefits to the women by providing income-generating activities. Economic independence facilitates in bringing about sexual equality and an increase in women\u2019s income translates more directly into family wellbeing.\u00a0\u00a0\u00a0<\/li><li><strong>Political empowerment<\/strong>: SHGs are self-governing in nature, which improves the decision-making power, and develops leadership and teamwork of people. These also highlight various social issues &amp; influence decisions of the government.\u00a0\u00a0\u00a0<\/li><li><strong>Rural development:<\/strong> It plays a significant role in self-employment by raising the level of income and standard of living among rural people.\u00a0\u00a0\u00a0<\/li><li><strong>Create awareness: <\/strong>It creates awareness about rights, policies, and schemes of government among people and acts as a powerful vehicle for socio-economic development.\u00a0\u00a0\u00a0<\/li><li><strong>Economic empowerment: <\/strong>It provides skill and training to people\u202ffor gainful employment and to involve the poor in productive activities\u00a0\u00a0\u00a0<\/li><li><strong>Social development:<\/strong> It increases community participation, and social cohesion, creates strong bonds of sympathy, provides a forum for sharing ideas, and works as a collective guarantee facility for people.\u00a0\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" width=\"1280\" height=\"300\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png\" alt=\"\" class=\"wp-image-42412 lazyload\" data-srcset=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10.png 1280w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-1170x274.png 1170w, https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/10-585x137.png 585w\" data-sizes=\"(max-width: 1280px) 100vw, 1280px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1280px; --smush-placeholder-aspect-ratio: 1280\/300;\" \/><\/a><figcaption><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Link&amp;utm_campaign=Essay\">UPSC Essay Course<\/a><\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Measures_Taken_by_the_Government_to_Promote_the_SHGs\"><\/span><strong>Measures Taken by the Government to Promote the SHGs:<\/strong>&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>As part of the <strong>National Rural Livelihood Mission (NRLM)<\/strong> or Aajeevika, the government facilitates women-led self-help groups (SHGs) by giving them bank loans at easy interest rates. This interest subvention provision has been further extended to more districts.\u00a0\u00a0<\/li><li>The government has promoted the <strong>Self-Help Group (SHG)-Bank Linkage Programme<\/strong> to be implemented by commercial banks, regional rural banks and cooperative banks for providing micro-finance to SHGs.\u00a0\u00a0<\/li><li><strong>NABARD promotes SHGs<\/strong> by providing grant support for training, capacity building, skill upgradation, exposure visits etc.\u00a0\u00a0<\/li><li>The scheme for promotion and financing of Women Self Help Groups (WSHG) is being implemented by NABARD across backward and Left Wing Extremism (LWE) affected districts.\u00a0\u00a0\u00a0<\/li><li>A fund called <strong>\u201cWomen SHGs Development Fund\u201d<\/strong> with a corpus of Rs.500 crore to empower women-led SHGs has been set up. It is to be operated by NABARD.\u00a0\u00a0<\/li><li>Rashtriya Mahila Kosh provides loans to intermediary organizations which further lend it to SHGs.\u00a0\u00a0<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Challenges_Faced_by_the_SHGs\"><\/span><strong>Challenges Faced by the SHGs:<\/strong>&nbsp;&nbsp;&nbsp;&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Weak Financial Management: <\/strong>There is the diversion of funds in other activities like Marriages, household activities, etc.\u00a0\u00a0\u00a0\u00a0<\/li><li><strong>Lack of Finances: <\/strong>Many public sector banks and micro-finance institutions are not willing to provide financial services\u202fto the poor due to the high cost of services.\u00a0\u00a0\u00a0\u00a0<\/li><li>There is <strong>meager income<\/strong> from various enterprises, <strong>poor management practices, poor scientific practices, and a <\/strong>lack of specialized training in taking up income-generating activities.\u00a0\u00a0\u00a0\u00a0<\/li><li><strong>Lack of awareness<\/strong>: The majority of the group is unaware of the schemes of assistance offered to them.\u00a0\u00a0\u00a0<\/li><li>There is a lack<strong> of social mobility<\/strong> because of restrictions in the family as their social problem.\u00a0\u00a0\u00a0<\/li><\/ul>\n\n\n\n<p><strong>SHGs have evolved as a movement for marginalized communities, the poor,<\/strong> and women. It provides self-confidence and social, economic, and political empowerment to people. However, some shortfalls can be addressed by capacity building, financial empowerment, and proper monitoring systems.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><a href=\"https:\/\/edukemy.com\/upsc\/upsc-essay?utm_source=Blog&amp;utm_medium=Banner&amp;utm_campaign=Essay\" target=\"_blank\" rel=\"noreferrer noopener\"><img decoding=\"async\" data-src=\"https:\/\/edukemy.com\/blog\/wp-content\/uploads\/2024\/06\/UPSC-Essay-Course-1280\u00d7300-1-3.svg\" alt=\"\" class=\"wp-image-42688 lazyload\" width=\"781\" height=\"182\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 781px; --smush-placeholder-aspect-ratio: 781\/182;\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_case_you_still_have_your_doubts_contact_us_on_9811333901\"><\/span><strong>In case you still have your doubts, contact us on 9811333901.<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For UPSC Prelims Resources,&nbsp;<a href=\"https:\/\/edukemy.com\/upsc-cse-prelims-resource-centre\" target=\"_blank\" rel=\"noreferrer noopener\">Click here<\/a><\/p>\n\n\n\n<p>For Daily Updates and Study Material:<\/p>\n\n\n\n<p>Join our Telegram Channel &#8211;&nbsp;<a href=\"https:\/\/t.me\/WithEdukemy4IAS\" target=\"_blank\" rel=\"noreferrer noopener\">Edukemy for IAS<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>1. 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