Large numbers of poor have gained
access to financial services through SHGs. To sustain the SHGs, federations
have been emerging on a large-scale. However, the growth of the SHG movement
has been confined to a few states and areas, with the remaining ones not
covered adequately. There is a need for strategic support to reach the
underserved areas and to contribute to the sustainability of the self-help
movement. For federations to become sustainable, the key areas of support are:
• Strengthening management capacity
• Internal resource mobilization
• External linkages
• Self-organized supervision
Partnerships with SHPIs and capacity
building providers would be necessary to adapt various models to local
conditions. The APMAS experience in Andhra Pradesh and its engagement in
various networks and partnerships at the national level can facilitate
transformation of the SHG movement into a sustainable system.
The strategic thrust areas are:
1.Consolidation of support to the
SHG movement in Andhra Pradesh
Consolidation and greater emphasis on
self-organized supervision of SHG federations will be the thrust for the
future, benefiting all major stakeholders. APMAS will continue to support the
SERP poverty reduction programme in 11 districts of Andhra Pradesh. In these
districts, APMAS will play a proactive role in facilitating linkages of SHG
federations with banks. In at least one district, a system of self-regulation
and delegated supervision will be piloted, with technical support from the
German Cooperative and Raiffeisen Confederation (DGRV). Collaboration with
NABARD, SLBC and NGOs will continue to strengthen the SHG movement in the
state.
Over the next five years APMAS will
consolidate its experience in the area of urban SHGs and will use it in other
states where it operates. The experience will also be used for supporting
expansion of the SHG federation approach to other municipalities in AP.
Technical support will be provided to link urban SHG federations with banks and
service providers. APMAS will also facilitate the exchange of experience among
rural and urban SHG federations.