1 structural refinement in cbos for self-reliant development - emerging options

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Structural refinement in CBOs

for self-reliant development- Emerging options

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Category of existing CBOsCategory of existing CBOsCategory of existing CBOsCategory of existing CBOs

• Credit and thrift based CBOs

• Cooperative societies

• Natural resource based CBOs

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Credit and thrift based CBOsCredit and thrift based CBOsCredit and thrift based CBOsCredit and thrift based CBOs

• Self Help groups (of women and men)

• Rythu Mithra Groups (of farmers)

• Federation of SHGs at village level and

higher levels

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Cooperative SocietiesCooperative SocietiesCooperative SocietiesCooperative Societies

• Commodity based Cooperative Society (such as

Fisherman Cooperative Society, Shepherd

Cooperative Society, Horticulture Cooperative

Society, Agriculture Cooperative Society, etc)

• Credit Cooperative Society (such as Multi-

purpose credit and single purpose credit

cooperative society, etc)

• Marketing Cooperative Society (such as Multi-

purpose and commodity based marketing

cooperative society, etc)

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Natural resource based CBOsNatural resource based CBOsNatural resource based CBOsNatural resource based CBOs

• Water Users Association (WUA)

• Watershed Association (WA)

• Vana Samrakshana Samithi (VSS)

• User Group (UG)

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Structural refinement in the Structural refinement in the

credit and thrift based CBOscredit and thrift based CBOs


credit and thrift based CBOscredit and thrift based CBOs

(e.g. Self Help Groups)

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Analysis of existing frameworkAnalysis of existing frameworkAnalysis of existing frameworkAnalysis of existing framework

• SHGs have shown successful

performance over a wide range of

situations for proper management of

external funds

• This is happening essentially because of

proper functioning of internal group

pressure for adoption of disciplinary

norms (e.g. fine for late comers, penal

interest for defaulters, restriction on

sharing of common fund with those who

are unwilling to abide by the norms, etc.)

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Analysis Analysis (contd.)(contd.)Analysis Analysis (contd.)(contd.)

• This has helped in improving their

sustainability

• By and large SHGs are found to be

successful on the following aspects

Social capital formation

Equity for resource poor families

Empowerment of women

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• Presently majority of SHGs are having

only women members and they

concentrate mainly on micro-

enterprises

• The members within the SHGs are

having homogeneity in socio-economic

status but heterogeneity with respect

to adoption of livelihoods / enterprises

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• Such type of membership helps in

managing the external funds in a

proper manner but does not provide

conducive institutional framework

for facilitation of external

technology

• Recently at many places, SHGs have

been federated at village as well as

higher levels and these are

operated through their executive

committees


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Existing framework of SHGs and Existing framework of SHGs and their federationtheir federation

Existing framework of SHGs and Existing framework of SHGs and their federationtheir federation

Unorganized community at village level (with large variation in socio-economic status)

Members within SHGs have similarly in socio-economic status

SHG 1 SHG 2 SHG 3

Federation of SHGsFederation of SHGs* Executive committee* Executive committee

Federation of SHGsFederation of SHGs* Executive committee* Executive committee

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Emerging framework – Emerging framework – organization of Common Interest organization of Common Interest

Groups (CIGs)Groups (CIGs)

Emerging framework – Emerging framework – organization of Common Interest organization of Common Interest

Groups (CIGs)Groups (CIGs)• There is a need to organize separate

CIGs for each type of commodity

• This may provide conducive

institutional framework for

facilitation of external technology

• For this purpose, respective CIGs

may emerge from the existing SHGs

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Unorganized community at village level (with large variation in socio-economic status)

CIG-1 CIG-2


SHG 1 SHG 2 SHG 3

Emerging framework: Emerging framework: CIGs emerging out of SHGsCIGs emerging out of SHGs

Emerging framework: Emerging framework: CIGs emerging out of SHGsCIGs emerging out of SHGs

Member within CIGs are having similarly in enterprises

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Emerging framework:Emerging framework:

Blending the concept of SHG with CIGBlending the concept of SHG with CIG

Emerging framework:Emerging framework:

Blending the concept of SHG with CIGBlending the concept of SHG with CIG

• This will help in integrating the

strengths of the two types of CBOs

(i.e. SHGs and CIGs)

• Under this set-up financial transaction

should be carried out within the

respective SHGs but non-financial

transactions (e.g. technical and

management discussions) may be

carried out within the CIGs

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• For proper functioning of CIGs, their

executive committees may be

organized at village as well as higher

levels

• These executive committee (of CIGs)

may also be considered as thematic

sub-committees of SHG federations at

respective levels

Emerging framework:Emerging framework:Executive committee of CIGsExecutive committee of CIGs

Emerging framework:Emerging framework:Executive committee of CIGsExecutive committee of CIGs

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Federation of SHGsFederation of SHGs * Executive committee * Executive committee

Federation of SHGsFederation of SHGs * Executive committee * Executive committee

Members within a particular CIG have similarly in the enterprise

CIG - 1 CIG - 2 CIG - 3

Emerging framework:Emerging framework:Thematic sub-committee of SHGs federationThematic sub-committee of SHGs federation

Emerging framework:Emerging framework:Thematic sub-committee of SHGs federationThematic sub-committee of SHGs federation

Thematic sub-committee

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Emerging framework:Emerging framework:Organization of producers companyOrganization of producers company

Emerging framework:Emerging framework:Organization of producers companyOrganization of producers company

• This type of institutional set-up may

provide non-threatening space for other

members of the families to participate in

CIGs for collective processing of

technical and management aspects

• If needed, the CIGs may be federated at

village as well as higher levels and

registered into producers company

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cooperative societiescooperative societies


cooperative societiescooperative societies

(e.g. Commodity based cooperatives)

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• These societies have by and large been

created by developmental departments

to help in implementation / facilitation

of government funded projects

• Most of the cooperative societies

consist of only men members with low

levels of gender concern

• There is a large variation in socio-

economic status of its members in the

general body resulting into low levels

of equity

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• The executive committee is usually

dominated by its president or the

secretary resulting into low levels of

democratic processes

• Members of these societies have

homogeneity with regard to a

particular enterprise but heterogeneity

with regard to socio-economic status


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• These societies provide conducive


development of livelihood but they are

not suitable for facilitation of credit

and thrift activity

• Hence these societies have very low

levels of credit worthiness in the eyes

of banks / MFI, etc

• Many of them are currently non-

functional


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General body

Unorganized members of cooperative society (with large variation in socio-economic status)

Cooperative SocietyCooperative Society * Executive committee* Executive committee

Cooperative SocietyCooperative Society * Executive committee* Executive committee

Existing frameworkExisting frameworkExisting frameworkExisting framework

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• The functioning and sustainability of

these societies can be enhanced by

organizing their general body members

(men as well as women) into small size

SHGs

• Afterwards existing executive

committee members of above societies

may be modified by gradually replacing

its members with representatives of

above SHGs

Emerging frameworkEmerging frameworkEmerging frameworkEmerging framework

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General Body

Unorganized members of cooperative society (with large variation in socio-economic status)


SHG 1 SHG 2 SHG 3


Cooperative SocietyCooperative Society* Modified executive committee* Modified executive committee

Cooperative SocietyCooperative Society* Modified executive committee* Modified executive committee

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• The SHGs of above societies may be

federated at village level as well as

higher level for carrying out financial

transactions (in situations where it is

difficult to replace executive

committee members of societies with

representatives of SHGs)

Emerging framework Emerging framework (contd.)(contd.)Emerging framework Emerging framework (contd.)(contd.)

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natural resource based CBOsnatural resource based CBOs


natural resource based CBOsnatural resource based CBOs

(e.g. Water Users Association)

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• These CBOs have by and large been

created by developmental departments

to help in implementation / facilitation

of government funded projects

• Most of the above CBOs consist of only

men members with low levels of gender

concern

• There is a large variation in socio-

economic status of its members in the

general body resulting into low levels

of equity

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• The executive committee is usually

dominated by its president or the

secretary resulting into low levels of

democratic processes

• Members of these CBOs have

homogeneity with regard to a

particular enterprise but heterogeneity

with regard to socio-economic status


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• These CBOs provide conducive


development of livelihood but they are

not suitable for facilitation of credit

and thrift activity

• Hence the above CBOs have very low

levels of credit worthiness in the eyes

of banks / MFI, etc

• Many of them are currently non-

functional


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General body

Unorganized members of WUA (with large variation in socio-economic status)

Water Users Association Water Users Association (WUA)(WUA)

* Executive committee* Executive committee


* Executive committee* Executive committee

Existing frameworkExisting frameworkExisting frameworkExisting framework

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• The functioning and sustainability of

these CBOs can be enhanced by

organizing their general body members

(men as well as women) into small size

SHGs

• Afterwards existing executive

committee members of above CBOs

may be gradually replaced with

representatives of above SHGs


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General Body

Unorganized members of WUA (with large variation in socio-economic status)


SHG 1 SHG 2 SHG 3



* Modified executive committee* Modified executive committee


* Modified executive committee* Modified executive committee

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• The SHGs of above CBOs may be

federated at village level as well as

higher level for carrying out financial

transactions (in situation where it is

difficult to replace executive

committee members of CBOs with

representatives of SHGs)

Emerging framework Emerging framework (contd.)(contd.)Emerging framework Emerging framework (contd.)(contd.)

1 structural refinement in cbos for self-reliant development - emerging options

Documents

cbos slide

existing shgs slide

existing framework of

marketing cooperative

shepherd cooperative

fisherman cooperative

majority of shgs

shgs member