Rajiv Gandhi Mahila Vikas Pariyojna(rgmvp)- commited to build the institutions of tomorrow

The first step in the building of institutions of the poor is the formation of the women's SHGs through the process of social mobilisation. RGMVP provides facilitation support and an enabling environment that ensures that every SHG gains access to microfinance by being linked to nationalised banks which have a commitment towards development of the poor. The bank-linkage process has been streamlined by special operative instructions from the Reserve Bank of India that each commercial and regional rural bank is obligated to follow with reference to RGMVP.

The focus is on investing in building the institutions, building the capacities of the poor to access the entitlements and opportunities available with the formal institutions, in a manner that can be scaled up to meet the growing needs of the poor. As a result, there is focussed investment; investment is being made where it is required and in multiple doses, and the poor's access to funds continues in perpetuity.
The SHGs address several socio-economic aspects such as arresting leakages in household cash flows, increasing income, enhancing asset status, building self-esteem and confidence of women, fostering leadership qualities, etc. The poorest of the poor thus find a solution to poverty reduction and create safety nets through thrift and credit activities coupled with systematic access to capital and knowledge provided by RGMVP. In the process, the poor build their own community institutions that provide a platform for the poor to meet on weekly /fortnightly basis and discuss various issues - health, education, gender, livelihoods, social malpractices, sustainable agriculture, even eco-friendly initiatives -- concerning their lives and channelise their energies to solve them.
As the next step, 20-25 SHGs are federated into a Village Organisation(VO/Gram Sangathan). The VOs take action on issues that cannot be resolved at the SHG level, work on strengthening the SHGs, and initiate social action and village development. When 10-15 VOs have been formed, they are federated into a Block Organisation (BO or Block Sangathan) which represents all SHGs at the Block level and plans for future activities. The BOs provide support to the VOs, secure and maintain links with government and non-government institutions, and audit the SHGs.
Institution building thus takes place in three tiers: SHGs, VOs and BOs. In effect, these institutions of the poor are a forum for the poor to share their pain and problems. They create a sense of unity and a rallying point around a common purpose. The CIPs provide the poor a voice, strength of unity and courage to resolve problems and issues related to the socio-economic milieu within which they exist, and access rights and entitlements that are their due.

This article is posted by Press Brief