The contributions of community based volunteer workforce towards the millenni...
Impact Report
1. 1
Study of Social & Economic Impact of Co-operatives and SHGs on Individual
and Collective Level in Koppal
Submitted to Sampark
Submitted by intern from Tata Institute of Social Sciences (TISS), Mumbai
Suman Chatterjee
Date: 19/12/2015
3. 3
Introduction:
The following study is carried out to assess the impact of microfinance on the lives of rural folk at individual
and collective level. Samparak unlike most other MFIs has split its operation model into two spheres: a) Co-
operative b) SHG. Rationale for the said model is to let the women folk manage their own affairs by
reducing their reliance on external factors to zero or near zero. This is in sync with Sampark’s overarching
objective of empowering women to a level where they can slowly but surely learn to unshackle themselves
from the clutches of patriarchal hold of society and family while raising living standards for her and her
family.
Aim of the study:
Study is aimed at gauging socio-economic changes effected by Co-operatives and SHGs at community and
individual level in the rural landscape of Koppal district. To understand the degree of reliance achieved by
the women after joining SHGs co-operatives and managing works that was not part of their conventional life
within the bounds of four walls. One of the purposes of the study was to take stock of changing dynamics
between women and their husbands after they started moving out of four walls and contributing financially
to the later’s earning basket. Other aspects of the study covers child education and especially girl’s
education, awareness on sanitation, access to water, forms of caste based discrimination.
Methodology:
The study was executed in 4 villages using mixed-method assessment. Quantitative data was collected using
structured questionnaires and qualitative data was collected using Focus Group Discussion (henceforth
FGDs) with group members. Random sampling method has been used to select respondents.
Name of Co-operatives visited:
1. Eshwara
2. Gavishiddheshwara
3. Sadhana
4. Bhumika
Name of SHGs sampled:
1. Chamundeshwari
2. Roshan
3. Annapurneshwari
4. Ishwari
5. Sneha
6. Yelamadevi Sosahaya Group
7. Nimishamba
8. Vinayak
4. 4
Findings:
Lack of awareness was the most troublesome hurdle that they had to face at initial days. It took significant
time and effort on part of Co-operative members and few eager villagers to mobilize other to bring all under
one umbrella start working towards a collective goal.
All members collectively said their initial motivation for coming together and forming SHG was to save
money. Saving was a major problem during pre-SHG days. Somehow they used to expend money this way
or other and saving seemed to be quiet hard a task to achieve. After they had formed SHGs and made saving
as compulsory it helped them organize better financially and also translated into better financial condition of
families. Now SHGs save Rs. 50 per week per member to Rs. 250 per month per member contingent upon
financial condition of members and their capacity to save.
Membership Profile:
Figure 1
Going by our sample size of 41 respondents and extrapolating them on religion and caste affiliation we get
to see that SHGs are exclusivist in nature. Members of SHG groups belong to same religion or caste. Only
Ishwari SHG marks an exception with 2 Muslim members out of its 9 shareholders, 7 of whom are Hindu.
Members of Roshan SHG are Muslims so are members of Chamundeshwari and Annapurneshwari belong to
Hindu religion.
Bringing into the analysis some other perspectives which are nonetheless startling enough to be considered
seriously:
a) Schedule Tribe or ST is an administrative term that groups together the indigenous people of this
land under Article 342 of Indian Constitution. They have their separate belief system and societal
norms distinct from the mainstream Hindu way of life. Whereas here we get to see tribals calling
themselves Hindu and following Hindu religious and social norms. Here we get to see only 2 ST
women out 41, sampled, i. e. 4.88% of the total sample size. This can either be translated as
dominance of Other Backward Classes (henceforth OBC) in walks of rural life and systematic
2
8 7
1 1
2
20
0
5
10
15
20
25
Annapurneshwari
Chamundeshwara
Ishwari
Roshan
Annapurneshwari
Chamundeshwara
OBC ST
Caste and Religion wise SHG members
Hinduism
Islam
5. 5
invisibilization of tribal masses or some other subterranean factors which effected such set up but not
easily discernible by an outsider observer/researcher.
b) Conspicuous absence of Scheduled Caste people in any of the four SHGs that we sampled. This can
be unintentional and accidental but during course of our entire fieldwork we came across only one
SHG with one dalit member. And a SHG which was only consisted of dalit women with one woman
from Lingayat community. This infallibly indicates to caste based segregation which still is in
practice.
Figure 2
Education:
Low literacy rate is a major stumbling block in the path to develop self and community in the villages.
Villages and SHG members we interviewed 36.59% had received zero education. Out of 41 respondents
only one had completed graduation. Fig. 2 shows education level of the respondents within a range of zero
to graduation. Literacy rate in villages sampled stands at alarming 7.32%. As against this literacy rate in
Karnataka as per census 2011 data stands at 68.13% for females.
On the bright side of the picture poses hope with increased awareness about the need of education among
parents. Out of the respondents with children in school going age 62.96% are attending government schools
and 33.33% are going to private schools.
Figure 3
7.32%
4.88%
2.44%
4.88%
12.20%12.20%
2.44%
9.76%
2.44% 2.44% 2.44%
36.59%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
10th 12th 2nd 3rd 4th 5th 6th 7th 8th 9th BA Nil
Education Standard
Total
33.33%
3.70%
62.96%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Too Young Yes
Children in Govt School
Total
6. 6
Figure 4
Going deep into the subject matter to get fine nuances we get to see from Fig. 4 that both the ST respondents
are sending their children to government schools whereas children going to private schools all belong to
OBC background. This little peek into education scenario gives us glimpse of under development of the
tribal people which is still persisting even after 69 years of independence and 24 years of economic
liberalization. The data also poses us with question of systematic apathy of Indian administrative system to
seriously pursue development programme for indigenous population of the country. Compiled factors have
contributed into under development or no development of the tribals who continue to live a life that betrays
international standard of Human Development Index (HDI) or even the latest Happiness Index (being
vociferously endorsed by some quarters of western intelligentsia).
Figure 5
Fig. 5 stretches out reasons that are compelling parents to send their children to government schools. A
whopping 88.24% of the respondents cited financial constraints as most coercive factor that twists them to
9
1
15
2
0
2
4
6
8
10
12
14
16
No Too Young Yes Yes
OBC ST
Children in Govt School Caste Wise
Total
5.88%
88.24%
5.88%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
Does not Matter where
ChildrenStudy
Financial Constraints Financial
Constraints+Improved
Education Standard
Reason for Studying in Govt School
Total
7. 7
send children to government schools. 5.88% of the sample size had cited reasons Does not Matter where
Children Study and Financial Constraints+ Improved Education Standard respectively. It shows us the
hidden wishes of parents to send their children to private schools for education but the reality of lack of
money to afford five star education forcing them to come to terms with reality. During entire course of
fieldwork we came across multiple parents who expressed such wishes and inabilities.
The findings of the study put against the backdrop of recent education scenario of the country which is going
to sign international treaty (with WTO) to make higher education sector grape vine for private entities,
produce a grim picture of coming future. Our primary sector education system has seen a lopsided growth
over last six decades. Lack of infrastructure, systematic apathy and other socio-economic factors have
collectively contributed to scarcity of quality produce. Also lopsided economic rise in favour of the
privileged few who mostly belong to upper caste and upper class cluster of the country had taken quality
education out of the bounds of downtrodden masses. If the proposed treaty is signed and put into effect all
three primary, secondary and tertiary sector of education will go beyond the reach of poor masses who
constitute majority of population.
Figure 6
Dropouts count give us a satisfactory picture with 81.82% of the women with children in school going age
recorded zero dropouts in their families and 9.09% recording 1 and 2 dropouts in their family respectively.
Co-operatives have their separate education branches that work on dropout issues among its member-
partners. Our field investigation was rife with stories narrating how dropout children are sent back to schools
after counselling session with tri-parties: student, parent, and teachers. Engaging at personal level with each
and every one of the stakeholders.
Girls’ education, one of the most contesting aspects of patriarchal society is encouraged by the people we
interviewed and beyond, in this part of Karnataka. From Fig. 7, we see 95.59% of the respondents answered
positively to our questions on female education. Only 5.41% had negative view on girl’s education. While
we needled them (who answered positively) to measure their seriousness regarding education of girl child
everyone expressed their wishes to support their girl child as far as she wants to continue her study also they
were flexible regarding career options. We interviewed mothers having girl child regarding marrying off
their daughters before completion of her education or after a certain age limit each one of them responded in
negative. While from this, we can’t come to conclusion of writing off operations of patriarchal forces to
81.82%
9.09% 9.09%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
0 1 2
No of Dropouts
Total
8. 8
hinder female education completely but we can certainly conclude that a wind of change is swinging
mindsets.
Figure 7
Water & Sanitation:
Sanitation:
Figure 8
Lack of toilet inside houses is predominant features in the villages surveyed by the team. As Fog.8 shows
63.41% of the households don’t have toilet facility inside houses. This is alarming as repercussions occur at
multiple levels. Apart from health hazards other dimensions play prominent roles in wrecking havoc on lives
of people. Lack of toilet facility inside house poses a serious threat to security of women members of a
family. Not to forget Badaun rape case which could have been averted had they access to toilet inside their
house. Apart from health hazards and security issues that people mainly talk about what gets lost in the
5.41%
94.59%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
No Yes
Encourage girl Education
Total
63.41%
36.59%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Yes
Toilet Facility inside House
Total
9. 9
milieu is how women restrict urine pressure when there is no toilet inside house. This has serious
implication on their kidney and other body organs.
Also houses without toilet are more prevalent a feature among Muslim households as Fig. 9 below shows.
Out of 63.41% houses without toilet 73.08% of them belong Muslim families and 26.92% to Hindu families.
Figure 9
Respondents cited various reasons and sometimes multiple reasons for lack of toilet inside house. Issues
ranged from lack of money to lack of place of construction. Some have cited lack of money coupled with
space constraints as contributing factors. Fig. 10 shows that 56% have space constraints to build toilet inside
house whereas 40% suggested lack of money coupled with space constraints stopping them from building
toilet. Rest had financial problem only. On the hindsight it was a pleasure to see people aware of the need of
toilet and everyone wanted to have one inside house.
Figure 10
26.92%
73.08%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
No
Houses without toilet
Hinduism
Islam
4.00%
56.00%
40.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Money constraints No place for construction No place for construction+
Financial Problems
Reason for not Having Toilet
Total
10. 10
Water:
Figure 11
From Fig. 11 we get that 85.37% of the households have water facility inside houses with 14.63% of the
respondents said that they use community tap water for daily use. When inquired further about type of water
facility that respondents with water facility have within their houses 57.14% of them said only drinking
water. We had set three categories of water facilities namely: drinking, others which means water for
washing clothes and bathing, water for toilet use and both. Fig. 12 gives us picture of pattern of water
facilities that respondents had within their houses.
Figure 12
Of the people having access to water facility within houses only 42.86% people said that they had water
facilities for both purposes: drinking and as well as other uses.
14.63%
85.37%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
No Yes
Wtaer facility inside house
Total
42.86%
57.14%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
Both Drinking
Type of water facility inside house
Total
11. 11
Income, Assets and New Business:
Figure 13
Our majority respondents had recorded higher household income after they formed SHG and joined co-
operatives. As it is evident from Fig. 13, 87.80% recorded rise in household income compared to 12.20%
whose income level remained static. With rise in income level corresponding living standard has also rose
significantly. Rising income level contributed to purchase of new assets and opening up of new earning
avenues.
Out of 87.80% women who recorded increase in household income 30.56% of them had bought new assets.
(Fig. 14)1
Figure 14
1 After joining SHG means Income Increased After Joining SHG
87.80%
12.20%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
100.00%
After joining SHG Same as Before
Increase in income
Total
69.44%
30.56%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
After joining SHG After joining SHG
No Yes
People added New Assests after Income
Increased
Total
12. 12
Now let us have a look to pattern of items that were bought corresponding to increased income.
Figure 15
From the above chart (Fig. 15) we get to see television emerging as the most enviable assets to possess
among rural masses. Idiot box continues to charm its large audience spread across a large swathe of rural
and urban landscape even after penetration of computer and technologies into every sphere of life. On the
hindsight above asset basket seriously puts a question mark on rate of digital literacy among rural masses. IT
revolution and other buzz words of 21st
century development discourse seems a far cry while taking stock of
asset basket of rural masses who still continue to vie for TV as against computer with their corresponding
rise in income level. It also signifies low rate of internet penetration among rural masses. While we discuss
about digital governance and net neutrality a vast mass of rural India continue to live in a world where
internet and other words still not part of everyday life.
Figure 16
18.18%
9.09%
9.09%
9.09%
9.09%
9.09%
9.09%
27.27%
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%
Gold ornaments
Refrigerator,
Refrigerator, UPS
Sewing Machine
TV
TV, Cooler
TV, Fan
TV, Gas
Types of Assets
Total
58.33%
41.67%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
After joining SHG After joining SHG
No Yes
Anybody started business after Increase in
Income
Total
13. 13
Out of the women whose income level increased 41.67% of them or any of their family members have
started business opening new earning avenues and there by contributing in family income. (Fig. 16)2
From the above graph (Fig. 16) we see that most women or any of their family members have not started
anything new, reason for this can be attributed to their existing family occupation (mainly business) for
which they seek loan to expand operation. So even if they are not opening new avenues they are still
revamping existing avenues to suit changing demand of market and thereby contributing to their family
income.
Figure 17
Above chart (Fig. 17) gives us a glimpse of business that is mainly in demand in hinterlands. Tailoring,
Power loom and Roti Business collectively has maximum market share with 18.75% each. Driving Auto
Rikshaw comes to 2nd
position with 12.50% share. Rise in Roti business has other implications. It shows
slow unshackling of religious and social taboos. Even 10 years before when Sampark tried to influence
women to statrt Roti making and selling they cited various taboos, saying that if roti is made by Muslims
then Hindus will not eat. Whereas from our data set get to see all the women engaged in roti making are
Muslims. It clearly shows how market has cleared taboos to some degree.
2 After Joining SHG means Income Increased After Joining SHG
12.50%
6.25%
6.25%
12.50%
18.75%
18.75%
6.25%
18.75%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00%
Auto Rikshaw
Garage
Hotel
Papad Making
Roti business
Saree Powerloom
Stationary & Tailoring
Tailoring business
Types of Business Started
Total
14. 14
Skill Training:
Figure 18
From Fig. 18 tells us that 70.73% has received skill training and below graph gives us types of skill trainings
that have been imparted.
Figure 19
From the above graph we can infer that Power loom, Papad making and Candle making with 16.67% are the
three types of training which have most percentage of receiver and thereby play a role in enhancing income
of the receiver. Rural landscape of Koppal district where many people are engaged in Saree manufacturing
Power loom continues to remain most viable mode of income generation and skill training of Power loom is
70.73%
29.27%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
No Yes
Received Skill Training
Total
16.67%
16.67%
8.33%
16.67%
8.33%
8.33%
8.33%
8.33%
8.33%
0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00%
Candle Making
Papad Making
Roti ,Soap and Food item
Saree Powerloom
Stationary & Tailoring
Tailoring
Health
Business & Marketing
Soap, Pickle
Types of Skill Training
Total
15. 15
highly valued among weaver communities. Many of the respondents have bought Power loom after they
joined SHG and took loan and afterwards started manufacturing Saree, buying Power loom.
Apart from Skill Training all the respondents had been undergone capacity building training compulsory to
run SHG. The seven concept training includes:
a) SHG Concept
b) Book keeping & Writing
c) Common Fund Management
d) Leadership
e) Communication
f) Business Management
g) Rules & Regulation
Change in Dynamic with Husband & in-laws:
This aspect of study was one of the most important dimensions to understand how far women have been able
dilute patriarchal hold. Our quantitative and qualitative data set demonstrate a remarkable gap.
For the quantitative part we had set three categories as per our findings: a) positive b) negative c) same as
before. Under the broad categories we fixed sub-categories like following:
a) Positive: supporting of activities, motivates for work
b) Negative: not consenting of her works and activities, refuse her go out
c) Same as before: no change in behaviour at all
Figure 20
Fig. 20 puts change in behaviour to 65.63% as against 34.38% recording no change and also everyone of
them said that their husbands consented to their joining of SHGs. From surface layer it indicates to huge
achievement which nonetheless is true to some extent. But the depth of change remains murky. As our
FGDs gave us detailed in-depth account of the wind of change we got a complete contrasting picture. When
we asked them questions like: whether their husbands help them in household chores if they are struck in
SHGs work or if they ask them to do so, all of them answered in negative. Going a step further they said,
“aagar hum aisa bolenge to woh humko bolenge ki kal se kam me jane ki zarurat nahi, ghar baith k roti
pokao” (if we dare to say such thing, retaliation will effect into collapse of our work and we will have to
return back to our old days of doing only household works).
34.38%
65.63%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Change Positive
Change in Husband's Behaviour
Total
16. 16
Taking our discussion further and livelier, we asked if they have ever ventured to express their wishes to
wear modern dresses like jeans or kurti-pajama. It shocked them like lightning and everyone burst into peals
of laughter but all of them said “no we have never done such thing and also don’t wish to”. To judge how
deeply patriarchy is embedded within them we had set questions like: have you ever refused to cook at home
and asked to bring food from hotel? All the respondents from all SHGs said, “No we have never done so.
We don’t even eat at hotels ourselves. Leave alone hotel we don’t go to tea stalls to take tea on ourselves.
That’s not a good habit”. Questions like, what if you refuse to do household works and demand a reversal of
roles, say for, you will work and earn money and your husband will do household works? Respondents had
no answer. Thoughts like these posed to them was like, explaining quantum mechanics to a lay man. Some
had gone to the extent suggesting that such setting is inappropriate. Societal demarcation and division of
labours is correct and works fine. Members of FGDs said that they deposit their earning to their husbands.
All respondents had reported zero incidence of domestic violence in their houses. We had asked them, what
if you slap your husband during a fight. Not only did they try to waive away such thought one of them said,
“pati ko marne se paap chadta hain” (beating husband is blasphemous).
Cultural hegemony of patriarchy is in operation with iron grips on the minds of people. Our inquiry into
dowry practice had to be strategized at two levels. First we were asking straightforwardly of dowry amount
and item that were paid/given during their marriage. Our respondents exclaimed with flair of pride that such
evil practices are tales of bygone eras. Even after repeated prodding they stood firm to their grounds. We
reframed our question: “what are the items that your parents gave to you during your marriage
spontaneously?” This had miracle effect on them and everyone started opening up, giving detailed account
of the gifts given by their parents. It ranges from: gold ornaments, cash, and bike to even bequeathing
houses.
For our inquiry into change in dynamic with in-laws for respondents who had in-laws in their houses we set
same three categories and sub-categories as in change in dynamic with husband.
Figure 21
From Fig. 21 we can see that 60% has recorded No Change as against 40% with Positive Change.
Women participation in decision making also gives contrasting pictures when measured in quantitative
model and FGD model.
60.00%
40.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Change Positive
Change in in-laws Behaviour
Total
17. 17
Figure 22
Fig. 22 gives a rosy picture with 60.98% of the total sample size saying they participate in decision making.
But FGD responses give us more insight into the matter. Respondents of FGDs said that though they are
consulted before taking any major decision but the right to take ultimate call remains solely with male
patriarch. They don’t finalize any decision on any matters. And as we can see from above figure that 39.02%
had openly said that they don’t participate in decision making and the male members deal with every subject
matter. Reason cited for such arrangement varies: males have better understanding of issues; males are in
better touch with outside world so they know more than us and can make sound judgement as per demand of
situation, it has always been so.
Bank account under Jan-Dhan Yojana:
Figure 23
39.02%
60.98%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Yes
Women Participation in Decision
Making
Total
41.46%
58.54%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
No Yes
Bank Account under Jan-Dhan Yojana
Total
18. 18
Pet project of NDA government Jan- Dhan Yojan has failed to see much success on the ground. As data
from Fig. 23 puts bank accounts at 58.54%. Out of 24 with Jan-Dhan Yojan account only 10 have linked that
with other insurance schemes, mainly LIC and Pradhan Mantri Bima Yojana. Following graph shows share
of LIC and Pradhan Mantri Bima Yojana.
Figure 24
From the above graph we can see LIC as market leader compared with Pradhan Mantri Bima Yojana with
share of 66.67% of account holders linked their accounts with LIC.
Improvement at Personal and Village Front:
Respondents of FGDs had given detailed account of their improvement from shy, nervous starters to
becoming confident and ready to face outside world which previously seemed to be a male bastion. They
learnt about how to open bank accounts, deal with government officials while needed. They explored their
leadership potential which was lying dormant. Now they have learnt to work in a group and manage group
dynamics.
Low literacy or lack of literacy was outmaneuvered with sustained effort and collective zeal to change.
Trainer from co-operatives helped the illiterate achieve basic reading and writing skill while women who
were little advanced had progressed further.
All co-operatives and SHGs are managed by group of women who have never been to higher educational
institutes or can speak any language but Kannada. They now handle monetary affairs to the tune of Rs.
10crores. The lend money, recover, start business, asses market, make profit and then re-invest. All these
which were distant dream for these women folks now is a lived reality. The confidence they exude while
conversing with a stranger was phenomenal.
Especially Gavisiddheshwara co-operative has done tremendous job. Members of this co-operative have
driven away liquor sellers from the village. They fought against moonshining and brought it to end. Earlier
the village where it works from, was infested with liquor problem and corresponding domestic violence.
Members of Gavisiddheshwara have mobilized women from all houses even the wife of the distiller and
fought hard to kick out the menace from their turf. They are now on their way to construct their own office
building.
In one of the FGDs one member pointed out a very important factor: “we get loan for health problems and
that help during exigencies”. This saves them from falling into health based poverty trap. As operation of
66.67%
33.33%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
LIC pradhan mantri bima.
Yes
Account under Jan-Dhan Yojana
linked with insurance and type of
insurance
Total
19. 19
these co-operatives and SHGs lend money at affordable rate and conditions and thereby influenced a huge
mass of rural people to access loan from these houses and thereby brought an end to earlier usury system.
All members of SHGs had proudly announced how they wrecked business of shaukar (village money
lender).
With rising income of village members collective village economy has also flourished. This has been a
collateral positive side of microfinance operations in villages which is often lost in other success accounts of
microfinance.
