This document provides an overview and summary of the National Rural Livelihoods Mission (NRLM) in India, known as Aajeevika in Jharkhand. It discusses: - The history and shortcomings of previous poverty alleviation programs that led to the creation of NRLM. - The key components and objectives of NRLM, including social and financial inclusion through self-help groups, building skills and livelihoods, and convergence of social services. - Implementation strategies for NRLM, including intensive implementation through dedicated state missions and non-intensive implementation through existing structures. - Challenges facing rural livelihoods and poverty alleviation in Jhark

1. Rajib Mohanty
Jharkhand State Livelihoods promotion Society(JSLPS-SRLM)
2nd Dec 2013

2. Dreams to Reality
Recall the face of the
poorest and the weakest
man(woman) whom you
may have seen, and ask
yourself, if the step you
contemplate is going to be
of any use to him(her).
Will he (she) gain anything
by it? Will it restore him
(her) to a control over his
(her) own life and destiny?
In other words, will it lead
to SWARAJ (freedom) for
the hungry and spiritually
starving millions?

3. National Rural Livelihoods Mission : AAJEEVIKA
Understanding the Origin
 Government approach to Poverty Reduction in 1980s
…… IRDP
 Targeting directly to poor
 Assets creation and self employment
 Reforms in 1999 …… and experience
 Swarnjayanti Gram Swarojgar Yozana
 Self employment through organising poor into SHGs
 Poor’s institutions (SHG) has become pre requisite for
poverty reduction

4. NRLM Conceptualization Systematic Review of SGSY and shortcomings
 Insufficient CB of beneficiaries
 Insufficient investment in building community institutions
 Weak linkages with banks …low credit mobilisation and low repeat financing
 Learning of programme
 Absence of aggregate Institution of Poor precluded the poor to access higher order support
services for
 Productivity enhancement
 Market linkages
 Risk management
 Studies showed that SGSY relatively succeeded where
 systematic mobilization of poor happened (SHGs)
 CB and Skill Development took place in a process intensive manner
 Evolution of World Bank’s Livelihoods Projects
 SERP Andhra Pradesh
 Experience of Tamilnadu
 KUDUMBASHREE of Kerala
 JEEViKA in Bihar
 Programme Experience
 Building Poor’s Institutions
 Social and Economic Empowerment of poor enable them to build linkages with state, Banks and
market
 Building own capital to leverage resources and meet perpetual small but important needs

5. Transformation
Pre-NRLM NRLM
Allocation of resources, disbursement of funds
and monitoring
Provision of high-quality technical assistance
to states and partners in the areas of
programme design, HRD, MIS and
community institutions building
Financing restricted to resources allocated by
GOI thinly distributed under SGSY
Emphasis on a leveraging model through
financing of poor by commercial banks,
allowing for both additional finance and
deepening of Mission interventions
Implemented as a scheme through the state
system – DRDAs/district panchayats
Promoter of innovations and incubator of
social and private sectors working for rural
development
Entitlement-based fund allocation Program-based financing subject to overall
ceiling
Input and activity monitoring Evidence based participatory monitoring and
policy impact analysis

6. Programmatic Difference of
SGSY and NRLM
Key Feature SGSY NRLM
Fund allocation District wise allocation based on
BPL list/rural poverty estimate
Overall state allocation based on
estimated poverty population(PIP)-
sub state poverty level based on State
Perspective Plan
Fund flow To the districts To the state
Delivery
mechanism and
programme
management
Through DRDAs Through state Mission structure-a
special purpose organization
established for NRLM
Programme priority Capital subsidy Mobilization of poor into groups
Capital subsidy
flow
Through banks as subsidy for
economic activities
Direct to groups as demand based
seed capital
Role of banks As disbursers of capital subsidy As providers of credit

7. Objective of NRLM
 Mobilizing all Rural poor households into functionally
effective SHGs and their federations;
 Enhancing their access to bank credit and other
financial, technical and marketing services;
 Building their capacities and skills for gainful and
sustainable livelihoods development; and
 Converging various schemes for efficient delivery of
social and economic support services to poor with
optimal results.

8. Financial & Capital Services
Human and
Social Capital
(Leaders, CRPs,
Community Para-
Professionals)
Dedicated Support
Institutions
(Professionals,
Learning Platform
M & E Systems)
Institutional
Platforms of Poor
(Aggregating and Federating
Poor, Women, Small &
Marginal Farmers, S.Cs and
S.Ts)
INNOVATIONS
Livelihood Services
Building Enabling Environment
Partnerships and Convergence

9. NRLM: Components
 Social Inclusion
 Participatory identification of poor
 Universal social mobilization (saturation)
 Building institutions of the poor
 Affinity groups of women in SHGs
 Primary federations of SHGs at village/Panchayat
 Specialized livelihood institutions (Producer Companies or
Producer Collectives)
 Social capital (leaders, para-professionals, CRPs, etc.)

10. NRLM: Components
Financial Inclusion
 Building an inclusive financial sector
 Making poor preferred clients for banking system
 Monetize livelihood economy of the poor
 Reduction in high cost indebtedness for the poor
 Financial education for planned investments
 Leveraging investments from mainstream banks
 Pro-active and systematic initiatives working
on both ‘supply’ and ‘demand’ side of financial
inclusion agenda

11. NRLM: Components
 Economic Inclusion & Livelihoods Promotion
 Vulnerability and risk reduction
 Income security and social security schemes
 Food and health financing
 Social insurance
 Livelihood enhancement – especially the pro poor
sectors
 Value chain development in agriculture and livestock sectors
 Community Managed Sustainable Agriculture
 Infrastructure and marketing support
 Public-Private-Community Partnerships
 Self employment and micro enterprise development
 Placement linked skilled development
 Special Projects and innovations

12. Livelihood Ladder
Livelihood Security Livelihood Protection Livelihood Promotion
Objective Increasing accessibility
and affordability of
basic
services
Reducing vulnerability
And enhancing
reliability
of
coping mechanisms
Increasing incomes,
assets
and well being
Livelihood Strategies Safety nets
Food security
Health security
Literacy and life skills
Shelter
Access to entitlements
Debt restructuring
Insurance and
pensions
Skills transferability
Managing climate risks
Market access
Support services
Productivity
Cost efficiency
Technology and skills

13. Implementation Strategy
 Intensive Strategy: To be implemented in
phased manner through the dedicated and
sensitive structure by JSLPS/SRLM.
 Non-Intensive strategy: To be implemented
through DRDA with the support of State
Resource Cell(SRC) .

14. Activity cycle in an Intensive Block
Validation and
Strengthening of
Existing SHGs
CRP Strategy for
Social
Mobilization &
Identification of
the Poor
Financial Inclusion
(Financial Literacy,
preparation of MCP)
Community
Investment
Fund
SHG-Bank
Linkage
Vulnerability Reduction
Food Security, Health
Security, Social Safety
Nets, etc.
Livelihood
Interventions
Agriculture,
Livestock,
Enterprises, Jobs
Access to Public
Services and
Entitlements

15. Thrust Area For Non Intensive
Blocks
 Strengthening of DRDA.
 Selection and capacity building of Community
resource person(CRP)- creating “Social Capital”.
 Capacity building and linkages of deserving SHGs.

16. Jharkhand: Scenario
 Jharkhand is among India’s poorer, less developed States
 Only 50% women are literate; literacy lower in poorer groups
 Rural livelihoods are un-remunerative and risky
 Livelihood issues linked to malnutrition, ill-health, indebtedness
 There is a range of actors, schemes- but mixed results
 Social protection, skill building initiatives need strengthening
 Social mobilization, financial inclusion status is concerning
 79% rural poor households yet to be mobilized in SHGs
 52% of rural households are unbanked, financially excluded
NREGS: Average person-days of employment per household:-42; % of households who availed 100 days
of employment: 7%; PDS: 20% poor have no card; 42% BPL/ AAY cards with non-poor; Less than 20%
poor benefit from Annapurna/ FFW/ ICDS/ MDM; NSAP: Less than 2% beneficiaries disbursed

17. Jharkhand: Scenario
 Special Challenges unique to the State
 17 districts are LWE-affected
 Constraints
 Of infrastructure (irrigation, breeding,
storage, processing, transport, training, vet
care, etc.)
 Of services (extension, vet care, credit,
insurance, marketing, training, etc.)
Jharkhand: An avg. GP has 27 habitations; an avg. habitation has 38 households. India: An
avg.GP has 7 habitations; an avg. habitation has 100 households. No Jharkhand district has
avg. number of habitations per GP or avg. habitation population close to national avg.

18. Striving for alternative initiative- Core Principles
18
Skills
Knowledge
Creative,
Committed,
Community at the
driving seat
Attitude
Values

19. Thank You