Sustainable Management of Local Resources
Reducing poverty
and hunger are
the fundamental
challenges facing
developing countries.
Despite India’s recent high
economic growth rate, around
350 million people are still living
on less than one dollar a day. About
72% of India’s poor are living in
rural areas, primarily dependent on
agriculture and natural resources for
their sustenance. Acknowledging
the rural distress, the Indian
Government has declared the
development of rural areas a
top national priority (National
Common Minimum Programme of
the GOI, 2004). The most critical
elements here are the access to
and equitable management of
local resources in a viable and
sustainable way.
‘Sustainable development’ extends the traditional concept of economic development in two directions. The concept has a future focus; it aims at ensuring a pattern of development that will not damage the reasonably foreseeable interests and needs of future generations. Second, it entails to focus not only economic goals but also social and environmental well being. The aim of sustainable development is to ‘de couple’ economic growth from adverse effects on the environment.
A livelihood is sustainable when it can cope with and recover from stress and shock, maintain or enhance its capabilities and assets both now and in the future while not undermining the natural resource base” (DIFD). In this context the following aspects deserve special mention
The SHG movement has taken off on a huge scale in Indian villages and has become the approach of numerous rural development projects of Indian Government and banks. With 500 SHGs in 1992 to more than 68 lakh SHGs linked to banking system over the last 18 years, the growth of SHGs is astounding. However only those groups which initiate entrepreneurial activities - resource based and demand based activities- seem to be treading towards sustainable development. While SHGs can promote sustainable development of local resources, local resourcebased activities are primordial for sustainability of SHGs.
SHG movement had its origin in the context of non-access to credit facilities from commercial bank for the marginalized section at the grassroots, particularly the women who are otherwise careful in their spending, diligent in their saving habits, prudent enough to understand the productive links with various agencies and above all, have the responding capacity to the emerging needs of the consumers and the market. The cascading effect of the savings and credit operations is witnessed in the emergence of a strong SHG base in rural areas, capable of addressing their own credit needs under the guidance of reputed and well tested NGOs and also capable of gradually moving into higher order business operations as micro entrepreneurs.
But the SHGs are also faced with the problem of stiff competition from Multi National Corporations (MNCs) and corporate retailers. The MNCs who have well recognized the potential of these SHGs, lured them away from their original field of micro credit and micro-enterprises into the field of marketing of the products of MNCs, thus paving the way for supplanting them from their avocation of producing items with traditional skills and also resulting in non utilization of local resources .
Role of NGOs in nurturing SHGs
To make the resource-based activities successful and effective, the role of NGOs has significant importance in terms of identification of the location, resources, prepromotional activities, selection of potential activities, entrepreneurial training, monitoring and follow up mechanism. NGOs play a catalytic role in training the SHGs to convert the local resources into finished goods.
Management of local resources through SHGs
From the foregoing analysis a broad generalization emerges that credit alone is not enough for starting new livelihood enterprises based on local resources. Skill training, technology up-gradation and marketing assistance are also just as important.
It is the integrated strategy and not the minimalist strategy which has enabled the SHGs to manage the local resources effectively. Wherever NGOs/SHPIs have taken conscious efforts and steps to create better awareness and improve the knowledge, practices and skills of SHGs and where the members have been able to exercise informed choices and constitute a cohesive, dynamic and homogeneous group, the group has managed the local resources towards sustainability. Effective local resource management can be achieved through synergy of various stakeholders – NGOs, SHGs, banks, technical institutions and the government for policy support.
‘Sustainable development’ extends the traditional concept of economic development in two directions. The concept has a future focus; it aims at ensuring a pattern of development that will not damage the reasonably foreseeable interests and needs of future generations. Second, it entails to focus not only economic goals but also social and environmental well being. The aim of sustainable development is to ‘de couple’ economic growth from adverse effects on the environment.
A livelihood is sustainable when it can cope with and recover from stress and shock, maintain or enhance its capabilities and assets both now and in the future while not undermining the natural resource base” (DIFD). In this context the following aspects deserve special mention
- To support planning and promotion of rational use, conservation and improvement of natural resources essential to continuous and self sustaining livelihood opportunities.
- To support and stimulate new innovative initiatives aimed at improving the stock, quality and productivity of the resource base and livelihood opportunities.
- To empower the local communities to become equal and self reliant partners in sustainable resource management
The SHG movement has taken off on a huge scale in Indian villages and has become the approach of numerous rural development projects of Indian Government and banks. With 500 SHGs in 1992 to more than 68 lakh SHGs linked to banking system over the last 18 years, the growth of SHGs is astounding. However only those groups which initiate entrepreneurial activities - resource based and demand based activities- seem to be treading towards sustainable development. While SHGs can promote sustainable development of local resources, local resourcebased activities are primordial for sustainability of SHGs.
SHG movement had its origin in the context of non-access to credit facilities from commercial bank for the marginalized section at the grassroots, particularly the women who are otherwise careful in their spending, diligent in their saving habits, prudent enough to understand the productive links with various agencies and above all, have the responding capacity to the emerging needs of the consumers and the market. The cascading effect of the savings and credit operations is witnessed in the emergence of a strong SHG base in rural areas, capable of addressing their own credit needs under the guidance of reputed and well tested NGOs and also capable of gradually moving into higher order business operations as micro entrepreneurs.
But the SHGs are also faced with the problem of stiff competition from Multi National Corporations (MNCs) and corporate retailers. The MNCs who have well recognized the potential of these SHGs, lured them away from their original field of micro credit and micro-enterprises into the field of marketing of the products of MNCs, thus paving the way for supplanting them from their avocation of producing items with traditional skills and also resulting in non utilization of local resources .
Role of NGOs in nurturing SHGs
To make the resource-based activities successful and effective, the role of NGOs has significant importance in terms of identification of the location, resources, prepromotional activities, selection of potential activities, entrepreneurial training, monitoring and follow up mechanism. NGOs play a catalytic role in training the SHGs to convert the local resources into finished goods.
Management of local resources through SHGs
From the foregoing analysis a broad generalization emerges that credit alone is not enough for starting new livelihood enterprises based on local resources. Skill training, technology up-gradation and marketing assistance are also just as important.
It is the integrated strategy and not the minimalist strategy which has enabled the SHGs to manage the local resources effectively. Wherever NGOs/SHPIs have taken conscious efforts and steps to create better awareness and improve the knowledge, practices and skills of SHGs and where the members have been able to exercise informed choices and constitute a cohesive, dynamic and homogeneous group, the group has managed the local resources towards sustainability. Effective local resource management can be achieved through synergy of various stakeholders – NGOs, SHGs, banks, technical institutions and the government for policy support.
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