International cooperative alliance
and its development programmes
The ICA was founded in London in 1895. Its members are national and internat ional co-operat ive international co-operative activity including agriculture, banking, energy, industry, insurance, fisheries, housing, tourism and consumer co-operatives. ICA has more than 230 member organisations from over 100 countries, representing more than 730 million individuals worldwide.
In 1946, the ICA was one of the first non-governmental organisations to be accorded United Nations Consultative Status. Today it is one of the forty-one Today it is one of the forty-one consultative status with the UN Economic and Social Council (ECOSOC).
ICA'S DEVELOPMENT ROLE
Working from its head office and regional offices, ICA helps to build strong, viable co-operatives in developing countries by acting as a co-ordinator and catalyst of co-operative development.
AIMS OF INTERNATIONAL COOPERATIVE ALLIANCE
The major objective of the ICA is to promote and strengthen autonomous co-operatives throughout the world. Through actions taken at the international, regional and national levels, the ICA also seeks to:
· promote and protect cooperative values and principles;
· facilitate the development of economic and other mutually beneficial relations between its member organisations;
· further, the economic and social progress of its members and their communities.
In order to achieve its aims, the ICA organises international, regional and sartorial meetings, thus serving as a forum for the exchange of experience and information among its vast membership.
METHODS
Information on all facets of co-operative development, resources and statistics are also collected by the ICA and provided to members and other organisations involved with co-operatives.
The ICA has a documentation centre and produces publications on specialised topics, as well as periodicals, including the ICA's official journals, "Review of International Co-operation" and ""ICA News:.
Through its headquarters and regional Offices, the ICA also provides technical assistance for co-operative development in Africa, Asia, Latin America, and Eastern and Central Europe.
Specialised bodies are also created by the ICA to address technical issues in specific economic and social sectors.
The ICA collaborates with the United Nations and its specialised agencies, and nongovernmental organisations with similar aims.
AIMS AND METHODS
The ICA Development Programme has close to forty years of experience. It responds to the needs of co-operatives for techncal assistance in co-operative development. The role of the ICA is to act as a catalyst and coordinator of co-operative development, with the aim of promoting and strengthening autonomous co-operatives throughout the world. The focus of the ICA programmes, based on the expressed priorities of its members, is:
· institution building, human resource development, women's integration, strategic planning.
· influencing Governments in order to create favourable environments for co-operative development, including organising regional level ministerial conferences to sensitise government leaders on the role of co-operatives;
· networking and promoting the exchange of experience and movement -to-movement assistance;
· mobilising financial resources for co-operative development
ICA'S ORGANISATIONAL STRUCTURE
Governing Bodies
In October 1992, the ICA membership approved a new decentralised structure for the alliance, which provides for the following governing bodies: the General Assembly, Regional Assemblies the Board, and the Audit and Control Committee. The General Assembly is the highest authority of the ICA, bringing together representatives from all member organisations every two years to formulate policies on the major issues affecting the organisation and the movement worldwide. The General Assembly also approves the work programme and budget.
SPECIALIZED BODIES
ICA specialised organisations (for business sectors) and committees (for non-commercial sectors) are established by and report to the ICA General Assembly. These specialised bodies collaborate with the ICA in practical ways and assist in making policy decisions. There are currently ten specialised organisations in the fields of banking, insurance, trade, consumer co-operatives, agriculture, fisheries, housing, worker's co-ops, energy and tourism. Specialised committees exist in the field of communications, research and development, education and training, and women in co-operatives.
ICA OFFICES
The Head Office of the ICA is located in Geneva, Switzerland. The ICA development programme is coordinated by the development department in Geneva and implemented through the Regional Offices.
Regional Offices have been established for East, Central and Southern Africa, West Africa, Asia and the Pacific, Latin America and the Caribbean. In addition, project offices are opened where there is a specific need. These offices implement ICA development programmes and represent members within the region. The regional offices report to the head office.
PARTNERS AND BUDGET
In order to implement its activities, the ICA collaborates with approximately 30 international and national development agencies and national government ministries. These partners support the ICA development programme through the provision of financial and technical assistance. In 1993, the total budget for the develop ment programme reached approximately CHF 9 million.
From Sahakar Srijan
Wednesday, October 13, 2010
International cooperative alliance and its development programmes
International cooperative alliance
and its development programmes
The ICA was founded in London in 1895. Its members are national and internat ional co-operat ive international co-operative activity including agriculture, banking, energy, industry, insurance, fisheries, housing, tourism and consumer co-operatives. ICA has more than 230 member organisations from over 100 countries, representing more than 730 million individuals worldwide.
In 1946, the ICA was one of the first non-governmental organisations to be accorded United Nations Consultative Status. Today it is one of the forty-one Today it is one of the forty-one consultative status with the UN Economic and Social Council (ECOSOC).
ICA'S DEVELOPMENT ROLE
Working from its head office and regional offices, ICA helps to build strong, viable co-operatives in developing countries by acting as a co-ordinator and catalyst of co-operative development.
AIMS OF INTERNATIONAL COOPERATIVE ALLIANCE
The major objective of the ICA is to promote and strengthen autonomous co-operatives throughout the world. Through actions taken at the international, regional and national levels, the ICA also seeks to:
· promote and protect cooperative values and principles;
· facilitate the development of economic and other mutually beneficial relations between its member organisations;
· further, the economic and social progress of its members and their communities.
In order to achieve its aims, the ICA organises international, regional and sartorial meetings, thus serving as a forum for the exchange of experience and information among its vast membership.
METHODS
Information on all facets of co-operative development, resources and statistics are also collected by the ICA and provided to members and other organisations involved with co-operatives.
The ICA has a documentation centre and produces publications on specialised topics, as well as periodicals, including the ICA's official journals, "Review of International Co-operation" and ""ICA News:.
Through its headquarters and regional Offices, the ICA also provides technical assistance for co-operative development in Africa, Asia, Latin America, and Eastern and Central Europe.
Specialised bodies are also created by the ICA to address technical issues in specific economic and social sectors.
The ICA collaborates with the United Nations and its specialised agencies, and nongovernmental organisations with similar aims.
AIMS AND METHODS
The ICA Development Programme has close to forty years of experience. It responds to the needs of co-operatives for techncal assistance in co-operative development. The role of the ICA is to act as a catalyst and coordinator of co-operative development, with the aim of promoting and strengthening autonomous co-operatives throughout the world. The focus of the ICA programmes, based on the expressed priorities of its members, is:
· institution building, human resource development, women's integration, strategic planning.
· influencing Governments in order to create favourable environments for co-operative development, including organising regional level ministerial conferences to sensitise government leaders on the role of co-operatives;
· networking and promoting the exchange of experience and movement -to-movement assistance;
· mobilising financial resources for co-operative development
ICA'S ORGANISATIONAL STRUCTURE
Governing Bodies
In October 1992, the ICA membership approved a new decentralised structure for the alliance, which provides for the following governing bodies: the General Assembly, Regional Assemblies the Board, and the Audit and Control Committee. The General Assembly is the highest authority of the ICA, bringing together representatives from all member organisations every two years to formulate policies on the major issues affecting the organisation and the movement worldwide. The General Assembly also approves the work programme and budget.
SPECIALIZED BODIES
ICA specialised organisations (for business sectors) and committees (for non-commercial sectors) are established by and report to the ICA General Assembly. These specialised bodies collaborate with the ICA in practical ways and assist in making policy decisions. There are currently ten specialised organisations in the fields of banking, insurance, trade, consumer co-operatives, agriculture, fisheries, housing, worker's co-ops, energy and tourism. Specialised committees exist in the field of communications, research and development, education and training, and women in co-operatives.
ICA OFFICES
The Head Office of the ICA is located in Geneva, Switzerland. The ICA development programme is coordinated by the development department in Geneva and implemented through the Regional Offices.
Regional Offices have been established for East, Central and Southern Africa, West Africa, Asia and the Pacific, Latin America and the Caribbean. In addition, project offices are opened where there is a specific need. These offices implement ICA development programmes and represent members within the region. The regional offices report to the head office.
PARTNERS AND BUDGET
In order to implement its activities, the ICA collaborates with approximately 30 international and national development agencies and national government ministries. These partners support the ICA development programme through the provision of financial and technical assistance. In 1993, the total budget for the develop ment programme reached approximately CHF 9 million.
From Sahakar Srijan
and its development programmes
The ICA was founded in London in 1895. Its members are national and internat ional co-operat ive international co-operative activity including agriculture, banking, energy, industry, insurance, fisheries, housing, tourism and consumer co-operatives. ICA has more than 230 member organisations from over 100 countries, representing more than 730 million individuals worldwide.
In 1946, the ICA was one of the first non-governmental organisations to be accorded United Nations Consultative Status. Today it is one of the forty-one Today it is one of the forty-one consultative status with the UN Economic and Social Council (ECOSOC).
ICA'S DEVELOPMENT ROLE
Working from its head office and regional offices, ICA helps to build strong, viable co-operatives in developing countries by acting as a co-ordinator and catalyst of co-operative development.
AIMS OF INTERNATIONAL COOPERATIVE ALLIANCE
The major objective of the ICA is to promote and strengthen autonomous co-operatives throughout the world. Through actions taken at the international, regional and national levels, the ICA also seeks to:
· promote and protect cooperative values and principles;
· facilitate the development of economic and other mutually beneficial relations between its member organisations;
· further, the economic and social progress of its members and their communities.
In order to achieve its aims, the ICA organises international, regional and sartorial meetings, thus serving as a forum for the exchange of experience and information among its vast membership.
METHODS
Information on all facets of co-operative development, resources and statistics are also collected by the ICA and provided to members and other organisations involved with co-operatives.
The ICA has a documentation centre and produces publications on specialised topics, as well as periodicals, including the ICA's official journals, "Review of International Co-operation" and ""ICA News:.
Through its headquarters and regional Offices, the ICA also provides technical assistance for co-operative development in Africa, Asia, Latin America, and Eastern and Central Europe.
Specialised bodies are also created by the ICA to address technical issues in specific economic and social sectors.
The ICA collaborates with the United Nations and its specialised agencies, and nongovernmental organisations with similar aims.
AIMS AND METHODS
The ICA Development Programme has close to forty years of experience. It responds to the needs of co-operatives for techncal assistance in co-operative development. The role of the ICA is to act as a catalyst and coordinator of co-operative development, with the aim of promoting and strengthening autonomous co-operatives throughout the world. The focus of the ICA programmes, based on the expressed priorities of its members, is:
· institution building, human resource development, women's integration, strategic planning.
· influencing Governments in order to create favourable environments for co-operative development, including organising regional level ministerial conferences to sensitise government leaders on the role of co-operatives;
· networking and promoting the exchange of experience and movement -to-movement assistance;
· mobilising financial resources for co-operative development
ICA'S ORGANISATIONAL STRUCTURE
Governing Bodies
In October 1992, the ICA membership approved a new decentralised structure for the alliance, which provides for the following governing bodies: the General Assembly, Regional Assemblies the Board, and the Audit and Control Committee. The General Assembly is the highest authority of the ICA, bringing together representatives from all member organisations every two years to formulate policies on the major issues affecting the organisation and the movement worldwide. The General Assembly also approves the work programme and budget.
SPECIALIZED BODIES
ICA specialised organisations (for business sectors) and committees (for non-commercial sectors) are established by and report to the ICA General Assembly. These specialised bodies collaborate with the ICA in practical ways and assist in making policy decisions. There are currently ten specialised organisations in the fields of banking, insurance, trade, consumer co-operatives, agriculture, fisheries, housing, worker's co-ops, energy and tourism. Specialised committees exist in the field of communications, research and development, education and training, and women in co-operatives.
ICA OFFICES
The Head Office of the ICA is located in Geneva, Switzerland. The ICA development programme is coordinated by the development department in Geneva and implemented through the Regional Offices.
Regional Offices have been established for East, Central and Southern Africa, West Africa, Asia and the Pacific, Latin America and the Caribbean. In addition, project offices are opened where there is a specific need. These offices implement ICA development programmes and represent members within the region. The regional offices report to the head office.
PARTNERS AND BUDGET
In order to implement its activities, the ICA collaborates with approximately 30 international and national development agencies and national government ministries. These partners support the ICA development programme through the provision of financial and technical assistance. In 1993, the total budget for the develop ment programme reached approximately CHF 9 million.
From Sahakar Srijan
Tuesday, October 12, 2010
co-operative movement in Karnatak
co-operative movement in Karnatak
As told by Shri Laxman S. Sayadi,
Honible Co-operative Minister of Karnatak
What progress has been made in the Co-operative sector in you State till date?
The concept and ideology of Co-operation as an instrument of Socio-economic rejuvenation is century old in Karnataka. Karnataka is considered to be one of the few States in the country, which has made steady progress in the co-operative Movement. Karnataka has made a mark in the sectors of Agriculture Credit, Milk and Urban Banking. We have 33,394 Co-operative Societies in the State as on 31-03-2008, with a membership of 2.9 crores. The working capital of all the co-operative stands at Rs. 27,180 crores. The Share capital in the co-operative is Rs. 2,690 crore sout of which the Government's contribution is Rs. 260 crores.
The Government of Karnataka has taken some landmark decisions in the Co-operative sector. It has ar ranged the flow of Agriculture Credit to the farmers through the co-operatives at 3% interest per annum. This applies to the Weavers, Fisherman also. Government has been subsidizing Rs. 2 per litre of milk supplied by the farmers to the milk cooperative societies. During the year 2008-09 upto the end of December 2008, nearly Rs. 2493.84 crores has been disbursed to 9,68376 farmers, fisherman and weavers for the agriculture operation. Every day the farmers supply more than 33 lakh litres of milk to the cooperatives.
We have a very highly acclamed Yeshasvini Farmers Health Care Scheme for the benefit of farmers. Under this scheme, the expenditure on surgery upto Rs. 1.00 lakh in respect of a single surgery and Rs. 2.00 lakhs in case of multiple surgeries per annum fully met by the Govt., We also have a unique scheme under Self Help Groups formed by Women folk from the rural areas which has been very much beneficial to the weaker sections of the community. The groups are assisted by Credit facility at 4% interest. Progress has also been made in issuing Kissan Credit Cards for the benefit of farming community.
The State has a well structured Co-operative education, training and publicity system provided by Karnataka State Co-operative Federation by which the masses are being educated, trained in the operation of co-operative and vide publicity is being arranged about the activities of co-opeartives through journals, media etc.
We have a parallel Karnataka Souharda Sahakari Act 1997 similar to Karnataka Co-operative Societies Act 1959 under which more than 1,000 co-operatives have been registered and functioning with greater autonomy.
The House Building Co-operative Societies, Marketing and Consumer Co-operative andalso Multi Purpose Co-operative Societies have been helping the farmers and the consumers in the state.
In your view what role does the co-operative sector play in the economic development of your State?
Co-operative Movement plays a very significant role in the economic development of our state and a large number of farming community and weaker sections are getting facilities from the co-operatives. The marketing system in the co-operatives provides agricultural facilities, inputs etc. for agricultural operations. These co-operatives have helped the farming community not only in earning their livelihood but also in improving the economic activity of state. The movement has provided substantial employment opportunities in the rural and vrban areas. The banking sector and non-agricultural Credit co-operatives have been contributing immensely for the economic activity in the State.
What plans and programmes have you prepared for the development of Co-operative sector in your State?
People specially the youth and the women are being educated to involve themselves in the cooperatives for overall development of the state. The Farmer’s interest is being taken care of by sanctioning crop loan at 3% interest.
How can the co-operative movement play an important role in various sectors of the economy so far untouched?
It is being done by massive member enrollment programme in the various types of co-operative societies.
Do you think that the cooperative movement can become an ideal tool for economic development of backward, minority and tribal etc., communities?
Yes, certainly the co-operative movement can become an idea tool for economic development of backward, minority and tribal etc., We have special plans in the state to involve more number of people belonging to those communities and even helping them to the extent of enrolling themselves as members of the co-operatives by extending monitory assistance. This approach helps in achieving social justice to less privileged classes.
What programmes would you consider suitable to develop the economically deprived sections through the co-operative sector?
It is imperative that, economically deprived sections of the community are to be educated first to imbibe the sense of belonging, involvement in the co-operatives and also enlightening them with the spirit of co-operation and its practice. Then, the plans involving economic advantages are to be drawn taking into consideration the social position of the different communities of the society.
What activities have been undertaken through the ICDP (Integrated Co-operative Development Project) in your State?
The programme has been started in the backward district of Gulbarga It helps in building and improving infra-structure facilities needed in co-operative field.
Have the Vaidyanathan Committee's recommendations been implemented in your State.
Has the State benefited and in what manner? If not implemented what are the hurdles faced in the implementation?
The MOU with Government of India and NABARD has already been signed. The implementation is in progress. Necessary amendments to the Karnataka Cooperative Societies Act are being made so as to give greater autonomy to co-operative institutions.
Would you like to give a suitable message or advice to the people of your state?
Have faith in the co-operative principles and practices. There is no alternative to the co-operative system for the balanced and sustainable economic development of the State. Involve yourself in the co-operatives, save them strengthen them and use them, in the interest of the present and future generation.
from Sahakar Srijan
As told by Shri Laxman S. Sayadi,
Honible Co-operative Minister of Karnatak
What progress has been made in the Co-operative sector in you State till date?
The concept and ideology of Co-operation as an instrument of Socio-economic rejuvenation is century old in Karnataka. Karnataka is considered to be one of the few States in the country, which has made steady progress in the co-operative Movement. Karnataka has made a mark in the sectors of Agriculture Credit, Milk and Urban Banking. We have 33,394 Co-operative Societies in the State as on 31-03-2008, with a membership of 2.9 crores. The working capital of all the co-operative stands at Rs. 27,180 crores. The Share capital in the co-operative is Rs. 2,690 crore sout of which the Government's contribution is Rs. 260 crores.
The Government of Karnataka has taken some landmark decisions in the Co-operative sector. It has ar ranged the flow of Agriculture Credit to the farmers through the co-operatives at 3% interest per annum. This applies to the Weavers, Fisherman also. Government has been subsidizing Rs. 2 per litre of milk supplied by the farmers to the milk cooperative societies. During the year 2008-09 upto the end of December 2008, nearly Rs. 2493.84 crores has been disbursed to 9,68376 farmers, fisherman and weavers for the agriculture operation. Every day the farmers supply more than 33 lakh litres of milk to the cooperatives.
We have a very highly acclamed Yeshasvini Farmers Health Care Scheme for the benefit of farmers. Under this scheme, the expenditure on surgery upto Rs. 1.00 lakh in respect of a single surgery and Rs. 2.00 lakhs in case of multiple surgeries per annum fully met by the Govt., We also have a unique scheme under Self Help Groups formed by Women folk from the rural areas which has been very much beneficial to the weaker sections of the community. The groups are assisted by Credit facility at 4% interest. Progress has also been made in issuing Kissan Credit Cards for the benefit of farming community.
The State has a well structured Co-operative education, training and publicity system provided by Karnataka State Co-operative Federation by which the masses are being educated, trained in the operation of co-operative and vide publicity is being arranged about the activities of co-opeartives through journals, media etc.
We have a parallel Karnataka Souharda Sahakari Act 1997 similar to Karnataka Co-operative Societies Act 1959 under which more than 1,000 co-operatives have been registered and functioning with greater autonomy.
The House Building Co-operative Societies, Marketing and Consumer Co-operative andalso Multi Purpose Co-operative Societies have been helping the farmers and the consumers in the state.
In your view what role does the co-operative sector play in the economic development of your State?
Co-operative Movement plays a very significant role in the economic development of our state and a large number of farming community and weaker sections are getting facilities from the co-operatives. The marketing system in the co-operatives provides agricultural facilities, inputs etc. for agricultural operations. These co-operatives have helped the farming community not only in earning their livelihood but also in improving the economic activity of state. The movement has provided substantial employment opportunities in the rural and vrban areas. The banking sector and non-agricultural Credit co-operatives have been contributing immensely for the economic activity in the State.
What plans and programmes have you prepared for the development of Co-operative sector in your State?
People specially the youth and the women are being educated to involve themselves in the cooperatives for overall development of the state. The Farmer’s interest is being taken care of by sanctioning crop loan at 3% interest.
How can the co-operative movement play an important role in various sectors of the economy so far untouched?
It is being done by massive member enrollment programme in the various types of co-operative societies.
Do you think that the cooperative movement can become an ideal tool for economic development of backward, minority and tribal etc., communities?
Yes, certainly the co-operative movement can become an idea tool for economic development of backward, minority and tribal etc., We have special plans in the state to involve more number of people belonging to those communities and even helping them to the extent of enrolling themselves as members of the co-operatives by extending monitory assistance. This approach helps in achieving social justice to less privileged classes.
What programmes would you consider suitable to develop the economically deprived sections through the co-operative sector?
It is imperative that, economically deprived sections of the community are to be educated first to imbibe the sense of belonging, involvement in the co-operatives and also enlightening them with the spirit of co-operation and its practice. Then, the plans involving economic advantages are to be drawn taking into consideration the social position of the different communities of the society.
What activities have been undertaken through the ICDP (Integrated Co-operative Development Project) in your State?
The programme has been started in the backward district of Gulbarga It helps in building and improving infra-structure facilities needed in co-operative field.
Have the Vaidyanathan Committee's recommendations been implemented in your State.
Has the State benefited and in what manner? If not implemented what are the hurdles faced in the implementation?
The MOU with Government of India and NABARD has already been signed. The implementation is in progress. Necessary amendments to the Karnataka Cooperative Societies Act are being made so as to give greater autonomy to co-operative institutions.
Would you like to give a suitable message or advice to the people of your state?
Have faith in the co-operative principles and practices. There is no alternative to the co-operative system for the balanced and sustainable economic development of the State. Involve yourself in the co-operatives, save them strengthen them and use them, in the interest of the present and future generation.
from Sahakar Srijan
Friday, October 8, 2010
Shri Mahila Sewa Sahakari Bank Ltd.,
Shri Mahila Sewa Sahakari Bank Ltd.,
(Experience of providing Financial Services to
poor women workers working in the informal sector)
A. HISTORY :
Women workers in Ahmedabad city, realized a need to start their own financial Institution, which can provide them financial services as per their needs by using suitable deliverable mechanism, they (4000 women) contributed their own capital to start a Co-operative Bank – Shri Mahila Sewa Sahakari Bank Ltd. in the year 1974.
B. CATAGORIES OF INFORMAL SECTOR WORKERS :
Workers who do not have regular salaried income or regular employment, but are working on their own like,
(a) Vegetable or fruit vendors or petty vendors and small shop owners.
(b) Home-based workers like bidi-rollers, garment makers, embroidery workers, artisans, block printers.
(c) Laborers like agriculture workers, construction workers, head loaders, maid servants, hand- cart pullers, paper pickers.
[In India 93% of the total work force is working in the informal sector, where majority of them are women]
C. ECONOMIC AND WORK PROFILE OF WOMEN WORKERS IN THE INFORMAL SECTOR :
(a) LONG WORKING HOURS :
Normally, their day start very early in the morning and they work for 12 to 15 hours a day. E.g. Vegetable Vendor starts her day at 5 a.m. and ends her work at 9 p.m.
(b) LOW AND IRREGULAR INCOME :
Majority of them earn on daily basis, and that income is also not very regular. E.g. Construction worker waits at the corner of the street every day, loading for work for that day or Agriculture workers get work only during agriculture season.
(c) LACK OF CAPITAL :
Small traders and manufacturers do not have required capital for their business and they have to borrow capital at very high interest rate from informal financial sector.
(d) LACK OF PRODUCTIVE ASSETS:
Low level of income and scarcity of capital they hardly can build productive asset for their economic activity and often they have to us rented or hired assets.
(e) MORTGAGE, PLEDGE, SALE EXISTING ASSETS :
In case of emergencies, when they need money they either pledge or mortgage their assets like ornaments or land or they have to sell these assets.
(f) INDEBTEDNESS :
Lack of capital, assets, low level of income and irregularity of income, force them to borrow money, often at exploitative rates.
(g) POOR WORKING CONDITIONS:
Home-based worker work in their home, which are very small, without much facilities or laborers have to work in very risky conditions e.g. construction workers.
(h) POOR LIVING CONDITIONS:
Majority of them live in slums, chowls or in kucha houses where even basic amenities like water, sanitation and electricity are not available.
(i) LACK OF SOCIAL SECURITY BENEFITS:
Since they are not working in the formal sector, they do not enjoy social security benefits like Provident Fund, Pension, Health Insurance, Workers compensation, Sick leave, Maternity benefits etc.
(j) ILLETRATE:
Because of all these unfavourable conditions, poor women are caught in the vicious cycle of poverty and vulnerability.
D. OBJECTIVE OF SHRI MAHILA SEWA SAHAKARI BANK LTD.:
Main objective of Shri Mahila Sewa Sahakari Bank Ltd. Is to help these women to come out of the vicious cycle of poverty and vulnerability by providing them much needed financial services and helping them,
(a) To come out of the clutches of exploitative moneylenders.
(b) To build their own savings.
(c) To build their own assets and capital.
(d) To rescue their mortgaged/pledged assets.
(e) To minimize their risk and vulnerability.
(f) To learn proper financial and business management.
E. EXPEREINCE OF THE BANK:
(a) Capital Formation Process:
From our experience of providing financial services to achieve the above mentioned objective we have realized that there is long process of helping poor to build their own capital and assets.
Capital Formation Chart:
Stage 1: (1) Credit to help them to come out of the clutches of Moneylenders.
In majority of the cases, it was found that they had borrowed of very high rate and major portion of their income is going towards payment of interest. When credit is given to them to repay this loan, they save a lot on interest, which is an increase in real income.
E.g. When Rs.5000 is borrowed @ 10% per month, she is paying Rs.500/- per month as interest. When a loan is given to pay Rs.5000/- @ 12% p.a. she has to pay only Rs.50 as interest, which helps her to save Rs.450 per month which she can repay as principle and come out of debts totally.
Stage-2 : Building Savings :
Our experience shows that poor women have basic instinct for saving. They save under the mat or with neighbor or in the backyard. This if motivated and facilitated, will enable women to save in Bank.
This facilitation is door-to-door collection, designing product as per their cash flow, E.g. daily Savings for Vegetable Vendors.
Stage-3 : Building Business :
They need working capital to expand business small amount of credit, but frequent credit would definitely suitable for expanding their business.
Stage-4 : Buying Assets:
After little expansion in business, they are ready to buy assets – either for using own assets rather than paying rent on it, or for buying machines instead of doing work manually.
Medium term credit for buying assets is very suitable to a small experienced business.
Stage-5 : Housing Loans :
After they have expanded their business, they do want to improve their living condition, housing credit, small amounts for repairing, extending house or adding services like water, drainage, toilet building or getting electricity connection is very popular.
Stage-6 : Linking with Insurance :
Though they build their business, assets, capital by using Saving and Credit Services, and coming out of debts, often circumstance beyond their control like sickness, death of a family member, flood, cyclone, fire riots etc. disturb their economic life and all capital assets and savings built gets eroded and again decapitalization process starts. To avoid this erosion, they are linked with Insurance companies.
F. SUITABLE DELIVERY MECHANISM:
Because of the different type of profile of thess women, the financial service delivery mechanism which needs to be used should be different, than the delivery mechanism normally used for other educated economically middle and higher-class clients. This will be useful for achieving the overall objective of financial inclusion.
(1) Door to door Service:
Majority of poor workers work is manual work in the field, that too for long hours. They do not have enough time to go to Bank to deposit money specially when the amount is small. It is also not economical for them to travel far to deposit small amount by spending on transportation and time when their work is labour intensive and their presence is required in the field. E.g. if a Vegetable Vendor wants to have Rs.10/- and takes a bus to go to a Bank pays One Rupee. on bus ticket and two hours in completing the transaction, he losses also income for two hours.
But at the same time if that small amount is not saved, (collected) it will be spent and will not be able to save or repay loan.
Hence it is important that money is collected, when it comes in their hands from their own place and if possible frequently.
Sewa Bank has appointed, trained and authorized women leaders from the same area and trade to collect from their doorsteps on daily basis. These leaders are called “Bank Saathis” and are given commission for collection of Savings and loan repayments when and where they have money in their hands.
(2) Simple Procedure:
Majority of them are illiterate and can't fill in all complicated forms. There should be simple procedure for opening accounts, withdrawals, applying for loans.
(3) Need hand holding :
They need hand holding in banking operations for depositing, filling forms, sometimes ever calculating money (currency notes).
The Bank has appointed a team of 'hand-holders” to help them in Banking operations.
(4) Collateral-less lending:
They can't provide physical collateral. So their saving performance (Regularity of Saving, even a small amount) loan repayment performance could be considered as collateral.
Poor pressure could work as good collateral. Sewa Bank takes recommendation (Moral responsibility) from leaders, over and above personal guarantees.
(5) Frequent and continuous contact:
The only solution for succeeding is keeping in regular contact with the members – Sewa Bank does appoint field workers, who are assigned specific areas and clients with whom they have to remain in constant touch and be their real friends.
(6) Client identification:
The best identification of a person can be done by their neighbours or traders and business relations. For identification of a new member, field inquiries particularly in area where they live and in the area where they work.
Normaly they can produce “Election Card” which also can be a good identification tool.
G. SUITABLE PRODUCTS:
Approach of Sewa Bank in designing products is to look at their “Life Cycle” financial needs and design financial services and products accordingly.
Basically there are three financial and one nonfinancial service designed by Sewa Bank i.e.
(1) Savings - Financial Service - Direct
(2) Credit - Financial Service – Direct
(3) Insurance - Financial Service – Direct
4. Financial Literacy:
Within these services – there are different products based on life cycle needs.
Savings: For consumption needs which can be planned.
(a) Daily saving Scheme for suitable collection where collection is linked with cash flow.
(b) Monthly Recurring for Festival for One year.
(c) Monthly Recurring for Emergencies for One year.
(d) Monthly Recurring for Education for One year to five year.
(e) Monthly Recurring for House repair for Three years.
(f) Monthly Recurring for Marriage of children for Five to Seven years.
(g) Monthly–collection for old-age-linked with UTI.
Insurance for Emergencies linked with Insurance Companies.
(1) Life (Husband and Wife)
(2) Medical (For Family)
(3) Accident (Husband and Wife)
(4) Loss of Assets (Flood, fire, cyclone, riots)
(5) Maternity.
Credit for,
- Working Capital Short term
- Buying Assets Medium term
- Buying Assets Medium term
(a) Water connection
(b) Building toilet
(c) Getting Electric connection.
(d) Extension of House
(e) Repairing a House.
- Repayment of Old loan Medium term.
Objective : (a) Help women to change their attitude of living on day to day basis t and think about future and life cycle needs.
(b) Build their financial knowledge and skill.
(c) To help women to manage and plan their financial life.
This is to provide by
- Giving classroom trainings.
- Giving individual counseling.
- Organizing financial camps.
- Organizing special campaign.
Tools Used : Class room lectures
- Videos.
- Games.
For Sahakar Srijan
(Experience of providing Financial Services to
poor women workers working in the informal sector)
A. HISTORY :
Women workers in Ahmedabad city, realized a need to start their own financial Institution, which can provide them financial services as per their needs by using suitable deliverable mechanism, they (4000 women) contributed their own capital to start a Co-operative Bank – Shri Mahila Sewa Sahakari Bank Ltd. in the year 1974.
B. CATAGORIES OF INFORMAL SECTOR WORKERS :
Workers who do not have regular salaried income or regular employment, but are working on their own like,
(a) Vegetable or fruit vendors or petty vendors and small shop owners.
(b) Home-based workers like bidi-rollers, garment makers, embroidery workers, artisans, block printers.
(c) Laborers like agriculture workers, construction workers, head loaders, maid servants, hand- cart pullers, paper pickers.
[In India 93% of the total work force is working in the informal sector, where majority of them are women]
C. ECONOMIC AND WORK PROFILE OF WOMEN WORKERS IN THE INFORMAL SECTOR :
(a) LONG WORKING HOURS :
Normally, their day start very early in the morning and they work for 12 to 15 hours a day. E.g. Vegetable Vendor starts her day at 5 a.m. and ends her work at 9 p.m.
(b) LOW AND IRREGULAR INCOME :
Majority of them earn on daily basis, and that income is also not very regular. E.g. Construction worker waits at the corner of the street every day, loading for work for that day or Agriculture workers get work only during agriculture season.
(c) LACK OF CAPITAL :
Small traders and manufacturers do not have required capital for their business and they have to borrow capital at very high interest rate from informal financial sector.
(d) LACK OF PRODUCTIVE ASSETS:
Low level of income and scarcity of capital they hardly can build productive asset for their economic activity and often they have to us rented or hired assets.
(e) MORTGAGE, PLEDGE, SALE EXISTING ASSETS :
In case of emergencies, when they need money they either pledge or mortgage their assets like ornaments or land or they have to sell these assets.
(f) INDEBTEDNESS :
Lack of capital, assets, low level of income and irregularity of income, force them to borrow money, often at exploitative rates.
(g) POOR WORKING CONDITIONS:
Home-based worker work in their home, which are very small, without much facilities or laborers have to work in very risky conditions e.g. construction workers.
(h) POOR LIVING CONDITIONS:
Majority of them live in slums, chowls or in kucha houses where even basic amenities like water, sanitation and electricity are not available.
(i) LACK OF SOCIAL SECURITY BENEFITS:
Since they are not working in the formal sector, they do not enjoy social security benefits like Provident Fund, Pension, Health Insurance, Workers compensation, Sick leave, Maternity benefits etc.
(j) ILLETRATE:
Because of all these unfavourable conditions, poor women are caught in the vicious cycle of poverty and vulnerability.
D. OBJECTIVE OF SHRI MAHILA SEWA SAHAKARI BANK LTD.:
Main objective of Shri Mahila Sewa Sahakari Bank Ltd. Is to help these women to come out of the vicious cycle of poverty and vulnerability by providing them much needed financial services and helping them,
(a) To come out of the clutches of exploitative moneylenders.
(b) To build their own savings.
(c) To build their own assets and capital.
(d) To rescue their mortgaged/pledged assets.
(e) To minimize their risk and vulnerability.
(f) To learn proper financial and business management.
E. EXPEREINCE OF THE BANK:
(a) Capital Formation Process:
From our experience of providing financial services to achieve the above mentioned objective we have realized that there is long process of helping poor to build their own capital and assets.
Capital Formation Chart:
Stage 1: (1) Credit to help them to come out of the clutches of Moneylenders.
In majority of the cases, it was found that they had borrowed of very high rate and major portion of their income is going towards payment of interest. When credit is given to them to repay this loan, they save a lot on interest, which is an increase in real income.
E.g. When Rs.5000 is borrowed @ 10% per month, she is paying Rs.500/- per month as interest. When a loan is given to pay Rs.5000/- @ 12% p.a. she has to pay only Rs.50 as interest, which helps her to save Rs.450 per month which she can repay as principle and come out of debts totally.
Stage-2 : Building Savings :
Our experience shows that poor women have basic instinct for saving. They save under the mat or with neighbor or in the backyard. This if motivated and facilitated, will enable women to save in Bank.
This facilitation is door-to-door collection, designing product as per their cash flow, E.g. daily Savings for Vegetable Vendors.
Stage-3 : Building Business :
They need working capital to expand business small amount of credit, but frequent credit would definitely suitable for expanding their business.
Stage-4 : Buying Assets:
After little expansion in business, they are ready to buy assets – either for using own assets rather than paying rent on it, or for buying machines instead of doing work manually.
Medium term credit for buying assets is very suitable to a small experienced business.
Stage-5 : Housing Loans :
After they have expanded their business, they do want to improve their living condition, housing credit, small amounts for repairing, extending house or adding services like water, drainage, toilet building or getting electricity connection is very popular.
Stage-6 : Linking with Insurance :
Though they build their business, assets, capital by using Saving and Credit Services, and coming out of debts, often circumstance beyond their control like sickness, death of a family member, flood, cyclone, fire riots etc. disturb their economic life and all capital assets and savings built gets eroded and again decapitalization process starts. To avoid this erosion, they are linked with Insurance companies.
F. SUITABLE DELIVERY MECHANISM:
Because of the different type of profile of thess women, the financial service delivery mechanism which needs to be used should be different, than the delivery mechanism normally used for other educated economically middle and higher-class clients. This will be useful for achieving the overall objective of financial inclusion.
(1) Door to door Service:
Majority of poor workers work is manual work in the field, that too for long hours. They do not have enough time to go to Bank to deposit money specially when the amount is small. It is also not economical for them to travel far to deposit small amount by spending on transportation and time when their work is labour intensive and their presence is required in the field. E.g. if a Vegetable Vendor wants to have Rs.10/- and takes a bus to go to a Bank pays One Rupee. on bus ticket and two hours in completing the transaction, he losses also income for two hours.
But at the same time if that small amount is not saved, (collected) it will be spent and will not be able to save or repay loan.
Hence it is important that money is collected, when it comes in their hands from their own place and if possible frequently.
Sewa Bank has appointed, trained and authorized women leaders from the same area and trade to collect from their doorsteps on daily basis. These leaders are called “Bank Saathis” and are given commission for collection of Savings and loan repayments when and where they have money in their hands.
(2) Simple Procedure:
Majority of them are illiterate and can't fill in all complicated forms. There should be simple procedure for opening accounts, withdrawals, applying for loans.
(3) Need hand holding :
They need hand holding in banking operations for depositing, filling forms, sometimes ever calculating money (currency notes).
The Bank has appointed a team of 'hand-holders” to help them in Banking operations.
(4) Collateral-less lending:
They can't provide physical collateral. So their saving performance (Regularity of Saving, even a small amount) loan repayment performance could be considered as collateral.
Poor pressure could work as good collateral. Sewa Bank takes recommendation (Moral responsibility) from leaders, over and above personal guarantees.
(5) Frequent and continuous contact:
The only solution for succeeding is keeping in regular contact with the members – Sewa Bank does appoint field workers, who are assigned specific areas and clients with whom they have to remain in constant touch and be their real friends.
(6) Client identification:
The best identification of a person can be done by their neighbours or traders and business relations. For identification of a new member, field inquiries particularly in area where they live and in the area where they work.
Normaly they can produce “Election Card” which also can be a good identification tool.
G. SUITABLE PRODUCTS:
Approach of Sewa Bank in designing products is to look at their “Life Cycle” financial needs and design financial services and products accordingly.
Basically there are three financial and one nonfinancial service designed by Sewa Bank i.e.
(1) Savings - Financial Service - Direct
(2) Credit - Financial Service – Direct
(3) Insurance - Financial Service – Direct
4. Financial Literacy:
Within these services – there are different products based on life cycle needs.
Savings: For consumption needs which can be planned.
(a) Daily saving Scheme for suitable collection where collection is linked with cash flow.
(b) Monthly Recurring for Festival for One year.
(c) Monthly Recurring for Emergencies for One year.
(d) Monthly Recurring for Education for One year to five year.
(e) Monthly Recurring for House repair for Three years.
(f) Monthly Recurring for Marriage of children for Five to Seven years.
(g) Monthly–collection for old-age-linked with UTI.
Insurance for Emergencies linked with Insurance Companies.
(1) Life (Husband and Wife)
(2) Medical (For Family)
(3) Accident (Husband and Wife)
(4) Loss of Assets (Flood, fire, cyclone, riots)
(5) Maternity.
Credit for,
- Working Capital Short term
- Buying Assets Medium term
- Buying Assets Medium term
(a) Water connection
(b) Building toilet
(c) Getting Electric connection.
(d) Extension of House
(e) Repairing a House.
- Repayment of Old loan Medium term.
Objective : (a) Help women to change their attitude of living on day to day basis t and think about future and life cycle needs.
(b) Build their financial knowledge and skill.
(c) To help women to manage and plan their financial life.
This is to provide by
- Giving classroom trainings.
- Giving individual counseling.
- Organizing financial camps.
- Organizing special campaign.
Tools Used : Class room lectures
- Videos.
- Games.
For Sahakar Srijan
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