Self Help Groups in AP:some preliminary findings from an IEG study Howard White Independent Evaluation Group World Bank
Background • IEG impact study of World Bank-financed irrigation (SRBC and SRSP) and DFID-supported APRLP • Panel household survey in 2005 and 2007 + qualitative fieldwork in 2006 and 2007 • Survey in 10 RLP villages (randomly selected), matched with 10 DPAP and 10 non-watershed villages • Total sample approximately 1,500 households.
Achievements of APRLP • High penetration of SHGs • SHGs effective savings organizations → reduced reliance on money lenders • Substantial volume of NRM works undertaken • PE & Livelihood loans being used to increase incomes
Reasons for drop • Non-functioning groups • Internal rivalries • Unable to maintain adequate records • Too many non-paying members • Individual • Unable to pay monthly Rs 30 • Difficulties with loan repayment (including issue of animal insurance) • Feel group doesn’t function fairly
Effective savings and loans • Majority of members pay monthly savings • Loan repayment rate high (90% +) • Most members had at least one SHG loan • Loan size has increased in last two years (median loan size increased from Rs 3,000 to Rs 5,000) • Dependence on moneylenders fallen: share in loans to households fell from 39% to 15% from 2005 to 2007
Loans include PE and Livelihoods • Animal purchase • Increases in livestock: purchases of animals using SHG loans, significantly greater in APRLP areas, with goats and sheep favouring poorer groups • Issue of animal insurance • Petty enterprises • Supported by training, becomes more important as loan size increases • Issues around functioning of paraworkers (esp. agriculture)
NRM activities • High average level of NRM activities: on average around 20 structures per community • But skewed, in some communities amount quite low • Hard to determine impact given rainfall pattern • Indeed many structures washed away in floods
Some policy issues • How to ensure participation of poorest • Whether to target more than one member per household • Support to non-functioning SHGs • Support to non-payers, e.g. animal insurance • Strengthening para worker structure