Problems and prospects of self help groups in Thoothukudi district

Abstract

One has to believe that the progress of any nation is inevitably linked with the social and economic plight of women in a particular country. Participation in SHGs can bring enviable changes and enhancement in the standard of living of women which could be their empowerment in poor and developing nations. Self Help Group (SHG) is a process by which a group of 10-20 women with common objectives are facilitated to come together voluntarily to participate in the development activities like savings, credit and income generation and thereby ensure economic independence. The basic principle which underlies the SHGs is to finance the poor to achieve holistic empowerment. SHG phenomenon brings the following qualities: group consciousness among women, sense of belongingness, self-confidence and self-reliance. When a woman becomes a member of SHG, her sense of public participation, enlarged horizon of social activities, high self-esteem, self-respect and fulfillment in life become expanding and enhance the status of women. Thus, the SHGs can be an effective instrument to empower women socially and economically.4 A sizable portion of India s rural population lives Below Poverty Line (BPL). They are doing their traditional work and they are not able to come up because of their financial crises. Even after Independence, there has been no proper banking system to meet the credit needs of the poor. Cooperative banks, nationalized banks and other commercial banks offer credit to the institutions but not to the poor persons. But in recent years, Self Help Groups are emerging as an alternative mechanism to meet the urgent credit needs of the poor through thrift.