A lesson on the importance of tie ups in a developmental initiative years ago.
Dinesh K Kapila
Well, to cut it short, we got on to it. Visits
followed to the village, with the Sarpanch (Village Headman) and even the
trader. The trader was himself just a person of reasonable means, his house stood out, but
nothing to say he was really wealthy. We met the women who worked on this
activity and asked them about any intervention which could be undertaken by us.
They wanted it all to be done by the Govt as a welfare measure – always the
first preference but not really possible – and ultimately we zeroed in on Self Help Groups
(SHGs), Joint Liability Groups (JLGs) and issuing General Credit Cards to the
men (a reality, had to exclude women) and credit limits were to be sanctioned to
the SHGs and JLGs once they stabilised. To drive in cohesion, to upgrade skills
and to create an conducive environment, A Skill Development Programme
sanctioned by us was also proposed to be added. Then the Branch Head discussed
it with his Office and his Regional Office, and he and the NGO went over to the
SDM and BDO too. A small funding component to organize the SHGs and JLGs was
also sanctioned. The total number targetted was 120 spread over two nearby settlements.
All being enthusiastic about it, we went ahead with a
formal coordinated approach and a time bound action plan. The NGO studied the
costing in detail of the activities, the profit margins and the markets
including setting up stalls at a couple of places. Finally we had all the
sanctions and approvals in place and the surveys and groundwork completed. We then
had a grand opening ceremony with the Zonal Head of the PSU Bank himself
participating with enthusiasm. The SDM also associated as did the BDO. I was
there as was the LDM and we made speeches too and we had songs and some
motivational inputs. It was a very positive atmosphere and occasion. Nearly
festive. The trader stayed away but only stated if it was for their betterment, then it was fine with him.
Our commitments went very well. As did the response,
specially for the training. It was positivity and high energy levels all the
way – I was visiting as was the LDM and the DIC (District Industries Centre
Officials). We had the formal review meetings also. The GCCs were issued and
the JLGs and SHGs were also formed. There was certainly commitment and zeal all
the way and there was no negativity. We also
had added components on awareness and empowerment. All were well received.
But as a year passed, I could feel the energy levels
dropping and the morale dropping at the Bank and NGO too. The Sarpanch was
disinclined to sit with us and said openly we would bring about his defeat in
the next election. The reason - we could not sell the products. The products
were certainly better now, even if not uniformly so as is natural initially.
But the NGO, being more attuned to socio economic
development, found it difficult to organise the business in terms of
scheduling, orders, advance, commissions, logistics, sharing with the women
etc. The market was not hostile but was simply indifferent and treated the NGO
as an outsider. The trader used to simply pass on only the job work to the
women and would restrict his interaction to the men where it was simply about conveying
the orders and when to bring over the finished products and then settle the accounts.
The interaction was limited and confined to a few issues. All the networking,
the storage, the negotiations of rates and commissions, logistics was handled
by him or his associates.
The NGO was honestly stating by now that the initiative
was too costly for him (I think he thought he could earn of it too) and that he was deploying his own funds also now. Plus the prolonged close contact and visits were a cost too. The women and men, who would accept the
commission and compensation from the trader readily – including his deductions
for quality, would argue with the NGO for equal compensation for all. Then the
products placed at a couple of offices would not sell and the women going there
or employed to sell it wanted more compensation. The products at the offices would
sell reasonably so as the shops were also selling brooms and the like.
Ultimately we – rather the Branch Head and the NGO,
renegotiated with the trader informally and then with the trainees and the
groups. It was a come down but the trader assured that considering the improvement
in quality, he would enhance the compensation. That is the way it was then. We
tried diligently and honestly, but the learning was also there. Slowly the
initiative died out as did the buzz around it.
Years later, when posted as OIC Kashmir / Ladakh, I
remembered this learning and experience consistently when working on
initiatives for artisans.
Just sitting around today, I thought of sharing this.
Now times have improved as have levels of awareness and knowledge. But the core
of the issue remains.
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Sometimes
what holds up the flow of credit. In rural India. I came across this letter
written by me way back in 2004 -2005. To the Deputy Commissioners of Three
Districts I was assigned to.
As you would be kindly aware, the captioned issue was raised by me at the
recent DCC Meeting based on the feedback I got from bankers at the BLBCs,
specially in kandi areas. The issue is that wherever the PSTC has installed
deep tubewells or any irrigation work by any agency has been operationalised, the
revenue records also need to be updated. The revenue records need to indicate
that the classification of the land is now Irrigated, as per feedback, as of
now, the classification of land continues to be ‘bairani’, that is, unirrigated
and hence essentially uncultivable. Even if a banker were to advance a crop
loan against a ‘baraini’ classification, it would face a problem with the
auditors. This impedes the flow of credit. Hence in the interest of furthering
the flow of credit to such areas, I would request that the classification be
revised as appropriate. A remark as regards irrigation status on the said
revenue document could be also considered.. I thought the issue as such
should be brought to your notice for action as deemed appropriate.
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