History and Spread of the Self-Help Affinity Group Movement in India: The Role Played By IFAD

This paper traces the origins and progress of the ‘Self-Help Group (SHG) Movement in India from 1985 to 2006, focusing particularly on the role played by the International Fund for Agricultural Development (IFAD). The paper looks at the roles of non-government organizations (NGOs), the National Bank for Agriculture and Rural Development (NABARD), other banks, and central and state governments in the evolution of the SHG program. The author examines:

• The early years of the SHGs in India and their emergence from the breakdown of the large cooperatives in the ‘Mysore Resettlement and Development Agency (MYRADA);
• The first phase of the SHGs, from 1987 to 1992, when NABARD focused on supporting NGO initiatives to promote SHGs and on analyzing their potential and performance;
• The second phase, from 1992 onwards - the SHG-Bank linkage program;
• SHG contribution to agriculture and on-farm credit;
• Reasons for the rapid spread of the SHG movement;
• Features that weakened the SHG movement;
• IFADs role in promoting the SHG movement in India;
• MYRADAs understanding of 'self-help affinity groups (SAGs)'.

The paper concludes with an assessment of whether the SAG strategy supports global efforts to meet the 'Millennium Development Goals'.