Aspects of Governance

Friday, September 13, 2019 1:46 PM

What is Governance

• According to World Bank: governance as the method through which power is exercised in the management of a
country’s political, economic and social resources for development.
• In simple terms, Governance is the process and institutions through which decisions are made and authority in a
country is exercised at all levels.

Stakeholders of Governance

• Typically, the stakeholders of governance at national level can be categorised into three broad categories –
○ State (Government), Market and Civil Society.

1. State: it includes different organs of the government (Legislature, Executive & Judiciary). It also consists of
different segments of actors (elected representatives, political executive, bureaucracy/civil servants at
different levels etc.)
2. Market: it includes both organised and unorganised private sector which comprises of business firms &
industries.
3. Civil Society: most diverse and typically includes all groups not included above.

Good Governance

• `Good Governance’ implies positive attributes and values associated with the quality of governance. Good
governance is a dynamic concept and there is much subjectivity involved in defining the aspects of good
governance.
• United Nations Development Programme (UNDP) recognizes eight core characteristics of good governance:

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 Participation provides opportunities for citizens to take part in decision making, implementation and
monitoring of government activities.
Ex- Art, Pressure Groups, Unions, etc.
Consensus best interest of the whole community & how this can be achieved should be reached by
oriented consensus.
Ex- Parliament
Rule of Law Definite and impartial legal framework needs to be enforced. Protection of human rights,
minorities and vulnerable sections rights must be ensured
Ex- Minority rights & Vulnerable provisions
Transparent decisions taken and their enforcement should follow certain rules and regulations.
Ex- RTI
Accountable acknowledgment and assumption of responsibility for actions, products, decisions, and
policies is accountability.
Accountability cannot be enforced without transparency and the rule of law.
Ex-
Responsive Redressal of citizen grievance & timely disposal of services to all stakeholders.
Effective and optimum use of resources at their disposal.
Efficient In modern times, sustainable use of natural resources and the protection of the
environment.
Equitable and No one should feel excluded from the mainstream of society. Particularly vulnerable section
Inclusive should have opportunities to improve or maintain their well-being

Strategies for Good Governance

1. Wrt State:
1. Strengthening state institutions. Ex- reforms in Election, Parliament working,
2. Enhancing Civil Services capacity through appropriate reform measures.
3. Reorienting priorities of the state as per the needs. Ex- during disaster invest in Human relief, during economic
slowdown take appropriate steps, etc.
2. Wrt Civil Society:
1. Provision of social safety nets for the poor and marginalized. Ex- AYUSHMAN BHARAT
2. Forging new alliances with civil society
3. Wrt Market:
1. Evolving a new framework for government-business cooperation

Dimensions of Governance

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Dimensions of Governance

Governance Issues in India

• India faces a range of various governance related issues in political, economic, administrative, social and legal
domain.

Political Issues Legal and Judicial issues

• Criminalization of Politics • Delayed justice, issue of under trials
• Misuse of political power • Lack of accountability in Judiciary
• Decentralization more in letter less in spirit • Threat to life and personal security
Administrative issues Economic issues
• Lack of sensitivity, transparency and • Poor management of economy
accountability in the working of State machinery • Persisting fiscal imbalances
• Bureaucratic Delays • Regional disparities
• Resistance to changes which promote
transparency and accountability
• Corruption
Social and Environmental issues
• Denial of basic services to a substantial
proportion of the population
• Marginalisation and exclusion of people on
account of social, religious, caste and gender
affiliation
• Existence of a significant number of voiceless
poor with little opportunity for participation in
governance; and
• Deterioration of physical environment,
particularly in urban areas.

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Good Governance Initiatives in India

• India is making big leaps to improve its governance records. Multiple steps have been taken in this regard such as-
○ Decentralization and People’s Participation (73rd and 74th Constitutional amendment Act)
○ Programs for weaker sections and backward areas
○ Financial management and budget sanctity (FRBM Act)
○ Citizen’s Charters
○ Sevottam model
○ Redress of Citizen’s Grievances
○ E-Governance and use of ICT tools
○ Public service morale & anti-corruption measures
○ Right to Information Act
○ Social Audits

Concept of Minimum Government, Maximum Governance

• It refers to citizen friendly and accountable administration.

• It is done by-
○ simplification of procedures
○ identification and repeal of obsolete/archaic laws/rules
○ Using technology to bring in transparency in public interface
○ Robust public grievance redress system
• These measures will greatly reduce time and effort on the part of the both citizen and government.
• For ex-
○ Digital India has helped Ministry of Panchayati Raj move to 100% e-office.
○ Ease of Doing Business has made simplification and rationalization of the existing rules & made usage of IT to
make governance efficient and effective.
○ Launch of citizen centric platforms such as mygov@nic.in and india.gITov.info to empower people to connect
with the Government and contribute towards good governance.
○ Taking advice from citizens on laws by publishing draft proposal on website.
___________________________________________________________________________________________________

Explanation of Good Government Initiatives

1. Citizen Charter
What is Citizen • It is a document that outlines the commitment of public body towards standard, quality
Charter and timeframe of service delivery along with grievance redress mechanism.
• The basic objective of the Citizen’s Charter is to empower the citizen in relation to
public service delivery.
Significance 1. It makes a public institution transparent and accountable.
2. It can be an effective tool to engage the civil society and to curb corruption.
3. It aims at enhancing standards of service delivery.
4. It makes government more responsive.
5. It enhances people participation in governance process and the credibility of the
government.
CC in India • Department of Administrative Reforms and Public Grievances (DARPG), in the Ministry
of Personnel, Public Grievances and Pensions provides guidelines for formulation,
implementation & evaluation of the Charters
• According to DARPG following are the components of good CC-
1. Vision and Mission Statement
2. Details of Business transacted
3. Details of ‘Citizens’ or ‘Clients’

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 3. Details of ‘Citizens’ or ‘Clients’
4. Statement of services
5. Details of Grievance Redress Mechanism
6. Expectations from the ‘Citizens’ or ‘Clients’
7. Any additional commitments
Issues with CC 1. Absence of legal backing to charters: not legally enforceable & non-justiciable
in India 2. Poor design and content: Critical information missing
3. Lack of consultation: end users are not consulted while drafting
4. Inadequate groundwork: Non-familiarity of goals and features of Charter by service
provider
5. Lack of public awareness: people are not aware of their utility and importance
6. Lack of review: review and updation not done regularly
7. Availability in vernaculars
8. Details of public grievance officer are not provided in many charters.
Suggestion for • To make Charters effective tools of accountability in public service, the 2nd ARC has
improvement given following recommendations-
1. One size does not fit all, should be prepared for each independent unit
2. Wider consultation which should include civil society
3. Firm commitments to be made
4. Internal process and structure should be reformed to meet the commitments
5. Strong redress mechanism in case of default
6. Periodic evaluation
7. Benchmark using end-user feedback

2. Sevottam Model
What is SM • This model was suggested by 2nd ARC in its 12th report Citizen centric administration.
• It is a framework for organizations to asses and improve the quality of service delivery.
• It is a combination of two words Seva (service), Uttam (excellence).
• It has been developed with the objective of improving the quality of public service
delivery in the country.
Modules/
Components

1. Citizen Charter, 2. Public Grievance Redress mechanism, 3. Service Delivery

Capability
Steps • Following are the steps that organization needs to comply for adopting Sevottam model.
1. Define services and identify clients.
2. Set standards and norms for each service.
3. Develop capability to meet the set standards.
4. Perform to achieve the standards.
5. Monitor performance against the set standards.

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 5. Monitor performance against the set standards.
6. Evaluate impact through an independent mechanism.
7. Continuous improvement based on monitoring and evaluation.
SM in India • Implementation of Sevottam framework in the government departments was started in
2009. Later it became the certification scheme which provides for the award of
excellence to public service organizations that implement and show compliance to
above steps.
• IS 15700:2005 by the Bureau of Indian Standards (BIS) based on the objectives of
Sevottam
Significance 1. It is a Quality Management framework applicable to public service delivery
organizations
2. It guides them through systematic initiatives for sustainable improvements
3. It enables implementing systematic, credible and authenticated for citizen-centric
service delivery.
4. Using it practical solutions are gradually and systematically incorporated into
organizations.
Implementation • Proposed bill : Time-bound Delivery of Goods and Services and Redressal of their
Grievances Bill, 2011 was based on this concept. It lapsed in LS
• Some states such HR, etc. have brought legislation for time bound service delivery.

3. Social Audit
What is Social • Social audit is a process in which details of resources used by public agency for
Audit development initiatives are shared with people.
• It allows end users to scrutinize the impact of developmental programs.
• Social audit serves as an instrument for the measurement of social accountability of an
organization
How it is
different from
other Audits

Need of SA • The investment of large amount of funds and resources by government in various social
development programmes, has not been justified by the impact it has made.
• It has observed that government is focused at improvement of Supply Side of the
services while the demand side is ignored.
• Hence Social Audit intends to strengthen the Demand Side which is short run process
Principles of SA Eight specific key principles of Social Auditing practices are-

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 1. Multi-Perspective/Polyvocal: Reflect the views of all the stakeholders
2. Multidirectional: Stakeholders share and give feedback
3. Participatory: Encourage participation of stakeholders
4. Comprehensive: Report on all aspects of work and performance
5. Comparative: compare performance against benchmarks
6. Regular: Produce social accounts on a regular basis
7. Verified: Auditing should be done by experienced person or agency
8. Disclosed: Audited accounts are disclosed to stakeholders
Significance Significance of social audit for social sector programmes are-
1. Enhances reputation: helps the legislature and executive in identifying the problem
areas and provides an opportunity to create solutions.
2. Alerts policymakers: understand and anticipate stakeholder’s concerns.
3. Affects positive organisational change: improvement goals and implementation.
4. Increases accountability: emphasis on openness and accountability & reduces
wastages and corruption.
5. Assists in re-focusing priorities: departments can reshape their priorities in tune
with people's expectations.
6. Increased confidence: dept can work with greater confidence in social areas.
SA in India • In recent years due to the steady shift in devolution of funds and functions to the local
government, the demand for social audit has grown.
• In flagship schemes such as MGNREGA, the Union Government is promoting social audit
by Gram Sabha or NGOs to check corruption.
Limitations 1. Scope of social audits is highly localised and covers only certain selected aspects.
2. Social audits are often Irregular and ad hoc.
3. Monitoring is informal and unprocessed
4. Findings of social audit not generalised to large population.
5. Individual programs present their own unique challenges. Ex- literacy program for
adults require data on migration.
6. No holistic approach is adopted in SA of package of program. Ex- rural health requires
program requires audits in water supply, education, sanitation, nutrition etc.
7. Absence of trained auditors.
8. Lack of action on audit reports and findings.
Way forward 1. Investment in education and awareness of Public/ Gram Sabha
2. Institutional capacity need be increased at all levels in terms of information Storage
and distribution mechanism
3. Committed and competent NGOs can be looped in.
4. Media need be more Rural and Development focused
5. Recognise and Reward the members based on the result of SA.
6. Using e-technology in collection information and sharing of findings.

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 6. Using e-technology in collection information and sharing of findings.
7. Promoting proactive disclosure of information

4. e-Governance
What is e- • According to the World Bank, E-Governance refers to the usage of IT (internet,
Governance computer, mobile, etc.) by the government agencies to facilitate an efficient, speedy
and transparent process of governance.
Significance 1. Fast, Convenient and Cost Effective Service Delivery
2. Transparency, Accountability and Reduced Corruption: improves the awareness levels
of
3. Citizens & reduce the discretionary powers of government officials.
4. Expanded Reach of Governance
5. Empowering people through information: Increased accessibility to information, share
their views and feedback
6. Improve interface with Business and Industry: no red tapism & expeditious service
delivery.
Models of e-gov • Depending upon the sharing of services, it can be of following types-
1. Government to Citizen (G2C):
a. Payment of online bills (electricity, water, etc.), Online applications, IRCTC,
etc.
2. Government to Government (G2G):
a. finance and budget work between governments, approval & distribution of
resources, etc.
3. Government to Businessmen (G2B):
a. Collection of taxes (GST & TDR filing), IPR & Patent applying, Payment of fines
& charges, etc.
4. Government to Employees (G2E):
○ attendance record, employee record, female complaint portal, etc.
e-gov in India • Government is implementing ‘Digital India’ programme with the vision to transform
India into a digitally empowered nation.
• Digital India is an umbrella programme that covers multiple departments & ministries
• and is being coordinated by MeitY.
• Various e-Governance initiatives taken by Government under Digital India programme
are-
1. National e-Governance Action Plan (NeGP): it includes-
Development of Data Centres (DCs), Common Services Centres (CSCs), e-
District and Capacity Building
2. e-Kranti: focuses on electronic delivery of services & ensures optimum usage of
core Information & Communication Technology (ICT)
Successful e-gov 1. G2C Initiatives:
initiatives 1. Computerisation of Land Records
2. Bhoomi Project in Karnataka for computerization of land records
3. Gyandoot (Madhya Pradesh) under which relevant information is provided to the
rural population such mandibhav, income certificates, BPL Family list, etc.
4. Lokvani Project in Uttar Pradesh for handling grievances, land record maintenance
and providing essential services.
5. MyGov which provides people from even abroad to participate in good
governance.
6. Digital Locker System securely store, access and share their documents digitally.
2. G2B Initiatives:
1. e-Procurement Project in Andhra Pradesh and Gujarat
2. Single Window Interface for Trade (SWIFT) initiative for ease of doing business
3. G2G Initiatives:

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 3. G2G Initiatives:
1. Khajane Project in Karnataka computerization of the entire treasury related
activities of the State Government
Challenges • Social Challenges-
• Low IT Literacy
• Non Vernacular Language
• Less user friendly websites
• Digital Divide: rich people have access to computer and internet while poor do not
have.
• Behavioral component: Resistance to Change, hesitation in moving from a paper-
based to a web-based
• Economic Challenges-
• Cost: developing country, other priorities
• Maintenance of electronic devices
• Technical challenges-
• Interoperability: Inter-platform transferability
• Privacy and Security
• Connectivity to backward areas
• Lack of human resources:
Suggestions Following are some of the important recommendations of 2nd ARC on e-governance-
1. Building a Congenial Environment: creation of suitable environment is very
essential which can be done through-
Creating and displaying a will to change within the government
Providing political support
Incentivising e-Governance
Creating awareness
2. Business Process Re-engineering: procedural, institutional and legal re-designing
needs to be done to adapt to e-Governance.
3. Capacity Building and Creating Awareness: skills up gradation of individuals &
boosting capacity of organisation needs to be done.
4. Developing Technological Solutions: Develop a national e-Governance ‘enterprise
architecture’ framework.
5. Monitoring and Evaluation: should be done by the implementing organization
during implementation.
6. Public-Private Partnership (PPP): the expertise and professionalism of private
sector should be cashed in. Many projects are already running in PPP mode.
7. Legal Framework for e-Governance: A clear road map with a set of milestones
should be outlined by Government
8. Data Management: data should be protected with help of Data centers.

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Role of NGO, SHGs
Wednesday, September 11, 2019 5:04 PM

Role of NGOs
What is NGO:
• These are legally constituted, private organisation that pursues activities to relieve suffering, promote the interests of
the poor & Vulnerable, protect the environment, provide the basic social services or undertake community
development.
• NGO is hence operational arm of the civil society that have important role in providing social justice, development and
protection of Human rights.

Need of NGO in India:

• Though India is developing economically at very fast pace yet in Human Development Index rankings (ranks 130 in
2018), Global Hunger Index & various other such social Index it has poor position.
• Issues of exclusion of women, children and marginalized communities is known to all.
• This indicates that growth of India has not been inclusive.
• Hence government requires constructive and collaborative engagement of the civil society which is what can be done
by VO such as NGOs.

Evolution of NGO:
• Even though the tradition of social service, social reform and voluntary agencies existed in India prior to Independence,
yet the formal development of NGO in India took in following phases-
Phase 1):
○ NGOs emerged in India soon after Independence when Gandhi made a plea for dissolving Congress and
transforming it into a Lok Sewak Sangh. This plea was however rejected, but led to the formation of several NGOs
in India.
○ Many followers of Gandhi established voluntary organisations that work in development of handicrafts and
village cottage industries, rural development programs, credit cooperatives, educational institutions, etc.
Phase 2):
○ Around 1960s many individuals felt that governmental programs and efforts are inadequate to deal with deprived
sections of society. Hence they formed an organizations that worked on behalf of the poor, landless, tribals and
other such discriminated groups.
Phase 3):
○ Around 1980s in 6th FYP government start recognizing the efforts of NGOs and identified the new areas of
development where these organization can participate. NGOs also developed based on the area of their
specialization. These areas were-
 Energy, Family Welfare, Health, Education, Water Management, etc.
• Since then several organizations came up and scope of their work has also increased to make communities as self-
reliant as possible.

Laws & Legislations related to NGOs

• Constitutional Provisions-
○ Article 19(1)(c) on the right to form associations;
○ Article 43 state shall promote cooperatives in rural areas;
○ Concurrent List in Entry 28 mentions about – Charities and charitable institutions, charitable and religious
endowments and religious institutions”.
• Legislative Provisions-
○ Foreign Contribution (Regulation) Act (FCRA), 2010:
 To regulate foreign funding of NGOs. Implemented by Home Ministry.
 It is to ensure that fund received is used only for stated purpose.
○ Foreign Exchange Management Act, 1999:
 In 2016, the powers of Ministry of Finance to monitor NGOs were placed under the FEMA. The idea was to

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  In 2016, the powers of Ministry of Finance to monitor NGOs were placed under the FEMA. The idea was to
bring all NGOs, which receive foreign contributions, under one umbrella for better monitoring and
regulations.

Role of NGOs in present Scenario:

• Today roughly over 25000 NGOs are actively working in India in various fields. Currently the important role played by
them are-

1. Participation:
○ They stimulate the active participation of the citizens in matters that concern community. These organization is
acting as a linkage between anti-poverty and social welfare programs of government and the intended
beneficiaries.
○ NGOs also try to involve the beneficiaries in decision making, implementation and evaluation of these programs.
This is done by creating necessary awareness and positive outlook among beneficiaries.
○ Ex-

2. Organising Beneficiaries:
○ They ensure that poor and exploited should organise themselves and fight to ensure their rights. It is these
agencies that apply the pressure to improve the quality of service and attitude of government functionaries made
to improve.
○ Ex-

3. Facilitating Various Services:

○ They are providing various services such as tractor hiring services, supply of seeds, fertilizers, technical knowhow,
providing or facilitating credit facilities, etc. in the backward areas in professional manner.
○ Ex-

4. Supplementing Government Efforts:

○ With limited resources and reach of the government, these institutions has been extended arm role of
government ever since their inception. They do so by implementing their own methods and techniques.
○ Ex-

5. Checking Government Actions:

○ NGOs play a very important role in highlighting the legislative loopholes. They ensure that no one should lag
behind in the developmental process led by government programs, schemes & laws.
○ Ex- enactment of several laws such as Minimum Wages Act, Abolition of Bonded and Child labour, Land
Acquisition Act, etc.

NGO & Government:

• Relation between NGO and government has been both positive and negative ever since their inception.

• Positive Relation:
○ Recognizing the importance of contribution of NGOs, government launched e-governance application DARPAN
that provides interface between Govt and NGO.
○ National Policy on Voluntary Sector 2007 seeks to establish a new working relationship between government &
NGO. It encourages and empowers an independent and effective Voluntary Sector (NGO).
○ To provide funds to NGOs from corporate sector, provision of Corporate Social Responsibility (CSR) is done by
government.
○ Some recent initiatives such as Gram Sree Mela (GSM) through NGOs for providing opportunity to rural
producers to sell their produce in major market.
○ Incorporation of inputs from NGOs in social planning and development programs in by PC earlier and now NITI
Aayog.

• Negative Relation:

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Issues Related to NGOs:

1. Transparency and accountability:

Allegations and charges of misuse and diverting fund for non-intended purpose. Also do not have proper terms
and conditions for compliance and accountability.
CBI records filed in the Supreme Court show that only 10% of the total registered NGOs under the Societies
Registration Act file annual financial statements.
2. Lack of Financial Resources:
High dependent on government and foreign contributions. This restricts their work and scope and flexibility to
choose their model & areas of working.
3. Outreach and Concentration:
There has been a mushroom growth of NGOs but very few of them had nationwide outreach. The study of Union
Social Welfare Ministry shows that most of the NGOs are concentrated in Urban centers only.
4. Lack of Coordination:
Coordination between government and NGOs is another issue. There have been overlapping of efforts in some
areas. Ex- many times NGOs for financial and popularity opt the same field of work on which government is
already stressing.
5. Mutual Distrust:
Due to mutual distrust among NGOs and government-NGO there are several incidents of conflicts and
interference. Ex-
6. Hostility of Bureaucrats:
Due to conflict of interests, there are obvious hostility among bureaucrats and NGOs. Bureaucrats see them as
breach in their power and work space.
7. Paucity of Trained and Committed staff:
Low salaries, inadequate infrastructure, lack of proper guidelines and high competition caused the paucity of
trained and committed staff. People generally take it as part time or time pass job.
8. Biased working:
Many of the NGOs promote regionalism and separatist feeling by targeting specific region while neglecting the
other.
It is often said that foreign-funded NGOs tries to propagate the foreign propaganda to stall developmental
projects. Example: Kudankulam Protest.
9. Corruption:
Weak laws and poor compliance of existing laws makes NGOs easy option for Money Laundering agency and illicit
trade such as Human Trafficking, etc. agency.
10. Security Threat:
Recently, the Union Home Ministry has identified some NGOs as security threat to the country. Ex- Govt blaming
that NGO of Zakir Naik is spread hatred and Communalism.

Way Forward/Solution to above mentioned Problems-

1. A National Accreditation Council consisting of academicians, activist, retired bureaucrats should be made to ensure
compliance by NGOs.
2. There should be better coordination between Ministries of Home Affairs and Finance in terms of monitoring and
regulating illicit and unaccounted funds.
3. General Financial Rules, 2005 have mandated a regulatory mechanism for the NGOs and a comprehensive law in line
with these rules should be framed in no time.
4. There is need to bolster public confidence in the voluntary sector by opening it up to greater public scrutiny.
5. Simplify and streamline the system for granting income tax exemption status to charitable projects under the Income
Tax Act.
6. Tightening administrative and penal procedures

Conclusion-
Role and importance of NGOs will continue in India owing to diversity of people and their problems and limitation of
resources with government. Hence we should take above suggested reforms to strengthen them by removing out their
difficulties.

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Some Success stories of NGOs:

NOTE: Take examples and others from GK Today with tag NGO
_____________________________________________________________________________________________________

Role of SHGs
What are SHGs:
• These are informal associations of people who choose to come together to cater their common need and improve their
living conditions.
• It can be defined as self-governed, peer controlled group of people with similar socio-economic background and having
a desire to collectively perform common purpose
• SHG rely on the notion of “Self Help” to encourage self-employment and poverty alleviation.

Need of SHGs in India:

• In India there is a substantial percentage of rural and urban poor, who face numerous problems related to poverty,
illiteracy, lack of skills, lack of formal credit etc. and hence collective action is required to overcome these problems.
• For self-employment and financial independence, poor sections needs credit.
• Bank credits are not easily accessible to individual poor, but by forming a SHG, there are make better prospects for
bank credits. (often without collateral).
• The chances of successful income generation is high with SHGs than individual attempts.
• Building social capital among the poor, especially women empowerment.

Evolution of SHGs
1. The first organised initiative in this direction was taken in Gujarat in 1954 when the Textile Labour Association of
Ahmedabad formed it's women wing was created to train and employ them in work like swing, knitting, embroidery,
etc.
2. In 1972, Self-Employment Women's Association (SEWA) was created by Ela Bhatt. She organised the women workers
such as Hawkers, vendors, home based operators like papad makers, weavers, cattle rearers, etc. to improve their life.
3. In 1980s, Myrada, a Karnataka based NGO, promoted several locally formed groups to enable them to secure credit
collectively. Small group formations at the local level also initiated in TN & KL such as TN Women in Agriculture
Program (TANWA) & Participatory Poverty Reduction Programme of Kerala (Kudumbashree).
4. Post 1990s, SHGs-Bank linkage programme was started by NABARD. Later RBI issued guidelines which enabled SHGs to
open bank accounts. This action gave a considerable boost to the SHG movement and paved the way for the SHG-Bank
linkage program.
5. In 1999, Government of India, introduced Swarn Jayanti Gram Swarozgar Yojana (SGSY) to promote self-employment
in rural areas through formation and skilling of SHGs. The programme evolved as a national movement in 2011 and
became National Rural Livelihoods Mission (NRLM) – world’s largest poverty alleviation programme.

Role of SHGs

1. Poverty Alleviation
It looks to build the functional capacity of the poor and the marginalized in the field of employment and income
generating activities.
2. Financial Inclusion:
It provides collateral free loan with terms decided by the group at the market driven rates. Hence emerged as the
most effective mechanism for delivery of microfinance services to the poor.
3. Conflict Resolution:
It resolves conflicts through collective leadership and mutual discussion.
4. Social Service:
They are actively participating in the provisioning of social services such as education, health awareness, child
care and nutrition, etc. especially in the rural areas.

Merits of SHGs

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Merits of SHGs

1. Social integrity – SHGs encourages collective efforts for combating practices like dowry, alcoholism etc.
2. Gender Equity – SHGs empowers women and inculcates leadership skill among them. Empowered women participate
more actively in gram sabha and elections.
There is evidence in this country as well as elsewhere that formation of Self-Help Groups has a multiplier effect in
improving women’s status in society as well as in the family leading to improvement in their socio-economic condition
and also enhances their self-esteem.
3. Pressure Groups – their participation in governance process enables them to highlight issues such as dowry,
alcoholism, the menace of open defecation, primary health care etc and impact policy decision.
4. Voice to marginalized section – Most of the beneficiaries of government schemes have been from weaker and
marginalized communities and hence their participation through SHGs ensures social justice.
5. Financial Inclusion – Priority Sector Lending norms and assurance of returns incentivize banks to lend to SHGs. The
SHG-Bank linkage programme pioneered by NABARD has made access to credit easier and reduced the dependence on
traditional money lenders and other non-institutional sources.
6. Improving efficiency of government schemes and reducing corruption through social audits.
7. Alternate source of employment – it eases dependency on agriculture by providing support in setting up micro-
enterprises e.g. personalised business ventures like tailoring, grocery, and tool repair shops.
8. Changes In Consumption Pattern – It has enabled the participating households to spend more on education, food and
health than non-client households.
9. Impact on Housing & Health – The financial inclusion attained through SHGs has led to reduced child mortality,
improved maternal health and the ability of the poor to combat disease through better nutrition, housing and health –
especially among women and children.
10. Banking literacy – It encourages and motivates its members to save and act as a conduit for formal banking services to
reach them.

Opportunities
• SHGs often appear to be instrumental in rural poverty alleviation.
• Economic empowerment through SHGs, provides women the confidence for participation in decision making affairs at
the household-level as well as at the community-level.
• Un-utilised and underutilised resources of the community can be mobilised effectively under different SHG-initiatives.
• Leaders and members of successful SHGs bear the potentiality to act as resource persons for different community
developmental initiatives.
• Active involvement in different SHG-initiatives helps members to grow leadership-skills. Evidences also show that often
women SHG leaders are chosen as potential candidates for Panchayat Pradhans or representatives to Panchayati Raj
Institution (PRI).

Weaknesses of SHGs
• Members of a group do not come necessarily from the poorest families.
• Though there has been social empowerment of the poor, the economic gain to bring about a qualitative change in their
life has not been satisfactory.
• Many of the activities undertaken by the SHGs are still based on primitive skills related mostly to primary sector
enterprises. With poor value addition per worker and prevalence of subsistence level wages, such activities often do
not lead to any substantial increase in the income of group members.
• There is a lack of qualified resource personnel in the rural areas who could help in skill upgradation or acquisition of
new skills by group members. Further, institutional mechanisms for capacity building and skill training have been
lacking.
• Poor accounting practices and incidents of misappropriation of funds.
• Lack of resources and means to market their goods.
• SHGs are heavily dependent on their promoter NGOs and government agencies. The withdrawal of support often leads
to their collapse.

Challenges
• Lack of knowledge and proper orientation among SHG-members to take up suitable and profitable livelihood options.
• Patriarchal mindset – primitive thinking and social obligations discourages women from participating in SHGs thus
limiting their economic avenues.

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 limiting their economic avenues.
• Lack of rural banking facilities – There are about 1.2 lakh bank branches and over 6 lakh villages. Moreover, many
public sector banks and micro-finance institutions are unwilling to provide financial services to the poor as the cost of
servicing remains high.
• Sustainability and the quality of operations of the SHGs have been a matter of considerable debate.
• No Security – The SHGs work on mutual trust and confidence of the members. The deposits of the SHGs are not
secured or safe
• Only a minority of the Self-Help Groups are able to raise themselves from a level of micro-finance to that of micro-
entrepreneurship.

Measures to Make SHGs Effective

• The Government should play the role of a facilitator and promoter, create a supportive environment for the growth
and development of the SHG movement.
• Expanding SHG Movement to Credit Deficient Areas of the Country - such as Madhya Pradesh, Rajasthan, States of the
North-East.
• Rapid expansion of financial infrastructure (including that of NABARD) and by adopting extensive IT enabled
communication and capacity building measures in these States.
• Extension of Self-Help Groups to Urban/Peri-Urban Areas – efforts should be made to increase income generation
abilities of the urban poor as there has been a rapid rise in urbanisation and many people remain financially excluded.
• Positive Attitude – Government functionaries should treat the poor and marginalized as viable and responsible
customers and as possible entrepreneurs.
• Monitoring – Need to establish a separate SHG monitoring cell in every state. The cell should have direct links with
district and block level monitoring system. The cell should collect both quantitative and qualitative information.
• Need Based Approach – Commercial Banks and NABARD in collaboration with the State Government need to
continuously innovate and design new financial products for these groups.

Case studies

1. Kudumbashree in Kerala
It was launched in Kerala in 1998 to wipe out absolute poverty through community action. It is the largest women
empowering project in the country. It has three components i.e., microcredit, entrepreneurship and
empowerment. It has three tier structure - neighborhood groups (SHG), area development society (15-20 SHGs)
and Community development society (federation of all groups). Kudumbashree is a government agency that has a
budget and staff paid by the government. The three tiers are also managed by unpaid volunteers.

2. Mahila Arthik Vikas Mahamandal (MAVIM) in Maharashtra

SHGs in Maharashtra were unable to cope with growing volume and financial transactions and needed
professional help. Community managed resource centre (CMRC) under MAVIM was launched to provide financial
and livelihood services to SHGs. CMRC is self-sustaining and provides need-based services.

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Role of Civil Services
Wednesday, September 11, 2019 4:48 PM

Role of Civil Services in Democracy

• In the age of globalisation and liberalisation, the role and scope of work of Civil servants has widened and did not
remained confined merely to maintain the law and administration.
• Hence it is necessary to view the role from different perspectives.
• It includes the roles from policy formation to policy implementation.
• In 21st century, the role of Civil Servant can be categorized as-
1. Traditional Role
2. Contemporary Role

Traditional Role 1. As Collector: collect the revenue and maintain the public order. Historically these were the
only functions.
2. As District Magistrate: supervision of Jails and Police, Supervisions of Subordinate
machinery, hearing the cases under Criminal Procedure Code (Cr PC)
3. As Coordinator: as a point of coordination between state and center
4. As Crisis Administrator: ensures to minimise the loss of lives and property during event of
crisis such as natural calamity (flood, earthquake, etc.), riots, violence, etc.
5. As Development Officer: rural development, implementation of welfare schemes, improving
health and Education services is another important function.
Contemporary 1. Maintenance of National Integration: diverse country with many languages and culture.
Role Hence uphold the ideals of pluralism, secularism, brotherhood and cooperation among the
society.
2. Change Agent for the Society: create inclusive society and promote modern approach and
outlook.
3. Global Governance: world is more integrated than earlier. India ratifying many intl treaties
and agreement which impose global commitments.
4. Environment Management: environment protection, conservation and upgradation has
become the integral part of the service. Swachh Bharat.
5. Whistle Blowers: intimate authorities and take necessary action against the policies which
may be against the constitutional ideas and welfare of society. Whistle Blower Act
6. Local Governance: strengthen and promote the idea of decentralization. Assign work, funds
and guide the 3rd tier government.

Conclusion

• Civil Servants are the backbone of a democratic society. The multifaceted roles and activities make them
indispensable. The dynamics of society due to globalisation and IT demand greater and redefined role of Civil
Servants,

Issues Related to the Civil Services in India

1. Nepotism & Corruption:

○ Ever since the British times, corruption and nepotism had been prevalent in the Civil Services. Large scale of
power is one primary reason for it. There had been various cases of large scale corruption and nepotism.
○ Ex-
○ Solution: ARC report has suggested the redistribution of power, reforms at recruitment level, transparency in
decision making & strict laws against corruption. (Law name)
2. Inefficient Bureaucracy:

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 2. Inefficient Bureaucracy:
○ As per the survey conducted by PERC, Hong Kong, India has one of the most inefficient bureaucrats. Many
promises were made to reform but no concrete action yet taken.
○ Ex-
○ Solution: rigorous analysis of Performance report and forceful VRS of inefficient civil servants.
3. Red-Tapism:
○ Excessive regulations and rigid conformity to the formal rules leads to repeated bureaucratic approval. It has
led to development of Babu Culture in the government work which has huge negative socio-economic impact.
○ Ex- requirement of NOCs in work, list of documents for compulsory papers such as DL, etc.
○ Solution: usage of technology & e-governance, time bound redressal of files and queries.
4. Political Interference:
○ Political nexus between Bureaucrats and Politicians is known to all. Both have vested interest in each other.
Transfer, promotion, Enquiry, etc. is done as per the relation with politicians. In return all the administrative
support is provided to politician.
○ Ex- Ashok Khemka has been transferred over times in his 27 years of service.
○ Solution: Justice Radha Krishnan committee has suggested to enact law to regulate postings, transfers,
promotion. He suggested the policy of minimum tenure and establishment of Civil Services board.
5. Issues of Neutrality:
○ Weber highlighted the Importance of values of Civil servant such as Objectivity, Neutrality, etc.
○ As Civil servant is involved in not only policy implementation but also policy formation, hence Neutrality
becomes very important. It was also emphasized by Sardar Patel.
○ However, in practice showing bias towards religion, caste, region, etc. is widely found in the system.
○ Ex-
○ Solution: value inculcation and posting away from home state

Agenda of Reforms

• According to the suggestions given in the 2ARC report, following reforms can be done in Civil Services-
1. Recruitment: should be done on merit and at the age at which rind kind of values can be developed.
2. Training: should be exposed to new management skills as well as the concepts of team work, leadership, etc.
3. Tenure: stable tenure to ensure effectiveness and continuity in work.
4. Domain Competency: in policy making Civil servant should have adequate knowledge and exposure to the
domain.
5. Performance Management System: setting goals, monitoring performance at each level, rewarding
performance and managing under performance.
6. Result Oriented Civil Service: instead of rule based approach, focus should be on developing management
framework that would produce results.

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