Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. DRAFT only Institutional Issues in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Meera Jayaswal, Sumita Roy and Amitava Mukherjee Development Tracks RTC E-Mail: neelamukherjee@vsnl.com Abstract The paper is a field study in the effectiveness of institutional mechanisms in addressing anti-chronic poverty interventions in Paschim Medinipur district in the State of West Bengal in India. Based on fieldwork the paper maps out the following aspects: (i) (ii) (iii) (iv) (v) Different dimensions of chronic poverty Identification of different groups of stakeholders Review of the institutional initiatives in poverty reduction and institutional weaknesses, Identification of processes and mechanisms, which have worked and Suggestions for constructing an institutional road map for sustainable anti-chronic poverty interventions. In the framework of Sustainable Livelihoods Analysis and based on the methodology of Participatory Rural Appraisal (PRA), the paper draws policy implications for sustainable anti-chronic poverty interventions. Introduction The district of Paschim (West) Medinipur located in the South of the State of West Bengal (India) is a dry area and once thickly forested still contains large share of the forest lands of West Bengal. The district has a strange combination of social-political inclusion and exclusion. On one hand there are development initiatives, supported by local political institutions, which have emerged as pathways out of poverty for the chronic poor households. Such is the power of the initiative that some chronic poor households have come together, formed Self-Help Groups (SHG’s) and are slowly and steadily working towards strengthening their livelihoods-related opportunities. In this context there are important lessons to be learnt in managing local institutional mechanisms for removing chronic poverty. However, such a momentum is limited only to a few blocks of the district – especially blocks Garbeta 1 and Garbeta 2 and Keshpur. On the other hand there is a contrasting picture of social exclusion of indigenous communities in Paschim Medinipur. Those indigenous communities living in and around forest areas of Paschim Medinipur especially the sabar/lodha have been totally by-passed in the development process so much so that cases of hunger deaths in sabar households have received wide coverage in the media around the middle of the current year and the situation has been pretty grim. The paper looks into the contrasting picture through the Sustainable Livelihoods Framework based on people’s perspectives on local institutional capabilities and performance. The paper is essentially based on field research in the effectiveness of institutional mechanisms in addressing anti-chronic poverty interventions in Paschim Medinipur district of West Bengal. Based on fieldwork the paper maps out the following aspects: 1 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. (vi) (vii) (viii) (ix) (x) Different dimensions of chronic poverty Identification of different groups of stakeholders Review of the institutional initiatives in poverty reduction and institutional weaknesses, Identification of processes and mechanisms, which have worked and not worked and Suggestions for constructing an institutional road map for sustainable anti-chronic poverty interventions. In the framework of Sustainable Livelihoods Analysis and based on the methodology of Participatory Rural Appraisal (PRA), the paper draws policy implications for sustainable antichronic poverty interventions. I. Chronic Poverty in Paschim Medinipur District The general mass poverty in Paschim Medinipur is synonymous with the definition of chronic poverty (Chronic Poverty Research Centre: 2004), which includes remaining below the poverty line for at least five years, with (i) Lack of social services, mainly in rural areas; (ii) Weak productive sectors with strong focus on a limited number of commodities; and (iii) Institutional weaknesses in planning, policy making, implementation and monitoring. There is a large chunk of chronic poverty in the Paschim Medinipur district as indicated by the development indicators from secondary sources and also by the interactive sessions with the poor groups during participatory field research. Of the 18 districts in the State of West Bengal, Paschim Medinipur ranks 18th in terms of percentage of villages covered with pucca (concrete) roads. In terms of social and physical infrastructure, Paschim Medinipur is one of the most deprived districts of West Bengal. Its rank is 8th with regard to coverage of drinking water though there is arsenic content in water and also there is acute water shortage with water drying up during the dry season and drought. In terms of female illiteracy its rank is as good as 14th when compared to other districts of West Bengal. The districts also has one of the lowest average wage rate of Rs.38/- per day as compared with many other districts of West Bengal and also the official wage rate of Rs.66.50/- per day. Though the state of West Bengal emerged as a major agricultural state recording the highest rate of growth in agricultural productivity with major crops such as rice and potato, the economy of Paschim Medinipur district is sparsely diversified with major dependence on rain-fed farming and Non-Timber Forest Produce from the forests As we shall see later that Paschim Medinipur has both institutional strengths and weakness at the local level in both development planning and practice. 1.1 Backgrounder on Paschim Medinipur The district of Paschim Medinipur has a total population of 96.3.lakhs (source Census: 2001) and 10.5 lakhs households where rural population constitutes about 90 per cent of the total. Accounting for 12 per cent of the population of the State of West Bengal and 9 per cent of total families in the State below poverty line, the rural female literacy rate is 64.65. As per Below Poverty Line (BPL) Survey of the Government of West Bengal, the district has one of the highest numbers of Schedules Caste and Scheduled Tribe BPL families in the State of West Bengal numbering 99909 and 70316 respectively. Most of the indigenous communities such as Santhals, Oraon, Bhumij, Mahali, Munda, Sabar/Lodha etc. of Medinipur are ultra poor and officially neglected over ages. The number of women-headed poor families in the district is 38941 while the numbers of poor agricultural labourers, physically handicapped, small farmers, marginal farmers and rural artisans are 239323, 2984, 9421, 21582 and 29096 respectively.. 2 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. The district has a total area coverage of 1323.88 (thousand hectares) with 12.9 per cent as forest coverage and a net area sown to the extent of 66.04 per cent. One of its achievements, way back in the seventies, was the concept of participatory management of forests, which emerged in a small village named Arabari in the undivided district of Medinipur. The success of Arabari experiment coupled with the social forestry programme led to the scaling up of Joint Forest management based on collaborative management of forest on a mutual benefit sharing basis and also proliferation of such idea on a global basis 1.2 The Institutional Context In line with West Bengal’s policy and implementation of agrarian reforms since the early eighties, recording of rights and distribution of land under the Operattion Barga in Medinipur district (undivided) constitutes 29 per cent of the total beneficiaries in the State. In accordance with the system of decentralized planning and governance, there is a three tier Panchayati Raj System (PRI), the gram panchayat being the lowest tier of the local governance. Panchayats have long been entrusted to implement and oversee government’s rural development programme in the State at the district and sub-district levels According to many studies including Dreze and Sen (2002), the most important result of the propoor policies of the State Government of West Bengal was a rapid decline in rural poverty since 1977. This is attributed to two primary causes: the “remarkable continuing political success of the Left Front (the ruling Government)” and Operation Barga (land redistribution policy) which embodies the pro-poor policies that were adopted. The National Sample Survey (NSS) data shows that West Bengal has fared badly in industrial growth, but its green revolution (which combined land reforms with capitalist farming) made a dent in poverty reduction. Though, as per secondary sources the rural poverty in the State of West Bengal has been declining rapidly since 1977 not much has happened in the District of Paschim Medinipur.. It is borne out by the same studies that despite the declining trends in rural poverty, the State’s initiative in promoting social opportunities in the rural areas is “mixed”. While land reforms and minimum wage- related policies have been given priority, the social development services like health and education have been “comparatively neglected” and the State’s achievements in these sectors are only “modest”. 1.3 Significance of the Study Given this background, it is important to have a re-look at the dynamics of chronic poverty and rural livelihoods and role of local institutions and draw lessons on that basis. Though some poor households in selected blocks of Paschim Medinipur such as Keshpur and Garbeta have been supported by local institutions to form and sustain SHG’s other chronic poor and socially excluded tribal housheolds such as the sabar (indigenous) communities Jhargram and Binpur blocks of the same district are in a precarious position. They are wholly dependent on forest produce-Sal leaves, Beedi leaves, Sal twigs, fuel wood selling and mushroom selling and are facing extreme food insecurity. Some related issues are how inclusive has been the decentralisation process at the grassroots? Have the policies, institutions, structures and processes enabled the poor to address poverty issues and compose sustainable livelihoods? What are the implications of the present livelihood outcomes for policy and institutional changes towards reduction of chronic poverty in Paschim Medinipur district? The paper looks at these and other issues in a Sustainable livelihoods framework. 2. Field Inquiry The field work is on-going since 2002 and some interim results are presented in this paper from about 15 villages. The field inquiry is based on the methodology of Participatory Rural Appraisal/Participatory Learning and Action (PRA/PLA). PRA/PLA is a widely used 3 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. methodology for an interactive process of social development throughout the world. It is a way of learning from the people, with the people and by the people. Study Villages - The villages were selected on the basis of different criteria such as - Coverage of villages, located near roadside and those further interior; Coverage of villages of different size – large (500 households and above), medium (between 100-500 households) and small (below 100 households) ; Selection of villages for broad coverage of socio-ecological-physical features; Coverage of villages/hamlets with concentration of different livelihoods; and coverage of villages with different development agencies -with success stories, moderate experience and failure stories. The villages in Paschim Medinipur were selected to study-self help group (SHG’s) and the indigenous community namely sabar living in and around forests. The SHG’s have made good progress for e.g. in villages, Sarberia, Kandhibandh, Ghusinga (Block-Garbetta-3), Egra (Keshpur block). Women groups have empowered themselves in many respects - education, health, sanitation, and social evils. Whereas, the sabar/lodha communities are living in acute poverty in remote areas in villages for e.g. Lohamala, Belajuri, Montipa and Murakati of Jhargram block, Paschim Medinipur. 3. People’s Perspectives: Who are the Chronic Poor? Poor households live in different localities under diverse agro-ecological-social conditions. However, such deficit households demonstrate many similar patterns with regard to access to physical/social/natural assets, livelihood composition, food availability, social exclusion physical infrastructure and institutional issues. In the study villages the poor groups were facilitated to do their own social analysis of the village and come out with criteria for differentiating such groups in terms of poor and non-poor. Since the poor groups do not own many assets the emerging criteria include size of land owned, period of food availability from one’s own land, type of house, period of wage labour etc. While doing the social analysis most participants thought that it was important to distinguish between destitute households and destitute women-headed households. In terms of social capital the poorer the group the higher was the social exclusion. They are mostly not involved in the planning and implementation of Government and NGO programmes. Some of the women who live in other’s compound/house of their relatives work hard even when they are aged. Many of them collect firewood and Sal leaves from the forest and also look after the relative’s goats/cows and fend for themselves. Many of them are forced to go to the puddles, pools of water and ponds in search of fish, snails, crabs etc. and exchange them for rice. Some also glean paddy fields. They are vulnerable to falling ill. Many women from ultra poor households work as maids and are engaged as wage labour. Many destitute women resort to begging and depend on charity. In terms of social capital there is exchange of labour and bartering of items. Social occasions and practices, marriage etc. are also causes for impoverishment for they involve considerable expenses disproportionate to earnings. Similarly expenses incurred on health also reduce resources available in the hands of poor households. 3.1 Poverty Trends Regarding poverty trends in the study villages there are broad indications of both inter-and intragroup movements within the social groups in the study villages as in Table 2. In many study villages, especially non –tribal and general caste villages livelihoods opportunities have been created as a result of migration, limited crop diversification, SHG’s etc. which has helped poor households to progress forward. These have also impacted upon the situation regarding food 4 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. security and nutrition. However, there are also indications of sliding down of households from less poor to more poor status especially in the sabar/lodha villages. On balance it may be said that the situation has improved for many chronic poor households especially from the general caste though there is increased feminization of poverty with rise in the number of women-headed households as destitute and ultra poor group due to breaking down of conventional safety net. Added to this list is the social exclusion of the sabar/lodha communities cannot be over-emphasized. With socially depressing forces such as high cost of medical treatment and dowry payment, breaking the vicious circle of poverty is not easy. A kind of thumb rule provided by women participants from some villages shows that on average, household incomes of Rs.25/- per day and Rs.50/- per day meet subsistence needs of ultra poor and poor households respectively. Continuous flow of such income is difficult since there is acute shortage of employment opportunities and only those households who earn more than subsistence level are able to save for difficult times. 4. What Livelihoods do the Chronic Poor Pursue? As commonly defined, a livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. The Sustainable Rural Livelihood (SRL) framework defines livelihoods sustainability as the ability to cope with and recover from stresses and shocks, as well as maintain or enhance its capabilities and assets both now and in the future, while not undermining the natural resource base. 4.1 Existing Livelihoods Patterns of the Chronic Poor An overall picture on the existing livelihoods’ pattern emerges from the synthesis of livelihoods ranking as shown in Table 3. It shows that in the study villages, poor people’s livelihoods mainly revolve around wage labour, which is primarily agriculture labour (rank 1) and also nonagriculture labour (rank 1) followed by livestock rearing (rank 2), a small initiative supplementary to main source of livelihood. Livelihoods are generally season-specific whether it is agricultural labour in the cropping season or non-agriculture labour in the off-season. Both types of labour –agriculture and non-agriculture can involve migration within the district, or cross-states. Livestock includes goat/sheep, chicken, duck cattle and pig. Table 3: Existing Ranking of Livelihoods in Study Villages Livelihoods Rank (i) Cultivation of one's own land 7 (ii) Livestock rearing 2 (iii) Wage labour 1 (ix) Making bamboo craft 4 (x) Working as maid Not available (xi) Making Sal leaf plates 5 (xii) Making Muri (puffed rice) Not available (xiii) Catching fish Not available (xiv) Homestead gardening 8 (xv) Selling fuel wood 6 (xvi) Colliery labour Not available (xvii) Cultivating pine apple Not available (xviii) Beedi rolling Not available (xix) Out migration 3 5 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Note: The ranks on livelihoods have been estimated based on the scoring/ranking method of PRA which was applied during field study for village participants to rank different livelihoods –related activities in terms of their local significance based on the number of poor people engaged in such activities.. For study villages, agriculture on one’s own land is 7th .Both bamboo craft and Sal leaf plate making are important activities for the ultra poor followed by selling fuel wood and dry leaves from forest. Some characteristic features of poor people’s livelihoods based on the study villages are listed as follows. Agricultural labour is the main livelihood activity. In forest villages forest-related livelihoods are quite common. Though least preferred, the most common livelihood-related activity is wage labour whether in agriculture, plantation, construction activities, mining and stone cutting. Most livelihoods-related activities are highly seasonal in nature and induce vulnerability in poor households mainly in terms of food insecurity and health care. In rain-fed farming areas, seasonal migration is a pronounced strategy in the non-farming season. As for forest dependent livelihoods there are qualitative differences in households having/not having access to local forests. The differences are significant in case of thick Sal forest or Sonajhuri (Accacia) forest, the latter being considered to be an inferior option as stated by local people since it mostly provides dry leaves/twigs on a daily basis and timber at a later stage. Those poor households with access to dense Sal forest are generally in a better position during difficult seasons. They are able to harvest a variety of food items and other products from the forest for selling them and/or for household consumption. The Sal leaf plate making is an important activity for women in poor households in Paschim Medinipur. In case of degraded forest the forest dependent communities are forced to migrate during offfarm seasons. Some households are dependent on plantation and horticulture, whose strength depends on the local markets and cost of cultivation. Those livelihoods are vulnerable, which are dependent on aman paddy, whose price is unstable and un-remunerative. Those poor households, which have access to natural resources such as thick Sal forest, fish pond/s or reasonable water for cultivation of crop are in a better position to compose their livelihoods along with their human asset i.e. physical labour. Those households have better options, which are endowed in terms of skills in bamboo craft, weaving, beedi rolling, tailoring and other income generating activities. However, those who are physically weak and aged or handicapped have very limited options and find it difficult to cope with chronic poverty especially during off-seasons. 5. What are the Chronic Poverty Outcomes? Livelihoods’ outcomes vary depending on the asset structure accessed by poor households, vulnerabilities faced, policy and institutional framework and strategies adopted. Poor people’s livelihoods are far from being sustainable. Many poor households undertake migration to cities and other districts/States as a strategy. Some field results indicating broad patterns of livelihoods’ outcomes are as follows. 6 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. (i) Any single source of livelihood is not sustainable so the poor tend to combine diverse sources of livelihoods. Such sources of livelihoods differ seasonally and there are considerable variations in using assets for composing livelihoods on a seasonal basis. This is true, both at the inter-household and at the intra-household level across villages, also amongst women, men and children and between young and old. (ii) The returns from livelihood-related activities vary widely across activities and localities. Bartering and exchange of labour is also prevalent. (iii) The economics of rice cultivation in terms of financial returns turns out to be negative. Though agriculture is a critical livelihood, cultivation of Aman paddy is no longer profitable. The economics of paddy cultivation shows that per bigha of land a farmer can make a surplus of about Rs. 200/- Rs. 230/- without adding the imputed cost of his/her family labour and the cost of “enterprise”. On an average, there is a net loss of Rs. 300/- to Rs.330/-, of which Rs. 100 can be recovered from the sale of straw. (iv) There is also rapid fall in land productivity. Land is not laid fallow and there is excessive use of fertilizers and insecticides due to lack of extension support. (v) A noticeable trend is towards rapid conversion of agricultural land into nonagricultural land as pointed out by some local villagers, which eats into sustainability of agriculture-related activities. (vi) Many owners lease their lands to others for cultivation. Contract cultivation is on the rise. Though agriculture is an important source of livelihoods the owners do not always cultivate their own lands. There is contract cultivation i.e. those who own the land lease out the land on fixed rent.. Mixed forest e.g. Sal forest provides a range of livelihoods especially for ultra poor groups residing near forests. However, the poor groups have expressed difficulties in harvesting NTFPs due to constraints posed by forest department and there is also a declining trend noticeable in forest produce. Marketing opportunities/linkages are becoming difficult for crafts-related product. (vii) (viii) 5.1 Preferred Sources of Livelihoods Given a chance, the poor groups have preferred sources of livelihoods as shown in Table 4. The preference rankings indicate a combination of access to one’s own land for cultivation supplemented by different types of livestock rearing activities. However, in absence of one’s own land such preferences are especially for agriculture/plantation-related work. In the study villages of Paschim Medinipur income generating activities (2nd rank) are equally preferred as much as Sal leaf plate making through machine (2nd Rank) and also making value added items of bamboo with upgraded skills (2nd Rank). Table 4 - Preference Ranking of Livelihoods Activities Paschim Medinipur Cultivation of one's own land 2 Livestock rearing 1 Skill-based IGA 2 7 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Bamboo craft Making Sal leaf plates by machine Making “muri” (puffed rice) Fishery through pond excavation Tree Plantation 2 2 4 6 6 Wage labour, whether in agriculture, plantation, construction and mining, a dominant mode of livelihoods is least preferred by the poor, because it means strenuous work, high uncertainty and discrimination against the weak and the disabled. Similarly migration outside is much low in preference for both poor women and men due to inconvenience and uncertainty of finding jobs. 6. Gender and Chronic Poverty There are separate domains of livelihood-related activities for women and men although some activities are common to both. Even when they are sharing the work with men their roles are defined either by tradition, social construction and societal pressure. In some villages it was pointed out that in difficult seasons when men have no work, it is generally the responsibility of women to procure food and feed the family. Women from poor households are over-loaded with work and little or no recreation time as compared to men. Children from poor households including school dropouts are engaged in many of the above activities Table 5 -Livelihoods-related activities- Women and Men Women Livelihood-related activities Collecting Sal leaf from forest * Making Sal-leaf plates * Selling Sal plates in the market * (Women-headed HH) Collecting fire wood * Selling fire wood * Growing homestead vegetable * Rearing back yard poultry * Agriculture work * Agriculture labour * Collecting bidi leaves, other NTFP * Nabal (migration) to distant places for Sometimes women accompanying men earning livelihood Making Muri (puffed rice) and selling * Making Talai & selling * Fishing Rearing cattle * Making rice from paddy * Selling eggs * Rearing goats/sheep * (often taken care of by children and elderly) Selling goats/sheep * (Women-headed HH) Work in brick field, * stone/sand/morrom quarry Note: HH stands for households; * stands for who does it –women, men or both. Men * * * * * * * * * * * * * * 8 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Table 5 lists some common livelihoods and provides an indicative picture of the gender aspects of who does what. Gendered division of livelihood-related activities has some local variations. In village Charka, Paschim Medinipur, which has mostly Muslim households and women are not engaged in agriculture work. However, in village Pathra, Paschim Medinipur, women are mainly engaged in work related to paddy, livestock, back yard poultry and flower work. They also share daily labour on agricultural fields and selling of fish and vegetables. Some of them work on brick field and sand quarry along with men, though engaged differently. 6.1 Assets – During the field inquiry it was stated by women groups in selected study villages in blocks – Gorbeta-1 and Keshpur of Paschim Medinipur that poor women’s asset in terms of social capital, awareness and skills have increased over time through SHG formation. As expressed by two women groups that though the men were supportive of such women’s SHGs they were not that hard working to improve their lot. It was also found that women were relatively more active than men and had inculcated thrift habit on a regular basis. The men were found to be indifferent to thrift and local women were of the view that men had a tendency to spend more and shoulder less responsibility. Even in deficit households, when men had cash in their hands they spent it on liquor and merry making. The women thought that cash in hands of women was more useful for the family. Though literacy is higher among men, the women, mostly illiterate, were becoming conscious of the significance of education for their children. However, many poor households were forced to make their children work due to poverty. 6.2 Power, Status and Exclusion – Gender bias is pronounced in most study villages in terms of men wielding the power in the sphere of governance, institutions and processes. The social status of women as compared to men is low in general and abysmally low for widows, deserted, divorced and mentally and physically challenged women. Women-headed households, whether ultra poor or destitute are socially invisible and excluded. Many men die young and the young widows have added social problem due to their age. In case of elderly women the participants mentioned that the trend was that of neglect of elderly parents by children. 6.3 Decision-Making – In the study villages, men make the major decisions except for a few women SHGs under SGSY, which are spearheading certain village-level decisions and raising issues not normally done by women. In most cases of decentralized gram sanshad planning including Forest Protection Committees men tend to dominate and the women are generally neither vocal nor visible. Women functionaries in panchayat mostly belong to better off households. However, it may be said that women groups from poor households are relatively more progressive and performing better in selected blocks such as Garbeta and Keshpur of Paschim Medinipur. As regards the study villages, there is a social bottleneck in terms of conservative attitude towards women’s roles. Women from poor households face socio/cultural inhibitions in terms of work opportunities e.g. women working as construction labour find it difficult to get their daughters married. 6.4 Access and Responsibility - For many poor households, including tribal households, the woman has access to cash available from her own earnings and what her husband gives her. Though the women have the main responsibility to rear livestock the men sell them in the market. 6.5 Livelihoods Preferences – Common preferences of groups of poor women are those related to skill training and self-employment opportunities in activities such as sewing-cutting-tailoring, masala (spice) making, bamboo craft, embroidery etc. while men prefer to continue with their existing activities. 9 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. 7. What Assets the Chronic Poor Access and Use? The village exercises show that, in general, there has been a positive trend associated with asset holdings of poor groups though the sabar/lodha and other tribal poor have been left behind in the process. With land reforms, decentralized governance, infrastructure development, opening of bank branches, health centre, social forestry, literacy, training, self-help group activities, sanitation and drinking water there has been general progress in different rural assets. With increased assets and more choices, the quality of life has improved over time. However, there are crucial aspects of asset holding, which indicate that though this is a good start, there are major issues in asset status and access, both in case of poor households and also in case of remote villages. It becomes difficult for poor households to cope with loss in asset/s without having any fallback position in terms of government support, compensation or insurance. It is important to mention that though different assets are locally available in a village their access and ownership issues become crucial in terms of composing livelihoods by poor households. Some field findings in this context are as follows. Though the process is on-going, not enough assets have been created for the poor. Such assets creation has been disproportionately small in size with regard to the scale required and much more needs to be done. The ultra poor groups have remained deprived and have not experienced any increase in assets except a few households getting support under Indira Awas Yojna (housing scheme) and still fewer getting widow/old age pensions or support under Annapurna Yojana. There is absence of critical threshold of physical assets in many study villages and the quality of existing physical assets/ services is low, e.g. tube well for drinking water, quality of embankment constructed, functioning of health centers etc. Many natural assets such as ponds and rivers have degraded over the years thus leading to diminishing structure of asset portfolio for the poor and limited options for livelihoods. Assets created in the public domain have differed from the perspectives of poor people’s livelihoods. For example, in many areas, species for forest regeneration have been decided without attention to issues important to those groups, which are dependent on such forest. 8. What Makes the Chronic Poor Vulnerable? The vulnerability of the poor relates to particular sensitivity to an event or occurrence that pose a threat to health and social and/or economic well-being. It is important to learn about the vulnerability context in which the asset exists. The factors determining such context can be grouped under trend, shock, seasonality and local cultural practices, which affect livelihoods of poor households. In the villages studied such factors were identified as follows. 8.1 Trends Some of the trends shared by poor groups are listed here though they are not universally applicable to all poor groups in the study villages. Such trends are gradual silting of river/pond/water bodies; increase in agriculture production; movement from traditional farming towards chemicalization of agriculture; regular pest attacks on crops cultivated; animal attacks on crops; changing trend of livelihoods from food crop to cash crop cultivation; non-diversified economy with little diversification towards cottage/village industries; increased dependence of majority people on agriculture; increased dependence on markets for both acquiring inputs and selling outputs; rising inputs prices (fertilizers, seeds, pesticides); rise in public thieving and corruption; increased social exclusion of ultra poor/destitute households; increase in dowry payment for daughter’s marriage; increased incidence of homelessness and residing on other’s 10 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. land/home, especially women-headed households; and interior location of village due to low growth of rural road network 8.3 Seasonality and Vulnerability Vulnerability of assets is made acute by seasonal forces, which are pronounced in case of poor households. The rainy season is especially difficult when the incidence of disease of both humans and cattle/birds increases. Typhoid/Jaundice is quite common in areas using water from shallow and indigenous wells. Fever is a common occurrence. The cattle and poultry suffer from different diseases. The non-availability of health centre and veterinarians makes life difficult during the rainy season. The prices of agriculture inputs and outputs and selling price of NTFPs differ depending on the seasons. Many poor and ultra poor groups undertake seasonal migration during agriculture off-seasons. 9. Chronic Poverty of Sabar/Lodha Community Many villages in Paschim Medinipur have Sabar/Lodha residing in them and some of the issues related to the chronic poverty of such tribal communities are highlighted here by means of bullet points on different aspects of their living as well as case study. Livelihood related issues - The means of livelihood is mostly dependent on forest produce. The return from forest produce is depressingly low. One person’s income is not enough to feed the family. For a sick or elderly, it is nearly impossible to collect forest produce and sell in the market. The time consumed is very long. Each livelihood means engages 8 to 10 hours and the return is Rs.10/- to Rs.12/-. Men folk get about Rs. 20/-. With exception of few days in paddy related work, there is no other work available other than forest produce collection. Livestock cannot be raised because of extreme poverty and also due to attack by wild animals. Food consumption related -.With exception to one – two months, the food consumed is half or less than the normal consumption. The food basket lacks nutritious items. More rice is consumed most of the time. When there is no income, they remain without food or wild potato is consumed. The children, pregnant and lactating women are not given supplementary food. Many nutritious food – fish, meat and chatu are customarily restricted for the lactating women. Lack of money: - There is literally no saving. Due to lack of money, they are not able to collect ration at subsidized rate. They are not in a position to purchase clothes even children under 5-6 remain without clothes and adult and grown up people have fewer cloths. Dwellings: - They have tiny dwellings, without window and doors. A few have been supported by houses constructed under Indira Awas Yojana (housing scheme for the poor). Education: - It is very difficult for such poor people to invest Rs.10/- on a monthly basis to meet the hidden cost of educating their children. Hence, most households are not in a position to send children to school or continue studies unless the food and teaching – learning materials are free. 9.1 A Case Study on Sabar Village, Bhellai Thar, GP: Patasimal, Block: Jhargram, The village, Bhellai Thari is a tribal village, inhabited by the Sabar community. The village is about 9 kms inside Kolkota – Bombay road. The village participants classified households into two categories – very poor and poor. They considered 2 households as very poor because these are women –headed households. Both are elderly womne. One is Hizra and another is deserted by family. The Hizra begs for survival because of old age, it is difficult to work. The other old woman collects firewood, leaves 11 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. and also works if she gets a chance. She gets old age pension. The total number of poor households is 43. A few (8 – 9 households) have khas (government allotted) land on which paddy is cultivated. The households’ assets are earthen, steel and aluminum utensils. Around 5-6 households have 1 – 2 cows, 45 households have few chickens and 2 households have pigs. People want to rear livestock but are unable to purchase these. There is no toilet. The food availability is limited to the agricultural months. In other months, they have food crises. Due to forest, nearby, they collect wild potato and consume. The poor people migrate to Sham chak during paddy harvesting. They get Rs.30/-, food and accommodation.They remain there for few days. Their main sources of livelihoods are: forest produce and migrating for agricultural labour. Forest Produce - All villagers earn from the forest produce. They sell sal leaves, bidi leaves, fuel wood, dhup and chatai. The people sell above materials despite earning is meager. Women earn lesse than the men because the fuel wood bundle is smaller. On average, women earn 10-12 rupees per day and men earn 15-20 rupees per day. During odd days – heavy rain or health problems, there is no income; hence the food intake is nothing. Generally, no one can share as very little is available. Agricultural labourer - During Asarh and Sraban people migrate for paddy plantation for 10-12 days at the wage of Rs. 30/- plus food and accommodation. During Agrahyan and Poush, they migrate to harvest on a daily basis. Seasonal food calendar - The seasonal food calendar is given in Table 6. It is seen that: most of the month, the people consume rice and salt. During Bhadra and Ashwin, there is severe food problem because the income is literally nothing. Due to rain it is difficult to collect wood, and the Sal leaves are not dried. Many persons remain without food for 15 days. In the rest of the 15 days, they consume little rice and salt. During Baisakh and Jaishtha, there is food crisis. There are no Sal leaves. The hot climate makes earth hard and hence it is difficult to dig out and find wild potato. In the four month of migration – Asarh, Sraban, Agrahyan and Poush the food consumption rises. But those who remain in the village, face the same food crisis. In Kartik, Phalgun and Chaitra, only rice and salt is consumed. If available, vegetables are consumed once a week. Trend of Food - The villagers mentioned that their economic condition has slightly improved through migration, some help form local political party and earnings form leaves, fuel wood and NTFPs. Due to this, the food deficit and starvation periods have declined slightly. Earlier, people did not migrate and the situation was precarious. However, the quality of food has not improved. Earlier also people were consuming rice and salt which is continuing presently. Table 6 Seasonal Food Calendar of Sabar community in Vellajuri village Months Intensity Food Consumption of the problem on a score of 16 Baisakh (April-May) 16 Rice, salt the amount reduces to half. Jaishtha May-June) 16 Rice, salt the amount reduces to half. Asarh (June –July) 6 Food position is better because paddy work is available Sraban (July-August) 6 Food position is better because paddy work is available Bhadra (Aug – Sep) 16 Acute Food problem acute because there is no income for 15 12 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Ashwin (Sep- Oct) 16 Kartik (Oct-Nov) 12 Agrahyan (Nov-Dec) 6 Poush (Dec- January) 6 Magh (January- Feb) 6 Phalgun (Feb- Mar) Chaitra (Mar-April) 12 12 days Severe food crisis. No income is there small amount of rice and salt only once a day for 15 days, remain without food. Rice (When there is money) wild potato vegetables (Once a week). Improves- Rice, vegetables –2-3 times in a month, Men (250 gram); purchase is Rs.20/- to Rs.30/- and collect and eat wild potato (pan alu, chun alu, kata alu). Improves – Rice, vegetable-2-3 times in a month, Men (250 gram). Purchase is Rs.20/- to Rs.30/- and collect and eat wild potato (pan alu, chun alu, kata alu). Condition aggravates for the local. Those who migrate earn and have good food rice and vegetable. Rice and salt (vegetable once a week). Rice and salt (vegetable once a week). 10. Policies, Institutions and Processes and Chronic Poverty Policies, institutions and processes are critical in determining who gains access to which type/s of assets, which in turn determines feasibility of livelihoods’ strategies. Markets and legal restrictions impacting on asset conversion and livelihoods strategies are also significant variables. Some groups remain socially excluded from policies and institutions and it is important to identify the processes through which such exclusion occurs. Based on fieldwork certain common factors can be identified, which make for social exclusion (partial/total) of the poor groups. Some major factors influencing social exclusion of poor groups in the study villages are described below. Exclusionary Processes and Impacts on Livelihoods Attitude and behaviour is a major factor leading to social exclusion of poor households. For specific poor groups such as adivasi (tribal), attitude and behaviour engrained in local governance, is a major issue. Able bodied and educated sabar/lodhas as well as sabar/lodha youth feel discriminated against local employment opportunities, both government and private. Similarly many Santhals in the villages of Binpur-II discussed their problematic relation with local police. The attitude of the Forest Department officials and staff are also seen as problematic for the adivass who have symbiotic relationship with the local forests and are dependent on them for their livelihoods. Similarly approach of bank-institutions towards self-help groups of poor women is an important factor. Attitudes/ cultural beliefs/ social practices are loaded against women-headed households, where people treat such households as “invisible” in their own localities. The local/state administration is generally aware of such issues as indicated in the meetings held. Those landless and homeless who have not received patta land under land reforms lack a minimum threshold level of asset structure for constructing livelihoods. Many poor households lack access to basic physical and financial capitals. Institutional linkages with the villages are lacking. In many study villages, road, health centre, functioning wells and tube wells and other basic services are not available. Finances are limited with no banks in the vicinity. One social arrangement noticed in many study villages is that the better-off group provides advance wages against future labour thereby extending some support to the poorer people in their months of crisis. 13 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Decentralized governance The policy of decentralization has helped Panchayats to support local people and the Panchayat’s role has been a crucial factor in lending support to the poor groups. The Panchayat functionaries have done good work in a few villages though not in all the study villages. Poor groups have performed better in those villages where the Panchayat functionaries have taken keen interest and created enabling conditions. However, progress has been hindered in those villages where political affiliation of panchayat is different from the ruling party. By and large, in most study villages, the ultra poor and destitute households including the indigenous communities are mostly excluded from the development work of panchayats except for a few beneficiaries included under IAY/rural housing scheme and/or widow (old age) pension/Annapurna Yojana. It is not clear as to whether this is due to the flaws in the policy framework, which does not allow enough thrust on the social inclusion of poorest groups or due to the poor implementation of government programmes. The National Literacy Mission motivators entrusted with the task of forming and mobilising SHGs have done exemplary work in many villages of Paschim Medinipur. Lack of transparency and accountability for development schemes especially on the part of functionaries of local governance has hindered information dissemination and awareness building of poor groups including adivasis. As perceived by many poor households, corruption and dishonesty have become rampant in governance. This has resulted in inefficient and low quality asset creation at the local level, which in turn has impacted on livelihoods. Similarly in many study villages, villagers remarked that official exercise for identifying households below poverty line has led to the inclusion of many better-off households and exclusion of poor. Absence/Delay of justice is another issue with poor households. As stated by local tribal villagers, many tribal men in Jhargram area have been arrested by police and are being detained for long periods without recourse to bail/justice. Lack of an effective and well-implemented state policy on literacy/education has constrained poor groups from participating in the local development process. Lack of access to health services (both in terms of facility and quality) by the poor is another problem area. With high incidence of diseases including malaria, fever and diarrhea-related diseases, on a yearly and seasonal basis this is all the more serious. Availability of drinking water is a problem in many tribal villages. The tube wells are mostly out of order and/or provide low quality water. Maintenance is not routinely carried out. The size of poultry vaccine available in the market is so huge in quantity and expensive that poor households rearing one/two or few chickens can seldom afford it. Forest policy Forest management Policy affects livelihoods. The decisions taken by the Forest department whether to grow Sonajhuri or Sal or some other species have differential impacts on poor people’s livelihoods, especially the ultra poor. The richer the local forest (e.g. a Sal forest) and its access the easier it is to cope with difficult seasons. Identification of NTFPs, their socio-economic relationship with local livelihoods and group formation of women for augmenting their access, 14 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. production and sustainable harvesting are important steps in supporting the ultra poor for increased access to forest products. The Joint Forest Management (JFM) guideline no. 22-8/2000-JFM (FTD), Government of India, dated December 24, 2002 of Ministry of Environment and Forests, though general in nature, provides a broad framework for Forest Department for closely linking forests with local livelihoods for forest dependent communities. However, there are limitations in the framework in terms of the following. Bureaucratic procedure for establishing such linkages Encouraging one-way top-down communication channels and Absence of a pro-poor stance and inter/intra-community equity issues (by treating entire community as one and equal) Banking policy Banking facilities for BPL families formed into SHGs under SGSY in terms of bank loans are generally constrained. They are hindered or promoted by the approach of individual banks and their concern for the poor. For some banks such SHGs are a low priority and they refuse/delay giving loans to them. The DRDC money for contribution towards a rotating fund of SHGs is differently understood by the banker, administrative and Panchayat officials. The Reserve Bank of India’s letter (no RPCDSP BC 03/09/01 dated 13.10.02 says that DRDC/DRDA fund should be adjusted against the loans of SHG and adjusted against any default. The letter loosely describes this DRDC/DRDA fund as “subsidy”, which it says will not be available to those above the poverty line of Rs.11200/- as annual income. The use of the term “subsidy” for the DRDC/DRDA contribution towards revolving fund of SHG, though a misnomer, has run from the top channels of banking to the bottom and has hindered the mind set of the bankers from moving forward. Some bankers have adjusted the “subsidy” amount from day one with disbursement of loans to SHG in order to show on record that a part of the loan of Rs.15000/- by banks has been repaid by the amount of Rs.10,000/- on the same day. Bank workers, in remote branches often consider transfers to rural/remote areas as a punishment posting and their mindset is seldom favourable for supporting social capital formation amongst poor women in terms of SHG. They view recovery of loans to SHGs as problematic since they do not perceive them as credit-worthy. Some banks do, however, try to assist despite low standing of poor households with regard to their credit-worthiness. In many cases the banks delay/deny loans to SHGs on the ground that some of their members’ husband/father-in law have defaulted in the past. Though many poor households in the areas concerned are defaulters on IRDP loans most women forming SHGs have no record of taking loans from banks. SHG’s forward movement is affected in the process if it is denied loans or facing delay in getting bank loans. Many SHG members have stopped putting their own contribution to their common fund because of not receiving their promised loan money from bank and the DRDC/DRDA contribution towards their rotating fund. 11. What Worked in Reducing Chronic Poverty? This section gives a summary of some of the processes and best/innovative practices, which despite their constraints and shortcomings are working better than others and have proved more effective in translating development objectives into action. A list of selected processes is give below. Self-Help Groups Decentralized Planning - GDGP 15 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Swashthya Swahayikas (Para –Health workers) Agriculture Diversification Initiative 11.1 Self Help Group (SHGs) under SGSY Government of India launched a new programme called “Swarnajayanti Gram Swarojgar Yojana” (SGSY) from 1st April 1999 by replacing IRDP and its allied programmes like TRYSEM, DWRCA, SITRA, GKY, MWS thus avoiding multiplicity of programmes. To overcome pitfalls of IRDP, a holistic programme such as SGSY was adopted covering all aspects of selfemployment - group formation, training, credit, technology, infrastructure and marketing. Under SGSY, the beneficiaries are known as Swarojgaris whether as a group or as an individual. The main objective of SGSY is to bring the beneficiary poor families (Swarojgaris) above the poverty line in 3 years time by providing them with bank credit and subsidy, which would enable the family to earn Rs. 2000/- per month through some micro enterprise initiative. It has been officially estimated that an average investment amount of Rs. 25,000/- for an individual Swarojgari and Rs. 2.5 lakhs for a group of Swarojgaris can enable them to earn the estimated net income of Rs. 200/- per month after the third year of investment. SGSY is a process-oriented scheme and formation of SHG passes through different stages depending on location, capacity of facilitators, literacy, awareness etc. There is a set of guidelines for SHG such as code of conduct, agenda for meeting, regularity of savings, record keeping, participatory decision-making etc There are a number of achievements on diverse fronts by SHGs formed under SGSY as listed below. Social Bonding Leadership Thrift Habit Risk Taking Skill –Building Opportunities for Productive Investment Opportunities for Income Generating Activities, Preventing Alcoholism and Domestic Violence Social Empowerment especially for Women Easy Convergence of Development Activities/Schemes Networking with other Organizations/Institutions SHG Mobilization under SGSY Both women and men’s SHG’s are active under SGSY. Some lessons and experience from both SHG’s are given below. Women’s SHG under SGSY – Women’s SHG’s is an emerging model for women’s socio-economic empowerment and strengthening of social capital at the group level. This is emerging as a dominant route for developing women’s capacity in Paschim Medinipur. Illustrations from Paschim Medinipur will prove the point where many women’s SHGs have been mobilized and are functioning well. Based on the study villages it may be observed that many SHGs have started functioning, after forming groups 2-3 years back or even earlier. However, only a few SHGs have reached the stage of group-initiated development activities and are actively performing group activities with or without outside support. Ways of institutional linking and integration of SHGs with panchayat bodies are yet to evolve. The following provides a local assessment of the strengths and limitations of such SHGs and ways to improve upon them. 16 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Social Bonding Many women through their SHGs have come closer and have established meaningful ties with the group members with a feeling of camaraderie and social bonding. They have come together as a group and are gradually realizing their own potential through it. Those groups with like –minded members, mutual empathy and similar background have higher levels of cohesiveness and feelings of unity. Leadership Given a chance, good leadership as a factor has also emerged in many SHGs and has shown the way for organized group work, group perseverance and getting institutional support. Thrift Habit Through SHG formation, thrift has become a habit and personal savings and group savings are rising over time for many groups. It has also become one unifying factor for bonding poor women in the villages. Some women groups feel a sense of empowerment as reflected in their increased participation in gram sansad meetings, family welfare programmes and sanitation campaign. Entrepreneurship and Risk taking Entrepreneurship and risk taking capacity has increased of the group as a result of group-based activities. Many of them have taken bank loans for the first time in their own names and are contributing towards revolving fund. Skill building Some SHG’s have enhanced their skills through opportunities for capacity building. The skills include social skills e.g. skills to share a common platform as a group; income generating skills e.g. making incense sticks and networking skills such as linking up with banks, panchayat bodies and other relevant institutions.. Opportunities for Productive Investment Many SHGs are taking initiative to explore opportunities for income generating opportunities for supporting their livelihoods. Though there are many constraints in generating returns from productive investment many groups trained by government have started in a small way such as incense stick making in small quantities and are able to sell them in the local market. Preventing alcoholism and domestic violence Some SHG of women under SGSY have also been in the forefront to organize public opinion against alcoholism. Such empowerment of women groups have also lent influence on scaling down of domestic violence to some extent. Social empowerment especially for women The members of SHG’s, especially the women have found a new social identity through their groups with official recognition and fruitful linkages. The social relationships between women and men are changing gradually. The women’s voice as a group is being heard in different quarters such as BDO office, gram panchayat, bank and gram sanshad. They feel empowered through such a process and many groups are making use of such an opportunity. Easy convergence of development activities/schemes 17 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. The SHG’s under SGSY have provided a ready platform for convergence of development activities such as health schemes, capacity building activities, sanitation, taking polio drops, family welfare schemes etc. Networking with other organizations/institutions There is considerable heterogeneity in the progress of SHGs under SGSY. Those groups, backed and motivated by panchayat/party and officials of development administration have gone much ahead in terms of initiative and enterprise. This has led to motivation for other local groups to follow similar path. Success stories of SHGs in Keshpur and Gorbeta Block have led to adaptation of “enterprise” effect in other groups. Facilitation of SHGs Some volunteers/motivators from National Literacy Mission (NLM) have done good job of facilitating SHG formation under SGSY and in helping to mobilise them for. In some places there is evidence that the SHG members have started rotating their own funds amongst themselves rather than depositing their savings with banks. Such informal groups have not only gained interest income on funds offered as credit but have also learned ways to rotate funds. Selected Constraints Facing SHG under SGSY Some constraints facing SHG’s under SGSY as described by such groups are indicated below. Acceptance of the SHG produce: The members feel that the public acceptance of the produce is lower than the branded produce flooding in the market. Many-branded produce is not qualitatively superior. Several are the duplicated ones .The SHG members feel that they have maintained a reasonable price level. They think of the poor consumer and also keep very low margin. Despite the sincere approach, the acceptance of the SHG produce is as expected even in the local market by the local consumer. People do not show enthusiasm in purchasing the SHG produce. They receive this feedback by the dealers whom they approach for marketing. Marketing Network - The networking for marketing is not satisfactory. Although some SHG’s manage to have stalls is fair / exhibition they are not able to have good market. Lack of Work Place - Work place is the main problem everywhere. There is no common place for the SHG operation hence it is very difficult to undertake the works smoothly. Essential materials are scattered in various places, such as, raw material in one place, produce in another, documents in another place and work is done in another place. This poses as a major constraint for smooth functioning of SHG’s. Lack of Backward Linkages and Training - There are difficulties in carrying out Dhupkathimaking (incense –stick making).Dhupkathi making is one of the preferred activities of several SHG’s It is relatively simple and does not require much technicalities. It has a big potential market for many people need Dhupkathi for ritual activities or for its aroma. But women group are under severe constraints, such as lack of raw materials, lack of training for attractive packaging and lack of skills for improved quality of Dhupkathi. Banking constraints - The behavior of the local banks and the attitude and language used by the employees. The banks take a long time to undertake second grading of the groups, which hampers progress. The sincere efforts put in by the groups are not recognized. 18 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Lack of Capital - The SHG’s do not have much capital for loan has not been given. This constraint is faced by the tribal people who cannot afford to save. Their daily earnings are very low and not that certain. A meager earning of 10-12 rupees daily is not sufficient to procure even bare minimum rice. When there is no income, they are on fast or survive on NTFPs such as wild potato, which they boil and consume. In case of acute scarcity, they cannot save hence the scope of loan gets reduced. Very poor people do not have time and money to contribute. They do not have time to spend in group formation and social service activities. Lack of Security - It is extremely difficult to take up any activity for the excluded tribal groups who dwell in the dense forest. The wild animals attack livestock; there is no electricity to have machine-based activities; and the wild elephant damage go-down if paddy is stored. Local sale is limited because local people are too poor to purchase any SHG produce. 11.2 GDGP and Gram Sanshad Planning/Action For optimal usage of resources flowing to the panchayat bodies from Centrally-sponsored scheme, state-sponsored scheme, grants –in-aid and other funds, programme for a holistic village plan by village people exists at the gram sanshad level. This alternative planning process starts from the basic issue that in the absence of foreign/domestic capital whether the local communities are integrating all productive forces/assets and using them to their full capacity. The crucial part of this alternative planning is how to make sustainable utilization of local productive assets and improve human welfare. Box 11 - GDGP Experience in Ranisarai GP, Narayangarh Block, Paschim Medinipur A five year plan was made involving the villagers in 40 villages across 48 mouzas covering 2800 households in 9 booths. The planning process followed 3 days training of panchayat members by Haripada Jena in which the development issues were prioritized. Para baithaks wer conducted over 15-20 day sin which, the women and men sat in separate groups and the women discussed on SHG and health. In the planning process apart from the panchayat members, the service holders, teachers, local women and members of other political parties were included. The gram sanshad has 12 members in 2 committees with 6 members, each. The survey started in September 2002. All voters in the sanshad were given a letter informing them of the planning process and this was also publicized over the mike. Villagers from 5 villages around 100 to 150 in number gathered at one place to do the gram sanshad planning as facilitated by panchayat members. With this methodology more people can be involved by the panchayat. The panchayat can use GDGP as a weapon to involve people in constructing assets and the results are better in terms of ownership and maintenance. Nowadays, all development schemes require beneficiary/user-group formation as prerequisite for further action and GDGP can help in that direction. Some issues faced in GDGP are as follows. (i) One major issue is of problem prioritization – whose development? Should it be development of household or of area?. The well-off want to prioritize social assets/infrastructure in the locality while the SC/ST members from poor groups would like to have personal benefits. (ii) There is acute shortage of development funds and it is difficult to keep demand low. Most demand is for infrastructure, especially in agriculture. Those who are landless do shared cultivation for the second crop. Source: From the Field Notes of Neela Mukherjee 19 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. The official booklets mention that the success of the alternative planning process lies in strong organization of workers/labourers and it is especially important that every gram sanshad trains at least 5 to 7 real volunteers and motivators through this planning movement. The decentralized village plan aims at integrating agriculture, irrigation, craft, education, health, housing and other related aspects. The basic idea is to formulate a road map for local development of a village based on decentralized planning. Such action research in gram sanshad planning has continued over time. An illustration above in box 2 for Ranisarai GP, Paschim Medinipur indicate the kind of progress made under GDGP by the State Planning Board. 11.3 Swashtha Swahayikas (Para –Health workers) This is an innovative experiment in providing health services by local para-health women workers as observed in selected blocks (Garbeta and Keshpur) of Paschim Medinipur district. It has immense possibility of scaling up in the same districts and also scaling out in other districts. A cadre of para-health workers known as “Swashtha Swahayikas”, have been created for promoting good quality health and sanitation awareness. The Swashtha Swahayikas play a very important role in inculcating healthy habits amongst villagers. They are also playing the role of publicity agents for any government health schemes or special drives against any disease. Most of these Swahayikas have been selected from the Self Help Groups in the blocks and they act as the agents of health care on behalf of the government machinery. They have been given basic training for awareness about the common diseases they need to handle in the villages and the details of the medicines they can administer. Bicycles have been provided to increase their mobility in the locality concerned. This scheme has been running for the past 2 years. The local NGOs supply the medicines that are distributed by the para –health workers. The Swashtha Swahayikas maintain detailed records of their daily activity in a set format in notebooks provided to them. The important aspects of their role are: They visit every household in their area and are intimately aware of the condition and structure of each family. They carry the message of family planning to every woman and supply family planning devices for their use. They have themselves realized the advantages of a small family and therefore tell all the women about the same. Through their efforts, in most villages, there is no delivery done at home by the local midwife under unhygienic conditions. On their insistence, most deliveries are done at the local health centres. The ambulance available in the Block Office is summoned and the expecting mother is taken to the center even in the late night. The incidence of infant mortality and pre-natal death of mothers have reduced. The mothers-to-be are also advised about of the food they should take during pregnancy. The other female members of the family especially the mother-in-law are also advised suitably. The 3 essential inoculations during pregnancy are also arranged for and administered at the right stages of pregnancy. Dysentery and other stomach diseases were very common in the villages mainly due to the water and unhygienic habits. The Swashtha Swahayikas have gone deep into the root causes and have first taught the villagers the immediate medication in the form of ORS when anyone is sick. Then they have taught hygiene habits like washing hands, keeping foodstuff covered, eating freshly cooked food and avoiding left-overs etc. They have brought in a wide acceptance of using the sanitary latrines being set up. This has helped to keep the surroundings clean and fresh. 20 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. The Block Health Officers give the Swashtha Swahayikas some common medicines like paracetamol, ORS packets, family planning devices etc. to be used by them in their areas. The Swashtha Swahayikas are the grassroots channels through whom the government reaches the various health and sanitation programs to the villagers. Programs such as pulse-polio have been popularized by the Swashtha Swahayikas. Such a cadre of para-health workers from SGSP groups and others can form the backbone in poverty –stricken localities for promoting primary health care and sanitation. 11.4 Agriculture Diversification Initiative Some villages have demonstrated good capacity in agriculture diversification with or without support from local panchayats. There are 2 instances cited here, which illustrate how crop diversification such as crop rotation, growing new crops, growing suitable crops in dry season etc. can help to strengthen the rural economy. For instance, in Ranisarai GP, Narayangarh Block, Paschim Medinipur, the land can produce 2 crops with paddy as one crop followed by another crop which can adapt with less water for e.g. til (sesame), mustard, moong (lentils), peas and groundnut. In this agriculture year, til was widely produced as a second crop in this GP, which turned out to be highly remunerative. An estimate for til production runs as follows. About 40 decimal land producing 2 quintal and 22 Kg of til with 750 grams of seeds at Rs. 47 per Kg plus Rs. 110/- worth of manure and chemical fertilizers amount to a total expenditure of Rs. 850/including labour cost of Rs. 100/-. Last agricultural year one quintal of til could fetch market price of Rs. 1500/- on average. 12. Selected Development Constraints Though there are good initiatives such as SHG’s in Paschim Medinipur, some developmental constraints as observed are described below. (i) Inadequate Pro-Poor Development Initiative/s – The most common problems indicate that there is lack of pro-poor development initiatives at the local level. It was pointed out by the poor groups themselves that there is general lack of interest and apathy amongst the local leaders and many could not be approached. There is absence of any holistic approach in thinking and implementing grassroots development initiative. On the other hand, the present way of implementation of development activities is ad hoc as directed from the ‘top’. Pro-poor development initiatives are scattered and considerably limited in coverage. Take for instance the lack of effectiveness of the Sampurna Gramin Rozgar Yojana (SGRY) as described above in terms of employment guarantee or for that matter the investment made under the Indira Awas Yojana or the Annapurna Yojna for the elderly women. Some examples are given below to show how government schemes like SGRY are a drop in the vast ocean of rural unemployment. With regard to 100 days of employment guarantee by the government to at least one member from each poor household in the rural areas the present size of investment is abysmally low. Take for instance, the case of SGRY in Ranisarai Gram Panchayat in Narayangarh Block of Paschim Medinipur. In 2004-05, a rice-cash equivalent of Rs, 350000/- is available under SGRY where 60 per cent of that amount can create 3390 man days at a daily wage rate of Rs. 62/- for unskilled labour. With 940 households under BPL only 7 man days per person per BPL household can be created in a year’s time given the present size of investment. 21 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. (ii) Inadequacy of Integrated Approach to Local Development – Small, scattered and ad hoc interventions –e.g. the housing scheme under IAY is surely not enough in terms of the problem of housing the poor are facing. With interventions done in a scattered manner and mainly on an ad hoc basis there is no optimum threshold level to be achieved in terms of poverty reduction (iii) Lack of Critical Minimum Threshold for Local Productive Investment – Similar to the issue raised above, many localities visited pointed out that they lacked the minimum basic infrastructure such as tube well, well, SSK, PHC, anganwadi, primary school and others. Many of them were required to visit other localities to avail them especially for availing drinking water and health care services. (iv) Problem in Pro-Poor Location of Basic Assets/Services – In many areas studied it was stated and illustrated that critical basic infrastructure has a locational bias in favour of the better-offs hamlets/households/colonies/para, whether it is a tube well, well, pond, road or a ICDS. (v) Problems in flow of development funds/items – The funds and items for different schemes do not arrive in time. The flow of funds from the government needs to be better regulated so that the “hump effect” of all interventions being jumbled up towards the last quarter of the financial year is avoided. (vi) Poor Maintenance – There is no maintenance planning accompanying the development interventions. A tube well installed in a locality, often breaks down and the villagers are required to be at the mercy of the line agencies for repair and maintenance. There is little or no ownership of those physical assets, no maintenance fund. The people are looking forward to the government for every single problem. (vii) Lack of Pro-Poor Monitoring – There is lack of stated mechanism for monitoring of pro-poor activities/impacts and local government decision-making, whether at the household level, group level or area level. 13. Some Institutional Weaknesses (i) Inadequate Capabilities for Development Management –Lack of skills, capabilities and initiatives of panchayat functionaries appears to be a chronic constraint pervading all levels of Pachayati Raj institutionss. Many of such functionaries (especially women and some men) when interviewed made self-assessment to point out that they were missing the larger vision and picture behind many rural development programmes/schemes and lacked enough information on the linkages and technological aspects between government schemes and poverty reduction approaches except for the government guidelines received on such programmes from time to time. They also mentioned that orientation sessions were important for gaining the larger picture on development programmes and their role and linkages in reducing poverty. According to them their hands could get strengthened from learning about the modern development concepts, tools and techniques, appropriate technological developments and legal aspects of development management. There were such commonalities in case of both panchayat functionaries and party workers. Many line agencies’ staff had similar problems of lacking an integrated and holistic picture of development. 22 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. (ii) Political Dimension of Local Development is a dominant factor though considerably underplayed at present. Party functionaries are dominant in determining development interventions at the local level and to that extent decision-making of panchayats, block office and line agencies are considerably influenced and there are not enough checks and balances in the system to overcome some of the decision-making biases. (iii) Low Accountability of Service Providers – It was pointed out repeatedly in many villages that there is little or no accountability of the local school staff, teachers, doctors and the local development functionaries. (iv) Lack of Awareness and Information – Many poor groups lack awareness about the types of government services, the benefits that they are entitled to, the nature of such benefits and services, their rights and privileges, ways of accessing such benefits etc. 14. Selected Policy Recommendations Some recommendations for strengthening institutional weaknesses are mentioned below. Overcoming Selected Weaknesses of SHG’s under SGSY Increasing Transparency of the BPL List Reducing Chronic Poverty of the Socially Excluded Group Linking-up Institutions with Livelihoods and Pro-Poor Stance Initiating Need-Based Resource Allocation Adopting Ways for Supporting Ultra Poor Groups/Destitute Building and Nurturing Partnerships with Civil Society Supporting Right to Information for Poor Households Overcoming Selected Weaknesses of SHG’s under SGSY- In several government programmes, like the SGSY, there should be major reservation for women. This is likely to succeed as demonstrated by the experiences from large development organizations like SEWA, Ahmedabad; Working Women’s Forum, Chennai and the Grameen Bank, Bangladesh. SGSY should also target unemployed youth and provide scope for building their capacity and self/group enterprise. Some other recommendations for SGSY are as follows. Quality of Social Capital It is important to take stock of the situation on SHG formation taking place almost mechanically at considerable speed without reflecting on the quality and the objectives to be achieved through the SHGs. The spirit of self-help needs to be released amongst women. Targetisation and speed can only promote formation SHG by name though not necessarily in content and practice. Financial Capital Rural branches of many banks need more sensitization towards poor people’s livelihoods and opportunities. This is acting as one major constraint to SGSY though some improvements (though not enough) have taken place over the past two years. Communication between the State Government and the banking system needs to improve so that the rural branches have clear instructions for fulfillment of criteria regarding credit facilities to local SHGs within a reasonable time period. It is important to tackle the issue raised by bankers about repayment of loans by 23 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. IRDP defaulters. Timely credit disbursements need to be ensured by DRDC and the Bank. Cooperative banks need to be included under the SGSY programme Broadening Mindset/ Vision Building The “mindset” of SHG members needs to be broadened to include a vision and a plan for achieving that vision. At the moment most have formed groups to get government subsidies for income generating activities. Many panchayat leaders and local administrators have raised their expectations from Government and banks to high levels. Strengthening Political Will Political will of the political parties is a major factor for progress of SGSY. The political parties control the Panchayat bodies. In some areas such people have played a negative role and discouraged SHGs The administration needs to interact with them for more positive linkages.. Targetisation of SHG’s In case of SGSY, targets and disbursals are being given greater weight instead of its quality. This has led to over-emphasis on reaching targets and the quality has been compromised. Fewer targets can yield meaningful results. SGSY need proper monitoring and needs to have more emphasis on quality. BDOs are over-burdened with a range of activities, which reduces their time to attend to the fieldwork and thereby affects progress of SGSY activities. People’s Recommendations for Strengthening SHGs Selected Recommendations by the SHG members are also important in this regard. They are as follows. Providing Work Space - If the government provides work space for SHG activities and go-downs it can help in bettering production.. Improved Access to Raw Materials - The raw materials for various items, e.g., Dhupkathi , detergent etc. should be provided at subsidized price. Opportunities for Training - Training should be provided to increase the quality of items produced such as Dhupkhati and also for attractive packaging. Regular training centers for SHGs are required to be built at the Block level. Better Access to Micro Credit - The upper ceiling of the loan for the ST people should be reasonably low enough so that they can get loan with minimum savings or no savings. . Establishing Linkages - SHGs should be linked with other development programmes. The leaders of SHGs should be allowed to get involved with the Iswar Chandra Jana Chetana Kendra Advertisement of Products - Advertisement is urgently needed for convincing the authenticity of the produce. Advertisement is an expensive affair. In the initial stage, there is no fund to divert for this urgent need. If the government supports advertisement by wall painting, television, radio etc., then it will help the to grow the market for SHG products. For institutional networking, the support of Gram Panchayat, block office, Zilla Parishad and DM’s office is needed. Both Panchayat and administration should maintain regular linkages with the SHG’s Increasing Transparency of the BPL List - Transparency in the preparation of the BPL List is critical. There is wide spread mistrust about the authenticity of the BPL List. It will be necessary 24 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. to change the way the BPL List is prepared so that greater transparency can be imparted to the process, though, as it is understood, the parameters themselves for categorizing households as falling below the poverty line can not be changed, at the state level. A clear improvement in the methodology for compilation of data can make a significant difference and restore the confidence of the people in the veracity of the BPL. The data for the different parameters has to be collected through the PLA methods. Reducing Chronic Poverty of Socially-Excluded Groups For e.g. sabar/lodha - Strategy for socially excluded groups, especially lodha/ sabar and others will be mainly in terms of food-for– work programmes to be designed in such a manner that it takes care of their food and livelihoods insecurities and also helps to build local productive infrastructure (e.g. school building, water harvesting tanks, livestock cages, road, pavements, culverts, minor irrigation structures etc.) for further use. Exclusive and conscious strategies for providing minimum basic services such as drinking water, primary health care, SSK and primary school should be well formulated and implemented. Each family should be provided with patta land or lease-hold forest land to cultivate /grow trees based on the Nepal model of leasehold forestry where 1ha.each, of forest land, is leased to a group of poor household for 40 years and sufficient capacity is built of that group to improve their food security position and enhance their livelihoods. Selected Developmental Activities Through Food-For –Work Initiative: Construction of shade to protect livestock from wild animals Construction of work place for handi-work and go-down Pucca road construction to increase the communication especially during rainy season Construction of school/ICDS/health center Electrification Pond construction-for fish cultivation Social and leasehold forestry etc. The food-for work initiative to be integrated with local women’s empowerment, preventive health and nutrition schemes and rights –based approach. Social inclusion of sabar, adivasi and other marginalized groups, especially in the forest areas. There should be continuous effort at promoting NTFPs in collaboration with panchayat and forest department is important for in many villages 80 to 90 per cent of poor villagers are dependent on NTFP as a major source of livelihood. The following ways are suggested. - Management and utilization of trees important to the marginalized community Provision and distribution of marginal and wasteland to the marginalized communities on long leased basis to grow trees, NTFP’s, herbs and plants. Road-side tree re-plantation programme implemented and protected through women groups Land allocation for tree species and NTFP’s important to the marginalized groups. Exploring marketing opportunities for locally produced NTFP’s Exploring opportunities for processing and semi-processing of NTFP’s Linking-up Institutions with Livelihoods and Pro-Poor Stance The way to link-up governance with poor people’s livelihoods can be explored through “planning for sustainable rural livelihoods” done by poor and ultra poor groups supported by local governance. Three different approaches are suggested depending on processes operating in a village. 25 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. (i) In villages where the process of decentralized planning has been undertaken an additional window can be opened for group-specific livelihoods’ planning through mobilising SHGs of poor and ultra poor groups within the decentralized planning framework. Such planning can be based on the SRL framework with a list of prioritised actions for implementation and review by poor groups and gram sanshad. (ii) “Planning for sustainable livelihoods” can be directly initiated in those villages where decentralized planning has not taken place. In such villages it is important as a first step to identify the social/livelihood-specific groups and help them to make their own livelihoods’ plans and support them by means of effective implementation through local governance. (iii) In those villages where SHG is progressing under schemes such as SGSY “group planning for sustainable livelihoods” in the SRL framework can be introduced amongst women groups. Initiating Need-Based Resource Allocation The policy adopted by the gram panchayat of distributing resources evenly across the wards seems to generate problems of sub-optimal investments. Thin spread of resources over a large area/large number of programmes needs to be closely looked into. Instead of equal distribution of resources across wards, a system of micro level planning can be undertaken starting from the villages and moving upwards. Livelihoods’-based participatory planning can also allay the fear of the ward-members being questioned by people on non-deployment of development resources in the ward. Supporting Ultra Poor Groups/Destitute The ultra poor households, especially the women-headed households have practically no (negligible) asset base. Pre-development interventions are essential to minimise negative impacts and build conditions for future development interventions. The asset base will have to be strengthened gradually in such a way that they are in a position to minimise or overcome their vulnerabilities. A gradual incremental approach to asset formation (through asset transfer), through provision of patta land, strengthening of social and human capitals and capabilities and improving access to official programmes can help such households. Supporting Sustainable Harvesting in NTFPs for Livelihoods Composition Close focus is required on livelihoods of poor related to NTFPs especially during difficult seasons. The revised JFM guidelines recognise the importance of NTFP management for the success of JFM and lay emphasis on capacity building and institutional reforms. It further states that JFM Committees should be given authority to act and adequate monetary and other incentives to participate as genuine stakeholders. It also advocates JFM committee/s taking advantage of the administrative and financial strengths and organizational capacity of Panchayat/s. In the above context it is important to suggest the following. Form and mobilise user-groups of women as forest users consisting of poor and ultra poor groups and link them up with forest-based sources of livelihoods. FPCs have dominance of men and it is important to support poor women to come forward and be actively associated with forest management and have more ownership of forest resources. Focus on these poor groups of women and build their capacity and document their indigenous knowledge. 26 Institutional Issues and Mechanisms in Chronic Poverty Reduction, Rural Livelihoods and People’s Participation: A Study of Paschim Medinipur District in the State of West Bengal, India By Neela Mukherjee, Sumita Roy, Meera Jayaswal and Amitava Mukherjee Development Tracks RTC, New Delhi. Have extension services to help women groups with homestead gardening, growing trees and plants within their home and pisciculture etc. and also support them for marketing. Develop concept of sustainable harvest with women groups for different NTFPs and accordingly plan for such harvest and put it into action. Consult the poor and ultra poor groups for the type of forest most useful for livelihoods’ purposes for plantation or regeneration of forest. Link up forestry with other programmes and projects. Building and Nurturing Partnerships with Civil Society Organizations If for any reason the state is unable to carry out essential interventions, a policy of nurturing and encouraging civil society to step up could be given serious thoughts. The need to supplement state action by more organizations cannot be over-emphasised. Nurturing civil society organizations, who will work at tandem with the gram panchayat and panchayat samiti is an important area of intervention. 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