Social and Economic Impacts of PRADAN's Self Help Group Microfinance and Livelihoods Promotion Program: Analysis from Jharkhand, India

This report sets out the findings from a socio-economic impact study of PRADAN's self help group (SHG) microfinance and livelihoods program carried out in Jharkand, one of the poorest states in India.

The paper discusses PRADAN's approach to microfinance for poverty alleviation and development and:

• Describes the characteristics of Jharkand;
• Explains the research methodology;
• Presents characteristics of sample villages and households;
• Analyzes the program's impact on:
  • Basic needs and standards of living,
  • Household livelihoods,
  • Savings and debt,
  • Women's knowledge, awareness and agency.

The study concludes that:

• PRADAN's SHG Bank Linkage model has had significant and positive impacts on improving the livelihood base, savings and debt position and consumption standards of participants;
• Participants have been able to secure their primary livelihood source through own agriculture supplemented by labor, livestock and non-farm enterprise activities;
• Participants have also reported significant household welfare gains in terms of shelter, food security and education;
• While gains in women's knowledge, awareness and skills are clearly discernible, impact, in terms of participation in decision-making within the home and in the public domain, have been far from modest.