81306 enGender Impact: The World Bank’s Gender Impact Evaluation Database Economic and Social Impacts of Self-Help Groups in India Author(s) Klaus Deininger and Yanyan Liu Contact Kdeininger@worldbank.org Country India Organizing Theme Voice and Agency, Health Status The Project is ongoing but the evaluation is complete Intervention Category Community Driven Development Sector Social Protection Although there has been considerable recent interest in micro-credit programs, rigorous evidence on the impacts of forming self-help groups to mobilize savings and foster social empowerment at the local level is virtually nonexistent, despite a large number of programs following this pattern. The authors use a large household survey to assess the economic and social impacts of the formation of self-help groups in India. They find positive impacts on empowerment and nutritional intake in program areas overall and heterogeneity of impacts between members of pre-existing and newly formed groups, as well as non- Abstract participants. Female social and economic empowerment in program areas increased irrespective of participation status, suggesting positive externalities. Nutritional benefit was more pronounced for new participants than for members of pre-existing groups. Evidence of higher consumption—but not income or asset formation—by participants suggests that at the time of the survey, the program’s main economic impact had been through consumption smoothing and diversification of income sources rather than exploitation of new income sources. Evaluation of such programs in ways that allow heterogeneity of program impact can yield highly policy relevant insights. Gender Connection Gender Focused Intervention Gender Outcomes Female nutrition, consumption, psychological agency, participation or voice in community IE Design Propensity Score Matching, Difference in Difference The first phase of the program, launched in 2000 aimed to promote and strengthen self- help groups in the state's six poorest districts. A second stage expanded coverage of the program to all remaining districts in 2003. Public awareness campaigns were launched to Intervention promote participation by marginalized women from tribal areas and untouchable castes. A typical self help group consists of 10-15 members who meet regularly to discuss social issues, deposit a small payment into a joint account, and make decisions on loans. Intervention Period 2000-Present The sample includes 2,516 households from 250 villages in the first treatment group and Sample population 3824 households from 409 villages in pipeline treatment villages. The main comparison comes from individuals who received the treatment in 2000 with the Comparison conditions individuals who received the treatment in 2004. Last updated: 14 August 2013 1 enGender Impact: The World Bank’s Gender Impact Evaluation Database Unit of analysis Individual Level and Household Level Evaluation Period February to June 2004 There are three main findings. Social capital and economic empowerment increased equally for participants and non-participants in program areas, consistent with the notion that the program generated positive social externalities. Second, there is a significant impact on Results nutritional status, but the impact was smaller for converted participants than new participants. Finally, there is a significant increase in consumption for participants (17 p.p.), but not a gain in income or assets. Primary study limitations The pipeline phase in of the intervention was not implemented randomly. Norweigan ESSD Trust Fund, the Gender Action Plan, and the Knowledge for Change Funding Source Trust Fund Deininger, K., & Liu, Y. (2009). Economic and social impacts of self-help groups in India. Reference(s) World Bank Policy Research Working Paper Series, Vol. 4884 Link to Studies https://openknowledge.worldbank.org/handle/10986/4079 Microdata Last updated: 14 August 2013 2