02/07/2017 Impact Assessment of DAY-NRLM by IRMA

Press Information Bureau

Government of India
Ministry of Rural Development
30-June-2017 13:25 IST
Impact Assessment of DAY-NRLM by IRMA

TheDeenDayalAntyodayaYojanaNationalRuralLivelihoodMission(DAYNRLM)waslaunchedinJune,2011withthe
objectivetoorganizeallruralpoorhouseholdsinthecountryandcontinuouslynurtureandsupportthemtilltheycomeout
ofabjectpoverty.Thiswassoughttobeachievedthroughuniversalsocialmobilizationbyorganizingatleastonewoman
member from each rural poor household into Self Help Groups (SHGs) and federating the SHGs at various levels, their
trainingandcapacitybuilding,facilitatingtheirmicrolivelihoodsplans,andenablingthemtoimplementtheirlivelihoods
plansthroughaccessingfinancialresourcesfromtheirowninstitutionsandtheBanks.All29statesand5UTs[exceptNew
DelhiandChandigarh]arecurrentlyimplementingtheMissionin3,814blocksacross556districts.TheMissionisexpected
tomobilizeallruralpoorhouseholds(about9crore)by202425.

Keeping in view that the Mission had been under implementation for the past five years and that it had made significant
progress,anassessmentoftheMissionwascarriedout.ThetaskofcarryingouttheassessmentwasentrustedtoInstituteof
RuralManagement,Anand(IRMA),Gujaratwiththefollowingbroadtermsofreference:

i.
Toevaluatethekeydesignfeatures,components,implementationarchitectureand
systemsestablished,strategies,andkeyprocessesadoptedbytheMission
ii.Toassessthekeyprocessesadoptedandemergingresultsofthemissionindifferent
component areas viz., social inclusion, institution building, financial inclusion, livelihoods promotion, and
entitlementsandconvergence
iii.Tostudythefunctioningofcommunityinstitutionspromoted
iv.Toassesspreliminaryoutcomes/impactsoftheinterventionand
v.Toassesstheimplementationstrategy,functioningandintermediateoutcomesof
RuralSelfEmploymentTrainingInstitutes(RSETIs)

IRMA study adopted multiple methods viz. (i) Qualitative methods for exploration of design, implementation structures,
implementationprocessandstrategiesofDAYNRLMintervention(ii)microeconometricapproachforimpactevaluation
of key outcome variables and (iii) fuzzy cognitive mapping (FCM) for qualitative assessment of full range of impacts
throughpersonalinterviews,feedbacksandgroupdiscussions.ThestudywasconductedduringJuly,2016January,2017
ineightsamplestatesofAndhraPradesh,Bihar,Jammu&Kashmir,Jharkhand,MadhyaPradesh,Maharashtra,Nagaland
andTamilNadu.



ThestudyindicatesthatthehouseholdscoveredunderNRLM:

(i)haveahighernumberoflivestockassetsascomparedtouncoveredareas
(ii) showahigherproclivitytosaveinformalinstitutions,thoughthedifferenceinthequantumofsavingsisnot
statisticallysignificant
(iii) haveahigherloansize(about67%morethantheloansizeintheuncoveredareas)andaremorelikelyto
borrowfromformalfinancialsources

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02/07/2017 Impact Assessment of DAY-NRLM by IRMA

(iv)spendlessonfoodconsumptionbutmoreoneducation.However,thetotalhouseholdconsumptionexpenditure
issimilarincoveredanduncoveredareas.
(v) have 22% higher (net) income than the households in the uncovered areas, largely due to income from
enterprises. In fact, the propensity scores estimate that covered villages on an average have 25 enterprises
comparedtoanaverageof14enterprisesintheuncoveredvillages.

Overall,thereportstatesthattheMissionhaslargelybeensuccessfulincreatingsensitivesupportstructuresrightuptothe
block level. Further, several State Missions have customised the implementation strategy to suit their local context. The
report also takes cognizance of the rapid growth in the promotion of Self Help Groups, federations and the increase in
disbursementofbankcredit.Theprogramhadmostimpactonwomensempowerment,accesstomicrofinance,increasein
livestock production and high cost debt reduction, while lesser impact on augmentation of natural resources, increase in
agriculturalproductionandinfrastructuredevelopment.

ThereporthasalsomadeseveralrecommendationstoimprovetheMissionimplementationviz.(i)Thepaceofpromotionof
theprimaryandsecondarylevelfederationsshouldbeincreasedandtheyshouldberegisteredundertheappropriateacts(ii)
Whilethesequentialmodelofsocialmobilisationfollowedbylivelihoodspromotionhasworkedwellinsomestates,the
twocouldgohandinhandprovidedadequateemphasisispaidontheprinciplesofcollectiveaction.(iii)Effortsshouldbe
made towards developing value chains and the creation of sustainable enterprises (iv) Experience of leading agencies in
livelihoods sector should be leveraged for promotion of sustainable livelihoods innovative solutions such as creation of
sectorspecific corridors should be explored (v) Efforts to enable the SHG members in accessing bank credit in the
traditionally poorly banked areas should be increased and (vi) Systems (HR, MIS and financial management) need be
strengthenedinallStateRuralLivelihoodsMissions.Theexperiencedprofessionalmanpoweralsoneedstoberetained.

ThereportconcludesthatExpectationsfromDAYNRLMarerightlyhighbecauseitisoneofthemostimportantpoverty
eradicationprogrammes.Hence,theMissionrequireshigherorderoffundingandcommitmentfromboththeimplementing
agenciesandcommunitybasedorganisations.

Thefullreportisplacedatwww.aajeevika.gov.in

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