MPRLP UPDATE SERIES NO.
1
ROLE OF THE GRAM SABHA
Strengthening
the role of the
Gram Sabha
in rural
development
In Madhya Pradesh, the Madhya
Pradesh Rural Livelihoods Project is
working through local village
assemblies (Gram Sabhas) to reach two
million of the most deprived people in
remote areas. When the project first
began its work, the Gram Sabhas in
Madhya Pradesh were not functioning
well. Now, following inputs from the
project's various work streams, those
that MPRLP is working with are
meeting regularly and making an effort
to include women and marginalised
groups in decision making.
As part of this work, Gram Sabhas
have now developed microplans and
are requesting and distributing funds
for purposes decided by their
communities. As a result, the Gram
Sabhas are becoming more transparent
and accountable to villagers.
Planning fair community
development
The MPRLP approach of building
stronger Gram Sabhas is proving to be
a cost-effective route to rural
development. Most of the 2900
villages that MPRLP is working with are
now planning their own development
through Gram Sabhas or village
assemblies in line with Government of
India and Madhya Pradesh policies for
decentralised rural growth.
Attending a session of the Gram Sabha. Photo: © MPRLP/Sandeep Khanwalkar
Building skills
As part of this work, multidisciplinary
teams help the Gram Sabhas fill the
gaps in their skills and knowledge, and
link villages with opportunities offered
by districts, the state and central
governments, private enterprise and
civil society. The underlying principle is
respect for the wisdom and strength of
local communities in managing their
affairs for the common good through
their Gram Sabhas.
Mobilising and motivating
MPRLP mobilises and motivates Gram
Sabhas in a variety of ways, such as
explaining the roles and
responsibilities of the state and central
governments and the Panchayati Raj
and Gram Sabhas, and providing
planning and management training.
Almost all project villages have
prepared microplans and had them
approved.
"Building stronger Gram
Sabhas is proving to be
a cost-effective route to
rural development"
The way ahead
 Mainstream Gram Sabhas into
rural development.
 Adopt micro-planning as a tool
for implementing local
development.
 Select experienced NGOs to
help Gram Sabhas learn to
plan and manage rural
development equitably.
Transfer funds for rural

development directly to the
Gram Kosh.
 Allocate funds in the rural
infrastructure budget to build
simple, open-air community
spaces to ensure all villagers
can actively participate in
Gram Sabha meetings.
Managing resources
transparently
Channelling funds
MPRLP also provides a way for Gram
Sabhas to act on community priorities
by channelling funds to the Gram Kosh
or community funds. The Gram Sabha
then decides how Gram Kosh funds
MADHYA PRADESH RURAL
LIVELIHOODS PROJECT
should be used. The Gram Kosh
accounts are posted on school walls or
at other prominent places in the
village. This means that everyone can
see how money is spent and that it is
being distributed fairly.
Financial services training
Training courses help the Gram Sabhas
to set up village funds to provide basic
financial services – such as savings,
insurance, money transfers and credit.
An operational manual developed by
MPRLP guides Gram Sabhas by, for
example, requiring the ring-fencing of
allocations for women and poor
households.
Transparent accounting
More than 90% of the Gram Sabhas in
Phase 2 of the project now have
financial management systems. Over a
third audit their accounts and half
voluntarily disclose income and
expenditure every quarter. This
transparency is deepening villagers'
faith that funds are being used properly
and that the villagers really do have a
say in how funds should be used and
who should benefit.
Achievements
 Gram Sabhas in nearly all
project villages have prepared
and approved plans for
community development.
 The majority of of Gram
Sabhas in nine tribal districts
are responding to the needs of
the poorest.
 A fifth of households below
the poverty line regularly
participate in Gram Sabhas
and Gram Sabha committees.
 More poor and very poor
households and women are
receiving benefits through the
Building financial Gram Kosh.
management capacity  90% of the Gram Sabhas in
Phase 2 of the project now
To build the capacity of Gram Sabhas to have financial management
manage resources, uniform accounting systems.
records and use-of-funds certificates  97 Gram Sabhas have
have been developed and distributed to appointed accountants.
all project Gram Sabhas, and
functionaries have been trained to
maintain them. Similarly, continuous
financial management training is given
to Sachives, Sarpanches, and Livelihood
Promoters to ensure better use of funds,
transparency and accountability. A
bench-marking exercise is also run twice
a year to assess the ability of the Gram
Sabhas to handle their finances.
Targeting the poor and women
Although all villagers over the age of 18
Contact
have the right to take part in the Gram
Telephone: +91-(0)755-2766812,
Sabha, women and the very poor often
814, 815
don't take part, and so do not benefit.
Fax: +91-(0)755-2766818
This is now changing.
Email: mprlp@mprlp.in
Website: www.mprlp.in
MPRLP is helping deprived households
learn about their entitlements and how
taking part in the Gram Sabha can help MPRLP is funded by the UK Department for
them access these entitlements. The International Development (DFID).
proportion of Gram Kosh funds
This publication does not necessarily represent
targeted to the poor is now more than
the views of the Department for International
two-thirds, with over a third being
Development.
targeted at women. Great strides are
also being made in denting the age-old
money lending system that has kept
the poor in a cycle of deprivation.