| Urban Street Vendors Lok Seva Kendra [Regd No: 2188/2005 G.B.B.S.D.] Maharashtra - Mumbai |
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| Notes - Regd. No 2188/2005 G.B.B.S.D. Mumbai India. Non-Government Organisation [NGO], Self Help Group [SHG] Micro-Finance Institution [MFI] in Association with ICICI Bank under Partnership Model. A SMALL LAMP IN DARKNESS. "Improving the Quality of Life by Encouraging Self Employment & Poverty Alleviation among Unemployed Urban Poor." Indian economy has been facing challenges with regard to unemployment and economic growth. By and large, unemployment in India is structural in organised sector. During the past five decades, population of India has grown at an alarming rate of around 2.2 per cent per annum, whereas employment opportunities have not been increased correspondingly due to slow economic growth. However, the removal of unemployment has been a proclaimed objective of Indian economic plans. The problem of unemployment is perceived to be conflicting with the economic growth. Though with degrees of difference, every Five-Year Plan focused its attention on the removal of unemployment without good results. The only alternative to face these challenges of restructuring Indian economy is to start self-employment programme, where at least a sizeable section of unemployed can be self employed to earn their own livelihood and economic growth of the country. An umbrella for such unemployed was necessary in the form of NGO and Self Help Groups with suitable Aims & Objects to implement the process of self-employment within the legal framework and constitution. A large number of unemployed either from rural or urban areas are illiterate and living below poverty line or starvation line therefore their access for self employment needs a concept of self employment without capital for their business, such self employment are only possible in unorganized sector with support from Government & financial institutions. The means and methods of such self employment should be to earn daily, considering all the aspects of requirement among others Street vending was found to be most suitable since the hawkers/street vendors for example, maintain certain industries by providing markets for their products. They sell many goods that are manufactured in small-scale or home-based industries, which employ a large number of workers and thus help sustain employment in these industries and provide a valuable service. Not only are their products priced at affordable rates but they are also of reasonable quality. The greatest beneficiaries of this service are the poor who gain from these low cost products sold by the hawkers. Street vending as a profession has been in existence in India since time immemorial. However, their number has increased manifold in the recent years. According to one study Mumbai has the largest number of street vendors numbering around 250,000, while Delhi has around 200,000. Calcutta has more than 150,000 street vendors and Ahmedabad has around 100,000. Women constitute a large number of street vendors in almost every city. Some studies estimate that street vendors constitute approximately 2% of the population of a metropolis. The total number of street vendors in the country is estimated at around 1 crore. Urban vending is not only a source of employment but provide ‘affordable’ services to the majority of urban population. The role-played by the hawkers in the economy as also in the society needs to be given due credit. Therefore the need arise to Provide and promote a supportive environment for earning livelihoods to the Street vendors thus with such intentions and needs our Non-Profit Organisation or Self Help Group was formed for "Improving the Quality of Life by Encouraging Self Employment & Poverty Alleviation among Unemployed Urban Poor." Since unlicensed Street Entrepreneurs do not have any right over the means of their livelihood. They are faced with the constant threat of eviction or seizure. Hawkers, for example, are routinely evicted from their spaces, and their wares confiscated, as if they didn’t belong to them at all. It is not true that hawker’s free ride on public space. They pay substantially to the authorities involved and suffer losses due to frequent evictions. Once caught, their wares are confiscated and returned to them only after payment of a penalty, they are considered as unlawful entities and are subjected to continuous harassment by Police and civic authorities. This is reported to be continuing even after the ruling of the Supreme Court that “if properly regulated according to the exigency of the circumstances, the small traders on the side walks can considerably add to the comfort and convenience of the general public, by making available ordinary articles of everyday use for a comparatively lesser price. An ordinary person, not very affluent, while hurrying towards his home after a day’s work can pick up these articles without going out of his way to find a regular market. The right to carry on trade or business mentioned in Article 19(1)g of the Constitution, on street pavements, if properly regulated cannot be denied on the ground that the streets are meant exclusively for passing or re-passing and no other use.” In the context our organisation intervene in The Hon’ble Supreme Court in the matter of Hawkers under I.A. 198-199 of 2005 in Civil Appeal No 4156-4157 of 2002. Most of the poor, other than those who are unemployed are self-employed or employed in micro-enterprises in the unorganised sector. Possibilities of enhanced employment opportunities in the public sector/ organised industry are not much. If the poverty is to be reduced and the economic potential of the poor is to be realised, their economic activities in particular and the micro-enterprises in general need to be financed by the formal financial system in a big way. Our Organisation therefore considered Micro-finance, which in India is not something, which was not there before and now found out. However, it is better recognised now, that credit-plus services would help the poor to improve their economic well-being. This is being accepted as a universal approach. The difference lies in the approach and looking from the eyes of the target group viz. the poor, what they feel are their requirements instead of somebody planning for them, thinking it is good which ultimately proves to be not so appropriate for their development. In a country like India, where there are about 320 million poor [36% of the population], the potential of using institutional credit and other financial services for poverty alleviation cannot be ignored. In India, micro-finance has been recognised as one of the tools to attack poverty. The natural tendency of the poor to unite for a common purpose does not necessarily fructify in harmonious activities due to several factors such as illiteracy, lower access to resources, social conflicts etc., thereby necessitating a change agent to sow the seeds of association and prove a rallying point. Therefore, in the area of Micro-finance, our Organisation which had focus on social agenda have taken upon themselves the task of supporting credit facilities to our members micro-entrepreneurs with the banking system and accordingly we undertook a pilot project of Micro-Finance of ICICI Bank under partnership model as Micro Finance Institution [MFI]. The requirement and needs of our members was studied in details by Alternate Channels Group of ICICI Bank and concluded that in India, inadequate access to micro finance to the poor poses a major challenge. Such services must include facilities to deposit micro savings, access to micro credit for production, consumption, emergencies and the provision of some basic insurance. The success in rural areas is known and appreciated, but the micro finance services are yet to penetrate the urban spaced in a meaningful way, therefore after extensive interactions with various organisations in the micro finance space Alternate Channels Group of ICICI Bank along wi |
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