20

Sa-Dhan Patrika

Volume 6

Issue 1

'withdraw' later when the idea

have to consistently work towards

gathered momentum.

promoting these attitudes.

b.

Develop institutional relationships

d.

In addition, donors like SDC should

with partners:  This means, among

try to promote "Quality". The quality

We feel that one

dimension is important in a country

other things, that donors should make

important task for

like India where 'scale' and

'core' contributions and above all,

the donor is to

'numbers' are sometimes seen as

consider and see the organisation as

contribute towards

the only challenge. Promoting

a whole, its orientations, its culture,

securing the

quality does not mean building

its identity, its strategies and overall

autonomy and

islands of excellence. What we

effectiveness (including advocacy

identity of an

mean by quality is to constantly

a n d  influence  roles).  Such

organisation

search for 'effectiveness' in all

considerations need to bear more

actions rather than just narrowly

weight in interactions between

focus on reaching targets with

donors

and

development

efficiency as the sole driving force.

organisations than those pertaining

Quality would also mean identifying

to 'activities'. We feel that one

missing links, gaps and challenges

important task for the donor is to

that appear in the system. Quality is

contribute towards securing the

promoting innovative solutions to

autonomy and identity of an

respond to these missing links. For

organisation. A distinct and strong

instance, as the SHG movement

identity is a precondition for tapping

gathers momentum all over India,

an entity's uniqueness and overall

the next level challenge is to

potential.

c.

Promote solidarity and sharing: We

promote livelihood enhancement

skills among the SHG members.

note that knowledge sharing among

Donors like SDC could identify such

organisations

involved

in

missing links in collaboration with

development and in fighting

national stakeholders and support

poverty as well as in promoting

testing of forward looking solutions.

empowerment is rather limited. As a

government institution, SDC has to

Role of 'Human Capital' for MFIs

see to it that the outcome of its

Human and Institutional Development

interactions and support to partners

(HID) aspects in SDC's work

- be it in a material or immaterial form

In the Indian MFI context, what we

- which is enriched and transformed

observe is that there is not only lack of

by the talents and distinctiveness of

financial capital but also of human

these partners, is to be considered a

capital. Many MFIS and NGO-MFIs are

"common  good".  The  thus

still dependent on their promoters, do not

accumulated knowledge and value

have a capable second line of

is not only owned by them but is to

leadership and are project- and activity-

be shared and given to others, to all

driven rather than working towards a

those who are interested and

coherent strategic vision. Moreover,

concerned. We therefore think that

governance issues are often low on the

donors should promote much more

priority of many MFIs. The role of a

knowledge sharing (giving and

bilateral donor in this situation is to

receiving) among partners with

facilitate, in SDC terminology, human and

whom they interact with the purpose

institutional  development  (HID)

of enhancing their quality of

capacities. What does HID mean to us?

interventions and of increasing the

(See figure)

overall effectiveness of their work.

a.  Donors need to be challenged by

d.

Deal with `control' in the most

their partners (and vice versa): This is

appropriate way: If donors in their

only possible when donors and

partnerships are influenced by

partners are open, have the ability

control

attitudes

then

to be self-critical and interact with

empowerment, mutual learning and

each other on a high degree of trust.

learning-oriented interactions, which

These qualities again are a

need trust, are hardly possible. Donors

precondition for change on both

should therefore try to arrange

sides. In being aware of this fact, we

`control functions', which is part of

at SDC notice that openness and

governance, differently. Donors

being self critical is not a given. We

should see to it that simple, effective