Economic and Social Impacts of an Innovative Self-Help Group Model in India

We assess the impact of an approach in the Indian state of Andhra Pradesh that combines micro-credit with efforts to target the poor, address their specific needs, and enhance their economic potential. Our results support the pro-poor nature of the program and point toward benefits in terms of female empowerment and nutritional intake but not asset formation or income for program participants and other villagers. While study of longer-term effects is desirable, this suggests that even in the short term, the program helped improve consumption smoothing and income diversification.