Kudumbashree: Life-Line of Kerala’s micro-finance Kudumbashree: Life-Line of Kerala’s micro-finance Abstract Micro-finance
has emerged as a very important sector which gives economic freedom to the poor people. Micro-credit fulfils the credit requirements of under-privileged, who until recent times were not a part of formal banking system however; micro credit is not the ultimate solution to improve the well-being of poor people. Research proves that most of the Indian micro finance institutions (MFIs) only focus on micro-credit rather than giving a significant to other products. Now one organisation that really focus for the overall development for poor people known as –Kudumbashree. Kudumbashree, which means prosperity of the family, is well known government of Kerala project which focus for the overall the development of the poorest of the poor. This paper deals with empirical study of Kerala Kudumbashree project.
Author: -- Amarjeet kumar (PGDM, Marketing and Finance) Freelancer Researcher firstname.lastname@example.org
The slogan of the
. In tune with the 73rd and 74th amendments to the Indian Constitution.240/97/LAD dated 29. The first spark of the community based.
Kudumbashree is the State Poverty Eradication Mission (SPEM) was launched by Government of Kerala in 1998 with the active support of Government of India and NABARD for wiping out absolute poverty within a period of 10 years . rightly named “Kudumbasree”(prosperity of the family) was approved by Government in October 1997 vide G. had failed to reach the poorest of the poor. Most of the anti-poverty programmes implemented in the country during the last decades though seemingly well conceived. All these experiences emphasized the necessity to adopt a holistic approach to fight poverty with the active participation of the community. literacy and social sectors multiple manifestations of poverty still linger in our state. women oriented. The same model was experimented in the entire district of Malappuram also with a unique poverty alleviation programmed called CBNP and PAP . participatory approach to poverty eradication occurred in Alappuzha Municipality in 1993 through UBSP with the assistance of UNICEF. the Magna Carta of the poor . More than 15 lakhs of Kerela families are still in the clutches of poverty and women and children are the prime victims of the curse. The Kudumbasree is multifaceted programme organize by the Government of Kerela and NABARD is cooperation with Panchayat Raj institutions through Community Development societies of poor women based on a Self Help strategy backed by Thrift-linked credit. the CDS can act as a sub system of the pachayats and Municipalities and taken decentralization further to the grass root level.Kudumbashree: Life-Line of Kerala’s micro-finance INTRODUCTION With the objective to eradicate poverty in the state within 10 years . which lacked people‟s participation and was susceptible to under reporting manipulation etc. In spite of the commendable development we could achieve in health. state government with the support of central government and national agricultural development bank set up a establishment called state poverty eradication mission or kudumbasree This mission has taken poverty alleviation as primary aim and tries to implement through the leadership of local self government and society based groups.1990.O. The success CDS systems of Alappuzha town and Malappuram district prompted the State Government to accept the Community Development Society of poor woman as a meaningful strategy to bring about holistic development of the poor with active participation of poor women and extended the strategy to the rest of the State. The programmes were also centrally planned with little flexibility to suit the local needs and were individual oriented and did not harness community‟s group action. Thus the concept of Kudumbasre took shape the new project.10. The programmes tried to meet only one of the disadvantages and were implemented by various agencies without any coordination.(MS)No.The project is regulated by local self government empowered by 73rd and 74th Constitutional amendments.
organising the poor and empowerment of the poor. Identification of poor is based on poverty based index which having nine non monetary different parameters. consider as family at risk.Kudumbashree: Life-Line of Kerala’s micro-finance Mission is “Reaching out to families through Women and reaching out to community through Families” (concept:kudumbashree 2009). For urban family the different parameters are :
Less than 5 cents of Land / No Land Dilapidated House / No house No Sanitary Latrine No access to safe drinking water within 150 meters Women headed household No regular employed person in the family Socially Disadvantaged Groups SC/ST Mentally retarded / Disabled / Chronically ill member in the family Families without colour TV
The different parameters for rural family:A Family Having No Land /Less than 10 cents of Land No house/Dilapidated House No Sanitary Latrine No access to safe drinking water within 300 meters Women headed house hold/ Presence of a widow.The working pattern of Kudumbashree is based on a strategic based pattern divided into basically three phase . identification of poor . holistically” (concept:kudumbashree 2009).The development must required creating a society with social justice and equal opportunity to realize the great potential for the poorest of the poor and Kudumbashree is doing the same. for urban and rural people the parameters are different and family who having four or more than four factors . divorcee / abandoned lady / unwed mother No regularly employed person in the family Socially Disadvantaged Groups (SC/ST) Presence of Mentally or physically challenged person / Chronically ill member in the family Families with an illiterate adult member
. by facilitating organization of the poor for combining selfhelp with demand-led convergence of available services and resources to tackle the multiple dimensions and manifestations of poverty. The Mission Statement of Kudumbashree “to eradicate absolute poverty in ten years through concerted community action under the leadership of local governments. Micro finance is the essence of rural areas which ultimate result the rural development .
The main objective of NHG to collect the micro deposits and distribute the loan among members family.www.Income generation activities volunteer (IGA)– 3. In each Neighbourhood Group from among the poor women Five Volunteers are selected for undertaking various functional activities.Infrastructure Volunteer (IV) 4.Secretary – 5.President
. Five volunteers are :1. there are 20-40 families are the part of NHG and the woman of the families are the part of weekly meetings.org The bottom tier of the organisational structure known as NGH . Neighbourhood group (NHG)
Source: .Kudumbashree: Life-Line of Kerala’s micro-finance
Organisational and Working structure
The hierarchy thet should be followed for the plan formulation is like that given below :Kudumbashree follows an unique organisational structure which called community based organisation (CBO) starts from Neighbourhood group and ends with Governing Body. Community Health Volunteer (CHV) 2.kudumbashree.
Area Development Society: organisational structure
The functions of ADS are as follows:1). Governing Body . Urban In Urban Local Bodies a separate Monitoring & Advisory Committee is constituted with ward Councilor as chairperson.www. Secretaries & 3 sectoral volunteers such as Health.consisting of all President/Chairpersons.kudumbashree. 2).the all the decision is taken from the women elected from various NHGs. Income Generation and Infrastructure volunteers of federated NHGs.org )
. (Source: .Kudumbashree: Life-Line of Kerala’s micro-finance The second tier of the organisational structure knows as Area Development Society (ADS). Linkage with LSG 1. In a very precise term the groups of NHG formed An ADS at ward level . Secretary and five member Committee from among the General Body. General Body . 2. Rural In Gramapanchayats the ward member is the Patron of the ADS.constituted by electing a President.
Kudumbashree: Life-Line of Kerala’s micro-finance
Community Development Society (CDS) At the Panchayat / Municipal level a Community Development Society (CDS). Facilitation of Centrally Sponsored Schemes
. Functions of CDS 1. . 2. .Anti Poverty Sub Plan. 4. LSG liaison at the level of CDS Linkage Banking co-ordination Information Dissemination CBO Strengthening Activity Facilitating Income Generating Activity Facilitating Identification of Poor for the purpose of LSG led Development Programmes 7.Local Economic Development 10. 6. a registered body under the Charitable Societies Act is formed by federating various ADSs.CDS is the primary body to regulate and form of plans at Panchayat level . Articulation of Community demand for Development 8.In the other words CDS is the middle level body close link with NHGs and LSG (Local Self Government ) . Leadership of NHGs 9. Legal Literacy 10.Women Component Plan. LSG Plan Intervention . 5. 3.
Improve hygiene Sanitation.Kudumbashree: Life-Line of Kerala’s micro-finance Working structure of Kudumbashree
The role of Kudumbashree in the local plan formulation Some of the changes that have been implemented in the society through the involvement of Kudumbasree in the Local Panchayat Plan formulation is the implementation of housing facility for the BPL families . Source of living. The benefits gained through the local Panchayat Plan formulation through Kudumbasree are as follows 1) 2) 3) 4) 5) 6) 7) 8) Women empowerment.The hierarchy thet should be followed for the plan formulation is like that given below Charge Officer CDS ADS Grama Sabha Women Members Of NHG.The other concept implemented through the Destitute Rehabilitation Centre. Micro Enterprises.(ASRAYA). Basic Need Fulfilment. Poverty Eradication. Social Welfare. The Plans formulated will be scrutinized by the charge officer through visiting the places of concerned requirement and if it is found genuine the fund will be granted.
. Improve standard of living.
Community Health Care 5.The followings are the focus area of Kudumbashree in the micro perspective
1. Education 3.the main purpose of participation of Kudumbasree in plan formulation is
Empowerment of women To provide a platform for the women to express their needs in public To set up micro enterprises
Focus area of Kudumbashree
The mission and vision of Kudumbashree is directly related to the focus areas . which otherwise was ignored or the plans formulated were not properly implemented the other advantage of including women is that women are patient till the plans are implemented
PURPOSE OF INCLUDING KUDUMBASREE IN PLAN FORMULATION The needs of women and their families are known better by the Kudumbasree. The Poor Women‟s Bank. Share and Care 4. Environmental Sanitation 6. otherwise the plans are formulated only by few top men members .the working group presents the rough copy of the proposal to the higher levels of Kudumbasree which manly focuses on empowerment of people who fall under the BPL category .Only the most eligible persons will be provided with the funds . Community Financial Management
.Kudumbashree: Life-Line of Kerala’s micro-finance The purpose of including Kudumbasree in local Panchayat Plan formulation is to give focus on the needs of women. Training for Change 2.A development seminar is conducted before the plan is accepted .Care is taken not to distribute the funds to in eligible persons . and 7.
Balasabha/ Childrens’ Neighbourhoods
BALASABHA Children between the age group of 5-15 will be in Balasabha and this includes children from both APL and BPL families Any mother from NHG leads Balasabha weekly The main activities of Balasabha are in the area of extracurricular activities. They are able to avail bankloan on very marginal interest rate with the help of Bhavanashree yojana. State mission Ashraya project through Kudumbasree
for finding destitute through the survey. Haritashree/ Lease Land Farming It is a very unique program run by Kudumbashree. Some of the criteria for identifying a person as a destitute are as follows : Diseases No house/ land Handicap/ mentally retorted No income No one depend on No sanitations facilities
Bhavanashree/ Micro Housing Bhavanashree is the initiative for poor families . they are on the streets. This scheme also help to increase the productivity of the state. empowerment of children etc. Not only from the children from the Kudumbasree members but also children from other families get benefits from Balasabha The kudumbasree funds for the activities of Balasabha besides the Panchayat provides Rs. who are in dire need of construction of house or in the other words . in this scheme the uncultivated land is taken on rent and provide the willing cultivators for agricultural operations.50000 yearly. Rehabilitation and Monitoring Programme)
The Ashraya which means depending is one of the flagship program of state government with the help of Kudumbashree .
.Kudumbashree: Life-Line of Kerala’s micro-finance
Various program which are taken by Kudumbashree
Ashraya (The Destitute Identification .
Adolescent care.. Nutrimix. Reddy‟s Foundation. Agriculture/Animal husbandry/ Dairy development. The Government of India through the special SGSY stream.(Raghavan: LIVELIHOODS AND EMPOWERMENT) Special School for the disabled children /Buds Buds are the special school for physically and mentally challenged children. Revamping the traditional sectors Basic minimum Needs and Destitute Identification and Rehabilitation. sanctioned an innovative project for this purpose. The Project envisaged to start 500 baby food production Units in different parts of Kerala. If there are many children it is called balpanchyat. women Empowerment. The Finishing School project is designed by Dr. Geriatric care. self reliance and sustainability (S3) of the village panchayats.The Babyfood Products Production Project The Nutrimix Baby food Production Project is an ambitious project recently launched by Kudumbashree mission. transportation facilities ./Clean Kerala Business This program is also under the umbrella of Kudumbashree which is mainly implemented so far in urban area. Enterprise development.. These children are getting necessary equipment. Kudumbashree mission tries to tackle this problem by setting up „Clean Kerala Business‟ units in an organized and planned manner entrusting to women entrepreneur groups to segregate. vocational and job oriented trainings . Unemployment of the educated youth. The projects focus on self sufficiency.Kudumbashree: Life-Line of Kerala’s micro-finance
BALASABHA SANGAM Children from various places are brought and made to stay with families of different religion. Education. Hyderabad . The S3 Programme Kudumbashree has evolved a project to build a model in select pachayats on the concept of comprehensive development.
Solid Waste Management. hotels . culture etc. Mentally and Physically Challenged. (Raghavan: LIVELIHOODS AND EMPOWERMENT) FINISHING SCHOOL Capacity building to improve the employability of educated youth from poor families is a major challenge that has to be undertaken by the State.
. collect and transport solid waste from the households. This is done in order to bring a sense of equality and unity among the children. mental therapy . commercial establishments. The project envisages to address the problems of Child Development. studying material .
she. No doubt Kudumbashree is doing the same for God‟s own country (Kerala Nowadays majority women in Rural areas work in Kudumbashree and so it is the easy way of achieving the women empowerment and also Poverty Alleviation in the society . and capacitating Kudumbashree NHGs and LSG representatives to develop gender sensitive policies and to prioritize gender sensitive action. the labour card distribution system. he'll eat for a day. Some problems which is faced by Kudumbashree
Lack of enthusiasm once the enterprise started Lack of training Social factors Competition Ineffective marketing High price of raw materials Presence of middle man
Conclusion In this era of global recession and collapsing banking institutes. A dimension of this intervention is that women are being empowered through a democratic process. In its 11th Five Year Plan the state government chose the Kudumbashree NHGs as the main forum for social audit.Kudumbashree: Life-Line of Kerala’s micro-finance
GENDER RESOURCE CENTER Gender Resource Centre focuses on addressing gender concerns. Now at the last ). the wages and the time period etc would be audited and the report would be presented in Grama Sabhas. Give a woman microcredit. This will be started in the districts where the NREGA programmes are being implemented. the process of social audit has not really taken root. her husband. SOCIAL AUDIT In Kerala. her children and her extended family will eat for a lifetime‟‟
.Hope this unique mantra is also helpful for other state. Micro finance has emerged as an important sector which gives economic freedom to the destitute. I would like to quote Mr Bono. probably most famous philanthropists of our time. The quality of the work. This would require constant collation and analysis of local gender issues and supporting a resource pool of gender experts to facilitate equitable policy setting and action in the field. „‟ Give a man a fish. little thought has been given for the poorest of the poor.
Himanshu (2007): „Recent trends in Poverty and inequality: Some Preliminary results‟. February 10.
RAGHAVAN (July 2006 ) LIVELIHOODS AND EMPOWERMENT:THE KUDUMBASHREE PROJECTS IN KERALA. Centre for Development Studies. “Impact Assessment Methodologies for Microfinance: Theory. University of Manchester. Spain) www. India. KKRPLLD. D (1999). IDPM. Mondragon University ( Basque Country. Hulme. Economic and Political Weekly. Dr.Kudumbashree: Life-Line of Kerala’s micro-finance
The Kudumbashree Mission is functioning under the directorate of the Government of Kerala. Working Paper no.
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