Kerala - Kozhikode   

The spirit to move ahead despite all difficulties

StateTrends When `Kudumbashree' was launched, not many believed it would go anywhere near the stated goal of poverty eradication `Kudumbashree', Kerala's very own poverty eradication project, is into the ninth year and, despite shortcomings and criticisms about its impact on society, has left its mark in the lives of tens of thousands of women, writes Maleeha Raghaviah.

A BASKET OF SKILLS: A file picture of women at a workshop on `basket making' organised by Kudumbasree. — Photo: Mahesh Harilal

KOZHIKODE: `Eradication of poverty' is a catch phrase of development planners. But any project that has this lofty objective as its ultimate goal is very likely to evoke a derisive laughter than a serious look in, for the simple reason that one has heard that a hundred thousands times before with little happening on the ground.

When `Kudumbashree' happened, the response was not altogether different, for it too stated its objective to be `eradication of absolute poverty.' When the project was inaugurated on May 17, 1998, there were not many who believed that it would go anywhere near its stated goal, but eight years later, there is a tangible difference in the perceptions about `Kudumbashree,' the name by which the State Poverty Eradication Mission is understood in common parlance. Criticisms galore about the content and impact and there are those who have already begun to suspect its final outcome, but Kudumbashree has made an impact, criticisms notwithstanding.

Early days

`Kudumbashree' became formally operational from April 1999 with the declaration that it is intended `to eradicate absolute poverty in 10 years through concerted community action under the leadership of Local Self-Governments, by facilitating organisation of the poor for combining self-help with demand-led convergence of available services and resources to tackle the multiple dimensions and manifestations of poverty holistically.' Over the last eight years, the Kudumbasree Mission has endeavoured to fulfil its objective primarily by organising micro enterprises at both individual and collective levels under the aegis of Neighbourhood Groups (NHGs).

By March 2006, the mission had set up as many as 1,65,840 NHGs of women belonging to Below Poverty Line (BPL) families, touching the lives of an estimated 33,45,509 families in 991 grama panchayats, 53 municipalities, and five Corporations.

In all districts

Individual micro-enterprises were set up in all districts with Thiruvananthapuram accounting for 242 units, Kollam 174 and Kozhikode 101 units. Ernakulam has the largest number of group micro-enterprises, 318, followed by Wayanad and Thiruvananthapuram with 218 and 185 respectively. Kollam has 147 and Idukki 123 group micro-enterprises under the NHGs. The thrift collection of the NHGs has crossed Rs.642.15 lakhs. Internal lending is to the tune of Rs.1,473.12 lakhs. As many as 99,356 NHGs have been graded, and 71,702 units are linked to banks under the Linkage Banking Scheme.

Dual role

The dual role of NHGs includes mopping local savings and developing local activities for income generation with linkages to banks and promotion of the concept of thrift to develop the saving habit.

The emerging picture however is mixed if one were to go by the chances of the long-term sustainability of the enterprises whose products or services cater to a narrow market, register low profits and has low accumulation of capital. Side by side, there are impediments in the form of technology gaps, shifting economic policies and the vagaries of the global market.

Successful enterprises

The Kudumbasree-sponsored IT units numbering 63 and the 29 Kerasree units have proved to be successful enterprises. The catering and canteen units too have managed to stay afloat as the `Kaippunya Vanitha' canteen at the Kozhikode Civil Station suggests. But the picture is not so rosy in several other areas of activity.

In soap manufacture for instance, the 55-odd Kudumbashree micro enterprises that had registered good profit earlier are now faced with aggressive marketing strategies of multinational monopolies.

Several scores of Kudumbashree units are engaged in direct marketing and not in manufacture of own products. An evaluation of the economic gains of the Kudumbasree micro-enterprises would reveal that the rather than making economic gains on larger scale, the emphasis has been in enabling women to take on the world confidently and on improving their management skills.

"The basic issue here is how far the enterprises have succeeded in improving the level of confidence and in continuing the activities of women and youth from BPL segments who view the micro enterprises as the only way before them," says Kudumbasree Mission former director T.K. Jose.

Boosting confidence

To many, what is significant about Kudumbashree is the sense of confidence that has been generated among women to launch into self-employment ventures in spite of the lacklustre entrepreneurship culture in the State. Kudumbashree Mission envisages micro-enterprise as one of the tools of poverty reduction, asset building and diversification and ultimately a better life. The level of social empowerment is what matters finally. If the number of Kudumbashree participants who have been elected to the local bodies could be taken as an indicator of this, the figure is impressive: 1,145 members of Kudumbashree community development societies have been elected to the Local Self-Government institutions.

The confidence exuded by Indu, leader of the Kudumbasree micro-group under the Clean Kerala Mission, Kozhikode Corporation, is indicative that the social quotients on which Kudumbashree scores. Indu earns an average subsistence wage of Rs.1,400 a month. She, along with eight other members of the NHG owes Rs.2.70 lakhs to the Indian Overseas Bank. The loan availed by them to buy a three-wheeler to carry the solid waste they collect from homes. They pay a monthly instalment of Rs.3,000 on the loan.

The instalment payment has been held up for the last couple of months because of expenses incurred to repair the vehicle and because cleaning operations got stalled for over a fortnight at the Njelianparambu trenching ground. Yet, Indu and her group would prefer to hold on. It has provided them an avenue of employment and a direction in life.

Fifteen of the 71 Kudumbasree micro-enterprises of the Clean Kerala Mission under the Community Development Society of the Kozhikode Corporation do not earn enough wages when compared to others engaged in the occupation. But ask them whether they would like to discontinue the activity. The answer is an emphatic `No.'

Aggressive marketing

Sarada Muralidharan, current director of Kudumbashree Mission, agrees that aggressive marketing intervention alone can sustain the units. "Issues relating to marketing of products and procuring of raw materials have begun to surface. Marketing strategies, both long-term and short-term, are being formulated. The strategies being visualised are standardisation, packaging, branding, syndicating and consolidation," she says.

The `Nutrimix' health drink supplement, launched by micro-enterprises in the State recently, is an example of such a strategy when mass production of a branded item is taken up. According to Ms. Muralidharan the Government is actively considering a proposal to set up two supermarkets in Kochi and Thiruvananthapuram to market products of Kudumbasree micro-enterprises. Another proposal under active consideration is for Rural Business Hub Initiative, a Government of India project through which processed food products would be marketed through tie-ups with business houses to create a larger market segment. To provide sustainability, products with lesser competition in the market would be launched, Ms. Muralidharan adds.

Viability

While on the viability of micro enterprises, Kudumbashree Malabar regional coordinator K. M. Najma says it is not possible to pick and choose the product and services though maximum handholding is being provided. According to her, 90 per cent of the micro-enterprises are successful, with banks playing a key role in examining their economic viability. There is continuous monitoring too, besides aptitude tests and training organised for the prospective entrepreneurs. NHGs provide a strong marketing network. In Wayanad for instance, a concerted marketing network is being created through the Rastriya Shram Vikas Yojana.

"The NHG thrift has become a community asset. This is a facility for BPL women to avail of bank loan without asset or security. Multiplier loan is available from nationalised and cooperative banks too,' says Kudumbashree Kozhikode District Coordinator K. Subhash Babu. A major disadvantage is that NHG members do not see the occupation as full time and also there is no rejuvenation package for a sick enterprise. Mr. Subhash points to the innovative areas of operation such as the Kudumbashree Audit and Accounting Society and the concept of `in-sourcing' through the Empowerment through Knowledge, Skill, Attitudinal Change and Training (EKSACT) initiative launched in Kozhikode, which is in the process of training youth who will in turn train others in the community.

A great possibility seen for Kudumbashree enterprises is manufacture of paper bags in the backdrop of the campaign against plastic carry bags, says P. Bindu, president of the Kudumbashree Community Development Society, Kozhikode Corporation.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

The spirit to move ahead despite all difficulties
Guard against privatisation, BSNL employees told
Viability of flourmills under threat: millers
Azhikode granted bail in defamation suit
Ration dealers' delegation leaves for Delhi
U.S. Consulate to organise exhibition on Thursday
Leopard found dead in Wayanad
Symposium

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu