EVALUATION OF WORKING OF KUDUMBASREE IN

NEDUMANGAD TALUK
Rajesh. T, Assistant Professor, Department of commerce, Mannaniya College of Arts and Science, Pangode
Vineeth Chandra K.S, Research scholar, University of Kerala, Thiruvanathapuram

Before 1990's, credit schemes for rural women were almost negligible. The concept of
women's credit was born on the insistence by women oriented studies that highlighted the
discrimination and struggle of women in having access to credit. However, there is a perceptible
gap in financing genuine credit needs of the poor especially women in the rural sector.There are
certain misconceptions about the poor people that they need loan at subsidized rates of interest on
soft terms, they lack education, skills, capacity to save, credit-worthiness and therefore are not
bankable. Nevertheless, the experiences of several SHGs(self-help groups) reveal that rural poor are
actually efficient managers of credit and finance. Availability of timely and adequate credit is
essential for them to undertake any economic activity rather than credit subsidy. Kudumbashree is
an innovative, women-centred state poverty eradication programme being carried out since 1998
and 2000 in rural and urban areas of Kerala State respectively. It aims at eradicating absolute
poverty, within a definite time period, under the leadership of Local Self Governments. The
Mission launched by the State Government under the active support of Government of India and the
National Bank for Agricultural and Rural Development (NABARD) has adopted a different
methodology in wiping out absolute poverty by organising the poor into community-based
organisations. udumbashree accomplishes its mission to economically strengthen poor women
through the system of collective thrift accounts in the neighbourhood groups. Another side of
economic empowerment is the setting up of micro enterprises with which the women can carry out
various activities. The weekly thrift collection is conducted at the ‘Ayalkootam’ (neighbourhood
group) meetings and with this the women have access to an informal banking system. The micro
enterprise activity exists both at the urban as well as rural levels. The present sudy is an analysis of
the various issues faced by the members of kudumbasree in Nedumangad Taluk.

EVALUATION OF WORKING OF KUDUMBASREE IN

NEDUMANGAD TALUK

The Kudumbasree Poverty Eradication Mission in its 13th year will focus on collective farming as a means of
empowering women and guaranteeing their financial emancipation. With more than 37 lakh members, Kudumbashree
had created a well knit network of women in every village, town and city of Kerala. Through concerted and
continuous action sustainable livelihood options for the poor are being developed. Persistent efforts to reach out to the
most vulnerable and reached among the poor are also underway. The 13 years of Kudumbashree have been on a very
sharp learning curve. Unraveling the complexities of circumstances exacerbating poverty, finding processes that work,
and processes that do not, finding new livelihood options, improving upon existing options, seeking partnerships for
empowerment – all these have contributed to ensuring that kudumbashree continues to grow and learn.

Milestones in the development of kudumbasree

Genesis

The decentralisation experiment in Kerala and the transfer of powers to local governments came in two
bursts. First, in October 1995, when the decision to transfer most of the development institutions to local governments
along with staff was taken, and the second, in August 1996 when the decision to transfer about a third of State Plan
resources to local governments was announced and the People’s Plan Campaign launched. Alongside this, it was
decided to universalise the Anti-Poverty Programme of the State under the name of “Kudumbashree”. The concept of
Kudumbashree sought to match the energy of the self-help group movement with the need for a community platform
to interface with local self governments. This anti-poverty programme had evolved through a long phase of
experimentation. The Urban Basic Services for the Poor (UBSP) implemented in Alappuzha Municipality in 1992
focused on a community-based and participatory approach to planning and implementing poverty reduction
programme. This was when the nine point index for identifying families at risk of poverty was first evolved.
The promise of the initiative prompted Government to launch the pilot programme in Malappuram district of
Kerala, in November 1994, under the Community Based Nutrition Programme (CBNP implemented with UNICEF
support). Almost simultaneously, the Government decided to give universal coverage of the programme for urban
areas in December 1994. The formal launch of Kudumbashree was on May 18, 1998

Today the community network of kudumbashree covers every grama panchayat and over 90% (17486) of the
panchayat wards of the state. There are 2.04 lakh NHGs, in which women from 37.43 lakh families participate. Nearly
one in every two households of Kerala has a representative in Kudumbashree. The coverage of the poor is nearly
universal. The only families remaining to be covered are outliers in remote tribal hamlets, migrant women and
sections of the coastal population. Built around three critical components – micro credit, entrepreneurship and
empowerment – the Kudumbashree initiative has today succeeded in addressing the basic needs of the less privileged
women – thus providing them with a more dignified life and a better future. Kudumbashree differs from conventional
programmes in that it perceives poverty not just as the deprivation of money, but also as the deprivation of basic
rights. The poor need to find a collective voice to help claim these rights.
Structure of Kudumbashree

The Community Based Organisation, Kudumbashree, conceived of poverty as a basket of relative

deprivations and vulnerabilities and has developed an innovative methodology to identify the poor using non-
economic parameters. The poor thus identified were organised under a well-networked Community Based
Organisation (CBO). This methodology has since been incorporated into the policy framework of the State for the
identification of the underprivileged.
The Kudumbashree community organisation is a three-tiered structure with its apex tier anchored in the local self
governments. The three tiers are:

• Neighbourhood groups (NHGs) – Groups of 10-20 women from the same neighbourhood form the
foundation of the structure

• Area Development Society (ADS) – Federation of NHGs within a ward of the LSG

• Community Development Society (CDS) – Registered Society as the Federation of ADS within the LSG

COVERAGE

The Kudumbashree Community Organisation network is present in all the 999 Gram Panchayats, 53
Municipalities and five Corporations in Kerala.

Table:1
Coverage of Kudumbasre in Kerala

Number of NHGs 2.03 lakh

Total families covered 37.37 lakh

Number of ADS 17486

Number of CDS 1061

Source;www.kudumbasree.org

FUNCTIONING OF THE MISSION

Micro finance
Thrift and Credit
 Kudumbashree promotes Neighbourhood Groups (NHGs) of 10-20 poor women members as an interface
between poor women, banks and government agencies. NHGs are instrumental in thrift mobilization, encouraging
the poor to save and to avail low cost formal credit. They facilitate easy and timely credit to the un-reached. The
amount of loan to members and the purpose for which the loan should be utilized are decided by the NHG. The
repayment is collected weekly during the NHG meetings. It is estimated that the thrift mobilized is on an ave It is
assessed based on CDS reports to Kudumbashree mission that number of NHGs promoted is 202879 out of which
9779 NHGs were created during the financial year 2009-10.The cumulative thrift mobilized by all NHGs from the
beginning to March 2010 is to Rs.1375 crore and the internal loans disbursed to members are to the tune of
Rs.3914 crore (As on March 2010). It is also estimated that during the year 2011-12, the total thrift collected by
all NHGs is Rs 198.56 crores and the internal loan disbursed is Rs 892.76 crores.
1. Linkage banking
NHG-Bank linkage scheme is one of the flagship programmes of Kudumbashree. NABARD SHG-Bank
linkage grading procedures are applied while selecting eligible NHGs for availing loan. CDS assists NHG in
getting graded by the bank. Bank will provide loans to those NHGs who pass 80 % of marks in the grading. Loan
amount to a NHG is linked to thrift amount mobilized and retained within the group as internal loans. Maximum
loan amount possible for a NHG is four times of its thrift.rage Rs 40 per month per member.

2. Financial literacy Campaign

Kudumbashree programs cover about 37 Lakhs families organized under 2.02 Lakhs NHGs through 1061
CDSs. All NHGs have bank accounts through which members of NHGs have access to savings and credit services
of banks. The NHG is acting as intermediary between banks and ultimate beneficiary. Kudumbashree has
promoted 202,879 NHGs but number of NHGs graded and linked are 141,434 and 118,711 respectively upto
March 2010. As such about of NHGs only have been graded and of graded NHGs provided Bank linkage. About
84168 NHGs remain unlinked, of which 61445 NHGs are yet to be graded. At NHG level, it is observed that
there is lack of knowledge about banks procedures, misconceptions regarding interest rates and lack of awareness
about banking ombudsmen etc.
Kudumbashree has chalked out a comprehensive Financial Literacy Plan in order to provide a platform for NHGs
to be aware of and benefit from formal banking services. The financial literacy campaign conceptualization,
training to RPs and orientation were completed before March 2011. A detailed literacy plan was prepared to
extensively cover all NHGs in the first half of the next financial year 2011-12.

3. Interest Subsidy Scheme

Government have sanctioned the interest subsidy scheme for Kudumbashree NHGs vide GO (Rt) No
2725/09/LSGD dated 22.10.2009. As per the scheme, all commercial and cooperative banks that are prepared to
 lend to Kudumbashree NHGs under the linkage banking programme at 9% or below, will be participants in the
scheme. The CDS would be raising the claim with the banks and the amount would be dispersed to a designated
nodal branch by Kudumbashree State Mission in the case of commercial banks and to the concerned cooperative
banks/societies by the district missions in the case of cooperative institutions. The interest subsidy would be
provided as annual installments to the banks

Micro Enterprises

Supporting and sustaining micro enterprises has always been a challenge for development administration.
Problems of scale, capability, market and vulnerability etc. do not offer easy solutions. In the recent past
Kudumbashree had been attempting to analyse and resolve these problems specifically and jointly, both by increasing
the interface with the LSG and the entrepreneur regarding existing programmes, and by bringing new strategies and
new programmes that help converge resources and address arising issues proactively and creatively

Schemes under Micro Enterprises

1. RME Scheme

The success of centrally sponsored enterprise programme in the urban areas prompted the Mission to come up
with similar enterprise programme in rural areas. The Rural Micro Enterprises (RME) Programme was initiated to
help women to set-up Individual and Group enterprises. The minimum number of people required for a group
enterprise being five. Various activities like catering groups, tailoring, traditional delicacies, paper products, super
markets, direct marketing, various food products, goat rearing, dairy units, rabbit rearing, etc have been formed under
the RME programme. Even traditional activities like Goat rearing and Dairy have been set-up under RME.

Yuvashree

In order to meet the increasing demands of setting up Micro enterprises, the Yuvashree (programme for
generating jobs for 50000 youth) was launched in the year 2005. It provides an opportunity to the unemployed youth,
both men and women in the age group 18-35 from Kudumbashree families

NEDUMANGAGAD TALUK

Nedumangad Taluk is in Thiruvanathapuram district in the Indian state of Kerala It situated in the eastern part of
the Thiruvanathapuram district. It comprises 28 villages and one municipality.It is bounded on the west by Trivandrum
Taluk, on the east by the State of Tamil Nadu, on the south by Neyyattinkara Taluk and on the north by Kollam
District.There are 27 villages and one Municipality are in the taluk.
METHODOLOGY

In Nedumangad Taluk there are 27 villages and one municipality. There are ----- SHGs. The total
population data has been depicted below
Table 2
Number of SHGs functioning in Nedumangad Taluk

SI. Name of Total

NO Village SHG
1 Anad, 62
2 Aruvikkara, 33
3 Aryanad 56
4 Kallara 53
5 Karakulam 18
6 Koliyakode 65
7 Kurupuzha 88
8 Manikkal 14
9 Mannoorkara 12
10 Nedumangad, 47
11 Nellanad 13
12 Vamanapuram 35
13 Uzhamalackal, 45
14 Tholicode 23
15 Thennoor, 43
16 Theakada 44
17 Pullampara 18
18 ,Perumkulam 33
19 Pangode 64
20 Panavoor 59
21 Palode 45
22 Peringamala 18
23 Vattappara 32
24 Veeranakavu, 69
25 Vellanad 18
26 Vembayam 35
27 18
Vithura

Total
 Source:www.kudumbasree.org

Sample selection

Among the total unit sample selection was done on multistage technique. The total geographical are
has divided into three viz; North, South and Central. Vamanapuram from North, Nedumangad from Central
and Tholicode from south were taken as sample unit for the study. In Vamanpuaram there are 35 SHGs
functioning and in Nedumangad there are 47 SHGs and in Tholicode there are 23 SHGs. Thus there is 102
units function in the selected are. Among the 102 units 50% are taken as the sample unit for the study. Thus
17 unit from the North zone, 23 unit from the central zone and 12 units from the south zone constitute the
selected sample for the study.

Table 3
Sample selection

SI Selected villges Total Sample

NO SHG

North Vamanapuram 35 17

Central Nedumangad, 47 23

South Tholicode 23 12

Total 105 52
 Table 4

Data analysis

Si statement Highly agree disagree

No agree
1 We Use of resources (credit) for income 40(77% 12(23% 0
) )
generating activities

2 We Adopt of non-traditional activities 35(67% 15(29% 2(4%)

) )

3 There is Improvement in the income levels of SHGs members 45(87% 7(13%) 0

)
4 It helps in Generation of small savings in the rural sector 48(92% 4(8%) 0
among women )

5 There is Maintenance of proper accounts by the SHGs 38(73% 14(27% 0

) )

6 There is Healthy relation and coordination between SHGs, 12(23% 18(34% 22(33%)
NGOs and banks ) )
7 There is Regular meetings of the SHGs members to tackle 13(25% 8(15%) 31(60%)
problems among themselves )

8 We Use of local knowledge and resources in productive 38(73% 12(23% 2(4%)

activities ) )

9 There is difficulty in procuring funds 45(87% 7(13%) 0

)
10 training is Insufficient 48(92% 4(8%) 0
)
11 We face Difficulty in getting license 22(43% 18(34% 12(23%)
) )
12 We face Difficulty in getting loan 38(73% 14(27% 0
 ) )
Source; Primary data

FINDINGS

1) Most of the units use the credit sanctioned from banks for income generating activities
2) Non traditional activities were given preference by the units
3) Most of the representatives of the units hold the view that there is a substantial increase in income.

4) Large portion of the members view that It helps in Generation of small savings in the rural
sector among women
5) A larger portion of the members hold that There is Maintenance of proper accounts by
the SHGs
6) with drunkards as husbands and small children to take care of, most women found it impossible to
attend the week long residential training camps
7) The provisions required for production are not available at one single time which in turn forces the
women to make more than the necessary number of trips to purchase the items and this hikes their
transportation expenses.
8) The women in Vamanpuram Panchayat mentioned that in order to market the product outside the
anganwadis they required the necessary trainingto advertise it.
9) Some units like the unit in vamanpuram,Nedumangad and tholicode panchayats mentioned that the
process of getting a license was too long drawn and this marred their efficiency levels considerably.
10) The units of tholicode and Vamanapuram panchayats mentioned that getting finances from the bank
was a herculean task and that in dire situations, they were even forced to borrow from moneylenders
at very high interest rates and this is something which goes against the very principle of micro
finance.
CONCLUSION

Kudumbashree has enabled the women to share their personal experiences and this in turn has given
perspective to the individual situation of many women and transformed their personal feeling of
hopelessness into a feeling of being part of a collective spirit. They have been able to develop a social
network in the neighbourhood area, which to some extent has evoked a feeling of social security. Through
their involvement in micro enterprise activities, the women are now more confident and independent. “The
gain in social space generated a feeling of inability to act, and the prospect of higher social status”. As the
women got involved in micro enterprises, the workload of the women increased as they were still in charge
of household related work. Even though the earnings from micro enterprise activities are rather limited,
partly due to the repaying of the loan and partly due to problems of finding a space of agency in the margins
of the market, the possibility of becoming an earning member and the ability to contribute economically has
resulted in a modification in attitudes within some families. If the above mentioned problems are looked
into, the micro enterprise industry will definitely work wonders and the mission statement of Kudumbashree
can be achieved easily.

REFERENCES

 Bergquist, Emma Lindwall Petra, “Women – The Way Out of Poverty - Locating women empowerment in a case study
of Kudumbashree “
 Human Development Report,2005 pg 154
 ‘Measuring Individual Agency or Empowerment: A study in Kerala, 15-16
 Jayan, K.N and Sadanandan, Sindhu: Chapter five in ‘Women and Rural Development’: SociCapital as Product of Anti-
Poverty Initiative-The Kudumbashree Approach
 Human Development Report,2005 pg 156
 Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission
 Kudumbashree Head office, Thiruvananthapuram Kerala
 Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission
 Kudumbashree Head office, Thiruvananthapuram Kerala
 Human Development Report,2005 pg 156
 Kudumbashree: Concept, Organisation and Activities, State Poverty Eradication Mission