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Community empowering and
Poverty alleviation
Facilitating micro
credit through self help groups among the poor is now a well accepted
method of poverty alleviation. But in the beginning of 1999s when HEDO
took decision to introduce the concept in backward villages of Kegalle
Distric, it had to face numerous odds. HEDO learnt from these odds and
over the years became an organisation specialising in self help groups.
The following is the achievements as far as evolution of self help groups
towards sustainability is concerned:
A sustainable community empowerment in participatory approach
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In normal situation, groups are promoted by institutions, which
also help in their management and linkage to a local bank for facilitating
credit to its members. The group pressure ensures recovery of loans
and both the bank and group members benefit from the process. IN
this process, the group members do not have rights to make decision.
They always have to be under the institute. Institutes and banks
take the decision and make the laws and regulations. They mostly
look at on the recovering not much abut the development of the member.
However, in adverse social situations described, the very presence
of a self help groups creates tension and conflict between its members
and local vested interests. |
The resulting group dynamics often
leads to doubts or conflict among members and groups become irregular
or defunct after some time. This is also because marginalized
members remain dependent on the promoting institution for the
conduct of its business including its accounts and record maintenance
systems.
HEDO's work towards promotion of sustainable self help groups
has shown that despite such adverse conditions, groups can develop
stability through establishment of appropriate systems and practices. |
Cash box with pad lock increased the transparency of the fund
There is a secure cash box with each group. The box moves around among
members ones a week. While the cash box with one member, the key with
another one. If some one need to borrowed money, she/he must meet two
of them to take the money. In this case there are three members together
to open the box. Whenever they transfer the box in the weekly meeting
they have to have calculated money. They do so ones a time in a week.
They gathered to refund the borrowed money and weekly payment. Therefore
there is no doubt about money handling. Group members know about the
fund and growth. Its helps to self motivate them.
Proper Accounts and Records Keeping
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It is of utmost importance that the group maintains
its records, especially the accounts, in a regular and transparent
manner known to all the members. This is particularly so because
of situations where the trust in the village level is very low.
The cash management system must be complementary to the accounts
system and the two must tally with each other. They use a simple
and accurate system in proper manner. The books allow easy audit
and are available in the form of two thin registers and personal
passbooks. |
The matrix for self auditing
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They use a matrix system to evaluate the monthly accounts.
They discuss about the fund and the benefits in the groups. And
they discuss it in the federation too. After they discussed about
the previous transactions, they take decision for next term. In
that session the take decision about credit limits, fixed deposits
amount, Investment amount and expenditure limits also. All the members
get clear idea about their money. |
Practices to Strengthen Group Loaning System
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As groups evolve, they gradually develop a casual
approach towards the process of loaning. They can borrow money for
emergency case in any time of the day even mid night or early in
the morning. They can get so below 5000 LKR from the group. They
keep a fix amount of money to accidental requirements. The groups
issue this money only for emergency medical need. That money can
be saved the life also. Therefore it value can be equal to life.
The group level always mostly grants for emergency domestic needs. |
When the members looking for the
loans for development activities they can borrowed it from federation
call Self Empowering Fund (SEF) which is formed and operating
by group members. SEF grant loans for family development activities
accordingly family development plan on the lowest interest in
the area.
This is a process of self regulation by groups that needs to foster
through regular discussion with members and leaders of groups.
As our experience shows, there is also a need for establishing
an effective system of monitoring through matrix and association
of groups. H EDO has been working towards development of an information
system that simplifies the process of monitoring so that irregularities
are easily identified.
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Development of Group Associations
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It is observed that clarity of perception and acceptance
of practices pertaining to sustainability comes more easily when
groups are organized into associations. In Daraniyagala, associations
of groups evolved at the area level involving several groups in
the area In the process of evolving self management process among
the poor illiterate population, it has been found that inculcating
such practices is not only key to sustainability of groups, but
also basic to the process of social mobilization. It is not enough
to raise awareness among people. Weak management procedures can
kill a good social initiative. While visiting people's groups in
different parts of the country it has been noted with concern the
absence of self management processes leading to weakening and ultimate
collapse of groups. The method and HEDO, therefore, acquires special
significance in establishing and spreading group management systems
for sustainability. |
Beginning
There were no real
development groups in Daraniyagala aria. Struggle to establish clarity
of purpose at group level. First group in Deraniyagala south started
with some subsides for their kitchen garden. Several groups had been
gathered as group for subsides.
Period
of Struggle
While the subsidy
was closed the groups also closed. One of professional social worker
had been jointed the organization for mobilizing. Accordingly the new
staff HEDO got a new way to establish development groups. HEDO had been
stop all the subsidy and benefits to give them other than correct facilitation.
Several groups collapsed
Formative
Period
New systems of
records, accounts and cash box introduced. Concept of paid group accountant
introduced. Formation of cluster of groups at village level started.
The group members had been understood the real benefits of development
group. The concept replicated. Internal facilitation came up.
The federation established in Daraniyagala
Because of the establishment of self managed systems at group levels.
Steps to strengthen clusters and initiate area level federations. HEDO
recognized as a resource centre for promotion of development groups
in Kegalle district by Friends Of Lanka (FOL)and the branch of people's
bank in Galigamuwa.
Challenges
• Strengthening
of area level federations to achieve self regulation, credit management
and local self governance. Introduction of new systems and practices
in self employments for higher incomes and sustainable development.
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Human
& Environmental Development Organization
Main street,
Deraniyagala,
TP:+94362249645,+945672503,
Fax:+94362249645
Email – info@hedosrilanka.org |
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