The President of India has marked the 25th anniversary of Kudumbashree, the largest Self-Help Group (SHG) network in the country. During the event, the President unveiled a handbook named "chuvadu" (meaning footsteps), which presents future ideas for the movement and recognizes its past accomplishments.
A Self-Help Group is an informal association of individuals who come together to improve their living conditions. It is a self-governed and peer-controlled group comprising people with similar socio-economic backgrounds and a shared desire to achieve a common purpose.?
It focuses on enhancing the functional capacity of the poor and marginalised in terms of employment and income generation, resolving conflicts through collective leadership and mutual discussion, providing collateral-free loans at market-driven rates decided by the group, and serving as a collective guarantee system for members seeking loans from organized sources.?
SHGs enable the poor to save their money in banks and gain easy access to loans with low-interest rates, which they can use to start micro-enterprises.
Kudumbashree is a poverty eradication and women empowerment initiative established in Kerala, India, in 1997. It operates through a three-tier structure comprising Neighbourhood Groups, Area Development Societies, and Community Development Societies, forming a network of Self-Help Groups.?
The mission aims to eliminate absolute poverty within a specific timeframe of 10 years by actively involving local self-government. Kudumbashree uplifts families and empowers women, improving their socio-economic status and overall well-being. It has been successful in empowering women, creating employment opportunities, alleviating poverty, and initiating various social initiatives.?
The organization has gained significant recognition and its members have been elected representatives in local government bodies. Notably, during a severe flood in Kerala, Kudumbashree's self-help group network donated a substantial amount of money to the Chief Minister's relief fund, surpassing contributions from tech giants like Google and Apple as well as the Bill and Melinda Gates Foundation.?
Despite being flood victims themselves, the Kudumbashree workers showed their dedication to helping others in need.
SHGs play a significant role in women's empowerment and poverty alleviation in several ways. Firstly, they provide economic empowerment to women by creating opportunities for them to generate independent income.?
Women can utilize their skills and talents to start businesses and become financially self-reliant. Access to capital through SHGs enables them to invest in their ventures and expand their economic activities.
Secondly, SHGs help overcome social barriers by challenging regressive norms and empowering women to take on decision-making roles. Through participation in SHGs, women gain confidence, assertiveness, and leadership skills, which help them challenge gender stereotypes. Empowered women actively participate in local governance and even contest elections.
The formation of SHGs leads to an improvement in the socio-economic status of women. They gain better access to education, healthcare, and resources, resulting in enhanced socio-economic conditions. SHGs contribute to women's self-esteem and confidence by providing a platform to voice their opinions and contribute to decision-making processes.
Moreover, SHGs facilitate access to financial services through bank linkage programs. This allows easier credit access for SHGs, reducing women's dependence on traditional moneylenders and non-institutional sources. Priority sector lending norms and assured returns incentivize banks to lend to SHGs, making financial services fairer and more affordable.
SHGs offer alternative employment opportunities beyond agriculture-based livelihoods. Women can establish personalized businesses such as tailoring, grocery shops, and repair services, diversifying their income sources and improving their economic prospects.