Self help group model to drive GDP in east

Saturday, 6 October 2012 00:00 - - {{hitsCtrl.values.hits}}

IOM together with its funding partners have launched a unique project called formation of Village Livelihood Groups branded ‘Self Help Group’ model in Trincomalee and Batticaloa, on a model that was tested in Batticaloa and Mullaithivu Districts before, that achieved self-sustainability and successfully reduced poverty and dependency levels by creating opportunities for household with limited economic means to engage in income generation, savings, reinvestments and livelihood expansion.

The project engages the community through enhancement of business Knowledge, Skills and Attitude. As many families are engaged in seasonal work such as fishing and fish processing or agriculture, the core objectives of the project are to encourage women to start alternative small businesses or self-employment ventures using a contribution from their own home savings – however small. With an increased range of income generation activities, families are better able to support themselves year-round even during off season periods and thus boost the overall income. The Village Livelihood Groups are not necessary officially registered groups but nonetheless strongly bound together by a shared vision and attitude towards economic, social, and skill development.

Each VLG has a unique constitution developed by members, separate bank accounts in the name of VLG and mutually agreed strict rules such as compulsory weekly meetings, weekly rotation of group leaders and meeting places and compulsory weekly savings. The VLGs also offer three different loans: emergency, short term and long term business loans to their members. Similarly, the VLGs have a Group Risk Fund which is a saving plan similar to a micro-insurance which compensates members during times of an unexpected loss. The VLGs take a key role in village development plans. Then also engage in volunteer work and social activities such as Shramadanas to clear and clean common areas, run pre-schools and support child education and health/nutrition related activities.

UMCOR and IOM strongly believe that increased community self-confidence, additional and alternative incomes and enhanced social capital are salient factors to help eradicate extreme poverty and hunger which in turn support other Millennium Development Goals such as achieving universal primary education, promotion of gender equality and empowerment of women, and environmental sustainability.