The People’s Planning Movement in Kerala played a significant role in laying the groundwork for the idea of fostering self-supporting women’s groups as a means to eradicate poverty. This movement gained momentum in 1998 when the State Poverty Eradication Mission was launched under the leadership of E.K. Nayanar’s government. The primary objective of this mission was to empower poor women financially and socially. It was subsequently renamed the Kudumbashree Mission and began operating under the local self-government department.
However, the mission encompassed more than just scaling up an experiment with thrift and credit societies, which were small community-based self-help groups of women initially implemented in Alappuzha and Malappuram districts. These societies established an informal banking system with microfinancing at its core. The involvement of the National Bank for Agriculture and Rural Development (NABARD) provided a significant boost to this initiative, encouraging other financial institutions to follow suit. This support from NABARD opened doors for the expansion of the microfinance sector in Kerala.
Kudumbashree’s structure was designed as a three-tier system, starting with neighborhood groups known as Ayalkoottams. These Ayalkoottams consisted of 10 to 20 women from different families within a locality. They formed the foundation of the Kudumbashree movement, enabling women to come together, support one another, and collectively address their financial and social challenges. These neighborhood groups would then unite to form community development societies at the local body level, which served as the top layer of the Kudumbashree structure. This hierarchical setup allowed Kudumbashree to operate with a degree of autonomy while collaborating with local government bodies.
Kudumbashree’s success lay in its multifaceted approach to poverty eradication. It recognized that poverty is not merely a lack of income but a complex issue involving social exclusion and limited access to resources. The mission aimed to address these challenges by providing financial assistance, skill development training, and social support networks for women. By focusing on women’s empowerment, Kudumbashree sought to break the cycle of poverty and uplift entire communities.
The financial aspect of Kudumbashree played a crucial role in transforming the lives of its participants. Through microfinancing, women were able to access small loans to start or expand their businesses, enhancing their economic independence. Additionally, the mission facilitated the establishment of thrift and credit societies, enabling women to save money and access affordable credit within their communities. This informal banking system proved to be a lifeline for many impoverished women, granting them greater control over their financial lives.
Moreover, Kudumbashree’s emphasis on skill development helped women acquire new competencies and expand their employment opportunities. The mission organized various training programs, ranging from vocational skills to entrepreneurship, enabling women to secure stable incomes and improve their livelihoods. By equipping women with the necessary skills, Kudumbashree aimed to create a sustainable pathway out of poverty.
The social support networks fostered by Kudumbashree were equally instrumental in transforming the lives of women in Kerala. Through Ayalkoottams and community development societies, women found solidarity, camaraderie, and a platform to voice their concerns. These networks served as a space for women to share experiences, exchange knowledge, and collectively address social issues. Kudumbashree also facilitated the formation of interest-based groups, such as those focused on health, education, or agriculture, further enhancing the well-being of its participants.
Over the years, Kudumbashree has emerged as a model for poverty eradication and women’s empowerment not just within Kerala but also globally. Its success has inspired similar initiatives in other parts of India and even in other countries. By recognizing the potential of women’s collective action and providing them with the necessary resources and support, Kudumbashree has demonstrated that empowering women is a powerful tool for creating positive social change and combating poverty.