Samurdhi: A people's movement for self-reliance

by Uditha Kumarasinghe

In order to provide a lasting solution to the problem of poverty, People's Alliance Government that came to power in 1994, made a concerted effort to alleviate poverty by introducing the Samurdhi movement and establishing a separate Ministry called Samurdhi. In addition, the Sri Lanka Samurdhi Authority (SLSA) was established in 1996 as the state mechanism to implement the poverty alleviation programmes of the Samurdhi movement.

Samurdhi and Poverty Alleviation Minister Pavithra Wanniarachchi in an interview with the Daily News said since its inception, the Samurdhi movement formed on a concept of President Chandrika Bandaranaike Kumaratunga has played a leading role to alleviate poverty and uplift the socio-economic conditions of a large number of the country's deserving poor.

Through the Samurdhi Banks, the Samurdhi movement has formed an effective network to cater to the needs of the poor. No Government in the world has established this kind of key network to deal with poverty covering the entire country. Therefore, the network created by the Samurdhi movement to alleviate poverty is a new example to the entire world.

The implementation of Samurdhi programme has made a direct impact to reduce poverty in the country.

In a world where poverty is increasing, in Sri Lanka we have noticed the beginning of a reverse trend which is quite encouraging and satisfying, the Minister said.

Today the Samurdhi programme has turned into a movement which unites the poor who have been living divided and in disunity by organising them as a single entity determined to develop their own capabilities while exploring their hidden and dormant strength, she said.

During this period the Samurdhi programme has achieved steady progress. Nearly 1.8 million low income families are being given Samurdhi subsidy. Through various income generation programmes introduced and credit facilities granted by Samurdhi banks, the Samurdhi movement has provided a helping hand to Samurdhi beneficiaries towards their attempts made to alleviate poverty.

The Samurdhi programme has guided the poor to stand on their own feet by creating close coordination among them. Within a short period, the Samurdhi programme has graduated to a movement that won the hearts of the poor all over the country, she said.

At present, 1,035 Samurdhi banks have been set up throughout the country including North-East areas. Under various loan schemes, Samurdhi banks have granted millions worth of credit facilities to Samurdhi beneficiaries to overcome their financial hardships and commence various income generation projects. This has contributed to a very great extent in reducing the rate of poverty despite adverse factors like soaring oil prices and appreciation of the dollar leaving behind a trail of disadvantages, especially to the poor.

Over 2.1 million have already obtained the membership of Samurdhi banks. A special feature is that nearly 62 per cent of these members are women. Compared to other banks, Samurdhi banks are the only banking network in the country which provides loans to the poor based purely on mutual trust for their economic empowerment.

Due to their poverty, these poor segments have never been given a loan by any bank. Therefore provision of loans to poor for their economic uplift based on their mutual trust is a great success achieved by the Samurdhi banks. In addition, the Samurdhi banks have also recorded a total number of Rs.13 billion in deposits.

Under the Samurdhi programme, a large number of rural youth have been provided employment in 1,035 Samurdhi Bank Societies set up throughout the country. At present, 24,750 Samurdhi Development Officers and 2,100 Samurdhi Managers are working at these Samurdhi banks with the sole intention of guiding the poor to get out of their poverty trap.

All the Samurdhi managers working in the Samurdhi banks are graduates. In addition, a large number of youth have also been involved in various self employment ventures within the Samurdhi movement. Samurdhi has made a direct impact to minimise unemployment particularly among rural youth.

Samurdhi has also introduced a Social Security Network funded by a monthly saving of Rs.30 by each recipient of their monthly Samurdhi subsidy. Under this insurance scheme, each Samurdhi beneficiary family is entitled to a donation of Rs.5000 for a funeral, Rs.3000 for a wedding, Rs.2000 for a child birth and Rs.1500 for hospitalisation.

Poverty alleviation should essentially be a movement in which the peoples' potential should be developed and channelled into the mainstream of the development process. Three major development approaches namely welfare, rural development and social mobilisation were the basis on which the Samurdhi programme was launched as a key mechanism to alleviate poverty.

In order to empower the low income groups, an attitudinal change should be introduced among the Samurdhi Development Officers to shed the mentality of merely functioning as Government officials.

Meanwhile providing integral support to President Chandrika Bandaranaike Kumaratunga's "Sanwardhana Sangramaya" development drive, Suwahas Jana Pubuduwa was launched by Samurdhi Ministry last year as an ambitious programme aimed at uplifting the socio-economic conditions of low income groups.

Suwahas Jana Pubuduwa launched on the directive of President Kumaratunga contains a two pronged strategy under projects titled "Jana Pubuduwa" and "Gam Pubuduwa."

Jana Pubuduwa has earmarked 100,000 income generating projects to improve the income level of 100,000 Samurdhi beneficiary families while Gam Pubuduwa has targeted the development of the infrastructure facilities of 13,000 identified villages throughout the country by the end of this year.

Of them, Jana Pubuduwa has already granted credit facilities to 84,000 Samurdhi beneficiaries to commence various income generating projects while 11,700 infrastructure projects have already been completed under the Gam Pubuduwa.

Jana Pubuduwa provides the opportunity to Samurdhi beneficiary families to be gainfully self employed in the areas of agriculture, industries, animal husbandry, fisheries, sales or any support service. Samurdhi Bank Societies provides the necessary financial assistance to commence these projects.

The Samurdhi movement has taken immediate measures to provide a lasting solution to the problem of shelter of the low income families who are without any form of shelter at present. The Sri Lanka Samurdhi Authority (SLSA) has implemented a special housing project named `Diriya Piyasa' to overcome the shelter problem of these poor families. Under the first stage of this housing project 5,000 houses will be constructed for 5,000 low income families selected at Divisional Secretariat Division level with a minimum of 15 families drawn from each Division.

The Minister said Samurdhi Development Officers as public servants play a more vital role to uplift the living conditions of the poor at each village.

At present the Samurdhi programme has turned into the country's poverty alleviation mechanism. Sajith Premadasa's statement on Samurdhi Development Officers has raised a question whether the UNP is attempting to give this Rs.13 billion saved by poor within Samurdhi banks to the billionaire private banks owned by their businessmen friends while destroying the Samurdhi Banking system.

Due to responsible role played to provide financial assistance to poor, Samurdhi banks have turned into the fourth biggest financial organisation in the world which provides small scale credit facilities to the poor. In addition, the Development Forum held in Kandy recently, the world community highly appreciated the Samurdhi programme as the Government's national poverty alleviation mechanism and extended their fullest support to develop the Samurdhi movement, she said.

The Samurdhi movement has transformed into a key facilitator which effectively brings the Government's programmes to village level.

In order to safeguard the Samurdhi movement and its banking system, thousands of Samurdhi beneficiary families at each district level will take to the streets to vehemently condemn Premadasa's statement made in the face of the UNP's defeat at the forthcoming Presidential Election. People in villages will never allow the UNP to touch the 24,750 Samurdhi Development Officers, she said.

"If the UNP has a honest intention to develop the Samurdhi movement, it would have pointed out the shortcomings of the Samurdhi movement since April last year ," she said.