DECODING KERALA’S KUDUMBASHREE SCHEME: A STEP CLOSER TO INCLUSIVE DEVELOPMENT

“Diversity is being invited to the party; inclusion is being asked to dance”

-Verna Myers

As one of the world's most populous nations and a thriving democracy, India has consistently advocated for a bottom-up approach, prioritizing inclusive participation and development across all societal segments. This approach has eventually served as the foundation for the concept of ‘grassroots governance’, focusing on citizen’s participation at the local level, generating social benefits and paving the way for development, both for the individual as well as for the society.

In accordance with this phenomenon, it is essential to recognize that each district or village faces unique challenges, specifically in a nation which is as diverse as India. This approach advocates for tailored-solutions to address these specific issues. The Kudumbashree initiative is one such powerful example of a grassroots governance programme.

EVOLUTION

The institution is a registered society, under the Travancore Kochi Literary, Scientific and Charitable Societies Act (1955). It is officially known as the ‘State Poverty Eradication Mission’ (SPEM), which started in 1998 under the auspices of local self-government (LSG) institutions formed as a resultant effect of the 73rd and 74th constitutional amendments. In fact, it is a manifestation of the vision of the United Nations Sustainable Development Goals of ending poverty in all its forms and establishing gender equality by 2030.

The agenda of the initiative was to empower women, enable them to rise out of poverty, engage in economic activities, discover a sense of purpose, and secure stable livelihoods. The story of Kudumbashree can be traced to the time when people living in Alleppey and Malappuram were facing the problem of acute poverty. This was the time when multiple poverty eradication programs alongside community development societies were implemented and co-sponsored by the government of Kerala, municipal corporations, and a few national and international organizations like the United Nations Children Fund (UNICEF).

The initiative drew major inspiration from the idea of the scheme of Self Help groups (SHGs). SHGs mainly focus on the resurgence of the weaker sections of society in terms of outreach, social position, and sustainability. NABARD (National Bank of Agriculture and Rural Development) laid the foundation for the SHGs which eventually led to the Swarnajayanti Gram Swarozgar Yojana (SGSY). This initiative was further supplemented by the Government of Kerala by introducing the Kudumbashree scheme.

THE THREE TIER MODEL & ITS EXTENT

Now before delving into the organizational structure of Kudumbashree, it is necessary first to analyze the geographic division of the state of Kerala. The state has 14 districts, 27 revenue divisions, 75 taluks, 152 CD (community development) blocks, and 1453 revenue villages. Kudumbashree is a three tier structure, with Neighborhood Groups (NHGs) at the bottom, Area Development Societies (ADS) at the ward level, and then the Community Development Society (CDS) spanning across the territory. These organizations have observed rampant growth and as reported on 1 December, 2024 their numbers have extended to 3,17,724 (NHGs), 19,470 (ADS) and 1070 (CDS) respectively.

This structure focuses on area development (i.e ward wise) through thrift and credit societies, and at the same time they also provide money from their poolings and savings that help in emergency instances. Overall they focus on building a community that binds all the women of Kerala and forming small micro-enterprises that lift them from poverty and give them a better standard of lifestyle. As a result, the programme has turned out to be the one of the largest women collective in Asia with over 48.08 lakh female members. 

WHAT WENT RIGHT…& WHAT WENT WRONG?

The different units have promoted the engagement of women in diverse production processes like paper bag making, soap-making, catering services (this was especially seen during the recent 2024 national elections where the units provided food to the polling stations), dairy, ready-made garments, preparation of ethnic delicacies and courier services. These items can also be readily procured from the official website of Kudumbashree and even from e-commerce websites like Amazon. They have also started “Kudumbashree Budget Hotels” which serve meals at a meagre amount of Rs.20. This has resulted in establishing them as self-sufficient individuals and further contributing to the society, which is the heart of this initiative.

However, in the initial years Kudumbashree was criticized for further affirming the gender stereotypes in the context of the aforementioned activities. But in recent years, the scheme has encouraged women to participate in sectors like building homes (the state has 273 such form of construction groups), and working in all 24 stations of the Kochi Rail Metro. They have also extended to sectors like “Nano markets” which ensure the consistency of the consumer base for their products and “‘Annashree” which is a food delivery service. In fact, in 2021, 7071 people’s representatives to local bodies were from Kudumbashree units. Kudumbashree women are everywhere!

The initiative also emphasizes on other facets like sustainable panchayats, which would try to tackle the problems related to child development, education of mentally and physically challenged, palliative and geriatric care.

However, like every other scheme Kudumbashree scheme also faces several challenges. The first primary issue lies with the government’s decision to restrict its activities to women below the poverty line (BPL), thereby excluding educated and middle-class women and significantly limiting its reach. Other notable issues include a lack of management expertise, instances of social exclusion, overburdening, inadequate planning, poor coordination between panchayats and Kudumbashree units, and ineffective marketing strategies.

In addition to the aforementioned issues, there is also the issue of limited access to financial resources, which hampers micro-enterprises under the scheme. Many units struggle to secure adequate funding for their entrepreneurial ventures, restricting their ability to compete in the market. Additionally, these enterprises often lack technical expertise, face irregular supply chains for raw materials, and continue to operate along traditional lines. 

The Kudumbashree products also face stiff competition from well-established brands, which offer superior packaging and quality, making it harder for Kudumbashree units to establish a foothold. Despite the opportunities for collaboration between NGOs and political parties following the decentralization reforms under the 73rd and 74th Constitutional Amendments, pre-existing party-led political mobilization among weaker sections poses further complications. 

It should also be noted that ensuring consistent product quality and standardization across various Kudumbashree units remains a complex task. These standardization challenges often act as barriers to scaling up production and accessing broader markets effectively.

CONCLUSION

In the light of the issues mentioned earlier, it is necessary to accept that in some areas the scheme needs a major overhaul. The scheme is an effective facet which is leading the path to financial inclusion involving both tribal and non-tribal areas. But there is a dire need of reforms specifically in the context of implementation to ensure its survival.

In pursuance to these initiatives, the “National Multidimensional Poverty Index - A Progress Review 2023”, has released that the Kerala state has the lowest poverty rate in the country. The report also mentioned that an astounding number of  53,239 people were lifted out of multidimensional poverty over the years. These statistics reflect a more nuanced form of inclusion, even though it has its own mixed signals.

It needs to be realized that the scheme’s effectiveness in mobilizing the poor women by providing them with a shared community space has made it much easier for them to tackle their problems with the skills that they already have or that they can develop over the period. As a result, Kerala (God’s own country) has managed to attain a form of inclusive development which is unmatched in comparison to the rest of India.