Why is there a need to organize women into self-help groups?

Many rural women in this area are landless laborers and are economically very poor; most of them are illiterates/semi-literates. These women can be organized into self-help groups. The goal of this program is to promote savings- and credit activities, and to promote employment of these women into production units. This will lead to a strong and permanent improvement of their socio-economic conditions in a number of ways:

• Initiation of savings and credit activities, and promotion of income generating programs in these self-help groups will bring more economic development and independence to these women and their families. Because of the better welfare of these families, more children will be able to attend school instead of being forced into agricultural child labor.
• For the first time in their life, these disadvantaged rural women become organized into groups. The formation of these self-help groups will facilitate discussion of many issues pertaining to their socio-economic, educational and health status. Thus, the formation of this group provides a forum to initiate many participatory activities (including training and awareness camps).
• This process will also lead to increased confidence in these women, and will help them to gain decision-making status in their society. This will encourage these women to participate and contribute in general social and political matters in their respective villages, including women's rights.

Thus, the long-term accomplishments of this program will extend far into the future.

What does this process involve?

• First of all, the READ staff explains to these women the concept of self-help groups, by personal interactions and group meetings. Selected representatives from other agencies are usually invited to attend these group meetings to provide additional information. These women groups are given an understanding of the concept of savings and credit activities, and they are provided with the basic materials (account books, pens, etc.). For each group, a president, treasurer and secretary are chosen, and these 3 women receive extra training in their duties and responsibilities.
• Every 2 or 4 weeks, these groups meet to discuss their ongoing activities and to collect or distribute the money of their savings and credit activities. At these meetings, a SOLS staff member is then present to supervise and guide them, which is especially important because many women are illiterate, and they need to be explained more than once how the activities are being done. The SOLS staff also provides assistance to these groups to open a bank account to keep their money. In addition, SOLS negotiates with banks, merchants etc., to start production units in these women groups and find a market for their products.

How successful has this program been so far?

• In 2004 SOLS was the first organization in its area to introduce the concept of women self-help groups, and 5 women self-help groups were formed. Since then, the program has been very successful, and SOLS has presently organized more than 1000 women self-help groups in a more than 108 villages in Wallajabad block, and Kancheepuram District. Each group has approximately 15-20 women.
• For the first 5 groups that SOLS has formed, SOLS was able to mobilize a revolving fund from the DWCRA ( Global Initiative Inc, USA, and American Evangelical Christian Churches – Indiana, USA) agency, for a total amount of 600 US dollars per group to expand the credit activities which they had already formed from their own savings. Thanks to this program, a total of 57 women has received credit to develop economic activities; the money is being used for a variety of purposes, such as the purchase of bullocks, sheep, poultry, goats and sewing machines. The women repay the money in monthly installments with interest, so that the money in the revolving fund can be used continuously.