Mobilisation of the Poor – a means to Poverty Reduction? - Sida

First, instead of a consistent progress or consistent decline, CAP activities in the two areas
experienced many ebbs and flows in the period under review.
Second, while CAP activities declined considerably because of shifts in management and the
termination of Sida funds in the 1990s, the programme was somewhat stabilised by 2001.
Third, this stabilisation may be at least partly attributable to the ability of the respective POs to
successfully secure funds from new donors, but this also reflects a degree of dynamism on the part of
PO leaders and a degree of success in retaining/building group funds in the interim period. Even
though one can argue that injection of external funds from time to time has been a key factor in the
resuscitation of the programme, this cannot be seen as the only factor in the persistence of the
group process. While many small groups have fallen by the wayside, some have remained resilient
so that the programme was able to bounce back once conditions became favorable. This in turn
makes it necessary for us to examine the small group process more closely.
The small group process
Some aspects of the actual operation of the small group process can be assessed by examining
actual cases of selected locations.
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Case 3: Example of a Successful CAP Small Group
The Peraliya Small Group was considered one of the more successful in Peraliya GS in the Hikkaduwa PO of
Galle District. This all-female small group consisted of 10 members. In the coastal village of Peraliya most
men were engaged in fishing while most women from poorer families were engaged in coir yarn making. The
group was formed in 1992 under the influence of a change agent from a nearby village.
One member of the group, Pathma, was considered its leader. Of the 10 women in the group, three were
related in some way. The others knew each other as neighbours. They were all engaged in coir work, a
cottage industry practiced exclusively by women. Asked why they came together as a group, Pathma
mentioned that relieving the credit burden of members and promoting social harmony and awareness among
women were the main objectives of the group process. Depending on patterns of mutual trust, the
participants voluntarily selected the groups they wanted to join. In the village of Peraliya, 105 women formed
13 small groups and three GS organisations. The local change agents spent a long time with each of the
groups to help them identify their common problems and jointly work towards their solutions.
At the beginning each member of the Peraliya group saved Rs.2 per week in the group fund. Later it rose to
Rs.5 per week and finally to Rs.10. In the early phase they also collected a measure of rice from each
member household every week to create a group fund to bulk buy rice for the group during the New Year
period, but by 2001 this practice of rice collection had stopped. The accumulated savings of the group as of
2001 was Rs.35,000. This accumulated group fund enhanced the sense of common interest and was often
mentioned as an index of solidarity within the group. The funds generated by the group had been used to
lend money to group members at the rate of 5 per cent interest per month, and to known outsiders at the
rate of 10 per cent interest per month. The members were paid 2 per cent interest per month for their
savings. The group leader maintained systematic records of savings, lending, interest payments and any
other financial operations. The group had paid membership fees of the local GS, and some members of the
group had saved money in the GS, but they had not borrowed any money from the GS or PO, opting to rely
on their own financial resources.
MOBILISATION OF THE POOR – A MEANS TO POVERTY REDUCTION – Sida EVALUATION 02/08