* REPORT : 37

Progress Report of
Women’s Development Bank Federation (WDBF)

At this moment of celebrating the 2nd Anniversary of the Women’s Development banks Federation, please permit us to explain to you our road map to progress as the poor women in Sri Lanka.

We had the problem of finding out even RS. 50/- or RS. 100 to meet an emergency financial requirement. It was a big problem for us. It was women in poor families who suffered a lot because of this incapacity. We came across the Jana Rukula, when we were under this predicament. We join with the Jana Rukula to mobilize ourselves into small Women’s Groups.

Women’s Groups are solidarity groups of 5 to 10 poor women living in close proximity. These groups meet once a week at a specific time on a specific day at one of the member’s house. All members should attend this meeting and bring RS. 5/- as their weekly compulsory savings.

We use this weekly compulsory savings to provide small loans to the most needy members to meet their emergencies. In addition to this compulsory savings, we could develop other savings programs also. Members cultivated their habit of settling their loans duly. In case if a member could not settle her loan in time, others got together to help her.

Group mechanism could build solidarity among members. All members became real friends in need. Groups became an open forum for us to discuss our problems, our weaknesses, our opportunities and also our strengths as solidarity groups. This process helped us to build well-disciplined and well punctual groups. The groups that were built in 1991 meet sharp at time even today.

Groups of 5 to 10 Women had the capacity only to meet the very small loans. We wanted to create a better mechanism to meet our bigger loan requirement.

Jana Rukula helped us to bring number of groups together and federate them into one large solidarity group. This large solidarity group is called a primary branch. Its area of operation consists of one or two Grama Seva Divisions (Smallest administrative unit in Sri Lanka). All group members became the members of the Primary Branch. Once a month Primary Branch should hold a General Meeting. Group Leaders also should meet once a month. The management committee of the Primary Branch consists of the members elected from among the group leaders.


The Primary Branches mobilized savings of members in to various categories of savings accounts. They also have non – member savings accounts. Savings are used to provide credit to members. The initial loan given to a member is RS. 500/-. It has now graduated to a maximum loan of RS. 75,000/-. All loans are backed only by the group security. No other collateral or security is required for a loan from a Primary Branch.

This program now operates in 08 districts in Sri Lanka through Primary Branches. More than 20,000 households have obtained membership in this program through 3200 groups.

How this membership is distributed is shown in the following table.

Serial No
Field
No.of Primary Branches
01
Rural
41
02
Semi- Urban
20
03
Urban
07
04
Flat
01
05
Estates
02

Total
71

As at June 30, 2003, the cumulative value of savings that have been mobilized by these Primary Branches was RS. 20..153M. How these savings have been mobilized from 1994 to 2003 is explained below:


Year
value of savings (SLR.M)
01
1994
0.254
02
1995
0.661
03
1996
1.465
04
1997
2.761
05
1998
5.292
06
1999
7.062
07
2000
9.383
08
2001
13.323
09
2002
17.520
10
2003
20.153


Using this deposit base these Primary Branches have provided loans to the value of Rupees 105.169M

Year
Loans granted (SLR. M)
Recoveries
(SLR. M)
1994
1.371
0.986
1995
3.798
2.942
1996
3.984
3.020
1997
6.299
4.713
1998
9.344
6.938
1999
22.316
17.617
2000
40.332
31.491
2001
62.378
48.851
2002
96.079
70.483
2003
105.169
81.630



Although the program was implemented at primary branch level we continuously met at district level to exchange our views and learn lessons from the experiences of the others. This helped us to strengthen our groups and Primary Branches. Based on these experiences as our next phase we promoted district societies and registered them under the co-operative law. If any district had 5 or more bank branches a district co-operative society was promoted for that district. Accordingly 3 district societies were registered for Gampaha, Kurunegala and N’ Eliya districts.

The experiences gained through the District Societies paved the way for promotion of Women’s Development Bank Federation (WDBF) on February 10, 1998.

Through the support received from Mr. Jan Meeuwissen , Senior Human Settlements Adviser, of the United Nations Centre for Human Settlements (Habitat) and Mr. Peter Swan under the Community Development Program of Asia Head Quarters of the Women’s Development Banks Federation was opened at Gampaha on April 09, 1998.

With the promotion of the Women’s Development Bank Federation, the extension of district development programs to other districts was activated. This necessitated the policy and program development for the Women’s Development Bank Federation. As a result the first National Work shop was held on December 13, 1998 at Yakkala. At this Workshop several proposals were emerged as a road map for progress of the Women’s Development Bank Federation. One of the important out come of these proposals was the first National Congress held on June 06, 1999 as the Royal College Nawa Ranga Hala. About 2500 members participated for this National Congress. The following are some of the large number of distinguished visitors attended this National Congress.

1. Hon. Susil Prema Jayantha - Chief Minister - Western Provincial
Council

2. Professor Sirisena Thilakaratne

3. Mr. Susil Siriwardene – Former Janasaviya Commissioner

4. Mr. Lionel Samarasinghe – Hon. President Sri Lanka National Co-operative Federation

5. Mr. A. Jockin - Hon. President – Slum Dwellss Association
of India

6. Mr. Upali Sumithra - Promoter of the Women’s
Development Bank Federation
7. Mr Thomas kerr - Asian coalition for Housing Right in Bangkok


After this National Congress, the Women’s Development Federation could join hands with the Slum Dwellers International. This helped the WDBF to build up a dialogue and exchange experiences in the field of Community Development within the Asian Region. It also could build a partnership with the National Development Trust Fund.

The National Council of the (WDBF) consists of the representatives from districts. National congress meets once in three months to decide on policies and take strategic decisions.

Women’s Development Bank Federation Commenced as a rural level micro financing program. It was a valid answer for the rural indebtedness. It helped to get the mortgaged paddy land released and allow the farmer to keep her land to herself without any encumbrance. Women’s Development Bank Federation provided her financial needs without asking for any collateral or security. Equipped with the experience it gained from the rural financing program, (WDBF) is now reaching the urban poor also. Accordingly the groups and Primary Bank Branches promoted within Colombo, Kurunegala, Kandy Municipal Council areas and Gampaha urban Council area are satisfactorily progressing. With these urban programs, the scope of the Women’s Development Bank Federation expanded considerably. From exclusive micro credit activities it had to step into a Comprehensive Community Development Program covering the following programs of work.


1. Savings and Credit Program

2. Housing Development Fund ,

3. Surakshi Social Security Program

3. Training and Extension program

4. Children Societies Program


THRIFT AND CREDIT PROGRAMMS

Deposits

The primary branches operate the following saving schemes.

? Shares
? Compulsory Savings
? Children’s Savings
? Non – member Savings
? Special Savings


“Ran Diyaniya” deposit scheme is a special savings scheme. This is open only for young women over 16 years. Ran Diyaniya deposit holders are entitled for the following loan schemes.

? Educational Loans
? Income Generation Loans
? Loans to purchase, Jewellary


Total loans granted under this scheme for income generating activities has exceeded RS. 38 Million. Number of families so far benefited under this income generating programs is about 1200. Forty Six percent of these loans have been given as agricultural credits to the farmer members in Walapane, Hanguranketha, Nikaweratiya, Dambulla and Anuradhapura areas.

In order to make the Agricultural Credit Program more effective Farmers Associations were promoted as affiliates to the Women’s Development Bank Federation. The leaders of these Farmer Associations are the husbands of WDBF members. The main objective of these Farmer Associations is to improve the agricultural productivity and enhance the income of farmers. They carry on the following activities.

? Exchange experiences and information with the officers of area Agricultural Department Offices and conduct training programs.

? Organized buying of agricultural inputs

? Arrange marketing for agricultural out – puts

Dambulla Farmers Association has proved the effectiveness of this program by obtaining a satisfactory income from their Onion cultivation. Nikaweratiya Farmers Association is adopting cost savings measures under the technical assistance received from the Agricultural Department. Haguranketha Farmers Association is taking action to inspect the fertility of soil before commencing their Yala cultivation activities.

WBDF could obtain a low interest loan of RS. 5.5 million for cultivation loans from NDTF.


HOUSING DEVELOPMETN FUND

Housing Development Fund was commenced targeting urban communities. Accordingly land ownership problems in the communities that WDBF operates within Kurunegala and Colombo Municipal areas have been discussed. Amman Kovil Mawatha (Elugala) and Wilgoda within Kurunegala Municipal council area and 318 Wattha in Colombo Municipal Council area are the settlements that have been taken for these discussions WDBF and Jana Rukula in partnership with the National Housing Development Authority (NHDA) and Kurunegala Municipal Council could progress this activity up to the point of the land survey for the purpose of Land allotment.





TOILET PROJECT

Most of houses of WDBF members do not have toilets. Therefore the necessity has arisen to promote this most important sanitary requirement as a loan scheme. This loan scheme is different from other loan schemes because these borrowers were allowed to determine the loan repayment installments according to their abilities.

Program was implemented by the Primary Branch in partnership with Grame Seva Office (Village level Government Office) , Public Health Inspector and the Technical Officer of the Local Authority.

How this loan scheme has been provided is explained in the following table

Serial No.
Area
No. of Toilets
Loan Amount
RS.
01
Kurunegala
112
1382296.00
02
Nuwara Eliya
67
831300.00
03
Anuradh pura
37
362028.00
04
Gampaha
24
409280.00
05
Dambulla
06
60000.00
06
Colombo
03
30000.00

Total
249
3074904.00


DAILY SAVINGS AND LOAN PROGRAMS

In urban areas where the Housing Development Fund activities are operated, the poor members are engaged in income generating activities for which they need funds on daily basis. This position was reviewed at group discussions and decided to commence a day banking program. This program is now in operating in Suhada Mawatha in Gampaha urban areas and Gattuwana settlement in Kurunegala Municipal Council area.

SURAKSHI RAKSANA PROGRAME

As the focus of our program was Thrift and Credit, even in case of a distress we had no relief program other than extending credit. However a welfare program was operating at Primary Branch level. It was only a death donation scheme. To fill this gap on January 01 2001 , an Insurance Program under the name of “ Surakshi ” was launched targeting the entire membership.
This a program to provide relief for deaths, hospitalizations surgeries, natural disasters, childbirth and higher education etc.

Surakshi Benefits

Year
Hospital Charges
Surgeries
Death Donations
Marriages
Child Birth
National Disasters
Total
2001
24580

113900
2700
5550
2000
148730.00
2002
40280

190750
23500
8890
1200
264620.00
2003.6.30
36165
7000
142500
33600
6410
20775
246450.00
Total
101025
7000
447150
59800
20850
23975
659800.00
Members Contribution to Surakshi

Year
Amount
2001
231958.29
2002
414175.00
2003
532675.00
Total
1178808.29

TRAINING PROGRAM

Training Program
No. of
Participants
Kurunegala
NuwaraEliya
Gampaha/
Colombo
Anuradha/
Puttalam
Kandy/
Matale
1.Management and Administration Training for management Committees of Primary Branches.
26
233
103
95
38
-
2. Leadership Training
31
160
102
159
35
-
3. Accounting Training
38
211
118
94
34
20
4. Awareness training about policies and programs of WDBF for members
17
460
72
129
72
18
5. District Leaders Training
15
48
39
28
12
-
6. Awareness training on Surakshi Program
41
516
364
316
137
62
7. Human Rights Program
22
75
85
69
30
-
8. Program targeting Income Generation
20
104
116
63
-
-
9. Agricultural Program for members of Farmer Associations
12
63
79
-
19
20
10. Training for Children Society members
41
51
42
22
10
-
11. Exchange of experience in Foreign countries
06
4
4
3
1
-


These programs could conducted with the support of primary Branches, District Societies and Centers. The support received from Canada Development Fund and National Development Trust Fund to make these programs a success also have to specially mentioned here.

EXTENTION PROGRAM

Extension and Replication of the WDBF takes place through its members. Groups and Primary Branches are promoted due to the enthusiasm created when experiences are exchanged.

When we reach the urban programs the methodology used for extension has to be changed. For this purpose we had to seek the support of the Municipal Councils. To implement the extension program at District No. 01 area of Colombo Municipal Council we received the support of the Medical Officer, Assistant Education Officer and Health Advisors of the District No. 01 Office.

We were entrusted the task of upgrading the socio – economic status of the community in Heen Ela area under District No. 01 of the Colombo Municipal Council area by the Colombo Municipal Council Partnership Promotion Program coming under the Chairmanship of the Honorable Mayor.

Program within Kurunegala Municipal Council was implemented with support of the Hon. Mayor Kurunegala MC. For the implementation of the extension program within Kandy Municipal Council are we receive the
guidance of the Deputy Mayor.


Year
No : of Primary Branches
1993
04
1994
04
1995
04
1996
05
1997
08
1998
14
1999
22
2000
40
2001
42
2002
55
2003
71



CHILDREN SOCIETIES PROGRAM

Children Societies are the Association of the Children under the age of 15 of the members of the WDBF. The objective of these societies is to promote cultural education, moral and social awareness among the members. To achieve this objective, workshops, seminars, literacy competition, education tours are organized and implemented.

Among the many that we have to thank for our progress up to this 2nd National Congress the following are only a selected few.

1. Hon. Mayor, hon. members and Officers of Colombo Municipal Council.

2. Hon. Mayor and Officers of the Kurunegala Municipal Council.

3. Hon. Deputy Mayor and officers of the Kandy Municipal Council.

4. Hon. Junston Frnando, Minister of Youth Affairs and Sports who gave us the full support to get to Sugathadasa Stadium to hold the National Congress.

5. Hon. Susil Preme Jayantha - MP

6. Major General Sarath Munasinghe – Chairman - NHDA

7. Mr. Susil Siriwardena - Former Janasaviya Commission

8. Mr. Lionel Samarasighe - Hon. President Sri Lanka National Cooperation Federation

9 Mr. Jockin Arputham - President Federation of Slum Dwellers in India

10 Fr.Jorge Anzorena,SJ - SELAVIP

Mrs Murin Fernando , Chairperson of Women’s Development Banks Federation.

Minister of Agriculture Livestock and Samurdhi (Poverty Alleviation Program in Sri Lanka .) The Hon . S.B. Disanayake

Sri Lankan Women from this country’s low income communities turned a New Page in their Activity for Development.


On the 9th of November 2003 more than seven thousand women from the rural and urban areas of eight districts came together at the Sugathadasa Indoor Stadium to unite and participate in the 2nd national rally of the Sri Lanka women’s Development Bank Federation.

In the recent past months the members were expectantly preparing and gearing up for this rally because it was for them an occasion to get to know their sister members from around the country and also as importantly to see for themselves the strength of their unity. Therefore they ensured beforehand putting together everything such as food , drink, conveyance , and vehicles , leaving nothing to chance which would have prevented their total participation.

Further too, the members irrespective of the distances they had to travel ensured that they were at the venue and they settled down in the auditorium to start the rally sharp at nine a.m. This disciplined behavior emphasized their commitment and dedication to the proper operation of their organization. The special invitees on this occasion were taken aback by their punctual and disciplined behavior.

The Minister of Agriculture and Livestock , the Hon S.B. Dissanayake in the course of his address to the gathering said .``The poor mothers of this country having heard and learnt of the Women’s Development Banks Federation have voluntarily opted to adapt and conform to this new way of life . In like manner we see that these Women’s Development Banks Federation consisting of the poor themselves, through discussion among themselves discovered their problems and formulated ways and means to develop themselves through their own efforts. It is clear to us that you have the required good discipline, organization capability and the strength to achieve success.”
Continuing his address the Hon Minister further said ;“ There is a wide gap between the government and the non government organization community development programs. In order to reduce this gap what is needed is the genuine participatory linking between the two which your organization can provide and for this purpose. This rally will be a refreshing step and a new page in developmental history.”


The report of progress presented at the rally clearly showed agreement with the Hon. Minister’s remark regarding the gap between the government and the non government organizations in development and poverty alleviation programs , and the report emphasized the need to close this gap.

The Women’s’ Development banks Federation with sponsorship from SELAVIP has built up a housing development Fund . The aim of this program is to solve the problems of house toilet and domestic water supply . Through the organization of the essentialities, the toilets for the home project is actively operated by the Women’ Development Banks Federation local area branch unit. The branch committee consults and involves the Grama Sevaka Niladhari ( The government local level authority ) the Public Health Inspectors , the area Technical officers and other local authorities and operatives whose advice and approval was needed in carrying out these works. The local health authorities in these areas have pointed out to us that the government programs of work for toilet construction was not successful. The lesson we have learnt from our experience is that such projects to be successful, had to be originated by the target community and had to be planned , decided on and entirely executed by the target persons themselves without outside interference .But this did not exclude necessary expert advice.

During this rally the above experience was emphasized again by his Worship the Mayor of Colombo Hon . Prassana Goonewardene who in the course of his speech declared ; “The Women’s Development Banks Federation is an instrument of great strength to the Colombo Municipal council because of such organizations , it is convenient and relatively easy to successfully implement our community development programs .” His Worship further went on to say that in the Colombo city streams and canals were being polluted with garbage thrown by those living on their banks . “ We have solicited and obtained the collaboration of the Women’s Development Banks’ Federation,’ he said “along with the Jana Rukula to organize these communities to cooperate with us to work to keep these water ways clean through genuine people’s programs”. In this regard the Municipality proposes to provide the necessary capital and other support required in implementing this program.

Mrs. Murin Fernando the President of the Women’s Development Banks Federation addressing the gathering said ;``It is not only in Colombo but in most urban areas people live on the banks of streams , drains and gullies and areas adjacent to the rail track .Our members are domiciled in many of these settlements.. They are organized and animated to develop the habit of saving and thrift and develop a disciplined credit operation . With this experience behind them , it was not difficult for the Federation to form groups who were guided to realize that to improve their living standards a basic requirement was a clean environment surrounding their homes , streams ,drains and other water ways inclusive of the railway lines reservation which had to be kept clean too.” She further stated ` We have through our savings and credit exercise found a way to overcome the major endemic problem of indebtedness among our rural community members who are from farmer families . This is a good example of our functioning, Most of the poor farmers have mortgaged and taken loans with their plots of land as collateral. Failure to repay the borrowed money was mostly due to unduly high interest rates . Our members with encouragement and intervention from the Federation decided and went into positive planned action and systematically redeemed most of these lands which had been in bond.. While working in the urban communities we realized that here too endemic indebtedness existed because poor families had to earn to support their families in an unstable economic system due to the lack of legal systems to cover their small scale operations of trading and production . As such they were not credit worthy and had no access to traditional Banks or legalized credit institutions and were forced to obtain their capital from money lenders who charged an exorbitant interest. Having studied this problem and considered possible alternatives the Women’s Development Banks Federation planned out a strategy and is implementing a financial program for small scale traders and producers in the urban areas of Colombo , Gampaha and Kurunegala. This program is named the ‘ Daily Credit Program’ and is found to be a viable solution to their credit problems and a timely escape from unscrupulous money lenders.’ Responding to the Hon. Minister of Agriculture's remark she agreed with him concerning the gap between the government and non government initiatives and programs specially for farmers “Nonetheless,” she said “ We must find a way to bridge such gaps . Our Women’s Development Banks Federation has experiences to fall back on, as regards to gathering and mobilizing communities and building strong organizations . We also have financial deposits amounting to many millions of rupees . As an organization which has developed itself to what it is today we venture to propose that in order to alleviate poverty particularly in the urban settlements where there is the largest numbers of the poorest families, to set up a Fund to promote effectively poverty alleviation. It is best if this Fund be administered by a Partnership Board comprising of representatives of the Central government and the local government and the target people represented by their Non Governmental organization representatives. For such a venture the Women’s Development Banks Federation are ready to function as pioneers ``. In conclusion she reiterated ;``The Federation is firmly committed to work to alleviate poverty in both the rural and urban sectors by organizing the poor to unite for this purpose .We will provide the needed strength and drive required . In taking this Movement forward we are ready to face up to any challenges that may come up`` She pledged `’The Women’s Development Banks Federation will provide the leadership for all the poor women of Sri Lanka to unite to alleviate their poverty and