Poverty alleviation- key plank of Mahinda Chinthana

Uditha Kumarasinghe

Programmes focused on the eradication of poverty have been in the agenda of all successive Governments since independence. But they have not been able to bring about a substantial reduction in poverty.

In order to provide a lasting solution to this problem, the present UPFA Government under the leadership of President Mahinda Rajapaksa has made a concerted effort to alleviate poverty by bringing the subjects of Samurdhi and poverty alleviation under the purview of the Nation Building Ministry.

In addition, the Sri Lanka Samurdhi Authority (SLSA) was established as the key state mechanism to implement the poverty alleviation programmes of the Samurdhi movement.

The implementation of Samurdhi programme has made a direct impact on reducing poverty. At the inception of the Samurdhi movement, the country’s poverty level was 28.6 percent in 1993.

This percentage had been reduced to 15.2 percent by the end of 2007 due to the successful poverty alleviation mechanism launched by the Samurdhi movement.A large number of Samurdhi beneficiary families who have been economically empowered owing to various livelihood development projects introduced by the SLSA have returned their Samurdhi subsidy to the Government.

The number of Samurdhi beneficiary families has decreased as they have been able to stand on their own feet due to the assistance provided by the Samurdhi movement. President Rajapaksa, as pledged in his “Mahinda Chinthana manifesto”, took immediate measures to increase the existing Samurdhi subsidy by 50 percent in December 2005.

This was the maiden pledge fulfilled by Mahinda Chinthana. In addition, the Samurdhi Commissioner General’s Department has implemented a program to provide scholarships to the children of Samurdhi beneficiary families to conduct their education without any hindrance. It was also the present UPFA Government which increased the amount of money granted to the children under this scholarship scheme in accordance with Mahinda Chinthana.

The Government through 1,043 Samurdhi Banks established throughout the country has formed an effective network to cater to the needs of the poor.

Since the establishment of Samurdhi Banks, they have granted credit facilities to a large number of Samurdhi beneficiaries to overcome their socio-economic hardships and commence various income generation projects. This has contributed to a very great extent in reducing the rate of poverty among poor. The network created by the Samurdhi movement to alleviate poverty is a new example to the entire world.

The Samurdhi programme has achieved steady progress during the past few years. Nearly 1.7 million low income families are being given the Samurdhi subsidy. The amount of Samurdhi subsidy granted is different based on the economic condition and the number of members in a given Samurdhi beneficiary family.

Through various income generation programmes and credit facilities granted by Samurdhi banks, the Samurdhi movement has provided a helping hand to Samurdhi beneficiaries to alleviate poverty. The Samurdhi programme has graduated to a movement that has won the hearts of the poor all over the country.

Samurdhi banks are the only banks which provide loans to the poor based purely on mutual trust for their economic empowerment. They have never been given a loan by any bank. Therefore, the provision of loans to poor for their economic upliftment based on mutual trust is a great success achieved by the Samurdhi banks.

On the directive of the President, Samurdhi banks have also reduced their interest rates. The 18 percent interest rate of the loan granted on self employment, animal husbandry, fisheries and other cultivation purposes has been reduced to 12 percent while the 12 percent interest rate of the “Mihi Jaya” credit facility granted only to samurdhi beneficiaries has been reduced to 8 percent with effect from November 3, 2009.

Under the Samurdhi programme, a large number of rural youth have been provided employment in 1043 Samurdhi Bank Societies throughout the country. They are working as Samurdhi Development Officers and Samurdhi Managers attached to these Samurdhi banks with the sole intention of guiding the poor towards prosperity.

Poverty alleviation should essentially be a movement in which the people’s potential should be developed and channelled into the mainstream of development. Welfare, rural development and social mobilisation were the basis on which the Samurdhi programme was launched as a key mechanism to alleviate poverty.

Providing integral support to Mahinda Chintana, the Jathika Saviya Gama Neguma program has been launched by the SLSA. Under this program, the SLSA has been entrusted with the task of developing 3,060 villages as Model Villages.

The Jathika Saviya Gama Neguma program has made financial allocations to develop infrastructure facilities of identified villages throughout the country. The Samurdhi movement has implemented 16,172 industrial projects, 17365 animal husbandry and fisheries projects, 12859 agricultural projects and 9642 marketing sector projects.

Under the President’s guidance, the Samurdhi Movement will continue its mission until poverty is eradicated from Sri Lanka.