Self help group, a model to drive GDP in the East

The International Organisation for Migration (IOM) together with its funding partners have launched a unique project called formation of Village Livelihood Groups branded 'Self Help Group' model in Trincomalee and Batticaloa, based on a model which achieved self-sustainability and reduced poverty and dependency levels in the Batticaloa and Mullaitivu districts earlier, by creating opportunities for households with limited economic means to engage in income generation, savings, reinvestments and livelihood expansion.

The project engages the community through enhancement of business knowledge, skills and attitude. As many families are engaged in seasonal work such as fishing and fish processing or agriculture, the aim is to encourage women to start alternative small businesses or self-employment ventures using a part of their own home savings - however small.

With an increased range of income generation activities, families are better able to support themselves year-round even during the off season and thus boost the overall income.

The Village Livelihood Groups are not necessarily officially registered groups but strongly bound together by a shared vision and attitude towards economic, social, and skill development. Each VLG has a unique constitution developed by members, separate bank accounts in the name of the VLG and mutually agreed strict rules such as compulsory weekly meetings, weekly rotation of group leaders and meeting places and compulsory weekly savings.

The VLGs also grants three different loans: emergency, short term and long term business loans to their members. Similarly, the VLGs have a "Group Risk Fund" which is a savings plan similar to a micro-insurance which compensates members during times of an unexpected loss.

The VLGs play a key role in village development. Then also engage in volunteer work and social activities such as shramadanas to clear and clean common areas, run pre-schools and support child education and health and nutrition related activities.