Fighting poverty in Munnakkaraya Community-based organisation in Negombo wins global award
30 November 2013 08:49 am
The Munnakkaraya Cooperative Society in Negombo has been selected to receive this year’s Help for Self-Help global award, becoming the first Sri Lankan organisation to win such recognition.
The award is given every year by the Strømme Foundation of Norway to individuals or organisations that showcase a project that succeeds in fighting poverty.
It was presented in an awards ceremony in the town of Kristiansand, Norway, on 28 November 2013. Two people from the fisher community represented the cooperative society at this awards ceremony.
In their award citation, the selection committee says: “Munnakkaraya Thrift and Credit Cooperative Society receiving the award this year recognises an extraordinary civil society group that has empowered a community and lifted them out of poverty.”
The Munnakkaraya Cooperative Society was started in 1985 in Munnakkaraya in Negombo, a fishing village that is now home to around 8,500 people. Over the years, it has empowered and lifted them out of dire poverty. This project was initiated and funded by Stromme Foundation and implemented with assistance from Mary’s Friends of Norway.
The interventions done by project staff built awareness on various development issues affecting the community. Continued discussions on issues built their confidence and gave them a new voice to address their issues with government services and other agencies. Above all the people of Munnakkaraya learnt how to save and invest their money for their own development.
During its journey of 27 years, the society has had just two defaulters of loans. It has withstood various political changes and economic pressures to remain unaffected by corruption and malpractice.
“The secret to our success is having a clear vision and cooperative effort, selfless contribution from our committee members and the sheer determination of our members to succeed in whatever they aspire to do,” says Jude de Silva the current president of the cooperative society.
At the heart of the society’s vision lie core values such as honesty, servant leadership and faith in receiving their needs. Many testimonies relate to unity and sense of sharing found in this community.
The cooperative society has three branches servicing the community. It is difficult to get the men involved in banking because they are out fishing. So the woman head of the house banks with the society, which makes it a priority to serve the particular needs of women. In fact, a large percentage of those living in extreme poverty across South Asia are women who are often excluded from education, the workplace, property ownership and equal participation in politics.
The cooperative society says 95 per cent of all loans are made to women. While they also extend loans to men, the organisation believes that the greatest opportunity for interrupting cycles of extreme poverty comes from microfinance programmes that target women entrepreneurs.
“When women improve their circumstances, they also improve the lives of their children and families. By investing in nutrition and education, they help to create a better future for their children and their communities,” says Ranmali Fernando Executive Committee member of the society.
Hard times
The people of Munnakkaraya have come a long way in 27 years, with the cooperative society transforming their lives. “Their success teaches us an important lesson: if we place our trust in people and teach them how to overcome their difficulties they will climb out of poverty” says Nimal Martinus the founder of this project and Strømme Foundation’s Regional Director for Asia.
Physically confined to two islets nestled on the western coastline and connected by three bridges to the mainland, their village used to be segregated from the rest of the community of Negombo. The men engaged in deep sea fishing and lagoon fishing led hard lives. As the fish yields are seasonal, they were affected by seasonal poverty.
They were not aware of thrift and saving habits until the late 1980s. They enjoyed their spoils after a hard day’s or week’s work and struggled through the rest of the month. They were also not serviced by any bank. They could not obtain any loans because they had no assets for collateral. They borrowed money from rich traders who charged exorbitant rates of interest.
Total transformation
All that has gradually changed, and society has been the catalyst. The credit cooperative society convinced the community that the only way of breaking the vicious cycle of poverty was to save regularly. Over time, more members joined and their standard of living improved.
Munnakkaraya now has several pre-schools. These are well equipped and served by trained teachers. There are also two local schools, and the children can also attend any other school in Negombo. Muhammed Naseer, the project coordinator during its initial stages says: “The Munnakkaraya Cooperative Society is the secret behind this drastic change in their village. Over the years, the strength of the cooperative society was brought into the families. By empowering their women, as the change agents of families, they were able to experience remarkable changes in their lives.”
The Strømme Foundation provided the people with an educational training that set their family development goals, equipping them with skills and know-how to save and invest wisely. The cooperative society gave small loans to start or expand fishing. Soon they were able to borrow up to LKR 1.3 million to buy larger fishing boats.
Soon, the women started other businesses using small loans tailored for their requirements. They engage in selling home-made dosai, idlee, string hoppers, sweetmeats, ground spices, clothing items and exotic plants.
The Strømme Foundation believes in providing people with knowledge and skills, especially the chance to save and access small loans. Every year, the charitable foundation awards a deserving individual or organisation the Help for Self Help Award to an outstanding project or group in the developing world. Past winners of the Help for Self Help Award include Dr Muhammad Yunus of Bangladesh (who went on to win the Nobel Peace Prize in 2006), Durga Ghimire of Nepal, and Bishop Paride Taban of Sudan.