An NGO intervention spread over nearly two years has helped dispel the myth that tribal communities do not have the propensity to save money. In fact, the intervention has ushered in considerable financial discipline in the hamlets of H.D. Kote and Hunsur.
Thought cut off for centuries from the mainstream and introduced to the cash economy only in recent decades, the tribal communities in and around Nagarahole National Park always had the concept of savings ingrained in them. Only it was not cash but by way of kind.
“Agricultural produce was what they used to save and exchange with fellow tribals under a barter system,” said Sreekanth of Development Through Education (DEED).
The NGO has tapped into this habit and tried to bring about the desired propensity among tribals to save cash as well. “The concept of cash economy is fairly recent for tribals. Many of them do not know the value of say a ₹2,000 or ₹500 bill. Hence, they could not be expected to take the same interest in saving cash as they did in saving agricultural produce. But this is changing and the new generation is aware of the value of cash,” Mr. Sreekanth said.
Around 100 self-help groups (SHGs) have been constituted and there are nearly 1,800 members who have collectively saved around ₹53 lakh so far.
“The experiment is ushering in financial discipline besides enabling the members to participate in the decision-making process and take responsibility for their actions,” he said. Savings apart, the members are eligible for loans that can be used for economically productive activities such as purchase of agricultural implements or poultry.
Meetings every fortnight
DEED has identified three individuals from the community comprising the Jenu Kurubas who are well-versed with the intricacies of the cash system. They hold meetings with fellow tribals once a fortnight.
The thrust of the talks is to nudge tribals to not squander away their daily wages. As a majority of the tribal men spend money on liquor, the NGO is encouraging women to save. Unsurprisingly, almost 1,600 of the SHG members are women.
“Tribals do work hard to earn but lack financial discipline and throw away their earnings within a day or two. The organisational intervention has helped create awareness on the benefits of savings,” said Mr. Sreekanth.
The DEED initiative has been replicated by Parivarthana in Periyapatna, and the activists are confident that the SHGs — thanks to the savings — will be financially self-sustaining within the next two years.
