Kudumbasree Mission and Market Forces

Kudumbasree Mission (KSM), a flagship programme aiming at poverty alleviation in Kerala, has already derailed from its goal projected. The information gathered (Pananchery grama panchayth, thrissur district, dt. 2010 november 11) as per RTI Act details the house hold appliances purchased, including conditioners, by the members of NG/SHG.

It is known the CPM, especially Dr. Thomas Issac, themselves took initiative to institute Kudumbasree Mission claiming as a left alternate to the globalised - liberalized economy. Interestingly, the RTI information on KSM contradicts the economic perception of CPIM, which is claimed to be anti-neo liberal economic polices.

Micro Finance Institutions (MFIs) are making profiteering in place of profit and the exorbitant rate of interest imposed by MFIs has made grave impacts. In fact, MFIs are conceived to be a catalyst in terms of the socio-economic uplift of Indian villages which have been reeling under poverty. But it doesn’t get translated into action,but made adverse effect.

Some Points to be noticed

1. KSM works as an intermediate of Multinational companies with regards to expand their market access
2. Neighbor Group/Self Help Groups are the target groups
3. KSM arranges the loans and disburse to Members of NG/SHG for buying house hold appliances of corporate companies, including Refrigerator, LCD TV, Grinder, Air Conditioner etc
4. KSM and their suppliers claim that no interest is collected from people
5. But, discount or any special offer is denied to people

Some Arguments

6. KSM is not supposed to be an intermediate of selling corporate companies’ products but Poverty Alleviation Mission
7. Inclusion of APL people to KSM helped to expand the market base of corporate companies
8. Definition of poverty is required to be redefined in Kerala
8. Parameters to scale poverty to be changed
9. KSM is brought as alternate to globalised - liberalized economy by CPIM
10. CPIM’s economic perception needs introspection
12. A White paper is needed to be released on working of KSM