Empowering the Poor towards Sustainable Development—A Case Study of Self-Help Group Approach in Somaliland

By: Abdirahman Osman Gaas

Abstract

The Self-Help Group Approach (SHGA) was initiated in India in 1985 as a valid concept to eradicate poverty and empower the poor to become self-reliant and energized to overcome the challenges faced. In Somaliland, the SHGA was introduced in 2013 by non-government organizations (NGOs). The ap-proach aims at mobilizing women from disadvantaged communities to em-power themselves in social, economic, and political involvement. At present, more than 23,000 women are part of this particular initiative, with the crea-tion of more than 18,000 small businesses funded from the group’s savings. This paper examines how this community-led development movement con-tributes to achieving sustainable development and inclusive economic growth. The study used a qualitative approach, reviewed progress reports, case stu-dies, and external reflections made from SHGA for the last five years, and in-terviewed direct beneficiaries in cross-checking the responses, and reports read. The findings revealed that the SHGA empowered its members socially and economically through building communities of interdependence and mutual trust that created a social safety net and supported the economic processes through loans, savings, and possible investments among the SHGA members. Finally, the study gave relevant recommendations from the ma-cro-external factors and its internal systems on improving sustainable com-munity-driven and owned development appliances.

Introduction

The term “empowerment” refers to any expansion of assets and capabilities of poor and vulnerable people to participate in, negotiate with, influence, control, and hold accountable institutions that affect their lives. A self-help group (SHG), also known as “people’s institution”, is a rights-based approach, which views poverty as a denial of rights and poverty alleviation programs as a process of reclaiming one’s rights [1]. This model places equal emphasis on the areas of economic, social, and political empowerment by establishing a people’s institu-tion that provides an environment of trust and cooperation, in which people come to realize that they can help themselves achieve their goal. This model has two foundational beliefs 1) Every human being has tremendous potential, which can be unleashed if the right environment is provided; 2) The poor are voiceless, powerless, and vulnerable, but they can gain incredible strength if they are brought together as a homogenous collective.

The concept of SHG first emerged in India in 1985 as a microcredit system, encompassing around 15 – 20 homogenous members and affinity relationships, showing strong relationships between them and several other groups. The Gov-ernment of India recognized the SHG approach as an essential component to mitigate poverty and, thus, it was included in every annual plan of the govern-ment. In 2000/01, several vital steps were taken by the National Bank for Agri-culture and Rural Development of India, the Reserve Bank of India, and charity organizations [2].

The approach has implemented in many African countries, including Ethi-opia. In 2013, since Ethiopia has been implementing SHGA for ten years, several selected NGOs from Somaliland visited SHG women in Ethiopia to assess whether the approach would be successful in replicating into Somaliland. Upon their return, the visitors decided to introduce the approach in two regions named Marodijeh and Togdher. Although at the early days of the inception phase the process had faced a lot of challenges, documents reviewed revealed that it has now helped to create to establish a strong cohesion among the mem-bers of the SHG and all members have created several small businesses, contri-buting to poverty reduction by fueling community-driven development, also contributing to achieve goal one of the sustainable development goals, as UN 2015 target 1.4 states: “By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to cli-mate-related extreme events and other economic, social and environmental shocks and disasters”. As this model is new to the global and in Somaliland par-ticularly, this paper aims to explain how this approach works and it also aims to examine whether an intervention without external financial support that is ma-terialist in nature can lead to a sustainable development, to reshape the mindset of development workers who look at the needs and expectations of the poor, in-stead of focusing on unleashing their potentiality.

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About Author

Abdirahman Osman Gaas

Abdirahman Osman Gaas is a PhD candidate in Sustainable Development and Diplomacy at EUCLID University, Bangui, Central African Republic. He earned in 2014 Master of Arts in Development Studies from Kampala University, Uganda. He holds a certificate of Excellence in research and a Certificate in Leadership. He has published the following research papers and books: “challenges and breakthrough for Horn of African Regional Integration” and “Impact Assessment of Recurrent Droughts on Agricultural and Pastoral Communities in Somaliland” and Sustainable development book.