Four women's cooperatives in Sindhuli, Nepal have achieved 100% household coverage in their local areas, providing financial services to over 2,000 households. This represents a shift from traditional cooperatives that primarily served elite male members. The cooperatives faced challenges but overcame skepticism by educating communities and providing inclusive services. They have empowered women economically by providing loans for small businesses and challenging social issues like gender discrimination. Their success demonstrates that community-owned cooperatives can effectively promote development, especially for disadvantaged groups.

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SAHAMATI FIELD BULLETIN
September 2012 (Year #1, Issue #1)
100% Household Coverage: A paradigm shift in Cooperatives of Nepal
Community based women's cooperatives in Sindhuli have probably made history in terms of outreach and depth of their
services incorporating each and every 2246 household of four VDCs-Ratanchura, Bhadrakali, Jalkanya and Bhimeswore.
It was declared in a huge mass of around 2000 people mostly women gathered in historical place-Sindhuligadhi,
organized by secretaries of respective VDCs. Most of women members were in similar uniform-Red Sarees. The event
news was covered by several media including a national newspaper- Kantipur Daily on 15th Sept 2012. Follow up news of
a Paribartan Mahila Savings and Credit Cooperative Bhadrakali was aired by BBC Nepali Service on 25th Sept 2012.
Such declaration is quite relevant to add value to the initiatives of government of Nepal- that has recognized cooperative
sector as one of the three pillars of development in Nepal. The news is also pertinent with Year 2012 as 'UN International
Year of Cooperative' and this month's UN Millennium Development Goals summit that highlighted the importance of
reaching the world’s most disadvantaged people in order to achieve the MDGs with equity by 2015.
The Issues
Poverty is rampant in Nepal. In development arena, we come to face the reality that development program usually
do not reach the bottom quintile- the disadvantage section of society-the poorest of poor, the Women, Dalit and
Other minorities. Thus the development programs by and large remain not inclusive in the real sense.
Rather of changing milieu, Nepalese women are in low position comparing with their male counterpart. Economic
activity largely depends upon access over the financial resources. Commercial banks are still not accessible to the
rural people. Money lenders charge high interest rates. Women do not have access of financial resource either from
money lender or commercial banks- since both require collateral, and women usually do not possess the land or
other properties. In rural areas of Nepal women's work is mostly regarded within household chores; they are not
encouraged to participate in economic activities. Due to deep rooted patriarchal thought women are usually not in
part of decision making in any social strata. Female have less freedom to education. As a consequent women
frequently fall into gender based violence and discrimination.
100% household coverage declaration mass meeting (28-05-2069) in Sindhuligadhi
Left: Participants attentively viewing the program Right: Public address by Ms. Sushila Basnet, Secretary of Janjagaran Mahila Savings & Cooperative

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The superstitious and fatal practices like witchcraft, early marriage, dowry system, girl trafficking, sex
discriminations are still prevalent in Nepalese society. But the shift has begun- by the programs focused on socio-
economic empowerment of women and girls. Transformation is always painful; it requires passing through series
of experiments and experiences.
Cooperatives in Nepal: Past and Present
According to International Co-operative Alliance (ICA), cooperative is an autonomous association of persons united
voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and
democratically controlled enterprise. Cooperatives are based on the value of self-help, self-responsibility,
democracy, equality, equity and solidarity.
Nepalese people have a century-long tradition in sharing and cooperation in many forms as labor sharing in
villages, informal mutual groups and rotating savings and credit association (Dhikuri). The history over formation
of credit cooperatives in Nepal goes back as early as 1954 when government established the Department of
Cooperatives (DOC) under the Ministry of Agriculture. The first cooperative formed in Nepal was credit a
cooperative as part of flood relief and resettlement program. It was legally recognized when the first Cooperative
Societies Act was created in 1959.
Therefore, the history of cooperatives in Nepal is closely related to Government’s initiatives to use cooperative as
part of its development program. Government’s view on cooperatives has been changing in every five-year plan of
the country without having concrete vision towards the development of cooperatives and proper mechanism to
support and supervise the cooperatives. The responsibilities for managing the cooperatives were transferred to
the government-owned Agriculture Development Bank. But, loan recovery rate was very poor- as low below 50%.
It was due to lack of transparency, policy clarity and ownership.
In Nepal, Government initiatives have hardly enough impact in poverty reduction. So the concept of
decentralization, self-help, community-based organization, cooperation, bottom-up approach flourished starting in
1990. The real emergence of cooperatives can be considered only after enactment of Cooperative Act in 1992. The
government encouraged the formation of cooperatives by providing tax exemption and incentives. As a result,
there was a high numerical growth. Experience in the past few years suggested that cooperatives can be an
efficient means to carry integrated development services to the poor people.
Currently Government of Nepal has recognized Cooperative as one of the three pillar of economic development in
Nepal. About 3,000,000 people are involved in total of 23,000 cooperatives in Nepal. The GDP contribution from
the sector alone is about 3% whereas 15% financial contribution in overall economy. The access of cooperative to
the people is highly improving. The community based savings and credit cooperative have been successful in Hill
as well as Terai regions. The reason behind success of community based cooperative is due to ownership, economic
governance, high repayment rate, administrative easiness, cost effectiveness and cooperativeness among the
members.
Women only Cooperative- A New Era of thought and action
Women are good managers. They have efficient management capacity. It is proven in case of Makawanpur where
27 cooperatives are effectively owned, managed and controlled by women. So is the case of Sindhuli, Baglung,
Myagdi and other districts.
The women's cooperative is highly successful model in Makawanpur. The cooperatives after phasing out of the
external technical support-too are performing wonderfully well. The cooperatives health is financially sound, and
socially recognized. One of the cooperative-Mahila Jagriti Savings and Credit Cooperative Bhimphedi was
recognized as the "Best Cooperative of the Year 2069" (Kantipur newspaper, 18th Sept 2012). It was recognized by
National Federation of Savings and Credit Union Nepal (NEFSCUN).

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100% Coverage Campaign-The process and challenges
Before the campaign, the household coverage of women cooperatives in Sindhuli was about 60-90%. The leftover
families were located relatively in geographically isolated area and dispersed from the village center. The
households were mostly from bottom quintile. Attention towards them was less hence a type of dissatisfaction was
there in cooperative.
The idea of incorporating 100% household in the cooperative was kicked off in a review meeting of chairperson
and manager of cooperatives. It was then put forward in respective cooperatives board meeting. The idea was fully
accepted and taken forward as campaign by four cooperatives. Then board of directors took lead the process.
According to Indra Kumari Hayu, Chairperson of a Mahila Shakti Savings & Credit Cooperative Ratanchura, they
had to face so many challenges for their women's cooperative campaign. Few of the society's male members used
to tell, it was impossible to operate, and cover all the households that is run by women. The opinion was put
forward with the saying that women are illiterate, and they are not exposed with the economic and social
development aspects. Some people blamed Indra that she is almost going bare keeping such an unmet idea.
However the cooperative board members never gave up. They visited door to door of the families who were not
enrolled in the groups. They also mobilized influential peoples including VDC secretary, political parties' leaders,
and school head teacher in coverage campaign. Few households initially refuse to enroll in the cooperative. The
follow up was made regularly-with explaining importance about benefits of being member. The enrollment for the
first time requires nominal amount i.e. Rs. 175 for each membership. Organizational receipt, format, stamps etc
were taken along with during the campaign. The membership was provided on the spot. Finally all the households
came under one umbrella.
Paradigm Shift
In the conventional cooperatives, the leaders are elite, so called educated persons. The cooperatives are usually
dominated by male, the teacher, politician, or upper caste people. The coverage is very low. It was believed that the
cooperative cannot be run by females-since they are not use to with such things.
Now the old paradigm is shifted in Sindhuli. Four cooperatives out of twenty totals have provided exemplary in
terms of coverage-to the poor and disadvantage section of society. Other cooperatives too encouraged. Twenty
community based women cooperatives are fully run by women. They own, manage and control the cooperatives
and their activities. They are efficiently and effectively managing the cooperative. Now women do have access to
credit as well as savings.
The women's access to micro-credit that is enabling them to micro-enterprises, such as Vendor shop (Grocery, Tea,
Meat, Restaurant), Livestock (Goat, Pig, Cow, Buffalo), Poultry, Cash crop, Skill based work (Sewing and cutting,
weaving, beauty parlor). As a result women have better income, and better livelihood of the whole family than
before. Now male counterparts also been started to praise women for their deeds. Despite the fact that majority of
women in the boards are illiterate. It is proven that education is not only pre-condition for institutional
development of socio-economic activities.
It is already observed that those who were not able to introduce themselves in front of two persons can speech in
front of thousands of people. The women now have enhanced personality and leadership capability. The dignity
and self-esteem of women in the village is dramatically improving.
Kishori Samuhas, group of teenage girl is also part of the cooperative program. They are wonderful vehicle for
fighting against social evils-such as stopping Child marriage cases in the community. The gender based violence,
caste based discrimination and evil social practices are being gradually reduced.

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The women cooperative now has access over the government/VDC budget allocated for women. According to Thal
Kumar Paudel, Secretary of Bhadrakali VDC while speaking in BBC radio service told that all women budget of VDC
will be channelized through women cooperative. The cooperative already started to access and utilize budget from
VDC in awareness raising and capacity building of women.
Secret of Success
Most important aspect of the community based model is true ownership of the members. Ownership was built
through involving the member's right from the start. Before forming cooperatives, key members were taken to
exposure in Makawanpur to have interaction with the women's cooperative to see how their cooperatives gone
through the institutional development process, and how they are still performing well without any external
assistance. The cooperative foundation is built upon demonstrated will of potential members and their
engagement during forming stage.
Asking what was driving force for women cooperative to go for 100% coverage campaign, Indra said, "We wanted
to make our cooperatives a role model in Nepal. We are inspired from the progress of women's cooperative in
Makawanpur. We provide good service to the needy people, and make the members feel real owners". The service
provided by the cooperative largely cater to the requirement of poor women-i.e. small loan at reasonable cost, easy
and short processing time, requires no physical collateral.
The experience of support agencies in the cooperative sector is intensive. It has always taken the program as a
mission, not as any project. The support agencies have clear cut idea about till when the support is required, and
when to get back. Transparency, capacity building, regular consultation, supervision and continuous monitoring
are the key to success. Good linkage and relationship with local bodies including DDC/VDC is also important factor
to success.
Challenges
Covering 100% households means enrolling bulk of members at once. It is always challenge to manage and meet
the expectation of new members. Scarcity of finance for credit service may appear. The cooperatives have already
approached with Nepal Rastra Bank for wholesale loan to mitigate the challenge.
Cooperatives are now key player in the village. However of precarious situation, the chance of labeling in political
color could be there. There are several micro-finance service providers in few of the villages. The program can
duplicate with one or more programs. Quality and consistent service is always required, and the cooperatives are
fully aware of that.
Conclusion
In terms of outreach and depth the women's cooperatives in Sindhuli light as a role model in development sector of
Nepal. Thus community based savings and credit cooperative is one of the best alternative models for equitable
and sustainable economic and social development. It is proven fact that cooperatives contribute to empowerment
of community, access and control over public resources, enhance leadership capability. The cooperatives, if fully
functional as their values and principles, can be powerful vehicle for socio-economic transformation and change.
The women's cooperatives in twenty VDCs of Sindhuli are promoted under "Capacity Building of Micro-finance Institution under Girls
Power Project (CBMFI)" program that is implemented by 'SAHAMATI' Nawalparasi with the financial support from 'Plan Nepal' since
2010. All the cooperatives are registered entities. These women cooperatives have 14500 share members, and the loan outstanding is
NRs.36.8 million till August 2012.
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