Purpose:
Development in the true and real sense should result in a decrease in dependency on external resources with an increase in self reliance. During the last four decades, this goal has proven elusive and most development efforts have been in vain. As a matter of fact, the reverse has been the case - dependency has increased further and the gap between the rich and the poor has widened.

CCODER has developed an innovative tool to bridge this gap and help to alleviate poverty. It is "A bank by the poor," the Community Bank as an appropriate tool for micro-credit. It not only provides credit to the poor but also implants a notion of ownership by bringing about active participation in the decision making process, making these poor people masters of their own destiny.

Goal:

Objectives:

• to help develop regular savings habits
• to utilize savings for productive purposes
• to develop managerial skills using Community Development Bank (CODEB) as a rural management school.

For implementation purposes, the CODEB has been divided into three phases :

• Phase One: Imparting of vision, self- commitment and group action.
• Phase Two: Learning by doing.
• Phase Three: Consolidation and networking.

Activities:

• Feasibility study.
• Training.
• Monitoring and Supervision.
• Networking.
• Action Research.

METHODOLOGY AND ITS STRUCTURES:

The Concept Explained:
CODEB is an attempt to harness power from the people to eliminate poverty. The first step is to organize an effective organization, an effective functioning of General Assembly, Executive Committee and Programme Management Committee with clearly defined responsibilities for each.

Members of a village community desirous to form a group join together. This group is called a Community Development Committee (CDC). A CDC comprises from 25 to 50 members. They start a montlhy savings programme based on their income level and ability to save. Membership in a CDC gives villagers a sense of togetherness, purpose and commitment. An appropriate Banking Education Program will be introduced for impartation of vision, bringing self- commitment and group action.

It is not economically viable and technically feasible to operate a bank at the village group level. Operating a bank requires trained personnel with knowledge of bookkeeping, accounting and managerial know how. Therefore, to overcome these problems, a Regional - Community Development Committee (R-CDC), which comprises from 5 to 20 village groups, was formed. The R-CDC appoints a Bank Management Committee (BMC) to select, train and oversee bank operations. Members buy shares in the Bank according to the level of their income and ability.

When all necessary and sufficient conditions are completed, the bank begins operations.

Loans are disbursed through an application process where the group act as a collateral. Members in need of credit for income generating activities apply through their respective CDC's. The General assembly of the CDC discuss these loan applications.

Applications are approved if they meet the requirements that have been set. The application is then forwarded to the BMC. The BMC approves loans if the applicant meets the requirement. Those applicants denied are provided justification for their disqualification.

As CODEBs are owned, operated and managed by community members, they are CODEBs both in fact and in reality because of the participation and control by the community members in the accumulation and management of capital.

Levels of CODEBs: