The Shakti Amma Policy: Empowering Women in Rural India

Introduction “You need to believe by doing the right things and by doing good, you will grow business. And I think that's when finance needs to think about different models,” said Mr. Srinivas Phatak, CFO, of Hindustan Unilever (HUL), one of India's largest companies which launched an initiative, Shakti Amma policy, primarily called Project Shakti, in 2001 to empower rural women in India. The objective of Project Shakti lies in providing all women and girls including differently-abled, socially and economically marginalized, and vulnerable groups in need of care and protection, with short-term and long-term services and information for their empowerment as well as transforming them into micro-entrepreneurs thereby improving their economic status and contributing to the overall development of their communities. As of the last updated data on April 30, 2021, Project Shakti has 120,000 women micro-entrepreneurs across 18 states. The women entrepreneurs are called Shakti Ammas, ‘Shakti’ meaning ‘power’ and ‘Amma’ meaning ‘mother.’ Furthermore, they are trained on basic principles of distribution management and earn a sustainable income of around $10 to $ 14 per month. The program started as a controlled pilot ( ‘controlled pilot’ referring to a small-scale trial that tests new tools, products, services, or innovation), which focused on getting the mechanics right after which it scaled up and then incrementally introduced new elements to the program to scale up and expand its reach. Project Shakti now operates on three primary modes: door-to-door selling within their village, assisted model for distribution in the same or nearby towns, and operating from a small retail outlet.

Has Project Shakti truly been a success? Although the Fast-Moving consumer goods (FMCG) major Hindustan Unilever has grown its women empowerment project Shakti by 50 percent over the last three years, implementing and scaling Project Shakti presented several challenges for Hindustan Unilever Limited (HUL). For instance, the difficulty in reaching remote rural areas, cultural barriers that may limit women's participation, and the need for continuous training and support to sustain the livelihoods created as well as limitations in resources and funding, and the challenge of integrating women into local economies effectively. Additionally, penetrating rural markets was a major challenge for Project Shakti, not only because of the inaccessibility of rural areas but also because consumers needed to be educated in personal and hygiene matters as well. HUL products were completely obscure to the way of life in these rural communities Fortunately, HUL managed to overcome this challenge by leveraging the strength of SHGs which the government was vigorously promoting all over India. By 2000, India had a large number of SHGs. The existence of a ready SHG network was a great opportunity for HUL. These SHGs helped create and organize an effective marketing force in rural areas simultaneously helping create self-employment opportunities. Moreover, Project Shakti also makes use of multiple strategies to overcome such challenges, for instance, partnerships and collaborations with NGOs, government bodies, and financial institutions have been extremely beneficial for Project Shakti to strengthen support systems and extend reach in underserved areas. Moreover, Project Shakti can also make use of other strategies in the future such as technology integration in order to leverage digital platforms for enhanced sales, training, monitoring, and data analytics to optimize operations and scalability. Discussion of Questions: Question 1: How does community engagement contribute to the success of Shakti Amma policy in rural areas? Community engagement is essential to Project Shakti's success in rural areas as it promotes local economic development and instills a sense of responsibility in community members. Moreover, this engagement also helps reduce dependency on counterfeit products by making high-quality goods more accessible in the villages. By selecting women from within their communities, the strategy assures that female entrepreneurs understand the local needs and preferences in their communities. This personalized strategy strengthens community ties, builds trust, and facilitates sustainable development at the grassroots level. By improving access to essential consumer goods and creating employment opportunities, Project Shakti contributes to the overall well-being of rural communities, aligning with HUL’s CSR objectives of community development. However, it is also to note that community engagement, if not executed properly, could not only pose challenges for Shakti Amma policy in rural areas but might even cause its failure. For instance, if the community members feel that the policy does not align with their immediate needs or values, they may end up resisting it and not engaging fully. An example of this could be that Project Shakti essentially focuses on improving maternal and child health by promoting the use of healthcare services in rural areas. While the policy might be beneficial if the community’s immediate concerns are related to economic hardship such as lack of agricultural support or poor market access in rural areas, it could lead to the community members not being completely involved with the health initiative. In this particular example, farmers facing drought or low crop yields may prioritize livelihood concerns instead of initiatives by Project Shakti as it won't be addressing their most urgent needs. Nevertheless, challenges like these can be overcome by Project Shakti by introducing more initiatives and programs along with their main objective to guarantee the Project’s success. Additionally, Project Shakti could also focus on training local Shakti amma health workers in healthcare as well as more skills such as empowerment skills which would help teach women how to set up small businesses, improve farming techniques, or access government welfare schemes.

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Question 2: Given the varied socio-economic conditions across rural India, can Project Shakti's successes be replicated in different regions without significant adaptation to local contexts? Project Shakti has been successful in various regions across India, specifically reaching over three million households in 100,000 villages across 18 states. Some highlighted areas include the Etah district of Uttar Pradesh and more areas in Andhra Pradesh, Karnataka, Gujarat, etc. However, replicating this model in various parts of rural India would have been impossible without significant adaptations in the socio-economic conditions across rural India. To understand this better let’s first know about the socio-economic diversity in rural India. Rural India is influenced by various factors, such as the historical legacies of colonialism, caste-based discrimination, uneven development, and the rural-urban divide. The rural areas in India are often characterized by lower levels of income and access to basic amenities causing major problems such as poverty, illiteracy, unemployment, homelessness, crime, social evils, lower living standards, and lack of facilities, services, and health. Additionally, the effectiveness of a distribution network like Shakti Amma relies heavily on local infrastructure For instance, areas with poor transportation links or limited access to markets may hinder the success of micro-entrepreneurship models. It also relies on cultural differences as local customs and gender roles can influence the acceptance and effectiveness of such initiatives as well as Digital literacy as the program evolves to incorporate technology for training and sales, varying levels of digital literacy among rural women can impact the program’s implementation across different regions. Nevertheless, It is also to be noted that adapting strategies instead of significant adaptations to local context can also work wonders for Project Shakti. Strategies such as culturally relevant training programs that incorporate local languages, customs, and practices can create a safe place for the community members and not only ensure that the program is well understood but also build a sense of comfort in the minds of the community members. More strategies such as promotion of social networks encourage the formation of support groups among Shakti ammas to promote collaboration, share their experiences and challenges, and build a sense of community that enhances resilience against market fluctuations. Essentially, whether by adapting the strategies above or by causing significant adaptations to local contexts, the main objective is for Project Shakti to be effectively adapted to diverse rural contexts across India, ensuring that it meets the unique needs of women entrepreneurs while promoting sustainable economic development in their communities. As stated in a news article on January 16, 2009, Project Shakti has been successful in not only being replicated in different regions of India but also globally by being customized and adapted to Sri Lanka, Vietnam, and Bangladesh. In Bangladesh and Sri Lanka with the names Joyetta and Subhagaya respectively. This effort is expected to help Hindustan Unilever (HUL) tap fresh growth avenues in emerging markets in the face of recessionary trends in the US and Europe.

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Question 3: Is the Shakti Amma policy a genuine empowerment initiative, or could it be used as a political tool to gain favor with rural women voters during elections? The Shakti Amma policy, or Project Shakti, is often viewed through the lens of empowerment for rural women in India. However, some sources argue that it could also serve as a political tool to gain favor with rural women voters, especially during elections. Project Shakti’s objective lies in giving rural women who are called Shakti ammas, opportunities to become micro-entrepreneurs. This program had a significant impact on Shakti Ammas, as a report by the latest- third-party research from Kantar Public showed a 24% increase in household income and 89% of Shakti Ammas felt that they had earned more respect within their family. Moreover, The program includes training in business management, sales techniques, and financial literacy. Such skills help women manage their businesses and instill an entrepreneurial mindset that can lead to long-term economic independence. However, concerning a sense of global identity, the ability to access and participate in trans-state institutions and decision-making fora, Shakti Ammas do not come across as being ‘globalized’ as the terms of their engagements with global processes in production and consumption have been mediated and negotiated by either the state government or through NGOs, without their direct involvement. This disconnect raises concerns about the credibility and accountability of the Shakti Amma policy. It implies that even though the initiative might help women financially, it doesn't guarantee their involvement in governing or making decisions that impact their lives. Project Shakti has brought economic advantages and social acknowledgment to multiple rural women, but it is important to acknowledge its dual role as both an empowerment project and a potential political instrument. For the initiative to be seen as truly empowering, it needs to progress by incorporating more accountability, transparency, and representation for the women it seeks to assist, thus making sure that their input is fundamental to its management and execution.

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Conclusion In conclusion, Project Shakti or SHakti amma policy is an initiative by Hindustan Unilever (HUL) which was introduced in 2001 to empower rural women in India by transforming them into micro-entrepreneurs. The project's primary objective is to enhance the socioeconomic status of women in rural areas by offering them training and opportunities to generate sustainable incomes through door-to-door sales, retail outlets, distribution management, and other means. Despite empowering more than 120,000 women across more than 15 states, the project has encountered many challenges such as cultural barriers, limited resources, and difficulties in reaching remote areas. Strategies such as expanding partnerships with NGOs and government organizations, incorporating technology for training and expansion, and adapting to local socio-economic conditions can be inculcated to face these challenges.

Additionally, community involvement is crucial for Project Shakti's success, but its success can be hampered due to a lack of alignment with local needs. Furthermore, few critics argue that Project Shakti is being utilized as a political tool during elections, even though its positive impact on women's income and social status is evident. To ensure long-term success, recognizing the need for accountability, transparency, and inclusive decision-making is crucial to Project Shakti’s success.

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