CHAPTER - II VDP through Social Mobilisation |
2.1 Introduction
2.2 VDP's objective
2.3 Implementation Strategy of VDP through Local Trust Fund (LTF)
2.4 NORAD Support
2.5 The VDP Process
2.6 Phases of VDP Implementation
2.6.1 Phase One: Formation of COs
2.6.2 Phase Two: Graduation of COs
2.6.3 Phase Three: Activating Community-based Entrepreneurial Skills
2.6.4 Phase Four: Implementing Priority Productive Investments
VDP aims to mobilize local people in the form of their own organizations, to promote their development through their own and other resources and to actively participate in decision-making process for improving their lives and villages |
Once the social capital has been mobilized, the COs work to build up their economic capital. The people in the community need an incentive to remain organized. They require high returns from any social innovation to offset the risk involved in change, and to compensate for extra involvement often required in terms of labor. Economic Development provides the COs with a mechanism to capture the potential benefits of social change. To build up their economic capital, the group members deposit monetary contributions into the group’s savings account during their regular meetings. The COs also augment their income by upgrading their skills to conduct income-generating activities. COs can have access to Credit Capital (CC) established in the Local Trust Fund (LTF) to fulfil their credit needs for establishing micro-enterprises.
When they organize themselves, save and upgrade their skills, the COs are provided with a one-time investment through Seed Grant Fund (SGF) for increasing productivity, improving infrastructure, as well enhancing the CO’s resource management capacities. As an essential element in VDP, a seed grant is matched with cost-sharing contributions from the DDCs and VDCs (cash) and COs (kind). If required, the DDCs and the VDCs will tap the resources from district line agencies and other sources for the implementation of productive schemes.
The basic objective of VDP is "to mobilize local people, in the form of their own organizations, to promote their development through their own and other resources and to actively participate in decision-making process for improving their lives and villages."
In order to sustain and institutionalize VDP at the local level, the Programme has made provisions for the establishment of a Local Trust Fund (LTF) to operate as a revolving fund at the district level. According to the implementation mechanism of VDP, an LTF is created in each participating districts level as a PDDP/DDC/VDC joint programme to support the implementation of VDP. Starting initially with financial allocations from PDDP and matching funds from the DDC and participating VDCs, the fund is expected to grow with contributions from other external and internal agencies.
The primary objective of the Fund is: (i) to provide necessary financial, technical and institutional support to implement VDP based on social mibilization approach in an effective and efficient manner; (ii) to promote the institutionalization of VDP to ensure its longer term sustainability; (iii) to expand and replicate VDP in more areas; and (iv) to promote the formation of a range of alternative development institutions, under local ownership, to address prioritized local level developmental needs.
The LTF will implement VDP activities in coordination , and through the support of the DDC/VDCs. This is necessary to link the efforts of the LTF, especially in the formation and consolidation of the COs and to tap DDC/VDC and other resources.
Each participating district sets up a Local Trust Fund Board (LTFB) under the umbrella and ownership of the DDC to support and manage the implementation of VDP. The basic objectives of LTFB is : (i) to make policy decisions of effective implementation of VDP, (ii) coordinate and channel the fund to the COs in an effective and efficient manner, (iii) to report the progress to PDDP and (iv) to formulate policies and strategies for institutionalizing VDP and gradually replicating the approach in other VDCs. PDDP establishes various levels of contractual arrangements to implement VDP.
LTFB pre-qualifies and identifies different agencies in the government, non-government and private sectors to create and develop a cadre of skilled specialists in the villages. These organizations provide a service package that includes professional skills training, transfer of technology, quality control and linkage with markets. In this manner VDP props up the COs’ efforts at self-reliance by assisting them to develop a cadre of village specialists and thereby reduce their current dependency on "external" agencies to solve their problems. By bringing them abreast of the latest technical know-how, and management and marketing concepts, VDP helps the villagers to maximize their potential to earn more by building up on various skills they already possess. The programme lays stress on linking such technology transfer and skills training activities with the district-level government and non-government organizations.
The LTF has been provided with its own office and identity by the DDC. LTF started operations in each district based on the successful experiences of implementing VDP through social mobilization in two VDCs at the initial stage. Now LTFs have successfully covered five VDCs and are currently expanding coverage to a total of 20 VDCs in six selected districts.
The Norwegian Agency for Development Cooperation (NORAD) supports the implementation of VDP through the formation of the Local Trust Fund. NORAD’s support is being used to further expand, consolidate and institutionalize the VDC-level initiatives. The Norwegian support is being used in 120 VDCs of six PDDP districts—Baitadi, Dang, Kavre, Nuwakot, Parbat and Rupandehi— for further development and implementation of systems, mechanisms and procedures required for the effective and efficient management of Local Trust Funds by building on the experience gained under PDDP.
The NORAD support has made special emphasis towards women and the downtrodden in the social mobilization process. The successful implementation of VDP through LTF is expected to create a basis for facilitating a larger flow of resources to the local level to be applied in accordance with the needs and priorities identified by the communities. The NORAD support has already increased from US$ 2 million to US$ 3.08 million to allow for the expansion of VDP into an additional four districts, thus taking the total of NORAD-supported VDCs to 200.
VDCs of different districts where VDP is beingimplemented:
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The implementation process begins with VDC Selection. The "disadvantaged" VDCs are chosen in every participating district following certain criteria. VDP is now being implemented in 175 VDCs in 19 districts — 20 VDCs each in five districts, 15 VDCs in one district and 5 VDCs in13 districts. However, this report is based onthe progress of 117 VDCs of 17 partner districts. VDP has not been implemented in Rukum. Pyuthan will soon be implementing VDP. In Syangja, expansion of social mobilization activities will be implemented as per PDDP’s VDP. Earlier social mobilization process in the district was being implemented by UNDP’s South Asia Poverty Alleviation Programme (SAPAP) model. Meanwhile, some DDCs like Achham, Kaski, Kavre and Rupandehi have started initiating VDP in other VDCs through their own resources. (see above box for VDP VDCs)
To lend sustainability to VDP, and following PDDP’s principles of making the Programme cost-effective and participatory, VDP lays stress in choosing a group of individual local professionals with track record in social mobilization/community development efforts, as SO. The SO acts as the secretariat to the LTFB The social mobilization team in the districts is led by the District Development Advisor (DDA), and consists of a Deputy Team Leader, Social Mobilizers, Credit and Savings Facilitators, an Overseer, and an Administrative Assistant. Among other things, these SOs motivate and assist the people in the community in organization development, train CO representatives in preparing economic base like savings & credit, skill development, and proposals for seeking Seed Grant Fund for economic development. The SOs also assist the VDCs and DDCs in designing economic development around the productive sector.
The aim is to mobilize at least 80 percent of the households (both men and women) into community organizations that remain organized for the community’s long-term self-reliant development |
The first phase of VDP implementation is community mobilization and the formation of broad-based, multi-purpose community organizations. The average duration of this phase can vary from one to two months. The formation of COs is initiated through a sensitization programme, or a series of "dialogues," that forges partnership with the local communities. The aim is to mobilize at least 80 percent of the households (both men and women) into community organizations that remain organized for the community’s long-term self-reliant development.
To encourage women’s participation, and pave the way for their empowerment, emphasis is laid on urging them to form separate women’s groups. VDP also ascertains that 50 percent of the community mobilized into groups should be women and underprivileged/oppressed class. Under special circumstances, where there are men and women of oppressed (dalit) class, VDP initially encourages the formation of separate COs so as to allow these disadvantaged members of society to participate without hesitation in the social empowerment process.
The CO adopts a community-oriented constitution to govern the management of the CO. The constitution spells out the management structure of the CO, which includes a Chairperson, a Manager/Secretary, and the rest as members. The CO is then registered at the VDC in order to establish a formal linkage. Each CO chooses its Chairperson and a Manager for the smooth execution of the organization activities. This is done through the concurrence of all CO members.
Savings & Credit Scheme
The COs meet every week to discuss development issues of mutual concern to all the community-members. During their meetings the group members deposit their monetary contributions. Every member saves an equal amount each week to allow for cooperative decisions among the members. The Funds collected in this manner is the collective asset of the CO. This fund is used for loans to finance any micro-enterprise development at the household or village levels. Thus COs can lend money to their members at a rate of profit which satisfies local credit needs, and at the same time supplements the CO savings, and women too have control over their savings. The savings of the COs is only a form of collective asset, and more like a membership fees that the members have to pay to reap the benefit of being part of a collective association. The organization, therefore, is different from that of a savings and credit organization.
Each member of the CO is also encouraged to make plans for undertaking at least one farm and one non- farm entrepreneurial activity that will contribute to both economic and social well-being of his/her village |
The CO Chairpersons and Managers (CMs) have a conference every month. Besides reporting on the progress made by their respective COs, the CMs also discuss strategies for developing their village. The discussions at these CM Conferences (CMC) initially revolve around the management of COs, savings and investments, and as they gain maturity, the discussions shift to training, exposure visits, forging of linkages with district-level institutions, etc. The CMCs offer the women Chairpersons and Managers the forum to voice their concerns and suggestions for their betterment. Their voice is not only heard, but also respected by their male counterparts.
2.6.2 Phase Two: Graduation of COsThe second phase, with an average duration of one to two months, tests the maturity and formation of the COs for their self-governance and development. During this phase, the COs are encouraged to initiate programme activities which do not require external inputs or costs, but which can bring the members to work together for a common cause with their own resources and inputs. These include small village development activities like literacy classes for illiterate CO members, family planning activities, formation of cultural groups and clubs etc.
2.6.3 Phase Three: Activating Community-Based Entrepreneurial Skills
In this phase, averaging about three months in duration, the COs can access LTF to undertake individual as well as collective entrepreneurial activities of their choice. During this phase, the COs can start utilizing their savings for small-scale credit purposes, and can also tap on LTF credit support for initiating community-based entrepreneurial activities. Such credit support is provided to the COs based on the amount of savings they have accumulated and based on the principles of social collateral. The enterprise development plan prepared and approved by the COs under Phase Two activities form the basis for identifying entrepreneurial opportunities. Support from LTF is provided to COs who have graduated or demonstrated that they are heading towards self-reliance and social empowerment.
2.6.4 Phase Four: Implementing Priority Productive Investments
During this phase, which lasts for three or more months, the COs finalizes the Village Development Plan (VDC Plan) for productive infrastructure priorities. Support is offered through the Seed Grant Fund (SGF) to fund COs’ local investment in small-scale productive infrastructure development such as irrigation projects, drinking water supply schemes, micro-hydro, development of higher levels of cooperative enterprises, commercial forestry, and others. Where possible, it also assists them in accessing markets and enhancing their sustainable resource management capacities. Grants are only given to those projects that provide common benefits for all members of the CO. These grants are therefore provided as a means to get the CO members to work together to make their organization stronger and to develop alternative local institutions to support local development.