Chapter IV - Effects and Impacts

Two and half years after the initiation of VDP in the districts, PDDP is in the process of compiling effects and initial impacts of VDP in the communities. This is not a research finding, rather it is the compilation of effects and impacts-related information collected from regular reporting and through additional information collection methods. Some of the information that districts have recently provided have been tabulated and analyzed in this chapter.

The objective of this report is to reflect all that happened in the communities during the implementation of VDP—the changes in living conditions, the response of the people, the empowerment of rural poor men and women and deprived groups, specific cases—that have affected their lives and their villages. This is only a preliminary study, but it does indicate, nevertheless, that VDP is going in the right direction with its vision focussed on poverty alleviation and the enhancement of self-reliance, self-empowerment and self-governance in the rural communities. Below are some of the examples of significant changes in the communities.

Data from the districts reveal that the DDCs and VDCs are also contributing significantly in the LTF. VDP believes that the more the local authorities contribute, the stronger their ownership towards the Fund, and stronger the sustainability of the whole initiative. Thus while the DDCs and the VDCs have been contributing annually in the LTF, PDDP contributed just once in the beginning. Therefore, the LTF is already ‘owned’ by the locals and shows signs of becoming a sustainable integral programme of the DDC in future.

In order to assess the initial impacts of VDP, the Programme took a sampling of more than 75 percent of the PDDP districts where VDP is being implemented. Accordingly, information from 13 districts-Achham, Baglung, Baitadi, Banke, Chitwan, Dadeldhura, Kaski, Kavre, Myagdi, Nawalparasi, Parbat, Rupandehi and Tanahun-were used for the assessment. The districts were also chosen to represent the regional and topographical diversity of Nepal. Each district then surveyed COs from the original two VDCs to conduct the assessment. Accordingly, the districts filled up the single page format based on 36 parameters under 10 broad headings. Achham DDC in the remote far-west also conducted an informal sampling of all its 5 VDP VDCs. Below is the average summary and the analysis thereof, of the information representing an average VDC from those districts, followed by significant features from some districts.

VDP has encouraged all COs to define poverty and classify the members of COs into three categories according to their economic status as poorest, poor and medium. From this assessment, it has been observed that on an average, 10% of the poorest people have upgraded their livelihood. Presently, VDP has 2823 COs (1076 of them women’s groups) and on an average there are 30 households in each CO. So, 8,469 of the "poorest of the poor" households at the time of the initiation of VDP, have now been upgraded to "poor." These households have not managed to reach the status of "medium class" as yet, but they have definitely improved their lot from the bottom rung of poverty. Correspondingly, the number of poor households have increased by 8%.

SN	Parameters	Unit	In 96	In June 99	Changes
1	Poverty Profile: Poorest Poor Medium Total	% of hh % of hh % of hh	58 31 11 100	48 39 13 100	-10 8 2
2	Food Sufficiency: HHs with Food for less than 3 months HHs with Food for 3-6 months HHs with Food for 6-9 months HHs with Food for 9-12 months HHs with Food Surplus Total Households	# of hh # of hh # of hh # of hh # of hh	166 198 184 172 36 756	119 248 203 192 51 814	-47 50 19 20 16 57
3	Economic Activities: Enterprise Established through COs Average Annual Income/Enterprise Av. Interest Rate of Local Moneylenders Houses with Tile/Tin Roof	# of Entp. Rs Rs # of hh	2 889 36 160	156 11,836 28 292	154 10,947 -8 132
4	Education: Primary School Enrollment -Boys Primary School Enrollment -Girls School Drop-out - Boys School Drop-out - Girls	% % % %	55 37 11 14	73 60 4 5	18 23 7 9
5	Health and Sanitation: Households with Toilets Traditional Birth Attendants in Village HH with DW within 30m. Walking Distance	# of hh No. %	102 4 52	396 7 77	293 4 25
6	Agriculture: Agriculture-based Village Cadre Irrigated Area Cash Crop Production Area	No. hectare hectare	0 162 71	6 239 140	6 77 70
7	Livestock Services: Agro-vet Service/Shops Village Cadre on Animal Science	No. No.	0 1	2 3	2 3
8	Forestry: Community Managed Forestry Plantation Area	No. hectare	1 12	3 16	2 4
9	Social Sector: Alcoholism Gambling Dispute Cases Registered in VDCs	% % No.	Up Up 25	Down Down 10	-15
10	Self initiated activities: Road Trail Improvement Community Building Construction	Km. No.	7 1	16 4	9 3

This indicates that most of the poorest households upgraded one step of their living standard into the poor category. Ultimately, the medium class has been increased by 2% (1,700 households). Likewise, during the same period, some of the poorest and some of the poor lifted themselves into "medium" class economic status. Overall, within two and half years an average of 10,614 households were seen to increase their living standard. (See classification of poverty levels as defined by Parbat LTF)

The assessment has identified that the number of households who were not getting food even for three months has been reduced by an average of 47 households in each VDC. Similarly, in all other levels of food sufficiency, the number of households is increasing. In the highest level, the number of households having surplus food is increasing by 16 households in each VDC. It indicates that a total of 1,840 households in VDP implemented VDCs improved their production and were able to acquire more than sufficient food for their family throughout the year.

On an average, 154 enterprises have been established in each VDC, an immense growth from the 2 enterprises established in mid 1996. (Note: An enterprise represents all locally sustainable economic activities undertaken, including income generating activities that people have initiated utilizing from internal loans or through credit capital from LTF.)

Similarly, the annual income per enterprise has increased from Rs. 889 (before the programme started) to Rs. 11,836 now. These rural economic activities are functioning in different capacities and are fetching a monthly income of Rs. 986. The programme also has had a significant impact on the poverty profile, food sufficiency and qualitative roofing of houses.

The average figures show that the interest rate of the local money-lenders has gone down by 8 percent during VDP implementation period. This is a very significant drop. The drop in interest rate clearly indicates that there are fewer people queuing at the moneylender’s gates these days. With most of the people in the community mobilized in one or the other CO, and the fact that these people can avail of collateral free loans at a much lower interest rate from their own CO or from the LTF, it is no wonder that the money lenders have lowered their rates too. The average local interest rates of the local moneylenders in the districts currently is still 28%, which is significantly higher than the rate of commercial banks. It has to be noted that in many villages moneylenders were charging upto 60% interest, so in those villages, the ‘drastically’ reduced rates have more significance than others.

Primary school enrolment of school aged girls has increased by an average of 23 percent. At this educational level, the enrollment of girls is better than that of boys. The increase in the number of girls attending school could be the positive effect of VDP’s focus on women’s development and female literacy. Similarly, the number of literate females has also risen significantly. A total of 99females in each district have become literate since 1996. These are the ladies who, till two years back had to rely on ‘thumb-print’ for their identification, and are now signing their names and are on the path of becoming functional literates. (see annex for sample of thumbprint vs. signatures in CO register)

The school drop-out rate has come down for both boys and girls, but the rate of drop out has gone down more for the girls and is nearly at par with that of the boys now.

In the last two and a half years, a total of 293 toilets have been constructed in every VDC - and increase of more than 100% when compared to the baseline figures. Similarly, by June 1999, a total of 77% of population in VDP implemented areas were able to fetch water within 30 minutes walking distance. In some instances, walking distances to the water source have been reduced by nearly two hours. This could be due to the fact that there have been many drinking water projects, many of these given catalytic support through LTF’s Seed Grant Fund. This is a great achievement, and if similar growth trends continue, by the end of 2001 more than 90 percent of the population will be able to get drinking water within half an hour’s walking distance. This also has a great impact on the womenfolk, whose job it is to fetch water. The time that the women spent on fetching water (besides the benefits on health of safe drinking water) can now be diverted to their various income generating activities.

In a country like Nepal where nearly 600 out of 100,000 mothers die during childbirth, maternity care is one of the most important health indicators. Thus it is very significant that the number of trained traditional birth attendants (TBAs) has nearly doubled in the VDCs. An average VDC now has 7 TBAs as compared to 3 in 1996.

As irrigation is the second most sought after development infrastructure in the villages (as seen through their prioritization of PPI projects), each VDC has seen an increment of irrigation facility to 77 hectares of cultivated land. Similarly, in each of these VDCs, an average of 70 hectares more of the cultivated fields now grow cash crops. Both of these facts are directly related with a corresponding increase in household production.

In each VDC there are at least 2 village cadres on livestock, who had not been there earlier.

The number of community managed forestry has not changed very significantly. There has been an increment of 2 plots of plantation on average, though, which reflects the community’s growing awareness about forest regeneration and environmental concerns.

Alcoholism and gambling have been significantly reduced. VDP has many examples of CO members, mainly under women’s leadership, undertaking anti-alcoholism and anti-gambling campaigns. Since this is a social trait that cannot quite be quantified in figures, the information received from the districts stress on the reduction of the trend of these social evils. (see examples of women’s campaign against alcoholism from Nawalparasi, Parbat & Nuwakot)

Similarly there has been a reduction in the number of social disputes too. The social dispute cases reported every year per VDC has been reduced significantly compared to the figures from the baseline survey.

There has been a gradual shift in the role of women in VDP VDCs. From predominantly reproductive roles, women are now venturing into community management/leadership and productive roles as well.

During this period people have constructed various community buildings and repaired roads and trails demonstrating social cohesion and utilization of social capital.

Two VDCs out of the 10 where VDP is being implemented in Parbat were surveyed for this sampling assessment of the effects and impacts of VDP. The following data reflect the changes in various magnitudes that people have felt in their livelihoods.

Positive discrimination to women: Increase in female literacy and the enrolment of girls in schools, and the reduction of drop-out ratio of girls, in comparison to that of the males clearly indicates that the programme’s focus on women’s empowerment is paying off.

Focused on poorest of the poor: In the poverty profile, significant progress can be seen amongst the poorest group,although other groups have also made some progress. The figures show that the programme has focused on the poorest of the poor as a priority group, but at the same times has not excluded other groups who are also living in the same community. Since the community already had ‘poverty,’ it was easier for other development interventions to be channelled to the priority groups. Many agencies, including district line agencies, have been using this profile for their programme delivery purposes too. It is a great achievement that COs have prepared the profile and attracted various resources to the needy people of the settlements.

Indicators	ThanaMaula VDC			Katuwachaupal VDC			Average change in 2 VDCs %
Indicators	Baseline 1996 %	As of June 1999 %	Change %	Baseline 1996 %	As of June 1999 %	Change %	Average change in 2 VDCs %
1. Availability of safe drinking water	76	92	16	52	80	28	22
2. Irrigated land	40	45	5	71	76	5	5
3. School Enrolment (from 1 to 5 Class):
Boys	60	91	31	61	92	31	31
Girls	30	78	48	38	85	47	47.5
4. Drop-Out rate (in primary education):
Boys	16	2	14	10	0	10	12
Girls	20	5	15	15	0	15	15
5. Literacy Rate:
Male	52	75	23	69	86	17	19.5
Female	36	68	32	47	80	33	32.5
6. Health and Sanitation:
Households having toilet	43	95	52	40	96	56	54
Persons washing regularly	74	90	16	76	94	18	17
Vaccinated people	68	100	32	80	100	20	26
7. Poverty profile:
Poorest	47	14	33	55	37.5	18	25.5
Poor	29	54	25	38	56	18	21.5
Medium	24	31	7	6	6	0	3.5

It is obvious that not all COs can be cooperatives or local NGOs. This is not VDP’s intention either. Some of the COs can get together and form cooperatives, or other forms of organizations, if they require to do so. The form that the organization takes is not as important as the "vision" behind the formation of the organization. In whatever organization the people gather, they should strive towards self-reliance, self-empowerment and self-governance. The below-mentioned impacts from Kaski district shows that some of the COs are in the process of expanding themselves into self-help cooperatives, or other forms of organizations. The rest of the COs could choose to remain as COs because their needs are being met under the present set-up.

Achham district conducted an assessment on the effects/impacts in all 5 VDCs where VDP is being implemented. The average findings of 5 VDCs are compared with baseline information.

SN	Indicators	Unit	1996	June 1999	Changes
1	Food Sufficiency: Surplus 9 to 12 months 6 to 9 months 3 to 6 months Up to 3 months	HH HH HH HH HH	380 748 621 489 112	397 793 611 471 78	17 45 10 18 34
2	Poverty Profile: Poorest Poor Medium	HH HH HH	942 989 419	888 1039 423	-54 50 4
3	Community Organizations: Organization of Males Organization of Females Mixed organizations	No. No. No.	11 2 2	42 17 44	31 15 42
4	Education: Government Schools Private/community schools Literacy rate School going male children School going female children	No. No. % No. No.	9 2 38 2,158 804	9 7 43 3,262 1,064	0 5 5 1,104 260
5	Health and Sanitation: Health Service centers Households with toilets Households with tap water	No. No. %	7 32 26	13 495 52	6 463 26
6	Income generating enterprises	No.	6	324	318
7	Migration: Permanent Seasonal	HH No.	0 583	2 476	2 -107
8	Agro-vet Centers	No.	0	3	3
9	Environment: Community Nursery Community Plantation Community Forestry	No. hectare No.	1 0 7	2 13 9	1 13 2
10	Loan taking status: Household taking loan Sources of Loan: - Bank - Village money lenders - Society - COs	% % % % %	47 38 40 22 0	64 14 10 9 67	17 24 -30 13 67
11	Households with irrigation facility	%	13	14	1
12	Number of Village Cadre	No.	0	108	108

A comparison of the two charts depicting the utilization of internal and external resources shows that the participation of women is quite commendable considering the status of women in our society. About 50 percent of the credit takers for both the funds are female. Most of the loans have been utilized in the livestock sector, which mainly includes raising buffalo & cows; poultry farming, goat & rearing. Among the members taking loan from external resources, 54% are from the poorest of the poor households. Only 8% of the credit takers are from medium category of poverty classification. Therefore, the credit capital, either from internal saving or external resources, has been mobilized focusing on poorest of the poor and women.

Mobilization of other resources in Kavre

Recently, an MOU was signed by Kavre DDC, UNICEF and JMA/JICA to implement a sanitation and child to child programme in 16 VDCs of Kavre district. All signatory parties agreed that the programme would be under the ownership of the DDC and that the Fund would be channeled through Kavre LTF. The 2-year Programme has a total budget of Rs. 2,965,800 . As a member secretary of the LTF, the DDA of Kavre also signed in the MOU. This is a very good example of increased linkages of the VDC and DDCs and also shows the signs of sustenance for the operation of LTF.

Similarly, the Swiss Development Corporation (SDC) under an agreement reached with the DDC, is providing seed money for village experts in seven VDCs, three of them VDP VDCs-- Kushadevi, Sathighar and Dhungkharka. These three VDCs have matched the Swiss seed money, thus increasing the total amount to Rs. 140,000 per VDC. Accordingly three experts each from these villages who received training at Jiri Technical Institute in public health, livestock and agriculture, can now avail of capital to establish and expand their specialized services.

Making bindis

Mrs. Rima Pant, manager of Nari Jagaran CO in Nayabelhani, Nawalparasi, provided a week-long training on making bindi to the female members of neighboring COs. Now that she gets supplies from more trained women, Rima’s bindi sales have gone up. To date her enterprise has grossed her Rs. 2800 at the rate of Rs. 33 for 33 packs of a dozen bindis each. Rima is assured of her market and is happy with her new occupation.

Micro-hydro in Chafamandu

Chafamandu VDC in Achham has made plans to implement a 12.25KW capacity micro hydro project under VDP’s own effort. The project will cover wards # 1 to 8, thus covering 193 of the total 212 households in the VDC. Most of the settlements are within a 2 km radius of the micro-hydro project. The irrigation canal constructed by the District Irrigation Office with the assistance of Asian Development Bank, after some repairs, will be utilized as the head race canal for the project. As the design discharge is about 70 liters per second, the canal will continue to provide for irrigation as well.

The total cost of the project, according to the preliminary estimate, is Rs. 1,742,178. Out of the this estimated budget, the district LTF is contributing Rs. 700,000 (VDC- Rs. 300,000 + VDP - Rs. 400,000), ADB/N is providing a loan of Rs. 335,178, the COs are contributing Rs. 157,000 and HMG is providing a subsidy of Rs. 550,000.

The COs are receiving technical assistance from Rural Energy Development Programme (REDP) as and when required. For instance, REDP provided a 10-day micro-hydro survey and are also helping the COs with the formalities of survey works and the procedures of acquiring the machinery. The functional committee for micro-hydro project implementation consisting of 21 members, including 3 women, is now is trying to finalize the loans. The project for which detailed designs and cost estimates are being drawn up, is expected to be complete by April 2000.

This is a very promising example of the COs on the path of self-reliance, and self-governance, and acting as the receiving mechanism for local development efforts and resources.

Manakali's Story

Manakali Devi Khatri (46) born in Jural VDC in Doti district in a family of 9 members, grew up under very hard conditions. Her life became no better when she was married at a tender age into an equally poor household. In Nikaney in Gangkhet VDC, Dadeldhura. What was worse was that Manakali’s husband used to drink a lot.

When the children appeared the family found it hard to subsist off the produce of their little plot of hilly land. The food would not last them more than three months in a year. They had no alternative source of income. Manakali’s husband’s love for liquor only made things worse. She was forced to go to the clutches of the local moneylenders… thus steeping her more and more into debt. But the money that Manakali would be spent on household expenses and could not be utilised for income generating works.

"I always wanted to do something to augment my income. But who would believe in me, a poor woman, to lend me money for starting any enterprise?" questions Manakali.

But Manakali’s deep-rooted desire to raise herself up from abject poverty made her devise various means of income generation. With the money she managed to scrounge from her household expenses she started raising goats. Then she opted to plant vegetables in her fields instead of cereals. She would sell her vegetables in the market in nearby Gaira Bazar. The added income from these ventures helped Manakali send her children, including her daughter, to school, and helped feed her family of six (the couple, their two sons, a daughter and a daughter-in-law).

When VDP was implemented in Gangkhet, it seemed god-sent to Manakali. She got in touch with the social mobiliser and became very active in mobilising her fellow women into a community organisation. Under her coordination, the Mahalaxmi women’s CO was formed in Nikaney of Gangkhet. Being illiterate Manakali did not want to take on the leadership of the CO, but after her group members all came to the unanimous consensus that she be the Chairperson, she relented.

Her first task as a chairperson was to gear all the women representing various ethnicity, religion and social backgrounds into a cohesive group. As part of her regular duties as a chairperson, she led her friends to conduct regular meetings in which besides their savings and loans activities, the members discussed topics of mutual concern-- issues of hygiene, health and education as well as works that they could take up to improve their lives in the community.

The group, through their hard labor, built a community building in the village. The CO holds its regular meetings in the building and the premises is also used as a weigh-in clinic by UNICEF’s Decentralized Planning for the Child Programme. As the group only meets in the mornings and evenings, they are now thinking of running a primary school in the daytime.

Whilst urging the group towards income-generating works, Manakali herself decided to set up a trade, as their village was half-an-hour’s downhill from the highway. She opted for poultry farming as a fowl almost sells at the price of a goat - Rs. 400-500 per head - in these remote hills!

Manakali took Rs. 3000 credit capital and borrowed Rs. 2000 from her CO to start raising chicken, which she procured from Dhangadi. Six months after she had borrowed the money she was able to pay back all her installments and earn herself Rs. 10,000 in the process. Manakali invested that amount in opening a small "hotel" (eatery) in Gaira Bazar. Manakali’s sweet words and the delicious dishes she prepared made her "hotel" very popular among the locals. She sells meals to at least 4-5 buses plying on the highway every day. On a busy day she earns upto Rs. 1000 a day clean profit.

Manakali has now managed to pay off all her debt in the village. She has Rs. 70,000 bank balance and lends money to the needy who want to start income-generating enterprises. Although she does not raise chicken any more, Manakali’s "hotel" buys chicken raised by her fellow CO-members. The hotel also buys other agriculture produce like vegetables, milk, eggs that the CO members produce. Manakali also gives space in her eatery for CO members to display and sell their produce. Owing to her hectic schedule with the business, and also to allow other group members the opportunity to lead the CO, Manakali has handed over the reins of chairpersonship to her colleague.

Manakali’s domestic life, besides being economically secure these days, is also much smoother. Her husband, seeing his wife’s struggle to break away from the poverty trap, is now helping her in every way that he can… mainly by not drinking!

Honey & Money for Min Bahadur

Min Bahadur Bohara used to live in a small house along with seven other family members by the side of the jungle in Jutpani VDC in Chitwan. The Boharas made ends meet through farming… which was extremely difficult owing to the proximity of the land to the forest. "I did not have any other means of livelihood other than farming," says Bohara who just has basic reading and writing skills, "In fact before VDP was implemented in the village, I did not have any idea of livelihood possibilities."

When VDP was implemented in Jutpani, Min Bahadur became a member of the Janashakti Community Organization. In May 1998, he took a loan of Rs. 3200 from the CO and started raising honeybees. "I started with one hive, and soon realized that I needed to add one more hive," says Min Bahadur. "Soon after I had paid off the first loan, I took more loan to add another hive, and then another one and so on. Besides the honey, I also started selling the bees."

So far Min Bahadur has already sold 95 hives of bees and with the Rs. 100,000 he got from the sale, he was able to build a small house and acquire some land too. He still has Rs. 150,000 worth of bees in the 50 hives (20 golas) that he has with him.

Min Bahadur, as a member of the Bee-keeping farmers, has been able to avail some training on apiary. Besides bee-keeping he has also taken loans to raise goats. He now currently owns 15 goats. "With the bees and the goats… I have improved my living status. I am far better off now than I was before I joined the group."

Talking about the future Min Bahadur says, "Our group now wants to collect all the honey produced by the members of our CO and set up a wholesale shop in the village. That way we will not have to roam around to sell our produce. We will work very hard towards this and know we will be successful in our endeavors."

"I have upgraded myself to a
medium-income bracket"

Purna Bahadur Swanr , 20, of Jalpadevi VDC, in Achham, like most rural Nepalis in the hills had a difficult life. He and his family of four (parents father aged 77 and mother aged 52 and a younger brother, 16) did not have sufficient food to last them the year. The family owned about 1 ropani of irrigable land and about three ropanis of steep slopes Purna Bahadur, worked as a laborer to make ends meet. His dream of acquiring a higher education fizzled out when his family couldn’t afford to pay the tuition fees.

When VDP was implemented in his village Purna Bahadur became a member of Navadurga CO. Two years ago he took a credit of Rs. 5000 from the VDP and bought 375 chicks from Nepalgunj.. two days’ walk and bus-ride away. He raised the chicken, sold them at a profit, paid back the loan. Since then Purna Bahadur has made numerous trips to Narayanghat (7 times), Mainapokhari (3 times), Bhurigaon (5 times) and Gonda in India (2 times) to buy more chicks.

"I could never have thought of entering the cut-throat mainstream business.. and therefore I opted to open a poultry farm at my own house" Says Purna Bahadur. "It helped that I had a friend in the bus service, who was able to ferry my chicks at no additional transportation cost. It helped a lot in those initial stages."

For a person who had a hard time getting food to eat, let alone "play" with money, Purna Bahadur is quite secure economically. So far he has invested Rs. 1,60,000 on his poultry farming. Earlier Purna Bahadur used to take a 90-minute walk to the nearest market in Sanfe, but nowadays the buyers come to him! He has a difficult time meeting the demand!

Emboldened by his entrepreneurial experiment, Purna Bahadur rented a plot of land at the Sanfe Haat Bazar premises for Rs. 200/- per month. There he built a shed by investing Rs. 12,000/-. He is letting out the shed at Rs. 1300/- per month. Thus he has a steady income of Rs. 1,100/- a month.

Recently, with his accumulated income, Purna Bahadur rented another plot of land for Rs. 1000/- and built a shed worth Rs. 40,000 This too Purna Bahadur has rented out for Rs. 2500/- a month.

Purna who is currently living in a small thatched hut with his family, now want s to upgrade his living quarters. He is about to build a solid 4-room concrete-roofed house with a veranda in the front. When asked on how he can afford to build such a ‘lavish’ building, he replies, "It’s no problem. I have Rs. 90,000/- in savings, plus the monthly rent I get and the earnings from my poultry business.

When Purna Bahadur started his poultry business, he did not have any livestock at all. Now he has bought himself a pregnant buffalo for Rs. 16,000 and a pair of oxen to till his fields for Rs. 10,000. The family’s monthly expenses total to Rs. 700 per month.

"When I joined the CO, I was listed under the ‘poor’ income category, but now I can claim with pride that I have upgraded myself to ‘middle’ income category." Purna’s old father, looking and experiencing his son’s prosperity says he’s never seen happier days! The parents also help Purna with his poultry business

Meanwhile, Purna Bahadur is attending grade 11 classes in a local school and is also funding his younger brother’s high schooleducation. Purna wants to expand his poultry business even more. "It is my livelihood!"

He expresses gratitude to VDP for giving him the opportunity to raise himself from the quagmire of poverty. "This is truly a poor-oriented programme. There is no way I could have initiated such a project for the banks and the money-lender would not have trusted me with the sum" he says. "May this programme expand to every thatched home in the country, and may it go on forever! I can proudly say today that I am the epitome of poverty alleviation!"

From Kuthey Koli to Kutharam Ji!

The Kolis of Rodidewal, Baitadi, have traditionally been a disadvantaged ethnic group. They have been making bamboo baskets, ironware, and carrying ‘doli’ (litter) for generations. Kutharam Koli, 35, without a sizeable land to his name, was eking out a living working in other’s land and claiming 50 percent of the produce. That was before he started a small retail shop and has paved the way to become a successful entrepreneur. On October 16, 1998, Kutharam was recognised for his efforts at raising himself, his family and the community out of the mire of poverty by UNDP Nepal on the International Day for the Eradication of Poverty. Koli is now more motivated and is becoming more active in social works.

It all started when PDDP’s Village Development Programme (VDP) was implemented in Rodidewal in October 1996 and Koli became a member and then the Manager of the Karkibhotya Development Organisation.

Early on Koli took Rs. 8000/- credit capital to open a small retail shop. The Kolis with their son went to Barala Ghat on the India-Nepal border where he bought salt, cooking oil, molasses, rice and other necessary items which they then carried on their backs to Rodidewal. The money they saved on transportation cost was passed on to the customers. Koli sold his goods 50 paise cheaper than his competitors to attract customers.

After paying back his first loan (in which he made a profit of Rs. 2000) , Koli borrowed more and stocked his shop with garments - small frocks, shorts, toys for children, track suits for men, slippers and shoes - and also started buying goods in bulk. Kolis wife and son help him with the store. He goes to the market two times a week.

In March 1999 Koli set up a small stall to sell jeri (sweetmeat) at the Fagu (holi) Mela. He ‘hired’ a partner to sell the sweetmeat for him (as he says people would not eat food touched by him) and sold upto Rs. 5000 worth of jeris on a single day. He made a profit of Rs. 700.

Last year Koli bought a cow and an oxen. Now he has bought three goats which cost him Rs. 5000 and he is very confident that they will fetch him Rs. 10,000 when he sells them in a year’s time.

Kutharam Koli, who three years earlier (before VDP) had taken a 14-day NFE training, also works as a part-time (3-hours) teacher at the local school and is paid Rs. 1000 per month by the VDC for the job.

Adept at playing the harmonium and being musically and culturally inclined, Mr. Koli has written and staged many plays with the schoolchildren in the local festivals is highly popular in the school. Recently he staged a play "Garibko bikas; PDDP ko pravesh" (relating PDDP’s entry into the village with poverty alleviation ) at the local fair.

These days Koli urges other CO members towards raising themselves from the poverty trap too. He has become a source of inspiration for the villagers.

"Our village has improved tremendously these days," says Koli. "It is very much cleaner, now that most of the households have constructed pit latrines, temporary ones, or sturdier ones. I find it easier to move about from settlement to settlement, because the trails have been improved/rehabilitated and because it is not littered with human waste."

Kutharam’s trip to Kathmandu to receive the IDEP (International Day for Eradication of Poverty) award was a unique experience for him. He says that the recognition that he received from UNDP had affirmed his belief that there were no barriers to prosperity and development… neither untouchability nor lack of material wealth. "This recognition has further strengthened my firm desire to uplift the people of my community towards a more prosperous and bright future!"

Talking about the changes in his life since he started this new venture, Koli says, "Oh! There has been an enormous change in my life. Earlier I used to toil in other’s land, and could not dream of new clothes. We had no money, little skills, and no opportunity, and you know how expensive it is to just keep yourself alive! Now whenever there is a haat I can afford to bring something back for the family. How would I have been able to afford all this otherwise? The villagers tell me to relax... but I want to work even more.""

But the greatest change that has transpired is that the man who used to be called "Kuthey Koli" by the villagers, is now referred to as "Kutharam Ji" (Mr. Kutharam)