Sitaramachandra Machiraju
Consultant, EASER and SASDA
Outline
Context of APRPRP
Project Investments
Key Impacts
Implications for Cambodia
Context of APRPRP
Poverty Status of Andhra
Pradesh
Population – 76.2 m
Poverty Rate– 26.8 %
Infant Mortality Rate – 52
Maternal Mortality Rate – 154
Female Literacy Rate – 50.4 %
Andhra Pradesh Rural Poverty
Reduction Project
Time line: 2000 – 2011
Total investment - US$ 430 m
Program participants – 10 .6m HH
Building investment climate at
the Bottom of the Pyramid
Institution Building/Social Capital: Supporting, strengthening and
federating self managed grassroots institutions of the poor
Financial Capital and Livelihood Credit Planning: Establishing access to
savings, assets, credit, insurance and other market linkages for livelihood
improvement.
Human Capital : Building Capacity and providing skill development to the
develop functional Skills Example: community trainers, book writers, village
botanists, grassroots quality controllers, etc.
Productive Infrastructure: Providing small scale productive infrastructure
for value addition e.g.. produce aggregation, storage and warehousing,
solar driers, etc.
Design Elements*
Social mobilization of poor women
Building institutional platforms for the poor
Developing pro-poor financial sector
Access to entitlements
Linking with markets & services
Gender empowerment
* Lego ® orientation
Intervention Philosophy
Reducing Increasing Reducing Increasing
Risks and Incomes Costs Employment
Vulnerabilities
Key Interventions
Developing good quality institutions of the poor and
making poor credit worthy clients
Priming private investment through community funds
Developing strategic alliances with Commercial Banks
Assetization and skilling of poor to make them market
worthy
Value chain investments and partnerships with
public, private and cooperative sectors for increasing
rate of return from livelihoods
Developing last mile service delivery approaches for
various public services and entitlements
Institutional Platforms of the Poor
Sub-District Federations
MANDAL
• Strengthen and Support VOs SAMAKHYA
• Rating and Auditing of VOs/SHGs
• Micro credit to VOs
• Liaise with Banks & Markets Young
• “COMMUNITY FRANCHISEES” professional staff
Village Organizations
VILLAGE
• Strengthening of SHGs VILLAGE ORGN
ORGN
• Arrange line of credit to the SHGs
• Livelihood support services Book Keepers &
• Support community professionals Para professionals
• “BANKING AGENTS”
w
Self Help Groups SHGs
w
SHGs SHGs SHGs
• Thrift and credit activities w
• Participatory monitoring
w w w
• Micro Credit Plans w w w w w w w w w
District Federations form the apex of these institutions w
w w
The Scale
10.6 million poor women organized into 933,585 SHGs
S.H.G Federations organized in 36,361 villages
Sub-district Federations organized in 1099 mandals
District Federations organized in all 22 districts
Outcome
100% of villages covered
90% of rural poor households organized
Key Impacts
US$ 1.5 billion
US$ 20
million
Loans accessed in FY 2000 Loans accessed in FY 2009
• Own corpus (savings and interest) – US$ 1 billion
• Cumulative bank loans – US$ 4.5 billion
• Total Investment by the Poor – US$ 7 billion
• Women Federations as banking agents – 9986
Source: Project MIS and NABARD Reports (2009)
Key Impacts
Economic
8 million poor women/spouses covered by micro insurance
1.4 million acres of land bought under sustainable agriculture
253,021 acres of area of land accessed by poor women
200,000 Jobs created for girls and boys from poor HHs
Social
2.4 million households benefit from food security
680 maternal and infant malnutrition free villages
14,157 girl children mainstreamed into formal education
17,602 cases of women resolved by counseling centers
Key Impacts
Growth in Assets Per Household for Increase in Income Per Household
Project Participants for Project Participants
2974
3000 1500 1041
Value of 2000 1032 1000 483
Assets US$
(US$) 1000 500
0 0
2000 2006 2000 2006
Assets accumulate by 188% Incomes rise by 115%
Source: ICR, APDPIP, The World Bank (2007)
System level impacts
@just US$ 40 per HH
Market Share of Poor Women
15% of rural credit market
40% of the livestock added into the State
30% of the State’s milk production
20% of milk procured by coops and private dairies
43% of maize procured under MSP Operations
10% of paddy procured for PDS
Source: Project MIS and Industry Level Secondary Data Sources
MSP = Minimum Support Price
PDS = Public Distribution System
Context of LEAP
Poverty Status of Siem Reap
Population – 900,000
Poverty Rate– 51.8%
WFP Vulnerability Map – 60%
Infant Mortality Rate – 78
Maternal Mortality Rate – 472
Women Headed HH – 43%
Female Literacy Rate – 48 %
Livelihoods Enhancement and
Association of Poor (LEAP)
Project Development Objective is to improve incomes
and increase employment of the poor in targeted communes
in Siem Reap province
Key Principles
Targeting of poorest
Building on strengths – sectors, models and institutions
Focusing on key sectors where poor have comparative
advantages
Combining both market induced and demand driven
approaches to value chain development
Comprehensive package of support
Phased implementation – Pilot, Learn & Scale
LEAP Design
Building self managed institutions
Thrift based groups and their federations
Producer groups and their associations
Linkages with formal financial institutions
Making markets work for the poor
Creating assets
Productivity enhancement
Value chain partnerships
Employment linked skills development
Convergence, coordination and innovation
LEAP- vision
Total Investment ~ US$ 15 million
Projected Outreach
Covering 50 poorest communes
Reaching 20,000 clients and mobilizing them into 2000 SHGs
50 commune level self-managed community institutions
Projected Financial Turnovers
Members Savings ~ US$ 2 million
Seed Grants ~ US$ 7 million
Loans from banks and MFIs ~ US$ 3 million
Impacts
Investments by the poor ~ US$ 15 million
Livelihood turnovers of the poor ~ US$ 15 million
Current Strengths – Models and
Institutions in Siem Reap
Thrift based social mobilization programs pre-exist in
Siem Reap
NGO SHGs Members Savings (US$)
PADEK 203 3475 14,900
CEDAC 113 1816 47,100
Hurredo 101 1502 38,000
ADDA 83 1038 NA
Bantey Serai 31 1000 NA
New generation bank (ACLEDA) and microfinance
institutions like World Vision have roots in this movement
Current Strengths – Models and
Institutions in Siem Reap
Social capital available in the form of SHG leaders (with
15+ years of experience), group facilitators, book
writers, community extension workers, community
livestock activists (PADEK, CEDAC, ADDA, ADRA)
Aggregate institutions of producers engaged in
technology extension, inputs provision and market
linkages (CEDAC, ADDA, ADRA)
Employment linked skill development programs (Paul
Dubrule, Sala bai, Shinta Mani)
What lessons APRPRP offers
Transforming Social Capital to Economic Capital
Scaling up current livelihood initiatives
Saturation approach
Inclusion of the poorest
Leveraging Social Capital
Building aggregate institutions
Improving quality and effectiveness
Systematically building demand side – livelihoods planning
Working with supply side institutions like commercial banks
Alternate models for doing business with the poor
Managing convergence and innovation
LEAP – Growth Prognosis
OUTCOMES
MMWFP* &
Increased
Incomes
Federations
for Scale
Economies
Asset
Expansion &
Replacement
Production &
Productivity
Consumption
Smoothing &
Assetization
INPUTS
Forming Access to services Financial sector Developing Market
Women Groups like technology, linkage value chains linkages
extension & inputs
MMWFP = Making Markets Work For Poor
Visit www.worldbank.org/rurallivelihoods
Higher Order Service Delivery:
Insurance Services
Insurance Claim Settlement Process
Phone Call Centre located in
Claim village
District Federation
Payment of
Solatium/Relief US$ 125 Alert
ATM
Commercial Area Committee
Bank Members
• Area Committee completes documentation and sends e-Claim to Insurance Company via District
Federation
Higher Order Service Delivery:
Para Legal Services
Counseling and Mediation Services
Phone Call Centre located in
Gender Victim District Federation
Area Committee Alert
Counseling and
Mediation Services
Police Station
• Counseling Center completes documentation of reconciliation
proceeding that is deemed legal and recognized by AP High Court
under “Peoples’ Court’ system.