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					    End -Term Appraisal
               of
Andhra Pradesh District Poverty
      Initiatives Project

            S. Mahendra Dev (Overall Coordinator)

                      S. Galab
                      P. Prudhvikar Reddy
                      D. Sree Rama Raju
                      C. Ravi
                      K. S. Babu
                      K. S. Reddy
                      M. Gopinath Reddy
                      G. K. Mitra
                      G. Alivelu




    Centre for Economic and Social Studies
            Nizamiah Observatory Campus
            Begumpet, Hyderabad- 500 016
                Andhra Pradesh, India
             Tel:040-23402789, Fax: 040-23406808
  E-mail: postmaster@cess.ac.in, Website: www.cess.ac.in
                           August 2007
                                         CHAPTER 0

       MAIN CHARACTERISTICS OF DPIP AND METHODOLOGY
                  FOR IMPACT ASSESSMENT

0.1 Introduction

The Andhra Pradesh District Poverty Initiatives Project (APDPIP), popularly known as
VELUGU (meaning light) is a Rs. 600 crore World Bank supported 5-year poverty elimination
project. In keeping with the development commitment, and as boldly envisaged in the vision
2020 document, the Government of Andhra Pradesh (GOAP) has initiated the ‘Rural Poverty
Elimination Programme’ under the project ‘VELUGU’. An independent, autonomous society
under the Societies Act was created to implement the project named the ‘Society for
Elimination of Rural Poverty’ (SERP). The project is being implemented in the six most
backward districts of the state since June, 2000.The project promotes people’s projects, which
facilitate the poor to play a decisive role in shaping their own destinies.

0.2 The Project Background

APDPIP brings together the lessons learnt from earlier experiences and experiments of both
the governmental and non-governmental initiatives. It builds on the strengths of a number of
projects, particularly the UNDP assisted South Asia Poverty Alleviation Project (SAPAP)
which have shown that the poor have a tremendous potential to help themselves and that this
potential can be harnessed by organizing them. The poor have demonstrated that when
adequate skills and inputs in community organization, management and action are provided
they can shape their destinies. The successful institution-building model of SAPAP is being
emulated in the APDPIP. Further, the project planning and implementation takes into
consideration the opportunity, empowerment and security framework for poverty alleviation of
the World Bank.

0.3 Main Characteristics

Andhra Pradesh has a long history of women’s self-help groups (SHGs). The District Poverty
Initiatives Project (DPIP) explicitly aims at utilizing the existing SHG base, rather than starting
up completely a new and building on it in a number of ways. The formation of self-help groups
(SHGs) and their federations at the village and mandal levels meant for generating micro-
processes to influence the institutions, formal and informal, and policies for improving the
livelihoods of the poor, is central to DPIP. This project aims at enhancing assets, capabilities
and the ability of the poor to deal with shocks and risks. It recognizes that the livelihood
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strategies and income levels of the poor are inadequate not only due to lack of financial capital
but also due to low/lack of physical and human capabilities. It assumes that empowerment of
poor women should come prior to the access to financial capital for the better utilization of
existing resources and expanding the resource base. These characteristics of the programme
have implications for the type of questions to be answered in an evaluation and the choice of
the most appropriate methods to do so.

0.4 Objectives

The study focuses on the contribution of project activities in key areas, namely empowerment
of women; asset base of women; coping with shocks and reducing exposure to uninsured risk;
livelihoods; food security and vulnerability, improved service delivery and institutional
empowerment.

0.5 Methodology

The impact assessment should focus attention in a different way on women. This demands
gender sensitivity with respect to the survey instruments. Men and women need to be
interviewed separately in the same household for comparison. The assessment should focus not
only on economic outcomes but also social empowerment and risk as important elements. The
traditional emphasis on the household should be complemented by an assessment of SHGs and
their federations and the impact of SHG membership on the economic performance of
households.

All the Follow-Up-Survey-I (FUS-I) sample households were revisited in FUS-II. Thus, it
covers a sample of 2641 households spread across 256 main villages and 306 habitations both
in project and control areas. A comparison of FUS-II with FUS-I and between participants and
non-participants is made to assess the contribution of the programme. The study focuses on
assessing the contribution of the programme to the key areas, namely, institutional
empowerment, livelihoods, service delivery, market linkages; community managed social
safety nets, and social and political empowerment.

0.6 Organization of the Study

The study is organized in six chapters. Chapter 0 is the introductory chapter. Chapter 1covers
the programme and its main characteristics; and functioning of institutions, viz. SHGs, VOs,
and MSs. Chapter 2 focuses on livelihoods, assets, income and consumption, market linkages
and community managed social safety nets. Chapter 3 discusses improved market service
delivery for health, education and mid-day meals. Chapter 4 examines evidence on the impact

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