Abbreviation by liaoqinmei

VIEWS: 10 PAGES: 75

									     Review of the Impact of the Swedish Support to
       Integrated Development Foundation (IDF)




                            By
                  Dr. M. Belayet Hossain
                  Mr. Shahadat Hossain




Commissioned by Swedish International Development Agency
                        (SIDA)
                      Dhaka, May 2003
                           Table of Contents
List of Tables                                          V

Authors’ Note                                           Vi

Abbreviation                                            Vii

Summary and Recommendations                             1

A. Summary                                              1

B. Recommendations                                      8

1. Introduction                                         11

1.1 Justification of the Study                          11
1.2. Objective of the Study                             12
                                                        13
1.3 Review of Literature
                                                        14
1.4 Methodology and Data                                17
2. Activity Analysis                                    17

2.1 Group Formation and Development                     18
2.2 Group Development and Management                    18
2.2.1 Scrutiny of Members                               18
2.2.2 Group Discipline and Cohesiveness:                18
2.2.3 Group Management                                  19

2.3 Training                                            19
2.3.1 Target Group Training                             19
2.2.2 Staff Training                                    20
2.4 Savings and Capital Formation                       20
2.5 IGA Promotional Support                             21
2.5.1 Credit                                            21
2.5.2 Comments on Operation of Credit Programme         22

2.6 Social Development Support and Extension Services   23
2.6.1 Non-Formal Education                              23
2.6.2 Health, Nutrition, Water Supply and Sanitation    24
2.6.3 Promotion of Child Rights and Interest            25
2.6.4 Extension Services                                25
2.7 Environment Promotional Activities                  26
2.8 Disaster Management Support                         27
2.9 Gender Development                                  27

                                       2
3. Organizational Analysis                                        28

3.1 Office Set-up
                                                                  28
3.2 Manning of Offices and Key Functions                          28
3.3 The Governance and Administration                             29
3.3.6 Management and Administrative Practices                     29
3.3.7 Comments on Governance System                               29

3.4 Financial Management and Practices                            30
3.4.1 Financial Policies and Control Mechanism                    30
3.4.2 Financial Planning and Budgeting                            30
3.4.3 Accounts and Book Keeping                                   30
3.4.4 Audit and Financial Monitoring                              31
3.5 Planning Process
                                                                  31
3.6 M &E and Reporting
3.6.1 Monitoring setup                                            32
3.6.2 Modes of Monitoring and Reporting Frequencies               32
3.6.3 Monitoring Tools and Indicators                             32
3.6.4 Impact Evaluation Indicators                                33
3.6.5 Comments on M &E System                                     33
                                                                  34
3.7 Networking and Collaboration
                                                                  35
3.7.1 Community Level Collaboration
                                                                  35
3.7.2 Collaboration with other NGOs
                                                                  35
3.7.3 Government Collaboration
                                                                  35
3.7.4 Donor Collaboration
3.8 Sustainability                                                35
3.8.1 Target Group Sustainability                                 35
3.8.2 Sustainability in the context of IDF                        36
3.9 Gender Sensitivity of the Project/IDF                         36

4. Impact Assessment                                              37
4.1. Sample Characteristics, Coverage and Utilization of Credit   38
4.1.1 Demographic Characteristics of the Sample Respondents       38
4.1.2 Reaching the Target Group                                   38
4.1.3 Coverage by Occupational Group                              40
4.1.4 Size of Loan                                                41
4.1.5 Satisfaction of Loan Demand                                 41
4.1.6 Use of Loan by Female Loanee                                42
4.1.7 Utilization of Loan by Sectoral Activities                  42

4.2 Socio-Economic Impact                                         43
4.2.1 Impact on Capital Accumulation and Asset                    43
4.2.2 Impact on Employment
                                                                  44


                                       3
4.2.3 Impact on Income                                  46
4.2.4 Impact on Productivity
                                                        48
4.2.5 Impact on Poverty
                                                        48
4.2.6 Impact on the Status of Housing
4.2.7 Impact on the Status of Health                    49
4.3 Services Received and Further Assistance Expected
                                                        49
Reference
                                                        52
Annex 1
                                                        54
Annex 2
                                                        57
Annex 3
                                                        58
Annex 4
                                                        59
Annex 5
                                                        60
Annex 6
                                                        61
Annex 7
                                                        62
Annex 8
                                                        64
Annex 9
                                                        66
Annex 10
                                                        67
Annex 11
                                                        68




                                        4
                                List of Tables
Table 1 Distribution of Respondents by Selected Branch                        15

Table 2 Subject-wise Skills Development Training                              19

Table 3 Savings by IDF members up to December 2002                            21

Table 4 Loan Operation: As of December 1999 and 2002                          22

Table 5 Livestock services during January 2000 to December 2002.              26

Table 6 Source-wise funds available with IDF as of 31st December 2002         37

Table 7 Distribution of Sample Respondents by Marital Status                  39

Table 8 Distribution of Respondents by Land Ownership Pattern                 40

Table 9 Main Occupation of the Loanees and Their Husband                      41

Table 10 Distribution of Last Loan by Size and by Region                      41

Table11 Proportion of Respondents Taken Loan from Sources other than IDF      42

Table 12 Distribution of Activities used Last Loan                            43

Table 13 Distribution of Respondents by Size of Present and Initial Capital   44

Table 14 Value of Initial and Present Household Asset (values are in TK)      44

Table 15 Use of Employment by Loanee Households in Last Month                 45

Table 16 Correlation Coefficient among Labour use in Loan Activities          46

Table 17 Distribution of Respondent Households by Annual Income               46

Table 18 Correlation Coefficient among different variables                    47

Table19 Reasons Cited for Increase in Income of the Respondent Families       48

Table 20 Estimate of the Productivity of Labour and Capital by Activity       48

Table 21 Change in the Housing Status of the Sample Respondents               49

Table 22 Change in Health Status of the Sample Respondents                    50

Table 23 Services Received and Services Want More from IDF                    51
Table 24 : Nature of Problems Faced by Respondents                            51

                                         5
                                   Authors’ Note
Supported by Sida since 1995, IDF has completed in December 2002 the third phase of a
project titled as ‘upliftment of overall socio-economic condition of the poor people of
Chittagong Hill Tracts’. Coming to this stage, it is timely that Sida initiated an
independent evaluation of achievements and lessons from the project that might be useful
for planning their future steps. We feel honoured that Swedish Embassy bestowed on us
their trust for such an important study.

As per outlines in the given TOR, the study proceeded with a thorough review of the
project documents including MOU between Sida and IDF, routine progress reports and
available evaluations, the strategic system documents and operational guidelines/manuals
prepared and/or adopted by IDF. Priority attention was given to ‘sharing of opinions’
with the project staff at different levels, including the top management officials and
Board members of IDF. Also participatory group meetings and one-to-one interview with
the target group members were undertaken.

In carrying out the study, we received excellent cooperation and inputs from all
concerned. Specifically, we gratefully acknowledge the generous help received from Mr.
Reazul Islam, Embassy of Sweden. Mr. Zahirul Alam, ED of IDF has been so open and
guiding to us all along. Mr. Shahidul Amin Chowdhury, Project Coordinator, Mr. Md.
Lutfur Rahman, Dy. Chief Programme organizer, Mr. Dilip Majumder, Senior
Programme Organizer and Mr. Angshu Bikash Das, Senior Prgramme Organizer (Audit)
provided us a good insight into the overall activities and achievements of IDF. Mr.
Mizanur Rahman Majumder, Computer Operator of IDF helped us a lot at the final stage
of organizing the report. They all deserve special thanks. The warm hospitality and all out
cooperation received from IDF filed offices were just unforgettable. All the more, we are
deeply indebted to many of the target group members who so generously spared their
time for interview and meetings with us for quite a long time.

As the study revealed, Sida-IDF collaboration have had quite positive impacts on both
IDF itself and its target group community in the CHT. Struggled with known adversities
over about a decade of its operation in the CHT region, IDF is now better established and
equipped with a good network of Branches in all three districts, increased number and
better experienced staff, improved resource bases and financial situation, proven practices
and methodologies. Things at the moment are in such an order that continuation of Sida-
IDF collaboration for some more years might be yielding faster results than any time
before. However, some redirection is desirable in the collaboration plan focusing more on
social development activities and services promoting skill, education, health, gender
equity, good governance and social amity among the disadvantaged groups of people in
CHT region.

Thanks once again to all who directly and indirectly helped us carrying out the study.
Dr. M. Belayet Hossain
and
Shahadat Hossain

                                            6
                             Abbreviation
ADAB -     Association of Development Assistance for Bangladesh
AGM -      Annual General Meeting
AusAID-    Australian Aid
BADC -     Bangladesh Agricultural Development Council
CARE -     Cooperation for American Relief Everywhere
CC   -     Centre Chief
CHT -      Chittagong Hill Tract
DAE -      Directorate of Agricultural Extension
DY -       Deputy
ED -       Executive Director
GB -       General Body/Grameen Bank
GT -       Grameen Trust
HKI -      Helen keller International
HQ -       Head Quarter
HDT -      Human Development Training
IDF -      Integrated Development Foundation
IGA -      Income Generating Activities
ILO -      International Labour Organization
MOU -      Memorandum of Understanding
NGO -      Non-government Organization
SIDA -     Swedish International Development Agency
SPSS -     Statistical Package for Social Science
SDT -      Skill Development Training
SAD -      Sender and Development
TOR -      Terms of Reference
TGM -      Target Group Member
TK -       Taka (Bangladesh Currency)
UNICEF -   United Nations International Children Emergency Fund
VO -       Village Organizer
WEDE -     Women Employment through Entrepreneurship Development
WID -      Women in Development
WFP -      World Food Programme




                                      7
                    Summary and Recommendations

                                     A. Summary
A replication of Grameen model, Integrated Development Foundation (IDF) started its
operation in CHT region in 1993 with financial and technical support from Grameen
Trust. As it grew in terms of fields of operation and experience, a number of foreign
donors came forward to support IDF in various lines of activities. Swedish International
Development Agency (Sida) has been a supportive partner of IDF since 1995;
successively financing three phases of a project aimed at overall socio-economic
upliftment of the poorer community in CHT. Ended the third phase in December 2002,
this study was commissioned by the Swedish Embassy to have an independent view of
the results of their support to the project.

As it has been carried out, the study provides a comprehensive review of project activities
and outputs and the resultant impacts both on IDF itself and its target group members. It
examines as well potential areas for future collaborations between IDF and its partners,
including Sida.

To speak of methodology, both primary and secondary data were used in the analyses.
Primary data were collected through structured questionnaire. For impact assessment,
available Benchmark information on the sampled respondents was compared with our
present survey findings. Systematic random sampling technique was being followed, the
sample population represents those IDF-members who are associated for more than three
years. Sampled from relatively old five Branches, a total of 200 member-households were
selected; out of which 177 were actually available for interview. Scrutinized the filled-in
questionnaires, 145 were found to have fully tallied with baseline records and were
finally processed. SPSS statistical computer package has been used to process both
survey and baseline data.

1. Activities and Coverage
IDF during the project period extended its operation area from 54 Unions under 11
Thanas in 1999 to 82 Unions under 17 Thanas in 2002. Branch offices increased from 14
to 20, exactly as per plan. Enrolled about 10700 new members during three years under
review, the cumulative total stood at 23110 (95% of targeted 24,400 up to December
2002). The proportion of tribal members dropped from 40% in December 1999 to 29% in
2002; as because only 16% of members were enrolled during last three years from tribal
families.

As accounted for the fall in the tribal members' percentage, IDF during its initial years
worked mainly with tribal people and subsequently, when tribal members in the old
Branch areas were no more available, non-tribal members were taken as well. For known
reasons (financial and political), IDF could not go further deep into the hilly areas to open
new Branches to reach the tribal population. So, share of tribal membership has fallen.



                                             8
Training
About 18,500 members were provided with awareness raising training on different
subjects. Over 5000 members were given skills development training on various subjects
relating to crop cultivation, homestead gardening, fishery, livestock, poultry, carpentry,
masonry and so on. However, there is a need for more skill development training.

IDF has intensive and well-organized training program for staff. Following an orientation
immediately after recruitment, intensive training is organized for different categories of
staff suiting to their respective positions. Internship for initial six months of some
category staff provides a real scope for on-the-job training. Other than formal training,
workshops, routine staff meetings are also good training forums for IDF-staff.

During the review period, a total of 40 staff members of different category were trained
on Accounting and Financial Management, Savings & Credit Management, Pond
Aquaculture, Monitoring and Supervision, Literacy Programme management and Home
Gardening/Nursery Management.

Mobilization of Savings
IDF attaches importance to building members’ own capital by encouraging savings and
has provision for both mandatory and optional savings. Total mandatory savings by IDF-
members increased from TK 9.17 million in 1999 to around TK 34 million as of 31st
December 2002; an increase of about 3.7 times. Net balance in the Voluntary Savings
Accounts on the last day of the project period has been around TK0.13 million.

Savings deposited by members with IDF constitute a part of IDF’s revolving fund. Other
than savings, IDF has introduced ‘Emergency Fund’ built up with micro-insurance
premiums realized at @1% of loans taken by its members. The Fund is mainly to provide
crisis coping support to members in cases of death or chronic illness, colossal
damage/loss of IGA capital due to any natural calamities etc. During the project period
under review, TK 887 thousand was paid as compensation against 514 death cases and
TK1168 thousand in 651 cases of serious illness.

Credit Support
During last three years under review, IDF disbursed TK440.64 million against 85411
numbers of loans to 21698 members. Of the total members, 98 % received at least one
loan up to December 2002. The average loan size has been TK5159 in 2002; while it was
TK 5249 in 1999; the loan size declined by 2% mainly due to the fact that the number of
new members receiving smaller sized loans was higher during this period.

The outstanding loans to the members of CHT region amounted to TK 81.4 million as of
December 2002; which is 95% of what was projected (TK 85.84) in the project
document. IDF has been steadily maintaining its nearly 100% recovery rate, 99.96% in
2002. As per stated purposes, 28% of total loans was for small trading/shop keeping,
nearly 26% for farming and 24% for cattle/goat rearing. The pattern has been almost
same in 1999 and 2002.

Social Development Support and Extension Services


                                            9
Education
Mainstream education facilities in the CHT region are neither adequate nor accessible to
all children, particularly to those of remote areas. Also poverty and attitudinal problems
hinge on the way of child education. IDF with assistance from Sida operates four centres.
As reported by IDF, about 75% of school aged children of the member-families have
been brought under education programme and most of them (about 85%) have completed
grade II by December 2002.

Health
IDF introduced in 1998 a health care service system providing both health care and
nutritional awareness training and primary health services. During the review period, a
total of over 19,000 members have been given awareness training on common diseases,
nutritional issues, childcare and safe motherhood. Also workshops on safe motherhood
and sanitation were organized; participated by 863 group leaders, 159 community leaders
(Headmen and Karbaris) and 65 IDF staff.

IDF presently operates two ‘Health Centres’ and three satellite Centres providing direct
health services, including diagnosis, subsidized pathological tests, supply of essential
medicines etc. In total 6537 patients of member-families have been served during the
reference period.

Nutrition
IDF during the period has implemented a programme of home gardening to encourage
production and consumption of fruits and vegetable by its members. Supported by HKI,
two central nurseries, 315 village nurseries and more than 9400 homestead gardens have
been established and125 group leaders and 7500 members were given training on
nutrition on nursery management. Moreover, over 7000 home gardeners were supplied
with seeds along with technical support.

Extension, Environment Promotion and Disaster Management Services
IDF assists it members in establishing linkages with relevant private and public sector
organizations that either have improved technologies or inputs and services that can add
to the profit potentials of IGAs operated by its members. In livestock and poultry sub-
sector, over 3000 animals and nearly 10,000 poultry birds were vaccinated and about 500
livestock and more than 400 poultry birds were given treatment. In fisheries sub-sector,
IDF’s activities were very limited; supporting fish cultivation in 7-8 ponds by 70
members.

Regarding environment promotion and disaster management, IDF’s effort was to raise
awareness and to motivate tree plantation. During the period, about 20 lakhs of
sapling/seedling were raised in the IDF supported nurseries. IDF members are
encouraged and supported in tree plantation, both in their own homesteads to participate
in social afforestation sponsored by IDF itself and/or else.

IDF provides training on disaster preparedness and direct assistance to its affected
members to cope with aftermath of such calamities. It has ten ‘Disaster Management
Teams’ to lend hands to its members in times of any natural crises like tornado, flood etc.



                                            10
There is provision, as well, for financial assistance from ‘Emergency Fund’ for
rehabilitation of badly affected IGAs.

Promotion of Child Rights and Interest
IDF in collaboration with ILO started in 1995 a programme to promote child rights and
interest. The program was mainly concentrated in Chittagong City; supplying education
materials, school uniform, refreshment and health services and essential medicines. After
expiry of the project, IDF has been carrying out activities at a lower scale due to fund
constraints.


2. Organizational and Management Aspects
Governance
IDF General Body represents a pool of professional people of different categories.
Delegated the executive power and responsibilities by the General Body, the Governing
Body seems to have carried out the planned activities quite efficiently. The election to the
Governing Body and the way the resolutions are arrived at represent a quite good degree
of democracy and transparency. AGMs have held regularly, the Governing Body met
frequently as and when important issues called for consensus. Minutes of meetings are
recorded and other important information is open to Board members.

IDF recruitment and staff development policies are well framed with preferential
provisions for tribal candidates and women. Recruitment and staff promotion procedures
are transparent. There are definite committees for recruitment of different category of
staff. Also there are well-defined procurement and tender procedures.

All activities that have financial implications are subject to approval of Governing
Body/Executive Director and both internal and external auditing.

Planning
‘Bottom-up’ planning approach being followed, IDF planning process is flexible and
participatory in nature. It has all along been adapting to its on-going learning from field
implementation and careful of changes in the overall environment. Annual planning and
budgeting of activities is being a usual practice. IDF has as well a ‘Business Plan’ aimed at self-
sustenance at the least possible time. A Sida sponsored long-term strategic plan workshop in
December 1999 generated good inputs for planning expansion of IDF both in terms of
geographical coverage and introduction of new line of services.

Monitoring & Evaluation
IDF has a Monitoring & Audit Unit based at the Regional Office, but functionally not
well organized. Apparently, the activities of the Unit are primarily about credit
programme operation. Financial monitoring is amalgamated with activity monitoring.
Reporting forms and frequencies need to be rationalized at different tiers of reporting
offices and ultimate users of those reports. Segregation of physical activities monitoring
from financial audit is urgently needed in the context of fast expansion of IDF activities
within and outside CHT region.


                                            11
Systems and Guidelines
Boiled down its own operational experiences with ideas and examples from similar
projects and organizations home and abroad, IDF by now has established some unique
practices and methods proven to be effective in addressing the characteristically different
problems of the poor people in the CHT area. All its developed and adopted
methodologies and practices are well documented in a number of guidelines and manuals.

While ‘IDF Memorandum of Association and Rule and Regulations’ broadly defines its
organizational strategies and operational procedures, IDF has as well a number of
subject-specific manuals; wherein the roles and responsibilities of different levels of staff
have explicitly been spelled out. Some important of them are Service Regulations,
Training Instructions, Credit Programme, Operational Procedures and Accounts Manual.

Gender Issue
IDF is gender sensitive; but apparently woman biased as reflected in its target group
definition excluding male membership. But in reality, all its operational strategies and
practices duly recognize the implicit roles of male members of the concerned households
and member-family is their ultimate concern.

The gender-specific activities at the field level during the review period included training
of staff and target group members on gender development issues, workshops/seminars,
observance of International Women Day/Mother Day, rallies/general discussions
meetings on different gender issues.

Female staff constitutes only 14% total IDF manpower at present with no woman in
decision-making positions other than 4 or 5 female Branch Managers. However, women
at the lower level (VO) represent a better position; 23 (18%)VOs are women, out of 131
in total.


Sustainability
Sustainability analyses focused both on the attained degree of self-sustenance of the
target group members and institutional development of IDF.

While the vast majority (more than 75%) of target community households in the CHT
area are yet to be reached by any NGO, there is apparent needs and strong demand for
services that IDF is extending, including credit. Even the members being served for last
four years or more are still in demand for services like that of skill training, marketing
support, health and education services and many more.

About IDF, it is much better positioned than three years back in all terms of office
network, services delivery infrastructure, systems, manpower, skills and experiences. It
can now move on further deep into the hilly villages to reach its real target group
members of indigenous community.

Financially speaking, IDF has by now accumulated a good sum in its credit fund
(approximately TK155 million). During 2002, IDF has made a net profit of about TK1.9


                                             12
million over and above of all its operational and overhead costs, including costs of
capital, depreciation and adjustment of bad debt. The overall operational self-sufficiency
has improved from 80% in 1999 to 116% in 2002.

Notable that out of TK 59.4 million total grants received by IDF from different sources
since inception, 82% has been from Sida alone.


3. Impact Assessment
Reaching the Target Group
Of the total respondents, 29% was tribal and 71% non-tribal. Non-tribal respondents
include 39% Muslim, 22% Hindu and 10% Barua. The distribution of members by
marital status shows that more than 95% are married and remaining 5% widowed and
divorced. Three-fourth of the respondents did not have any cultivable land at the time of
joining IDF; only about 9% had between 0.11 to 0.5 acre and remaining 16% had above
0.5 acre. From this result one may conclude that 16% of the respondents belong to non-
target group. But in reality this may not be so. Given the situation in CHT region that
some lands, particularly hilly land are not as fertile as in the main land the definition of
target group need to be relaxed and redefined for CHT region.

Prior to IDF’s intervention, only one-third of the loanees reported that they had principal
occupations other than domestic activities. Overwhelming proportion of these loanees
belong to tribal group. On the contrary almost all husbands of the loanees were involved
in income generating activities. Small trade, service and wage labor were the common
occupations of loanees’ husband at the benchmark period.

Size of Loan
The average size of loan is estimated at Tk. 12,000. Nearly 60% of the loanees received
loan more than Tk. 10,000. The size of loan is positively related to the duration of
membership. The size of the loan also depends on the nature of activities. For example
transport, small trade and cottage industries had larger amounts of loan compared to
gardening, crop activities. Nearly 25% of the sample households took credit from other
sources including 20% from other NGOs and 5% from banks.

Utilization of Loan
Unlike tribal loanees, most of the loan-financed activities by non-tribal members are
actually operated by their husbands. However, loan activities generate significant
productive employment to non-tribal loanees. On the other hand, most of the tribal
loanees have main occupation other than domestic activities and they directly involved in
income generating activities, particularly in business and agriculture. The distribution of
loans by fields of use shows 88% was in income generating purposes and remaining 12%
was used in unproductive purposes consisting of house repairing, consumption and social
festival. Among income generating activities, share of small trade shows 34%, agriculture
shows 20% and other agro-based activities (consisting of animal rearing, gardening,
poultry) show 19%.



                                            13
Impact on Capital Accumulation
Remarkable accumulation of capital has been noticed by loanee-households. The amount
of present capital per loanee household has increased by 3.7 times from Tk. 8,600 to
Tk.31,700 (at 1997-98 price). Frequency distribution of loanees by present and initial
capital shows that nearly one fourth of the loanee families had no capital prior to joining
IDF; while 44% had capital less than Tk. 5,000. In contrast, presently more than 52%
loanee-households have capital between Tk. 10,000 and Tk. 30,000; and 43% have
capital more than Tk. 30,000, including 18% having capital more than Tk. 50,000.

Impact on Employment
Credit played a significant role in changing occupation of the loanees as well as their
husbands; positively impacting on total employment of the households. During last one
month, a loanee household worked 718 labor hours on the average in productive
activities. The loan activity account for nearly 52% and non-loan activities and 48% of
the total labor used. The average work-hour per earning member is estimated to be about
9.0 hours a day for each loanee family. Loan activities generated additional employment
of 4.2 hours a day for loanee, 5.3 for loanees’ husband and 2.9 hours a day for other
members of the family. That is, loan activities generated an employment of 12.4 hours a
day for each sample household.

Impact on Income, Productivity and Poverty
Average income per loanee-household has been estimated at Tk 67,158 per annum
compared to Tk. 29,418 prior to IDF’s intervention. Thus, income per loanee household
increased by nearly double compared to baseline period (at constant price) over the
period of four years. Of the total household income, loan activities account for 53% and
non-loan activities 47% of income. This is consistent with the working hours in loan and
non-loan activities. The estimated average per capita income at the time of survey is Tk.
11,435 (at 1997-98 price) compared to Tk. 6,214 benchmark.

Distribution of income clearly indicates that overwhelming proportion of the sample
households have had a remarkable increase in income compared to benchmark.
Frequency distribution of the loanee-households by income shows that households having
annual income more than Tk. 40,000 have been about only 10% at benchmark period;
that has now increased to 70%. A significant proportion of loanee-households (30%) is
found to have annual income more than Tk. 80,000 compared to less than 1.0% at
baseline period.

Average labour productivity estimate shows that it is very low ranging from Tk. 3.9 to
Tk. 11.4 an hour. On the contrary, the gross rate of return of capital is found very high
ranging from 45% to 98%.

Frequency distribution of income demonstrates that IDF’s intervention programs have
been able to lift a significant proportion of respondents out of poverty line. Prior to IDF’s
intervention, 75% of the respondent households were below poverty line. This proportion
reduced to 26% in 2003.




                                             14
Impact on Housing and Health
A remarkable change has been noticed in the housing status, particularly in the roof of
house. Less than one-third respondents had tin-roofed houses at the time of joining IDF;
while more than two-thirds respondents reported to have tin-roofed houses at the time of
survey. This proportion increased to more than two-thirds at the time of survey. Overall
health status shows only a moderate increase, indicating limited intervention by IDF in
the area of health and sanitation.

Services Received and Services Expected
Besides credit and savings services, 25% received some skill-development training and
demonstration.. Only small proportion of the respondents received health (16%),
education (11%), extension (11%) and environment promotion (5.8%) services. The
respondents identified lack of health, skill-development, extension services and pure
drinking water as the persistent problems, which they would like to have more from IDF.



                                B. Recommendations
Chittagong Hill Track is the most backward area compared to rest of the country by all
standard. Furthermore, the geographical and the prevailing law and order situations in
this area are unfavorable for development works. Bringing changes in this area is really
difficult and challenging. However, IDF faced the challenge and made enough progress
during the last eight years of its effective operations in the area. The findings of the study
revealed that IDF’s interventions, particularly credit program, have been instrumental in
bringing changes in socio-economic conditions of the member households.

Based on the household survey findings and personal observations by the research team
members, the following are recommended.

1. IDF is only pioneer among the NGOs working in the CHT region. By virtue of
   devotion and root-seeking methods of working with the ethnic community, IDF has
   by now positioned itself ahead of any other NGOs working in the area. But if IDF is
   soul searching, it will find itself too busy in credit operation. Social development
   activities are relatively scanty and far from the desired level. So, IDF should pay
   more attention to sustainable social and human development of its target group
   members.

2. Distressed women, particularly divorced and widowed represent very small
   proportion among IDF members. Special care should be taken to reach out to more of
   them.

3. Less than one-third of present numbers of beneficiaries belong to tribal group, who
   demands more attention and support. Since most of the tribal families live in the
   remote areas, reaching to more of them will mean opening new branches in the
   remote areas and consequently higher operational costs. IDF needs external support
   for expansion into the remote areas of CHT.


                                             15
4. As found that certain proportion of loan money was diverted to non-productive
   activities, IDF field staff should take better care of loan utilization by its members-
   that demand closer supervision and follow up.

5. Presently loans are used in few traditional activities like small trade, crop production
   and some agro-based activities. Estimated labor productivity in these activities is low
   for known reasons. Therefore, efforts should be made to increase labor productivity
   by introduction of innovative and diversified IGAs and marketable skills. Region-
   wise additional areas of investment should be explored in order to diversify the areas
   of employment and investment opportunities. For example, potentials for building
   tourist facilities and guided tourism, seasonal forest product storage facilities, fruits
   processing, livestock and dairy development etc may be explored by a team of line
   experts.

6. All three-hill districts are quite suitable for different agro-based non-crop activities
   like vegetable, fruits, nursery production etc. But member families need appropriate
   technologies, which include high yielding seeds and knowledge about farm practices.
   Effective extension services are also essential for livestock and poultry production. In
   this regard, IDF’s extension services should be intensified.

7. Tribal women have some skills of handicrafts and handloom textiles. Employment in
   these sub-sectors can be increased by creating effective demand for these products.
   Training on designing and quality improvement may increase the demand for these
   products. IDF may open marketing out-lets for these products in Dhaka and
   Chittagong cities. Initially IDF can make an arrangement with Grameen Shamogree
   (a marketing out-let of Grameen Products) to open a corner for CHT.

8. Presently, traders buying local produces sometimes make cartel, depriving producers
   from fair prices. IDF members can be organized and given support for collective
   marketing of their produces in the nearby urban areas.

9. In CHT region, there is no cold storage for seasonal fruits and vegetables, which are
   produced abundantly. Fruits and vegetable processing plants can also be set-up in this
   region. IDF can go for promoting these facilities in CHT region. Maybe, IDF initially
   will need both technical and financial support to build its own capacity for the
   purpose.

10. IDF should provide more health services to its members, particularly in the areas of
    sanitation and drinking water.

11. Known that land ownership in the CHT is a problem and majority of the tribal
   community people do not legally own any land, mainly due to their lack of
   knowledge about the prevailing laws and entitlement procedures, IDF can undertake
   advocacy and awareness raising programme among the tribal population on the land
   laws and entitlement procedures. IDF may also provide legal backstopping support to
   members, if needed. Since overwhelming majority of IDF-members do not have
   cultivable land, IDF can undertake advocacy program in favor of distribution of
   suitable Khas land to its target group members.


                                            16
                                  1. Introduction
1.1 Justification of the Study

Overwhelming proportion of the population in Bangladesh is extremely poor. Lack of
land or other productive asset, high rate of unemployment or under-employment have
been identified as principal causes of poverty in Bangladesh (Rahman, 2002). Net
cultivable area is being decreased alarmingly at a rate of 0.3% per year, which results in
decrease in land-man ratio alarmingly. Wage employment generated in farming activities
is inadequate for these and growing pool of landless households. As a result rural poor
are increasingly being involved in different non-crop self-employed activities. On the
other hand the demand for non-farm goods has increased remarkably mainly due to the
transformation of rural economy.

It is rural poor, who have comparative cost advantage to organize different non-farm
activities. Shortage of working capital has been identified as a major constraint to the
generation of productive self-employment by the poor. They often fall back upon the
local moneylenders for loan, who extract significant proportion of current income as
usurious rates of interest. Shortage of working capita also forces many landless to work
as day laborers at low wage.

Supply of credit at a reasonable rate of interest could make a significant break through in
the life of disadvantaged group. Credit to the poor, particularly to the poor women is
considered as access to resources, which can be utilized to generate productive
employment. This will not only integrate women in development but also ensure
distribute justice.

Over the last two and a half decades Grameen Bank (GB) has developed a system to
allocate financial resources in the form of credit to the poor, especially the poor women
(without any collateral). The ultimate objective of Grameen Bank is to improve the living
of its members. Micro credit initiatives in the form of Grameen Bank have been
recognized as successful development program, which is not only sustainable but also
equitable (Hossain 1985; Rahman 1986; Rahman et. al. 2002). Currently most bilateral
and multilateral development agencies incorporate micro-credit as one of their
development programs.

Hill districts consisting of Bandarban, Rangamati and Khagrachari account nearly 12% of
total area in Bangladesh. Most of the tribal people live in this region. The region is
characterized by (i) multi-ethnic community, (ii) hilly, (ii) low population density
(compared to rest of the country), (iii) plenty of natural resources, (iv) different land
ownership pattern, (v) political unrest, (vi) very low standard of living. Unlike other
districts in Bangladesh, Grameen Bank does not operate in these hilly districts. Therefore,
as a replication of Grameen, Integrated Development Foundation (IDF) has started its
operation in this region in 1993 with financial and technical support from Grameen Trust.
As it grew in terms of self-confidence, a number of foreign donors came forward to
support IDF’s main activities of loan-disbursement and other socio-economic programs.



                                            17
Swedish International Development Agency (SIDA) has been the main foreign donor to
fund IDF’s micro-financing activities from January 1995 to December 2002 in three
phases. In the third agreement, IDF received Swedish Kr. 3,600,000 (equivalent to US $
395,000) from SIDA. In phase-I and II, IDF addressed only income generation of the
poor tribal women through micro credit while phase-III addressed health, education,
environment etc. along with income generation of the poor people in CHT region. The
purpose of SIDA support is to uplift the socio-economic conditions of the poor people in
Chittagong Hill Tracts (CHT).

1.2. Objective of the Study
IDF has completed eight years of the activity period with SIDA support (in three phases).
It is about time to make a comprehensive review to see the impact of IDF on the
beneficiaries. The review of IDF activities will be carried out to determine the relevance
and effectiveness of different programs of IDF. The review will examine what IDF has
accomplished over the time. The purpose of the study is to provide Swedish Embassy
with an independent and comprehensive review and analysis of IDF’s activities and
assess the effectiveness of the Swedish contribution to IDF. The assessment shall also
provide key lessons learnt and identify strengths and weaknesses of the organization in
the implementation of the project and provide conclusion and recommendations for
possible continued Swedish support to IDF. (Detailed terms of references are presented in
Annex – 1)

Specific objectives of the study are:

(1) To assess the institutional capacity and efficiency of IDF, as institution to implement
    effectively various activities/programs.
(2) To assess the organizational and management capacity and efficiency of IDF to
    implement different development projects.
(3) To see the impact of IDF activities on its members. That is to see whether and to
    what extent IDF activities help change the socio-economic conditions of its
    members.

1.3 Review of Literature
Based on primary data, Rahman (1986) documented the impact of Grameen Bank on the
beneficiaries. The study found that more than 75% of the loan taken by female loanees
were used by themselves. Beef fattening, raising milch cow, paddy processing and petty
trading are the most important activities, where loan money was used. More than 90% of
loanees reported that their income have increased significantly (38% on the average) after
they joined Grameen Bank. However the study did not find any systematic relationship
between amount of loan given and employment generation for loanee, her husband and
other members of the family.

Hossain and Afsar (1989) reviewed the micro-credit programs for rural women. Among
many micro credit institutions, Grameen Bank demonstrated relatively better
performance in terms of coverage, repayment and reaching the target women. About 92%


                                            18
of Grameen loan were used in productive purposes. The study showed that Grameen
Bank brought substantial economic and social impact to its borrowers. Grameen helped
generate new employment, increase income and increase capital accumulation.

Rahman et. al. (2002) examined the socio-economic impact of Grameen Bank activities
from multiple dimensions. Different socio-economic benefits derived from loan
utilization have been analyzed to show the impact. The change in the attitude of existing
rural power structure towards Grameen Bank interventions has been examined critically.
The study reveals that Grameen Bank has made the rural poor conscious of their status,
right and exploitations paving the way to develop them as countervailing force to ensure
their participation in the development process.

An anthropological study on Grammen Bank (1999) challenges the success of micro
credit institutions based on quantitative indicators. It exposes a gap between public
transcript of the bank and its practice in the field. The study observes that field staff of
Grameen Bank generally gives more effort on credit disbursement and credit recovery to
ensure its sustainability. To ensure timely repayment, bank workers and borrowing peers
inflict an intense pressure on women clients. The study concludes that micro credit
institutions pursue their hidden agenda of financial sustainability more than their ideal
objective of improving socio-economic conditions of the rootless people.

Uddin (1997;1999) reviewed IDF’s credit and other activities based on sample of 40. The
study found that the use of credit in farming decreased significantly between 1996 and
1998. On the other hand investment in petty trade, goat and pig rearing, milch cow,
poultry etc. were on the rise. IDF’s activities successfully generated gainful employment
to the member families. The per capita income of the IDF-member families was increased
remarkably and it was found positively related with the size of loan and duration of
membership. The study observed that IDF’s other programs such as health, sanitation,
home gardening, livestock and poultry were very limited because of lack of skilled work
force and other logistics. It recommended making effort in order to diversify the areas of
investment. It further recommended for enhancing management capacity at the regional
level.




                                            19
1.4 Methodology and Data
Types of Data Used: Following three broad types of data have been used

       (i)     Secondary data – already (and sometimes regularly) generated by IDF, as
               a byproduct of its administration and monitoring; plus previous evaluative
               studies on IDF carried out by other independent researchers/agencies.
       (ii)    Primary data – collected through sample survey using structured
               questionnaire.
       (iii)    Unstructured data - collected from loanee-groups, IDF staff and other
               officials through informal discussion by researchers in their field visits.

Secondary data and unstructured primary data gathered informally have been used to
assess institutional, organizational and management capacity and efficiency. While
primary data collected through sample survey are used for impact assessment.

Method Used: Most impact assessment studies (Hossain, 1985; Hossain 1988; Rahman,
1986; Rhaman, 1996) on micro credit are based on cross sectional comparison.
Information of borrower groups is compared with those of non-borrower groups with
similar background, called control group. This method is called ‘with and without’
method. Such comparison may involve biases in the selection of the borrower groups and
control groups.

Recall method may be used by impact assessment studies. Recall method is also known
as ‘before and after’ method. Under recall method, respondents are asked to compare
his/her present situation with pre-loan situation. Recall method overestimates or
underestimates many useful variables. Both these methods usually collect data based on
one shot survey. To avoid this problem ‘panel data’ should be used for comparison.
Repeated surveys of same set of respondents are conducted at different time period in
case of ‘panel data’ method. For impact assessment we follow a method, which is similar
to ‘panel data’ method.

IDF collects individual household information through structured questionnaire when a
member joins IDF. These may be called benchmark information. Baseline information of
the selected respondents is compared with those of survey data for impact assessment.

Sampling Technique: From total 25 branches of IDF, 5 branches have been selected
purposively for data collection. The selected branches are the oldest among all branches.
These branches are selected in order to identify members having long duration, which we
require to assess the impact. The selected branches are Soalock, Balaghata, Raikhali,
Rangamati and Khagrachari. List of members having duration of membership more than
three years has been gathered from all five selected branches. Total members in this
category are found 1284 in all five selected branches. Using systematic random sampling
technique, 214 members were selected from 1284, whose duration of membership with
IDF is more than three years. That is, every sixth person is selected as respondent from
the selected population.



                                           20
After selecting sample, respective branch managers were requested to provide with the
baseline questionnaires of the selected members to record initial family information. But
branch managers supplied 189 baseline questionnaires out of 214 requested. When field
investigators went to the field for data collection, they could not find all 189 members.
They found 177 members out of 189. Remaining members are either left the group or
went outside the districts during the time of data collection. A careful examination of the
collected questionnaires shows some discrepancy with baseline data for some
questionnaires, which are not used. After scrutiny, 145 observations were found valid.
Thus sample size is turns out to be 145 for both benchmark and survey. The distribution
of respondents by selected branches is shown in Table 1 below. It is to be noted that
Raikhali, Balaghata and Soalock are in the district of Bandarban.

               Table 1: Distribution of Respondents by Selected Branch

                     Name of Branches        Number of Respondents         Percentage
                          Raikhali                      48                    33.1
                         Balaghata                      08                     5.5
                          Soalock                       12                     8.3
                        Khagrachari                     21                    14.5
                        Rangamati                       56                    38.6
                           Total                        145                   100.0


Data Collection Technique and Quality Control: A structured questionnaire has been
developed to collect primary data from the selected IDF-members. Data were collected
through interview technique. Five field investigators and two field supervisors were
appointed for data collection purpose. Five field staffs out of seven were from three hill
districts and they belonged to tribal community. Of the seven, two were female having
qualification of Higher Secondary Certificate (HSC). All male staffs have university
graduation. Field staffs were selected so to have their familiarity with the region and local
language proficiency. Furthermore, respondents are expected to feel free and easy to talk
with someone of their own community.

One-week intensive training program has been organized for all field staff to ensure that
they understand the approaches and rationale of the study. The content of training has
been developed after preparing the questionnaire and interview guide. The basic concept
of research, the techniques of data collection, recording of qualitative data and writing up
of field notes were included in the training course. On completion of classroom training,
field staffs were asked to collect test data from the field using the technique taught in the
class. Following the field test, field problems and their solutions were discussed
elaborately.

Two teams headed by one field supervisor were sent for household’s survey. One female
investigator was included in each team. While data were collecting, field supervisors
edited every fill-in questionnaire before leaving the field in order to identify the mistakes
and correct them immediately.

                                             21
Data Analysis: SPSS statistical computer package has been used to process both survey
and baseline data. Before entering data into computer, filled-in questionnaires were
edited further so that wrong data do not enter into computer. Frequency distribution,
bivariate and multivariate analysis have been made. Frequency distribution includes
simple percentage distribution, the measures of central tendency and dispersion. Bivariate
analysis is used to describe the relationship between variables. Relevant statistics of the
survey data were compared with those of baseline data in order to see the achievement of
the IDF’s intervention.

Limitation of the Study: The study purposively selected members having duration of
more than three years. So, the findings of this study may not represent all categories of
members. However, the findings of the study can be interpreted as the potential impact of
IDF’s intervention. Of the total sample, nearly 39% were collected from Rangamati
branch alone. Majority of the sample in Rangamati was from urban area. Therefore, the
results may have Rangamati biased to some extent.




                                            22
                               2. Activity Analysis
The third phase of the project from January 2000 to December 2002 was designed for:

      Extending micro-credit to 24,400 member;
      Increasing scope for basic education for children of the member-households;
      Reducing maternal and child mortality rates by improving health and hygiene
       practices of the member-families;
      Improving physical environment of the project area by reducing Jhum cultivation
       encouraging tree plantation and home gardening
      Enhancing institutional capacities of IDF by increasing qualified manpower and
       establishment of separate training, monitoring and accounts sections.

The key activities planned to reach the target outputs and actual achievements are briefly
described below.

2.1 Group Formation and Development
Taken a stock of activities during the last three years (2000 –2002) of the Sida supported
project and the outputs thereof, actual achievements were found to be very closer to set
targets; even surpassed targets in many cases.

IDF during the project period extended its operation area from 54 Unions under 11
Thanas in three project districts in 1999 to 82 Unions under 17 Thanas in 2002. Branch
offices increased from 14 to 20, exactly as per plan.

However, enrollment of new members fell somewhat short of target. As against the target
of 12000, a total of 10711 new members have actually been enrolled; which is 89% of the
target. Including 10711 members enrolled during the period under review, the cumulative
total IDF-members in three project districts stood at 23110, 95 % of targeted 24,400 up to
December 2002 (Annex 2). The shortfall was mainly due to volatile political situation in
the project area for a quite long period; despite the fact that IDF had all preparations for
reaching the target.

While the tribal members represented 40% of total in December 1999, their
representation dropped down to 29% in December 2002; as because only 16% of
members (1680 out of 10711) enrolled during the three years under review were from
tribal families (Annex 2).

Evidently, IDF during the last has three years has expanded more in and around the
Chittagong Metropolis than in the project area. Enrolled 6735 members in the City and
adjoining Thanas, total members in the City area increased from 3147 in December 1999
to 9882 in December 2002; an increase of 214% over the 1999 position as against 86%
in the project area during the same period.

2.2 Group Development and Management


                                            23
IDF groups/Centres are generally of good quality in terms of discipline and cohesiveness,
which is attributable mainly to its strict adherence to a process as follows.

2.2.1 Scrutiny of Members

IDF group formation is necessarily preceded by a household level survey identifying the
target group members. While listing members from a cluster of households, the
following are taken into care that:
    * Members of any single group are from a cluster of household representing a closer
    social amity and similar socio-economic status;
    * Members are adult, i. e., above 18 years1;
    * Not more than one member from a single family is selected (not even close blood
    relations are allowed);
    * Members of women headed households or otherwise disadvantaged women get
    preference over others of the same locality.

2.2.2 Group Discipline and Cohesiveness:

Formation of a group/Centre is invariably followed by a set of activities meant for
inculcating group discipline and cohesiveness. Important of them are:
 Attendance in regular weekly meetings;
 Deposit of weekly savings (minimum TK 5/member/week);
 Proper maintenance of necessary registers/books of accounts;
 Annual election of group and Centre leaders

2.2.3 Group Management

While a group has a Chairman and a Secretary annually elected/selected by rotation from
among the group members, annual election takes place in the last week of Baishakh (the
first month of Bangla calendar year). Consecutive election of same member to the
positions of Chairman or Secretary is restricted.

At the Centre level, a Centre Chief and two Deputy Chiefs are elected from among the
Chairmen of the groups under the respective Centre, who are responsible for overall
management. Election to the Centre leadership is also held annually in the last week of
Ashar (third month of the Bengali calendar year). Functional responsibilities of a Centre
Chief include:
* Maintaining discipline and organizing weekly meetings
*Recommending loan proposals
* Ensuring proper utilization and supervision of loan activities
* Assisting IDF staff in realizing loans and collecting savings
* Day-to-day management of Centre activities
2.3 Training
IDF emphasizes both on staff and target group training. It has a Training Unit responsible
for designing courses, modules and organizing batches for training at different times and

1
    Subject to prior approval of ED, lower aged members are taken in special cases.



                                                           24
places. While IDF in-house staff members are the main trainers for most of the courses,
subject specialists are called in from specialized agencies/organizations, if the subjects of
training so demand.

2.3.1 Target Group Training
As IDF organizes target group training, it entails formal classroom training, on-the-job
demonstration and informal discussions in meetings. Based on subjects and purposes, the
target group training is categorically of two types, i.e., Human Development Training
(HDT) and Skill Development Training (SDT).
It transpired from a review of training activities that IDF emphasized more on HDT
covering the following:

      a) IDF Objectives, approaches, strategies and work procedures, target group
         criteria, selection procedures, group formation principles, group discipline and
         management practices,
      b) The socio-politico-economic environment the group members live in and the
         factors affecting their general well being.
      c) Family Laws and Gender Issues,
      d) Book Keeping and Accounting,
      e) Health, Nutrition and Family Planning,
      f) Group discipline and leadership development.

IDF during the three years of project under review gave awareness raising training,
including credit management, to about 18500 of its members. Skill Development
Training generally begins with training on IGA planning management and then follows
the need-based training. Depending upon the nature of technology involved in an IGA
and previous operational experiences of the concerned members, the skill training courses
may be of short or long durations and residential or non-residential. Study tour, on-the-
job demonstrations are the modes of training complementary to usual classroom lectures
and workshops organized for the purpose. The common subjects of training and number
of members trained during the reporting years have been as follows (Table 2).

                         Table-2: Subject-wise Skills Development Training

               Subject of training                   Number of members given training
                                         2000          2001           2002            Total
  Nursery Management                     30            60             55              145
  Home-gardening                         1050          2100           2000            5150
  Sewing                                 60            26             26              112
  Seed preservation and trading          200           78             50              328
  Cow fattening/rearing                  -             -              25              25
  Electric wiring/motor mechanic         -             -              16              16
  Packaging                              -             -              18              18
  Enterprise Development                 -             35             75              110
2.2.2 Staff Training

Started with an orientation immediately after recruitment, the subject-specific intensive
training for different categories of staff follows as their respective positions demand.


                                             25
Subsequent refreshers courses are also organized every now and then. While traditional
modes of training classes and workshops are common, there are provisions as well for
participatory internship and field demonstration. Besides residential formal courses, the
routine staff meetings at different tiers of the project management are also good training
forums for IDF staff.

Following orientation for few days immediately after recruitment, the trainee-staff
remains attached to field offices for three months receiving practical training and on-
the-job demonstration. In the last phase of three months, the staff is placed in the real
job to do as independently as possible. During this period, the interest, aptitude and
demonstrated eligibility of the staff are closely observed. On expiry of the six months
probation, a test is taken before appointment is finalized. This helps reduce dropout of
staff.

For training on subjects of special know-how or in which IDF in-house training
capacities are considered inadequate, the concerned staff members are sent outside; a
subtle secondary purpose of which is to get an exposure to experiences of others in the
line. About 40 staff participated in such special courses during the review period on
Accounting and Financial Management, Savings & Credit Management, Pond
Aquaculture, Monitoring and Supervision, Literacy Programme management, Home
gardening/nursery Management, Summer tomato production etc.

2.4 Savings and Capital Formation

Savings is a rare habit among the hill people. So, IDF attaches importance to building
members’ own capital by encouraging savings. It has provision for both mandatory and
optional savings. Total mandatory savings by IDF members in the project districts
increased from TK 9.17 million in 1999 to around TK 34 million as of 31st December
2002; an increase of about 3.7 times. Net balance in the Voluntary Savings Accounts on
the last day of the project period has been around TK0.13 million. Total savings by IDF
members up to December 2002 have been as in Table 3 below.




                                            26
                   Table-3: Savings by IDF members up to December 2002

 Type of Savings                          Amount saved up to December (‘000 Taka)
                                          1999                        2002
                                          CHT        City &   Total   CHT      City &   Total
                                                     nearby                    nearby
                                                     Thanas                    Thanas
 Mandatory Savings                        9172       2207     11379   33991    14760    48751

 Voluntary    Balance from previous       233        -        233                       780
 Savings      years
              Deposited during the year   1560       -        1560                      4379
              Interest from IDF           9          -        9                         14
              Withdrawn during the        1469       -        1469                      3887
              year
              Balance with IDF On         333        -        333     723      564      1287
              31st Dec.
 Total Net Savings (A+B)                  9505       2207     11712   34714    15324    50038

Other than savings, IDF has introduced ‘Emergency Fund’ out of micro-insurance
premiums realized at the rate 1% of loans taken by its members from IDF credit fund.
The Fund is mainly to provide crisis coping support to members in cases of death or
chronic illness, colossal damage/loss of IGA capital etc. During the project period under
review, 514 death cases and 651 cases of serious illness were compensated for. Savings
management practices of IDF reflect absolute members’ ownership. A member has the
right to get his money back any time; provided she decides to leave the group and does
not owe anything to IDF.

2.5 IGA Promotional Support

Promotion of self-employment and income opportunities is being the most focused
strategy for socio-economic empowerment of its target group members, IDF has in its
package the following to support them.

2.5.1 Credit

During the three years under review, IDF disbursed TK440.64 million against 85411
numbers of loans to 21698 members in the three project districts in the CHT region.
About 98 % of total member (22215) enrolled up to December 2002 received minimum
one loan.

The average loan size for the members in CHT has been TK5159 in 2002; while it was
TK 5249 in 1999; the loan size declined by 2% mainly due to the fact that the number of
new members receiving smaller sized loans was higher during this period. The
outstanding loans to the members of CHT amounted to TK 81.4 million as of December
2002; which is 95% of what was projected (TK 85.84) in the Sida-IDF project document.




                                                27
To speak of loan recovery, IDF has been maintaining its nearly 100% rate all along
(99.96% in 2002). Only a tiny amount of less than TK2 lakh has fallen overdue, crossing
the terminal limit of 52 weeks from the date of loan disbursement. The table 4 below
presents a brief picture of credit operations by IDF during the period under review.

As per stated purposes of loan, 28% of total loans taken by members in the CHT region
was for small trading/shop keeping, nearly 26% for farming and 24% for cattle/goat
rearing. The pattern has been almost same in 1999 and 2002.

                Table-4: Loan Operation: As of December 1999 and 2002

 Operational        As of December 1999             As of December 2002
 indicators
                    CHT      City      Total        Targets   Actual progress
                             Area                             CHT      City     Total
                                                                       area
 No. of loans       20459    5863      26322        -         85411    27010    112421

 No. of             11501    2909      14410        24,400    21698    9305     31003
 members                                                      (89%)
 received loans
 Average no. of     1.7      2.0       1.83         -         3.94     2.90     3.62
 loans
 Amount             107.50   21.21     128.71       -         400.71   182.00   582.67
 Disbursed
 (Rounded off in
 Million TK)
 Average loan       5249     3618      4890         3518      5159     6738     5183
 size (TK)                                                    (147%)
 Recovery Rate      99.90              99.91        -         99.94    100%     99.96
 (%)
 Amount             28.19    9.90      38.10        83.65     73.78    39.86    113.64
 outstanding
 (Million TK)
 Loan overdue       80.4     -         80.4         -                           198.2
  (‘000 TK)


2.5.2 Comments on Operation of Credit Programme

The decade long credit operational experiences of IDF with a persistent record of nearly
100% loan recovery has made it a case for others to ponder if the CHT tribal people are
better micro-credit customers than those in the plain land.

But for IDF itself, the following should be taken with due care and seriousness:
   Credits are given mostly for the traditional purposes and IDF’s efforts are not visible
    towards diversification of IGAs through introduction/promotion of innovative skills


                                               28
    and technologies. However, participation of IDF in WEDE project of ILO may open
    the horizon for IDF to explore entrepreneurial potential of its members.

   Credit monitoring system should be computerized at the Branch level. Presently, most
    of IDF filed staff are all time busy doing credit related activities and, for that matter,
    social development activities are at a very low level.

       Scrutiny of credit monitoring and reporting formats revealed overlapping in many
    cases. The system formats should be reviewed and rationalized.

   Since majority of IGAs operated by the IDF-members are agriculture oriented (crop
    cultivation, vegetable gardening, cattle rearing), it seems difficult for the loan
    receivers to manage repayment of installments immediately after receipt of loans. A
    longer gestation/moratorium period may be counter-effective – meaning more interest
    payment for the longer period. So, there should be provision for supplementary loans
    for quickly income generating activities. This demands intensive care and
    participation by the project staff.

       50 installments not supportable for big loans for the purposes of IGAs that are
    likely to generate income for longer period, such as husking mill, irrigation wells,
    orchards and for some non-productive purposes like drinking water Tube wells,
    Sanitary latrines, House building etc.

       It seems that Centre Chiefs (CC) play a great role in the processes of loan
    disbursement and realization. But no incentive is given to them for the service. There
    should be a system of some incentive payment to further improve the credit
    operational efficiencies.

2.6 Social Development Support and Extension Services

2.6.1 Non-Formal Education

Mainstream education facilities in the CHT region are neither adequate nor accessible to
all children, particularly to those of remote areas. Also poverty and attitudinal problems
hinge on the way of child education. IDF with assistance from Sida started in 1994 two
non-formal education centers in the remote areas of Bandarban district. Then two more
centers were opened in 1997.

Continued to operate 4 education centers during the third phase of Sida-IDF collaboration
project 2000-2002, it was targeted to provide basic education to all children of its
member-households; preparing 70% of them for enrollment in the mainstream primary
schools and 50% completing grade II by the year 2002. As reported by IDF, about 75%
of school aged children of the member-families have been brought under education
programme and most of them (about 85%) have completed grade II by December 2002.
2.6.2 Health, Nutrition, Water Supply and Sanitation

Health care facilities and services in the CHT area are miserably poor. IDF-members
often suffer from various diseases meaning high vulnerability and risk of stoppage/non

                                             29
operation of credit supported IGA and, in turn, non-payment of loan installments. Under
the Sida assisted project, IDF introduced in 1998 a health care service system with
provisions for both health awareness building and primary health care services.

Health awareness building through campaign, door-to-door counseling, training and
discussions in the group meetings cover the basic issues of general health, hygiene,
nutrition, sanitation, safe water, causes of common diseases and STD/HIV, vices of
alcoholism and basic issues of reproductive health and childcare. The most important
activities in this regard are linking the members with available health service facilities in
their own localities and dissemination of information.

During the project period from January 2000 to December 2002, a total of over 19,000
members have been given awareness training on common diseases and safe motherhood.
Also workshops on safe motherhood and sanitation were organized; participated by 863
group leaders, 159 community leaders (Headmen and Karbaris) and 65 IDF-staff. While
almost all IDF-members and many of their neighbours have been benefited from health
awareness raising campaign and counseling, the direct health services were given to over
6500 members (Annex 3)

A great many number of IDF members is engaged in agricultural activities. The
traditional Jhum cultivation and subsistence farming are mostly traditional and devoid of
scientific practices and inputs. To help out its members from this trap, IDF in
collaboration with HKI initiated in 1997 an agricultural programme and services
providing during the period were:

      Advisory services, counseling and demonstration on improved technologies,
     inputs and cultivation practices;
      Facilitating access to improved extension services and inputs available with
     Government. agencies like DAE, BADC, Department Forestry, Department of
     Fisheries, etc.;
      Introduction and popularization of improved variety of vegetable seeds and
        fruits;
      Training on homestead gardening and some specific crop cultural practices;
       Establishment of nurseries;
      Credit support to farming activities.

During the period from January 2000 to December 2002, over 5000 members have been
given training on home gardening and nursery management. Established two central
nurseries under the project management, 315 Gram Nurseries and 9400 homestead
gardens had been in operation in December 2002. About 20 lakhs of saplings/seedlings
have been produced in IDF supported nurseries.

Funded by UNICEF, a sanitation awareness creation project was first undertaken in
December 1995 that ended in June 1996. Under the project, a household level survey was
conducted on prevailing sanitation practices in 160 villages of 4 Thanas of Bandarban
district. The survey revealed a very poor picture of sanitation practices among the target
group population. So, IDF went on with the program with assistance from AusAid,
CARE and Sida. Other than awareness raising workshops/meetings and door-to-door

                                             30
counseling about improved sanitation practices, sanitary latrines and drinking water tube
wells were supplied at subsidized prices.

2.6.3 Promotion of Child Rights and Interest

IDF is committed by its approved mandate to promote child rights and interests. Started
its child rights awareness programme in1994, the activities cover:
      elimination of child labour,
      non-formal education and facilitating enrollment in mainstream primary schools,
      skills development training and rehabilitation of child labours in suitable
         activities,
      credit support to child labours for starting self-employment IGAs.

IDF got involved in October 1995 in ILO/IPEC project titled as ‘ Education, Skill and
Health Care for Child Labour’ implemented in the Chittagong City area. Activities under
the project included supply of education materials, school uniform, refreshment and
health services and essential medicines. After expiry of the project, IDF has been
carrying out activities at a lower scale due to fund constraints.

2.6.4 Extension Services

IDF assists its members in establishing linkages with relevant private and public sector
organizations who either have improved technologies or inputs and services that can add
to the profit potentials of IGAs operated by its members. Assistances are often provided
in the forms of information, introductory meetings and visits, demonstration and
technical backstopping in gaining access to necessary supplies and services.

Also product marketing assistance is provided in the form of back up support to design
development, quality improvement, improved packaging, establishing linkages with
buyers (wholesalers) and facilitating display and sales of products in the exhibition/fairs
etc.

Livestock & Poultry:

IDF has one Field Worker providing livestock and poultry extension services in each
branch. The livestock worker attends by turn the Centre meetings and discusses the basics
of livestock and poultry rearing and management practices. He facilitates services from
Thana Livestock Offices and organizes vaccination programme in collaboration with
Thana Livestock Officer. Also on report from IDF members, he undertakes diagnosis and
treatment of domestic animals. Numbers of animals vaccinated and treated during the
three years under review have been as in Table 5 below.

Fisheries

Launched in 1993 in collaboration with World Food Programme (WFP), IDF under this
programme provided backstop services facilitating its members’ access to and re-
excavation of derelict ponds for the purpose of fish culture. Ponds are usually taken on
lease and the group members are given training on fish culture and pond management.

                                            31
Costs of re-excavation and other inputs were met out of food grants from WFP. During
the period under review, IDF supported taking lease, re-excavation and cultivation of 7
ponds by its 69 members.

         Table-5: Livestock services during January 2000 to December 2002

 Activities                         Achievements during:
                                    2000     2001      2002           Total
 No. of animals         Cattle      1470     445       840            2755
 Vaccinated             Goat        890      372       56             1318
                        Poultry     4350     4173      1056           9579
 No of animals          Cattle      75       52        76             203
 diagnosed and          Goat        69       43        45             157
 treated                Poultry     105      168       143            416
                        Pig         80       21        36             137

2.7 Environment Promotional Activities

In the face of gradual deforestation and other pollution increasingly on the rise due to
traditional Jhum cultivation by the tribal communities and indiscriminate cleaning of
jungles by the ever-increasing the settlers for cultivation and residential purposes, IDF
from the beginning of its activities in the area has been environment conscious.
The specific activities during 2000 –2002 have been as follows.
     Environmental awareness raising campaign and motivational meetings at the
        group/centre level.
     Diversification of IGA opportunities for the tribal community people diverting
        them from Jhum cultivation and other environment degrading activities.

      In its bid to protection of some rare species facing gradual extinction, IDF has
       planted in 2001 over 300 saplings of about 80 species in its own land around
       Bandarban town.
      IDF has a long-term plan for promoting plantation and preservation of medicinal
       plants.



2.8 Disaster Management Support

IDF gives hands to its members in cases of any onslaught of natural calamities. Raising
awareness about the common and possible crises like tornado/cyclone, earthquake, flood,
forest fire etc., IDF provides training on disaster preparedness and direct assistance to its
affected members to cope with aftermaths of such calamities. There is provision for
financial assistance from ‘Emergency Fund’ for rehabilitation of badly affected IGAs.

IDF has 10 ‘Disaster Management Support Teams’, 5 members in each, for rescue
operations during crises time and rehabilitation support afterwards. IDF officials in the
respective areas and male volunteers from the member-households constitute such teams.
Members of these teams have duly been trained on disaster management.

                                             32
2.9 Gender Development
By definition of its primary target group, IDF is clearly women biased. Dreaming of a
poverty-free balanced society, its objectives are seemingly oriented towards elimination
of discrimination against women and children, both at home and wok places. In view of
known backwardness of women, IDF activities are deliberately inclined towards women
members of the poor households.

The gender-specific activities at the field level during the review period included training
of staff and target group members on gender development issues, workshops/seminars,
observance of International Women Day/ Mother Day by organizing rallies/general
discussion meetings. Contrastingly to its avowed policies and activities leaning towards
women, IDF staffing is strikingly male dominated. Female staff constitutes only 14% of
total IDF manpower at present with no woman in decision-making positions other than 4
or 5 female Branch Managers. However, women at the lower level (VO) represent a
better position; 23 (18%)VOs are women, out of 131 in total.

Significant events and activities undertaken by IDF since its inception are summarized
and presented in Annex 4




                                            33
                           3. Organizational Analysis
By the time, IDF is organizationally well set with strategies aligned with objectives and
long-run goal. The staff members and stakeholders are fairly aware of the mission,
strategies and rules of businesses of the organization. Both planning and implementation
practices reflect a good degree of participation at all levels. Overall governance and
management are fairly democratic. Examined the organizational strengths and
weaknesses of IDF from different angles, a brief commentary thereon is given below.
Non-political and not-for-profit by motive, IDF is a regional NGO established in late
1992 and got registered under the Societies Registration Act and also registered with
NGO Affairs Bureau.

3.1 Office Set-up

With its HQ in Dhaka and a Regional office in Chittagong, IDF has 3 Area Offices at the
district level and 20 Branch Offices spreading over the three districts. Seemingly
concerned of operational self-sustenance and sufficient interest income from micro-credit
operation, the newly opened Branches have all been in easily accessible areas, which has
not been consistent with its avowed objective of serving the poor tribal community
members in the CHT. However, IDF management claimed to have moved by its usual
priority considerations as follows:
     population and prevalence of poverty;
     clusters of human settlements with potential for forming minimum 200 groups in
        an area of 8-10 square km;
     accessibility/road network and
     presence of any Bank Branch.

3.2 Manning of Offices and Key Functions

IDF’s Head Office in Dhaka is responsible for policy guidance to field operations and
liaising with donors and financing partners; while the Regional Office in Chittagong is
functionally more important. Taking closer care of field operations in the three districts of
CHT and in and around Chittagong City, the Regional Office in Chittagong is the de-
facto HQ of IDF.

Maybe, seated in the Head Office in Dhaka, the ED finds liaising easier with donors and
financing partners, but he is required to travel to Chittagong very often as the field
problems so demand and also that most of planning and administrative functions are
actually done at the Chittagong Office. So, there remains a scope for designating the
present Head Office in Dhaka as a Liaison Office and the Chittagong Office as the Head
Office.

Each meant for maximum 10 Branches, three Area Offices are responsible for:
      Overall supervision and guidance to day-to-day field operations by the Branch
       Offices,



                                             34
        Assessment and approval of new groups processed and placed by Branch Offices
         for recognition,
        Scrutiny and approval of loan applications,
        Monitoring and reporting direct to ED on Branch activities.

The IDF’s Branch Offices are pivotal to all field activities. Channeled all services and
inputs through this Office to the target group members, each Branch Office is headed by
one Programme Organizer (more aptly could be designated as Branch Manager in
conformity with Area Manager) and assisted by 4-6 Village Organizers (VO); the real
army of IDF on the ground.

As against a total of 163 positions planned up to December 2002, actual number at the
time of study were 313 (Annex 5). Out of total 213 staff, 77 are of ethnic origin,
representing 36% of total staff.

3.3 The Governance and Administration

IDF has two apex bodies framing policies and governing all its functions and financial
management. These are: (a) the General Body and (b) the Governing Body. While the
General Body is supreme by mandate, the Governing Body is functionally important in
terms of executive powers and functions. Subject to general control and supervision of a
General Body2, the Governing Body is virtually responsible for overall direction,
administration, and management of all IDF activities and financial control.

3.3.1 Management and Administrative Practices

IDF has its own ‘Service Rules’ defining job responsibilities, accountabilities and rights
and privileges of its staff. Delegation of power, financial authorization, procedures of
supervision, monitoring, reporting etc. have also been framed and put in practice in a
quite nice way to ensure team works and participatory decision making process at every
tier of management and administration.

3.3.2 Comments on Governance System

Critically reviewed the available system documents/guidelines (as listed in Annex 6) and
investigative discussions with IDF staff at different levels, the following observations
may be made about overall governance and administration of IDF:
   Drawn members from a wide variety of professional disciplines, the IDF General
       Body represents a pool of experiences of micro-credit experts, educationist, lawyer,
       physician, economist, social worker, population specialist, architect, engineer,
       agronomist, consultant and institutional development specialist. May be mentioned
       that man like Dr.Muhammad Yunus, the founder of legendary Grameen Bank, is
       there in the General body of IDF;
   Delegated the executive power and responsibilities by the General Body, the
       Governing Body seems to have carried out the planned activities quite efficiently.

2
 Para 1.1 of Rules and Regulations of IDF, a constituent part of Memorandum of Association, defines that
Foundation shall consist of not less than seven members.

                                                  35
      The Annual General Meetings and other mandatory meetings have held according
      to constitution and members’ participations therein were good, meeting records
      duly preserved, decisions rightly followed up and implemented;
     The members both in the General and Governing Bodies seemed to have played
      active roles in policy formulation, fund raising, public relation, lobbying/
      networking, overseeing and management.
     Tribal representation in either of the General Body or Governing Body is poor.
      There are only 3 tribal community members in the present General Body and one
      in the Governing Body.
      Whereas IDF is pro-woman in terms of the defined target group, women
      representation in both the General Body (only 3 in the present Body) and
      Governing Body (none at the moment) is unacceptably low.
      The election to the Governing Body and the way the resolutions are arrived at
      leave some scope for improvement and more transparent; even though the Board
      members’ have well access to relevant documents/reports etc.
      Strong coordination between the board, management, staff, stakeholders and local
       communities leaders needed.

3.4 Financial Management and Practices

3.4.1 Financial Policies and Control Mechanism

IDF has separate Accounts and Audit Sections and well documented financial
management policies providing for proper maintenance of books of records and accounts
of financial transactions, assets and liabilities. All transactions of sales, purchase, loan
disbursement and recovery or any other payment and receipt are duly recorded in their
respective offices of occurrence and ‘IDF Accounts Manual’ defines well how those have
to be maintained. Systematized and consolidated the records of transactions by heads of
accounts duly coded, these are kept in the registered Head Office and available for
inspection by the members of Governing Body.

3.4.2 Financial Planning and Budgeting

The annual budget is being the instrument for central coordination and control of
financial transactions, IDF prepares and process approval of budget on
project/programme basis and Branch-wise allocations are given annually. IDF
mainstream activities, mostly financed out of loans from PKSF and Grameen Trust, are
separately budgeted.

3.4.3 Accounts and Book Keeping

IDF has mandatory provisions for individual project-wise books of accounts and Bank
Accounts to keep track of funds received from different donors/funding agencies. Though
some project/programme accounts are maintained somewhat differently to satisfy the
requirements of the respective donor/funding agencies, the overall accounting of IDF
receipts and payments are being maintained as per general guidelines set forth in the
approved Accounts Manual.


                                            36
3.4.4 Audit and Financial Monitoring

Monitored on monthly basis, IDF financial reporting system represents an inbuilt control
mechanism. Reports originate from the Centres under direct care of Village Organizers
and channel through Branch and Area Offices to ED at the Head Office; with copies to
the Regional Office.

3.5 Planning Process

Basically followed a 'bottom-up` planning approach attaching due importance to the
preferences by the target group community, IDF planning process is flexible and
participatory in nature. It has all along been adapting to its on-going learning from field
implementation and charged environment. Supplementary to usual planning and
budgeting of activities, IDF has as well a 'Business plan` aimed at self-sustenance at the
least possible time.

Guide by its mission and avowed objectives, IDF organizes the women and children and
assist them in gaining access to resources and services as are required for their self-
employment, better income, improved health, nutrition, sanitation, water, housing,
education and environment. All these call for an integrated planning and a degree of
capacity and experiences thereabout. IDF response to the requirement is reflected in its
Compartmentalization of activities under different Programme Units staffed by persons
with relevant experience and academic background. It seemed that IDF’s micro-credit
programme is well organized and most cared one; while other services are still not well
shaped - possibly for the reason that IDF in-house planning capacities in those areas are
not up to the mark. The Planning documents have marks of such professional lacking.

In absence of any designated planning staff or separate unit for the purpose, IDF has to
depend either on available expertise of its Governing Body members or hired external
consultants. Reportedly, some of the Governing Body members volunteer at times their
inputs in planning. But from instances presented, such services seemed to be irregular
and inadequate.

Although IDF in-house planning capacity seems to be limited, its real life strategies and
practices are pragmatic. The activities under the on-going programmes have, in reality,
been initiated on demand from the target group community and most of them are
obviously identified and long felt needs. The way it came so is rooted into IDF’s ‘bottom-
up’ planning practices involving the beneficiaries and grass roots level staff, VOs, in the
analyses of problems and their solutions in their own way. It thus has a smell of
participatory planning.

Known that donor supported activities are all planned and operated on ‘time-bound
project basis’, the mainstream activities are being planned annually; while IDF has a
long-term strategic plan of expansion both in terms of geographical coverage and
introduction of new line of services in the areas of health education and reproductive
behavior, child labour and education, good governance, gender and environment
promotion etc. A ‘Strategic Planning Workshop’ held in late1999, sponsored by Sida, is a
visible effort to that effect.


                                            37
There are some elements of flexibility in the IDF-planning process. While the annual plan
is the guide adhered to as strictly as possible, there is provision as well for periodic
review and revision on the basis of actual implementation progress and field situation.
The persistent law and order situation in the CHT region is a point that IDF planning
takes into account with due care.

3.6 M &E and Reporting

3.6.1 Monitoring setup

Beyond day-to-day supervision and monitoring of activities by the management officials
at different levels, IDF has a Monitoring & Audit Unit3 at the Regional Office in
Chittagong. Manned by a Principal Programme Organizer4, one Senior Programme
Organizer and two Programme Organizers, the Unit is responsible for routine monitoring
activities, quality control and auditing of accounts.

3.6.2 Modes of Monitoring and Reporting Frequencies
There are structured forms5 being filled in by the operating Branches and Area Offices at
different intervals. A weekly statement originate from Village Organizers attached to
Branch Offices; which is prepared on the last day of the week, usually on Thursday, and
passes through Area and Regional Offices to Head Office by 3rd day the following week.

The Branch Office prepares a monthly report, as well; which basically is a consolidation
of the weekly statements. However, it provides some details on overall performance of
the Branch as well as the problems encountered. Semi-annual and an Annual Reports are
published on overall achievements and budget utilization status. The Annual Report is a
mandatory document for the Governing Body to produce and present for approval by the
General Body in the Annual General Meeting.

Other than written reports, review meetings are held weekly at the Branch level that
primarily devote to credit disbursement and recovery progress by each VO. Monthly
meetings at the Area Office are at times participated by officials from Regional or Head
Offices and generally meant for providing feedback on written reports and finding out
solutions to the problems, if any. Annual General Meeting is the apex level mandatory
meeting that takes a thorough account of IDF-activities and financial transactions.

Other than the routinely held meetings as above, the Regional Office organizes review
meetings providing feedback on issues of concern as and when come out from analyses
of reports by Branch/Area Offices and observations during field visits by the senior
officials from Regional/Head Office. ED and other senior officials also review Field


3
  As it is construed by IDF top management and currently staffed by persons with accounting background,
the Unit in reality is an Audit Unit pursuing mostly the financial matters. It, however, covers some aspects
of management audit.
4
  Presently the Senior Programme Organizer is in charge.
5
  List of reporting forms may be seen at Annex 7

                                                    38
progress and problems during supervisory field visits. Apparently a financial control
mechanism, all offices are audited as per an annual schedule6.

3.6.3 Monitoring Tools and Indicators

There are as many as seventeen forms for physical and financial monitoring.
The forms used reflect the divergent nature of information generated for the purposes of
management at different levels. A scrutiny of the forms revealed overlapping and
repetitions. (Annex 8 shows the list of monitoring forms and indicators used by IDF).
However, common and important indicators followed up are as follows:
       Enrolment and drop out of Centres, Groups, Members
       Meeting attendance
       Savings (number of members depositing and amount deposited), savings repaid
       Credit information (amount outstanding, disbursed during the week, number of
        loanee, amount realized, no. of installments repaid in full and fallen overdue,
        members waiting for loan.
       Number of Loanee by times of loans received and loan applications pending
       Amount of loans outstanding (type-wise), overdue installments (crossing 4 weeks)
        no. of defaulting loanees crossing 12, 25 and 52 weeks.
       Overall recovery rate, amount of interest/service charges realized
       Loan disbursed from savings and savings in balance
       Deposit, payment and amount in balance in the Emergency Fund
       Union/Village/Ward covered
       No. of livestock (animals) vaccinated
       No. of members given health care services
       Staff meeting/Workshop organized
       No. of sanitary latrines supplied
       No. of saplings supplied

3.6.4 Impact Evaluation Indicators

 For assessment of benefits and results of IDF activities at the beneficiary level, the
 following benchmarks are on record
:

Area Profile: Some basic information on geo-physical and socio-economic conditions of
the locality is collected before IDF steps in any area (say, Thana or Union). Information
available are:
      Total no of households, cluster of settlements, total population, target group
        population (by tribe and settlement pattern)
      Distribution of population by major economic activities and involvement of
        target group members therein
      Safety and security position


6
  Understood that the present Audit team cannot cover all offices every year. Also neither all accounts nor
all bills and vouchers are audited due to time constraints.

                                                    39
           Presence of other NGOs/projects working with the same target group community
            or else

 Member-Household Profile: Following an area selection, a household level survey is
conducted identifying and listing the target group members. A pre-structured format is
used for collection of information. Basic demographic and socio-economic information
is gathered at benchmark period.

3.6.5 Comments on M &E System
           IDF organogram shows the existence of a Monitoring & Audit Unit under direct
          control and supervision of the ED, it is presently not properly manned. Also
          operational practices show overlapping, calling for an expert level review and
          reorganization. Segregation of physical activities monitoring from financial audit is
          urgently needed in the context of fast expansion of its activities within and outside
          CHT.

           Presently, most of IDF Monitoring activities are about micro-credit operation. The
          credit monitoring system is rather too comprehensive and overlapping, at places. It
          occupies the lion share of staff time – beginning from grassroots level VO to
          Regional office staff. Specifically speaking, the Branch Offices are seemingly too
          busy in reporting than field activities.

           The monitoring forms now in practice are too many in number and overlapping in
          many areas; calling for a professional scrutiny and reframing. An emerging need for
          a simpler but easy-to-operate monitoring system is foreseen to cope with gradual
          expansion and involvement in multifarious programmes of different funding
          conditions (say, grant, loan and own financed programmes).

           The impact evaluation arrangements are weak. Baseline information is neither
          enough nor well organized. Being a close imitator of Grameen model in all other
          respects, IDF could well adopt ten (10) poverty alleviation indicators being pursued
          by Grameen Bank.

3.7       Networking and Collaboration

3.7.1 Community Level Collaboration

IDF has all along been careful of maintaining closer relationship with the leaders and
other knowledgeable persons in the community. Other than submission of reports on
activities to the respective District Commissioners’ offices, as NGOs are required to, IDF
staff participate in different meetings of Chittagong Hill Tracts Development Board
(CHTDB), as well. Also IDF management seemed to have maintained good personal
relationship with the top-level leaders of the community. Instances were reported that
IDF made a good use of its relationship with top leaders in solving different problems
they encountered, even in the events of problems with some tribal staff.




                                                40
While beneficiaries got closer to IDF having been better served than by any other similar
organizations, acquaintance and interaction with community leaders added to its
acceptability among the community at large.

3.7.2 Collaboration with other NGOs

Presently, IDF has partnership with some local NGOs. Other than direct collaboration
with the above NGOs, IDF is a leading member of an Association of local NGOs
(presently 80 members), known as Enterprise Development Forum of Chittagong
(EDFC). IDF has membership with ADAB, Grameen Network and Credit Development
Forum at the national level.

3.7.3 Government Collaboration

IDF staff participated in various discussion forum, workshops, meetings, etc organized
by local level government agencies. It also often invites the government officials of line
Departments as resource persons for training and in occasional discussion meetings.

3.7.4 Donor Collaboration

IDF has received funds from both national and international agencies and donors, such as
Grameen Bank/ Trust, PKSF, Sida, AusAid, ILO, Unicef, CARE, HKI, GOB/Education
Programme and Bangladesh Bank(Grihyan Tahbil) (See Annex 9).

3.8 Sustainability

Viewed from both static and dynamic senses, sustainability analyses focused on two
basic considerations, such as:

 (a) durability or continuity of the same project activities with the same target group
    members and without any external support to IDF, and
 (b) adaptation of the project activities/results to a different context or changing
    environment either with the same or different target group members.

In essence, the above considerations revolved around the following questions:
               whether or not the target group members covered so far have attained such
        positions that they can carry on their own?
               if answer to the above is negative, is IDF in a position to continue on its
        own to
               support them to the extent needed?
         if the beneficiaries in their present stage of development need any support
       different from what have so far been given to them?
         if IDF has both institutionally and financially reached a position that it now can
       go for more services to the same or different target group members?

3.8.1 Target Group Sustainability



                                            41
IDF till time has reached to 15-20 % of total target group population in the CHT (target
group coverage up to December 2002. All other NGOs together have covered not more
than 10%; leaving the vast majority (around 75%) still craving for the services of the kind
being extended by IDF.

3.8.2 Sustainability in the context of IDF

In terms of service delivery infrastructure, systems, manpower, skills and experiences
gained so far, IDF is now in a much better position than three years back. Geographically
speaking, IDF has by now firmly established in all the CHT districts with a good network
of field offices in strategically important places from where it can now move on further
deep into the hilly villages to reach its real target group members of indigenous
community.

To speak of the manpower, IDF at the moment has a good bunch of staff, well trained
and committed to their assignments. It transpired from discussion with staff at different
levels that most of them have clear understanding of the priority needs of the target group
members as well as of what IDF can do about them. The level of confidence observed
among the field staff was high enough to go further ahead; provided financial support is
there from external sources, as IDF top management added.

Financially speaking, IDF has access to diversified donors and sources of funds. It has
the system of mobilizing resources by collecting fees/revenues/cost recoveries and
income generating investment. Interest accruals from micro-credit operation, group
savings and premium collection, profit share from fisheries etc.

Out of TK 59.4 million total grants received by IDF from different sources since
inception, 82% has been from Sida alone; while grants from all sources represent 57% of
total funds received, TK103.61 million. Added all internally generated funds to grants
and loans received, IDF has accumulated a fund of TK154 million in its Revolving
Loanable Fund (RLF) (Table 6). Received grants and loans from different sources (as
shown in Annex 9) IDF has by now accumulated a good sum in its fund generating
interest income nearly sufficient to meet all its operational expenses at the present level.

          Table-6: Source-wise funds available with IDF as of 31st December 2002

 Sources of Funds                                   Accumulated amount (TK ‘000)
                                             st
 (RLF constituents)                  As of 31 December 1999        As of 31st December 2002
               Grants                           28721                          59,417
               Loans                            14,022                         44,196
 Net Income (Interest and other                (-) 1542                         1888
 incomes (-) minus operational
 expenses)
 Group Savings                                    11379                        48751
 (Only mandatory savings)
 Total RLF                                        52,580                      154,252

Disbursed over TK200 million during 2002, the estimated rate of revolving of the
available credit fund was about 1.4 times. Again, the monthly cash-inflow (about


                                            42
TK20.14 million in the month of Aril 2003) and cash-outflow (TK20.06 million) indicate
a marginal balance of TK 8 lakh; meaning 4-5% rate of increase in the volume of credit.

3.9 Gender Sensitivity of the Project/IDF

Generally speaking, IDF is gender sensitive; but apparently woman biased as reflected in
its target group definition that exclude male membership. It has still not been able to
formulate any definite gender development policy of its own and, for that matter, all
gender issues are not well embedded in its work plan and policy documents. There are
two members in its present General body, but none in the Governing Body. Female
representation in the staff is below 10%. Even though the recruitment of policy is
somewhat leaning towards tribal candidates, it is virtually biased against women
exposing them to competition with male candidates on equal terms and conditions.




                                          43
                             4. Impact Assessment

4.1. Sample Characteristics, Coverage and Utilization of Credit
4.1.1 Demographic Characteristics of the Sample Respondents:

IDF deliberately selects women to be its members from the target group. Therefore, all
sample respondents are eventually women without any exception. More than 40% of the
respondent had age less than 30 years; another 48% had age between 30 years and 44
years at the time of joining IDF. Thus, overwhelming proportion of respondents belonged
to productive age group.

 Nearly half of the respondents were illiterate; 15% attended primary school and
remaining 34% attended above primary level at the time of joining IDF. At the time of
survey it was found that those who were illiterate before, now have learned how write
their name. The size of the family and earning member were 4.88 and 1.55 per family
respectively at the benchmark level indicating dependency ratio of 3.67 on the average.
On the other hand, the size of the family and average earning member increased to 5.32
and 2.7 implying the dependency ratio of 1.92.

Distribution of the respondents by ethnic groups is presented in Figure 1. Of the total
respondents, 29% is tribal and remaining 71% is non-tribal. Non-tribal respondents
include 39% Muslim, 22% Hindu and remaining 10% Barua.

                 Figure 1: Distribution of Respondents by Ethnic Group

                        Distribution of Res. by Ethnic Group

                             80               71
                             60
                         (%) 40                         39.3
                                    29
                                                                 22.1
                             20                                          9.7
                               0
                                                        Muslim



                                                                         Barua
                                   Tribal




                                                                 Hindu
                                            Nontribal




4.1.2 Reaching the Target Group

The primary objective of IDF is to improve the socio-economic condition of the poor in
the region. But it is a general apprehension that under the existing socio-political
condition it is difficult to reach the poor with resources for development.. So it is of
interest to see how far IDF is successful in reaching the target group it aimed.




                                                        44
Table 7 and 8 show the characteristics of IDF’s member with respect to marital status and
land holdings respectively. It is to be noted that all members of IDF are female. The
distribution of members with respect to marital status shows that more than 95% were
married (currently) at the time of joining IDF implying that they were living with their
husband. Only less than 5% IDF-members were widowed and divorced. The proportion
of divorced and widowed women among IDF-members is relatively much less compared
to national average, which is 12% (among married women). Divorced and widowed
women are the most vulnerable among the poor women in the society and they deserve
more support to be self-reliant.

               Table 7: Distribution of Sample Respondents by Marital Status

             Marital Status             Frequency             Percentage
             Currently Married          138                   95.2
             Widowed                    6                     4.1
             Divorced                   1                     0.7
             Total                      145                   100

Distribution of sample loanee-households by land ownership at the benchmark (Table 8)
shows that three-fourth of the respondents did not own any cultivable land; only about
9% have cultivable land between 0.11 to 0.5 acre. About 16% respondents have
cultivable land more than 0.5 acre (Table 8). This may imply that a proportion of IDF-
members belong to non-target group. But given the situation in CHT that some lands,
particularly hilly land are not as fertile as in the main land, this may not so. So, the
definition of target group needs to be relaxed and redefined for CHT. The distribution of
land, particularly own cultivable land did not change significantly at the time of survey
(Table 8).

 The proportion of households having no cultivable land is 46% for the country and 53%
for three hill districts (BBS, 2000). Thus, IDF-members represent landless households
(having no cultivable land) more than proportionately but they represent less
proportionately to households having marginal cultivable land. However, we can
conclude that IDF is successful by and large reaching the targeted group with respect to
land ownership criterion. Grameen Bank study (Rahman, 2002) show similar results with
the exception that households having cultivable land between 0.01 to 0.5 acre have more
proportion.




                                              45
                  Table 8: Distribution of Respondents by Land Ownership Pattern

       Size of Land              Cultivable Land        Operated Land (acre)
                                  Owned (acre)
                               Baseline    Survey      Baseline      Survey
            Nil                  109          100        104            85
                                (75.2)      (69.0)      (71.7)       (58.6)
      0.01 – 0.10 acre            -             9         -              8
                                            (6.25)                    (6.9)
      0.11 – 0.50 acre             13          11          12           14
                                 (8.9)       (7.6)       (8.3)        (9.6)
      Above 0.50 acre              23          25          29           36
                                (15.8)      (17.2)      (20.0)       (24.8)
           Total                  145         145         145          145
                                (100)       (100)       (100)        (100)
 Average Size (in acre)          0.25       0.403        0.29         0.57

Note: Figures in the parentheses show percentage

4.1.3 Coverage by Occupational Group

It is of interest to examine the coverage of IDF by occupational groups. Table 9 presents
information about occupational background of the members before IDF’s intervention.
About two-thirds of the loanees, being housewife did not have any principal occupation
that generates visible income. They used to perform unpaid domestic activities.
Remaining one-third of the loanees reported that they have principal occupations other
than domestic activities. Reported occupations that generate income were agriculture
(20%), service (4.8%) and other self-employed activities (4.8%). A pertinent point to be
noted is that overwhelming proportion of those loanees who had main occupation other
than domestic activities belong to tribal group. This implies that most of the loanees
belong to non-tribal group did not have main occupation other than domestic activities at
the benchmark. Survey results show a significant change in the occupation of the loanees.
Nearly half of the loanees now have main occupation other than domestic activities as
oppose to 33% at benchmark. More loanees are now involved in business and self-
employed activities compared to before (Table 9).

As regards to the occupation of loanees’ husband, almost all were involved in activities,
which generate some income on a regular basis (at the benchmark). Business was the
occupation of 29.1% of husbands; service was the occupation of another 27.6%; wage
labor used to be occupation of 17.9% and remaining 10% have self-employed activities
(Table 9). These findings imply that IDF provided credit mostly to those families, who
have continuous flow of income necessary for repayment of loan. Some change has been
noticed in the occupation of loanees’ husband. The proportion of self-employment has
increased at the cost of wage labour (Table 9).




                                               46
                   Table 9: Main Occupation of the Loanees and Their Husbands

     Occupation                       Loanee                                Husband
                          Baseline             Survey            Baseline             Survey
     Housewife          97 (66.9)      75 (51.7)             0                   0
     Business           2 (1.4)        15 (10.3)             39 (29.1)           36 (27.1)
     Service            7 (4.8)        4 (2.8)               37 (27.6)           28 (21.1)
     Self-employed      7 (4.8)        20 (13.8)             11 (8.2)            34 (25.6)
     Agriculture        29 (20.0)      28 (19.3)             24 (17.9)           25 (18.8)
     Day-labour         3 (2.1)        3 (2.1)               20 (14.9)           10 (7.5)
     Other              0              0                     3 (2.2)             0
 Note: Figures show frequency and those in the parentheses show percentage

 4.1.4 Size of Loan

 Each sample respondent received 4.8 loans on the average. The average size of last loan
 received by sample loanee is estimated to be about Tk. 12,000 (Table 10). Nearly 42% of
 the loanees received loan between Tk. 5000 and Tk. 10,000. Another 40% received loan
 between Tk.10,000 and Tk.15,000. Less than 15% of loanees received loan above Tk.
 15,000 including 7% above Tk.20,000. Amount of last loan is positively correlated with
 the duration of membership. That is, older members take larger amount of loan. The size
 of the loan depends on the nature of activities. For example, transport, small trade and
 cottage industries received larger amount of loan compared to horticulture and crop
 activities.

                     Table 10: Distribution of Last Loan by Size and by Region

                     Rangamati            Khagrachari            Bandarban              Total
Size of Loan
                   Freq       %         Freq        %         Freq        %        Freq       %
 Up to 5000         0          0          0          0          3        4.4         3       2.1
 5001-10000         9        15.8         2         10         50        73.5       61      42.0
10001-15000         34       59.6        15        75.0        11        16.2       60      41.4
15000-20000         14       25.6         3        15.0         4        5.9        11       7.6
   20000+           0          0          0          0          0          0        10       6.9
    Total           57       100         20        100         68        100       145      100
    Mean              13666.67              13850.0               10132.35           12034.48

 4.1.5 Satisfaction of Loan Demand

 It may be of interest to know the extent to which IDF satisfies the demand for credit to its
 members. Our survey results show that members increasingly received more credit with
 the increase in the duration of membership. Amount of loan varies with the type of
 activities. The activities such as business, transport, cottage industries usually require
 more credit compared to other activities. Average size of credit to these activities show
 larger amount compared to other activities. Thus, IDF tends to respond the needs of the
 loanee-households. However, members still wish to have more credit from IDF.
 Respondents were asked to report what services they want more from IDF. In response to

                                                   47
this question, 95% sample loanees reported that they want IDF provides more credit
services (Table 23). Nearly 25% of the sample households took credit from other sources
besides IDF. Among those who have taken credit from other sources, overwhelming
majority have taken loan from other NGOs and a small proportion received loan from
banks (Table 11).

         Table11: Proportion of Respondents Taken Loan from Sources other than IDF

       Status of Respondents                 Frequency                Percent
                 No                             110                    75.9
                 Yes                             35                    24.1
                Total                           145                    100.0
       Other sources of Credit
            Other NGO                             28                    19.3
               Banks                               7                    5.5
                Total                             35                    24.1

4.1.6 Use of Loan by Female Loanee:

It has already been mentioned that all IDF-loanees are women. But information about
loanees’ main occupation, particularly for non-tribal loanees reveals that loans were
operated by their husbands or other male members of the family in most of the cases. On
the other hand, most of the tribal loanees had main occupation other than domestic
activities and they were directly involved in income generating activities, particularly in
business and agriculture. Thus, tribal loanees relatively played vital role to use loan
money compared to non-tribal loanees. However, non-tribal loanees had the opportunity
to utilize significant amount of their labour in income generating activities along with
their husbands, as it has been evident in their subsidiary occupation.

 In a patriarchal rural society like in Bangladesh, even if institutions channel resources to
women, it ultimately goes to the hands of husbands or other male members of the family.
This may happen for two reasons. Women may have less skills, experience and
confidence compared to their male counterpart. So, husbands may be more efficient to
organize activities, where loan money is utilized. IDF’s policy is to provide credit only to
women. So, husbands may motivate their wives to receive credit, which they need for
productive investment. As long as husband assures and has ability to pay weekly
installment, wife does not refuse to hand over loan money to her husband.

4.1.7 Utilization of Loan by Sectoral Activities

It is relatively less important who uses loan money. What is more important is that for
what purposes loan money is used? As long as loan is used to generate productive
employment in order to bring additional income to the family, it serves the ultimate
purpose. Table 12 shows the activities, where loan money was used. Of the total cases
202) of activity (in which loan money was used), small trade accounts more than one-
third, transport 7% and cottage industries 7%. While crop production accounts 20% and
other agro-based activities consisting of animal rearing, poultry and horticulture together
account nearly 19%. In more than 12% cases, loan was used in non-productive activities


                                             48
consisting of house repairing, consumption and social festival. Thus, in nearly 88% cases,
loan money was used in some income generating activities including 41% in service
sector consisting of trade and transport sub-sectors and 46% in different productive
activities.

                      Table 12: Distribution of Activities used Last Loan

       Types of Activities                   Frequency (case)               Percentage
       Small Trade                           69                             34.2
       Transport                             14                             6.9
       Crop                                  41                             20.3
       Horticulture                          5                              2.5
       Animal Rearing                        22                             10.9
       Poultry                               11                             5.4
       Cottage Industry                      15                             7.4
       Other non-productive activities       25                             12.4
       Total                                  202                       100.0
Note: Multiple entries are possible; Percentage shows proportion of cases not the percentage of
loan money

4.2 Socio-Economic Impact
4.2.1 Impact on Capital Accumulation and Asset:

One of the direct impacts of IDF credit would be on accumulation of capital after joining
IDF. IDF-loan is to be repaid in small installments every week. So, it is easy for the
loanee-households to pay the installments from the income, leaving capital intact. Thus,
at time of taking a repeat loan, the loanee household should have larger volume of capital
than before.

Table 13 shows the amount of present and initial capital in the activities run by IDF-loan.
The amount of present capital has been deflated by GNP deflator in order to compare it
with initial capital. The amount of present capital per loanee household has increased by
3.7 times from Tk. 8,600 to Tk.31,700 (at 1997-98 price).

Frequency distribution of respondents by present and initial capital is presented in Table
13. Nearly one fourth of the loanee-families had no initial capital when they became IDF-
members; another 44% had capital less than Tk. 5,000. Only about 32% loanee-
households had initial capital more than Tk. 5,000. In contrast, more than 52% loanee
households have present capital between Tk. 10,000 and Tk. 30,000; another 43% have
present capital more than Tk. 30,000 including 18% having capital more than Tk. 50,000.

Since IDF provides loan in larger amount to older members, it is possible to divert a part
of the loan or incremental income to acquire different types of asset such as cattle and
other household durable. Value of present asset consisting of livestock, poultry and other
household durable is compared with that of baseline data. The value of present asset
increased by 2.8 times from Tk. 9,400 to Tk. 26,700 per loanee-household (after


                                              49
adjusting inflation) (Table 14). Nearly half of the sample households had total asset worth
less than Tk. 5000 before they join the IDF. But now this proportion comes to only 13%.
That is, about 87% of loanee households have asset worth more than Tk. 5,000 including
26%, who have total asset more than Tk. 40,000. Therefore, majority of the sample
households acquired significant amount of asset. Another point to be noted is that share
of livestock in total asset was 61% at the time of joining IDF, this share reduced to 27%
now (Table 14). This implies that loanee households acquired other asset consisting of
furniture and other durable more proportionately.

           Table 13: Distribution of Respondents by Size of Present and Initial Capital

     Size of Capital
                                   Baseline               Survey              Deflated value (at 97-98
                                                                                       price)
           00                   35 (24.1)                    0
        01- 5000                64 (44.1)                2 (1.4)
      5001-10000                18 (12.4)                 6 (4.1)
      10001-30000               17 (11.7)               75 (51.7)
      30001-50000                9 (6.2)                36 (24.8)
         50000+                  2 (1.4)                26 (17.9)
    Total Frequency             145 (100)               145 (100)
     Mean (in Tk.)              8633.1034              36631.7241                   31688.3427
Note: Figures show frequencies and those in the parenthesis show percentage

           Table 14: Value of Initial and Present Household Asset (values are in TK)

            Types of Asset              Baseline                         Survey
                                                          At current price    At 97-98 price
            Value of Livestock          5733              8429                7291
            Value of Other Asset        3638              22435               19408
            Total value of asset        9371              30864               26699

4.2.2 Impact on Employment

The stated objective of IDF is to extend credit services to the poor for creating productive
employment opportunities. Thus, any evaluation must see to what extent this has
achieved. For poor people of Bangladesh, farm and households are closely inter-linked.
The household premises generally are used for economic activities. So the family
members have the opportunity to participate economic activities, which they do often.
Therefore, two aspects of employment generation are highlighted here (i) generation of
employment for the loanees, who are women and (ii) generation of employment for other
members of the family, particularly the husband of the loanee.

The change in principal occupation of the loanees as well as their husbands (as shown in
Table 9) demonstrates that availability of IDF credit plays a role to change occupation of
the loanees and their husbands. These changes in occupation of both loanees and their
husbands have implication in employment generation. How far change in occupation
generates productive employment is of interest to investigate.


                                               50
Respondents were asked to report the use of labor in loan and non-loan activities
separately. Table 15 presents the status of employment in loan and non-loan activities by
different members of loanee-households. The reference period of survey was last month.
During the period of last month, a loanee-household worked 718 labor hours on the
average in productive activities. The loan-activities account nearly 52% and non-loan
activities account remaining 48% of the total labor used. The use of labor per earning
member is estimated to be about 9.0 hours a day for each loanee family.

           Table 15: Use of Employment by Loanee Households during Last Month

                            Utilization of Labour (in hours) by
 Type of activities      Loanee            Husband        Other members        Total
                      Mean     Per      Mean      Per     Mean     Per    Mean       Per
  Loan activities     126.02 17.6 160.14 22.3             88.76    12.4   374.92     52.2
Non-Loan activities   110.70 15.4 120.53 16.8 111.72               15.6   342.96     47.8
       Total          236.72 33.0 280.67 39.1 200.48               28.0   717.88     100
    Increase in
                      3.1483           3.4483            2.33              8.93
   employment

Of the total labor use in loan activities (375 hours), the contribution of loanee, husband
and other members were 34%, 43% and 23% respectively. Loan activities generate an
employment of 4.2 hours a day for loanee, 5.3 for loanee’s husband and 2.9 hours a day
for other members of the family. That is, loan activities generated an employment of 12.4
hours a day for each sample household on the average.
One might be of interest to see the extent of additional employment to the member-
households. Employment of the loanees in loan activities shows a negative relationship
with employment of the loanees’ husband (Table 16). Total employment in loan activities
also inversely related to that in non-loan activities. However after trade off, employment
of the loanees and employment in loan activities contributed positively to total family
employment. The respondents reported that their employment has increased now by
about 9 hours a day per household compared to benchmark period (estimated roughly
using recall method at the time of survey). The increase in employment per day has been
recorded 3.15 hours for loanee, 3.4 hours for husband and 2.3 for other members of the
family. These statistics clearly indicate that IDF loan significantly increased productive
employment not only to loanee family but also loanee herself.




                                            51
                Table 16: Correlation Coefficient among Labour use in Loan Activities

Use of Labour        Loanee      Loanees'     Other             Total labour use     Total labour use in
                                 Husband      members of        in loan activities   non-loan activities
                                              the family
Loanee               1.00        -0.1722      0.0289            0.3445               -0.0209
                     (.)         (0.039)      (0.731)           (0.00)               (0.804)
Loanee’ husband      -0.1722     1.00         -0.1275           0.4184               -0.2784
                     (0.039)     (.)          (0.128)           (0.00)               (0.001)
Other members of     0.0289      -0.1275      1.00              0.7469               -0.2784
the family           (0.731)     (0.128)      (.)               (0.00)               (0.001)
Total labour use     0.3445      0.4184       0.7469            1.00                 -0.2677
in loan activities   (0.00)      (0.000)      (0.00)            (.)                  (0.001)
Total labour use     -0.0209     -0.2784      -0.2784           -0.2677              1.00
in non-loan          (0.804)     (0.001)      (0.001)           (0.001)              (.)
activities
    Note: Figures in the parentheses show P-value based on two-tailed test


   4.2.3 Impact on Income

   It is obvious from the findings of the impact on capital accumulation and employment
   presented earlier that it would definitely have positive impact on income. This section
   attempts to quantify the extent of such impact. It is to be noted that accurate estimation of
   income is difficult since loanee do not keep any record of their business. Therefore, the
   result may contain some margin of error.

   Like employment, respondents were asked to report their income that they received from
   loan and non-loan activities during last one year. Baseline data contained average family
   income has been compared with current family income. Table 17 presents income per
   loanee-household. Average income per loanee household has been estimated to be at Tk
   67,158 per annum compared to Tk. 29,418 prior to IDF intervention. The deflated value
   of current income has been estimated to be Tk.58,266 (at 1997-98 price). Thus, income
   per loanee household increased by nearly double compared to baseline period.

                  Table17: Distribution of Respondent Households by Annual Income

          Size of Income                     Baseline                           Survey
                                     Frequency     Percentage         Frequency      Percentage
          Up to 20000                    33           22.8                 5            3.4
          20001-40000                    64           64.2                37            25.5
          40001-60000                    10            6.9                32            22.1
          60001-80000                     2            1.4                26            17.9
             80000+                       1            0.7                44            30.4
              Total                     140           100                145            100
        Average income                       29417.85                           67158.5
    Average per-capita income                 6214.4                            13180.5

   Family income has been divided by average size of the family to estimate per capita
   income. The average per capita income at the time of survey is estimated to be at Tk.

                                                   52
   11,435 (at 1997-98 price) compared to Tk. 6,214 at benchmark period. Of the total
   household income, loan-activities account 53% and non-loan activities account remaining
   47% of income. This result is consistent with the use of labor in loan and non-loan
   activities.

   Frequency distribution of the loanee-households by income shows that households having
   annual income more than Tk. 40,000 account less than 10% at benchmark period. But at
   the time of survey this proportion increased to more than 70%. A significant proportion
   of loanee households (30%) is found to have annual income more than Tk. 80,000
   compared to less than 1.0% at baseline period. These results clearly indicate that
   overwhelming proportion of sample households shows a remarkable increase in income.

   Respondents were asked to provide with their perception about the change in their family
   income after they became IDF-member. Almost all respondents (99%) unambiguously
   reported that their income has increased compared to the period prior to IDF’s
   intervention. The extent of increase in income is estimated to be at Tk. 3100 per month
   per household. The partial correlation between present capital, total employment and total
   family income shows positive and highly significant (Table 18).

   Sample loanees were asked to report three most important reasons for increase in their
   income. The responses are presented in Table 19. Almost all (143 out of 145 comprising
   98.6%) reported that IDF-loan was one of the three most important reasons for increase
   in their income. Increase in labor use (89%) and increase in capital (56.6%) are the two
   other most important reasons, identified by most of the respondents. The later two
   reasons are also related to loan. From these findings, one can easily conclude that IDF-
   loan played a vital role to increase in employment and income of the loanee-households.


                      Table 18: Correlation Coefficient among different variables

Variables           Present capital   Income in     Total family    Employment      Total
                                      loan          income          in loan         employment
                                      activities                    activities
Present capital     1.00              0.3270        0.2692          0.1838          0.1310
                    (.)               (0.00)        (0.001)         (0.027)         (0.118)
Income in loan      0.3270            1.00          0.7561          0.2865          0.1663
activities          (0.00)            (.)           (0.000)         (0.000)         (0.046)
Total family        0.2692            0.7561        1.00            0.0554          0.2572
income              (0.001)           (0.000)       (.)             (0.509)         (0.000)
Employment in       0.1838            0.2865        0.0554          1.00            0.6272
loan activities     (0.027)           (0.000)       (0.509)         (.)             (0.000)
Total employment    0.1310            0.1663        0.2572          0.6272          1.00
                    (0.118)           (0.046)       (0.000)         (0.000)         (.)

   Note: Figures in the parentheses show P-value based on two-tailed test




                                                   53
           Table 19: Reasons Cited for Increase in Income of the Respondent Families

                 Reasons                   Freq (Yes)            Percentage
IDF-loan                                      143                   98.6
Not taken loan from money-lender                1                    .7
Increase of business capital                   82                   56.6
Increase in use of labour                     129                   89.0
Increase in agri production                    24                   16.6
Increase in wage                               10                   8.3
Increase in self-employed activities           12                   22.8
Others                                         33                   6.9

4.2.4 Impact on Productivity

It is pertinent to examine the productivity of labour and capital. For policy point of view,
it is important to see how the productivity of labour and capital vary by types of activity.
Table 20 presents the productivity of labour and capital in the activities, where loan
money has been utilized. Average labour productivity is estimated to be at Tk. 6.7 per
hour labour used, which appears to be very low. As the table shows labor productivity per
hour varies between Tk. 3.9 to Tk. 11.4. It shows the highest in cottage industries and the
lowest in poultry activity. It is about Tk. 8.5 in trade and transport activities. It shows
relatively low in crop production (Tk. 4.4) and home gardening (4.6). The gross rate of
return of capital has been estimated roughly. It shows very high with range from 45% in
poultry to 98% in animal rearing activities. Small-scale operation and relatively high cost
of operation and risk may be the reasons for low labour and capital productivity in
poultry.

            Table 20: Estimate of the Productivity of Labour and Capital by Activity

     Activity    Income received Family labour      Capital     Productivity Rate of
                  per household used per            used        per hour     return per
                     last year   household last                              year (%)
                                 month
Small trade          42617.4          429.18          44210         8.275         96.40
Transport           33454.55          324.54          35727         8.590         93.64
Crop Production       22700            426            24467         4.441         92.78
Animal Rearing        25997           367.5           26355         5.895         98.64
Poultry             11401.75          243.75          25200         3.898         45.25
Cottage Industry      40740            297            46700        11.431         87.24
Horticulture          18400            330            24625         4.646         74.72
Total               195310.7         2417.97         227284.1       6.731         85.93


4.2.5 Impact on Poverty

The poverty line income based on a daily intake of 2150 calorie was estimated at Tk.
3096 by Hossain (Hossain, 1989, p.161) per person per annum. Taking cost of living
index into account for low-income classes the poverty line income has been estimated at
Tk. 6,670 for 1997-98 and Tk.7,670 for the year 2002-03. Frequency distribution of per


                                              54
capita income from baseline data shows that more than 75% of the sample households
were below poverty line. On the contrary, at the time of survey this proportion reduced to
nearly 26% (based on income distribution). These results demonstrate that IDF’s
intervention programs have been able to lift a significant proportion of its members out of
poverty line.

4.2.6 Impact on the Status of Housing

Change in the housing status is considered an index of change in the socio-economic
status of the poor households. A comparative picture in the status of housing of the
sample respondents is presented in Table 21. A remarkable change has been noticed in
the housing status, particularly in the roof of house. Less than one-third respondents had
tin- roofed at time of joining IDF. This proportion increased to more than two-thirds at
the time of survey. On the other hand the share of straw/Leaves dramatically decreased
from 57% at benchmark period to 17% during survey period. Regarding the status of wall
no noticeable change has been registered.

4.2.7 Impact on the Status of Health:

Health related statistics collected through survey are compared with those of baseline
data and they are given in Table 22..There is no remarkable change regarding health
status in the survey period compared to benchmark period. However, all indicators show
a moderate increase except drinking tube well water, which slightly decreased. These
results reflect limited intervention by IDF in the area of health and sanitation.

              Table 21: Change in the Housing Status of the Sample Respondents

            Types of Materials                    Wall                           Roof
                                   Baseline        Survey          Baseline             Survey
            Staw/Leaves            100 (69.0)      88 (60.7)       82 (56.6)            25 (17.2)
            Clay                   43 (29.7)       46 (31.7)       -                    -
            Tin                    -               -               46 (31.7)            114 (78.6)
            Tin and Straw          -               -               13 (9.0)             2 (1.4)
            Other                  1 (0.7)         11 (7.6)        3 (2.1)              4 (2.8)
            Total                  144 (100)       145 (100)       144 (100)            145 (100)
          Note: Figures show frequency and those in the parentheses show percentage

4.3 Services Received and Further Assistance Expected
Sample respondents were asked to report types of services they received and services
they want more from IDF. The responses of these questions are presented in Table 23.
All respondents received both credit and savings services, which are obvious. Among
other notable services, nearly one-fourth received some skill-development service. Only
small proportion of the respondents received health (16%), education (11%), extension
(11%) and environment promotion (5.8%) services. It is to be noted that IDF has special
programs on health, education, extension and environment.



                                             55
                Table 22: Change in Health Status of the Sample Respondents

                    Area of Status               Baseline               Survey
                                                 Frequency   %          Frequency     %
         Drink Tubewell water                    126         86.9       121           83.4
         Give Vaccination to Child               121         83.4       132           91.0
         Use Iodine Salt                         127         87.6       142           97.9
         Use Mosquito net                        126         86.9       141           97.2
         Send Child to School                    103         71.0       126           86.9
         Use sealed Latrine                      95          65.5       96            66.2
         Have idea about family planning         113         77.9       116           80.0

Respondents identified credit, health, skill-development training and extension services
are the most important services they want more from IDF in the future. The reported
percent of the respondents are recorded in Table 23. Nearly 95% respondents revealed
that they want more credit service; two-thirds want more health services; 38% would like
to have extension services and more than one-fourth wish to have environment promotion
services.

It is pertinent to identify the issues and problems on which IDF may address its attention
in the future. Each respondent was requested to identify three most important problems
that she/he is facing. Table 24 presents the responses of the respondents. Five problems
have been identified as the most important problems (based on the number of
frequencies). These are: inadequate capital, lack of modern health service, lack of skill,
lack of employment opportunities and lack of pure drinking water. Even though IDF’s
overwhelming concentration is on credit, still it fails to satisfy the demand for credit by
respondent households.




                                            56
        Table 23: Services Received and Services Want More from IDF

                                                  Services Received   Services Want more
   Types of Services                             Percent   Rank       Percent   Rank
   Credit Service                              100        I           94.5      I
   Savings Service                             100        I           -         -
   Skill-Development                           24.8       III         43.4      III
   Health Service                              15.9       IV          68.3      II
   Education                                   11.0       V           18.6      V
   Housing                                     3.4        IX          -         -
   Extension                                   10.8       VI          37.8      III
   Environment Promotion                       5.8        VII         26.9      IV
   Disaster Management                         3.7        VIII        -         -
   Awareness about women empowerment           28.3       II          3.4       VI
Note: Multiple answers possible
                                  Table 24
                  Nature of Problems Faced by Respondents

 Nature of Problem                           Respondents reporting
                                             Frequency      percent             Rank
 Lack of Employment Opportunities            54             37.2                IV
 Shortage of capital                         94             64.8                    I
 Lack of Skill-development training          62             42.8                III
 Lack of School for the Children             5              3.4
 Lack of modern health services              66             45.5                II
 Lack of pure drinking water                 51             35.2                V
 Lack of road services                       33             22.8                VI
 Lack of fair price of the produce           6              4.1
 Lack of appropriate wage                    6              4.1
 Lack of Electricity                         3              2.1
 Lack of Security                            10             6.9
 Lack of Justice and equity                  6              4.1
 Lack of ownership of land                   9              6.2
 Other                                       15             10.3
Note: Multiple answers possible




                                      57
                                5. References


1. Australian High Commission, Assessment of Proposed IDF/AusAID
   Microfinance Project in the Light of CHT Accord 1997, (Conducted by Research
   and Development Collective (RDC)), Dhaka, May 2002

2. Bangladesh Bureau of Statistics (BBS), Statistical Pocketbook Bangladesh 2000,
   Statistical Division, Ministry of Planning, Dhaka, 2002

3. CARE-Bangladesh, Overcoming Marginalization: A Programme Strategy Paper
   for the CHT Region by CARE-Bangladesh

4. Hossain, Mahbub and Rita Afsar, Credit for Women’s Involvement in Economic
   Activities in Rural Bangladesh, Working Report No. 105, BIDS, Dhaka, June
   1989

5. IDF, IDF-Memorandum of Association and Rule and Regulations, March 1993

6. IDF-SIDA, Agreement signed on May 23, 2000 between Sida and IDF on Support
   of its Project ‘Upliftment of Overall Socio-Economic Condition of the Poor
   People of Chittagong Hill Tract’

7. IDF, The Project proposal by IDF on ‘Upliftment of Overall Socio-Economic
   Condition of the Poor People of Chittagong Hill Tract’

8. IDF, IDF-Annual Report 1999, 2001 and 2002 (draft)

9. IDF, Monthly Statements on IDF Micro-credit Programme (December 2002 and
   February 2003)

10. IDF, IDF-News Bulletins (6th and 7th issues)

11. IDF, The draft Project Completion Report on ‘Upliftment of Overall Socio-
    Economic Condition of the Poor People of Chittagong Hill Tract’ by IDF

12. IDF, IDF-Credit Manual, First Volume (draft)

13. IDF, IDF-Accounts Manual

14. IDF, IDF-Training Guidelines

15. IDF, IDF-Service Regulations

16. IDF, Business Development Plan for Urban Micro-finance Programme,
July 2002– June 2005 submitted by IDF to CARE Bangladesh

                                        58
17. IDF-AusAID, IDF-AusAid Micro-finance Project proposal

18. IDF, Report on IDF Strategic Planning Workshop held in December 1999

19. Rahman, Aminur, “Micro-Credit Initiatives for Equitable and Sustainable
    Development: Who Pays? World Development, Vol. 27, No.1, PP.67-82, 1999

20. Rahman, Rushidan Islam, Impact of Grameen Bank on the Situation of Poor Rural
    Women, Working Paper No. 1 (Grameen Bank Evaluation Project), BIDS, Dhaka,
    July 1986

21. Rahman, Rushidan Islam, Impact Assessment Studies on Micro Credit: A Review
    of Methodologies and Indicators (BIDS Study on PKSF’s Monitoring and
    Evaluation System), BIDS, Dhaka, June 1998

22. Rahman, Atiur et.al., Early Impact of Grameen (A Multi-Dimensional Analysis:
    Outcome of a BIDS Research Study), Grameen Trust, Dhaka, 2002

23. Roy, Jayanta Kumar, To Chase a Miracle: A Study of the Grameen Bank of
    Bangladesh, University Press Limited, Dhaka

24. Uddin, Saleh Md., A Review of Integrated Development Foundation’s Credit
    Programme in Chittagong Hill Tracts, (Commissioned by SIDA) Chittagong,
    January 1997

25. Uddin, Saleh Md., An Assessment of IDF Activities (1993-1998), Chittagong,
    March 1999




                                     59
             Annex – 1:   Review of Impact of the Swedish Support to
                      Integrated Development Foundation (IDF)

                                Terms of Reference (TOR)

1. Background

IDF has been implementing a micro-credit programme in line with Grameen Bank Model in
Chittagong Hill Tracts (CHTs) with the financial and technical assistance from Grameen
Trust since 1993. The Embassy of Sweden/SIDA has been supporting IDF’s project since
January 1995. The present agreement was signed on May 23, 2000 and covers the period
from January 2000 December 2002 with a total amount of SEK 3,600,000.00.

The Long-term objective of the project is to uplift the socio-economic condition of the poor
people of CHT. The project today (April 2002) covers 20,141 poor families from 16 thanas of
three hill districts. The target group consists of women whose family owns maximum 0.50
acres of cultivable land or own assets worth of one acre of cultivable land. The total amount
of savings deposited by the members as on April 2002 is Tk. 26,405,000.00. The total amount
of loan disbursed the above-members are Tk. 333,415,600.00 which 265,156,800.00 are
period.

IDF has now completed about two and half year of the activity period of the present
agreement. A review of the activities will be carried out to determine the relevance and
effectiveness of the programme of IDF.

2. Purpose and Scope

The purpose of the study is to provide the Embassy with an independent and comprehensive
review and analysis of IDF’s activities and assess the effectiveness of the Swedish
contribution to IDF.

The assessment shall also provide key lesson learnt and identify strengths and weakness of
the organization in the implementation of the project and provide conclusion and
recommendations for possible continued Swedish support to IDF.

3. The Assignment

The study shall find out how the Swedish financed project has been planned/formulated,
carried out, reported as well as the impact of the support on the target group. The review shall
focus on the performance of the organization as well on the result of the project.

                                Analysis of the Activities

The review shall contain following aspects:

   Assessment of the institutional capacity and efficiency of IDF to effectively implement
    the project and thereby, contribute to the attainment of aims and objectives as stated in
    the project document and agreement.

   Assessment of IDF’s rules and regulation regarding savings and landing in the micro-
    credit programme.



                                              60
        Assessment of key indicators used by IDF to monitor the project and members socio-
         economic development.

        Review at what (degree) problems identified in the project document have been
         addressed.

        Follow up and assessment and analysis whether the project has been carried out
         according to gender principles.

        Examination of the sustainability of the supported activities.

Organization Analysis

        Assessment of institutional capacity and efficiency of IDF to carry out and   implement
        development projects.

        Follow up and assessment of IDF’s financial management

        Examination of the management structure of the organization with regard to functions,
        roles and responsibilities of all actors (board and general members and the staff) in
        programme and financial management areas.

       Review the planning, monitoring ad decision making process of the organization

                                          Impact Analysis

    What are the specific needs of the target group, prioritizations and difficulties faced by
    members. Does IDF’s credit programme serve members needs as regards financial services?
    What are the constraints as regards the credit and savings programme from a member point of
    view? What socio-economic impact has been achieved so far? Is the programme on track of
    sustaining the impacts made? How does the credit programme inter-link and function with
    IDF’s other programme?

                                 Conclusion and Recommendations

    The consultant shall formulate conclusions and recommendations for the Embassy as well as
    for IDF. The recommendations should be specific relevant and achievable within a certain
    period of time.


    4. Report

    The findings and recommendations shall be documented in writing and limited to maximum
    40 pages. The report shall have separate chapters for Executive Summary and
    Recommendations.

    The report should be written in concise and accessible English: name, terms and acronyms
    not easily comprehended by common should be explains in the test or via footnote
    or/glossaries. Persons interviewed and reports/documents consulted shall be listed.




                                                 61
A draft report shall be submitted to the Embassy for comments (date ------). The Embassy
shall share and discus the report with IDF before making final comments. Final report should
be submitted in five copies no later than one weak after receiving the comments.

5. Methodology and Time Frame

The review will be carried out in Chittagong Hill Tracts and be based on interviews,
documentation at the Embassy and at IDF, field trips, data collection in the field and meetings
with relevant government and tribal officials and organizations.

The team leader has the overall responsibility for the study including the design of the
questionnaire, statistical selection of members for interviews, overall coordination, analyzing
all information gathered and report writing.

The members selected for interviews shall primarily come from mature branches which is
consists of members that have been taking loan and saved money for at least 3 years. The
statistical methodology and basis for sample selection shall clearly be described in the final
report.

The study team shall work together with IDF in describing IDF and its different projects and
sources of funding in discussing and suggesting workable indicators and in the design of the
questionnaire.




                                            62
      Annex 2:Locations and Coverage of IDF Area Offices, as of December 2002

Name and           Branches under                       Coverage as of 31st December
Location of        the respective                 Centres              Group       Total members
Area Office                                                                      (Tribal members)
                   Area Office
                                            1999        2002     1999     2002     1999       2002
Bandarban          Shoalok                   18          28       102      151      434        630
                                                                                   (195)      (218)
                   Balaghata                 45             51   215       231      951        920
                                                                                   (653)      (433)
                   Rajbila                   52             40   285       237     1244       1169
                                                                                   (534)      (602)
                   Lama                      46             56   200       293      905       1269
                                                                                   (257)      (295)
                   Ruma                      -              19    -        80        -         392
                   (started in June 2000)                                                     (305)
                   Baishari                  -              55    -        265       -        1284
                   (February 2001)                                                            (171)
                     Bandarban Total        161         249      802      1257    3534        5664
                                                                                 (1639)      (2024)
Khagrachari        Khagrachari               46             83   220       407     1064        1856
                                                                                   (357)       (421)
                   Manikchari                32             53   130       282      619        1292
                                                                                    (73)       (144)
                   Guimara                   27             42   105       189      486         903
                                                                                   (133)       (312)
                   Matiranga                 -              54    -        257        -        1158
                   (Opened in April 2000)                                                      (184)
                   Baghaichari               -              38    -        158       -          787
                   (November 2001)                                                             (115)
                      Khagrachari Total     105         270      455      1293     2169        5996
                                                                                   (563)      (1176)
Rangamati          Betbunia                 36              41   207       249    1012        1102
                                                                                  (489)       (449)
                   Rajasthali               32              36   171       204     769         907
                                                                                  (639)       (693)
                   Raikhali                  71             76   392       416     1187        2031
                                                                                   (664)       (347)
                   Baraichari                39             60   202       301      966        1159
                                                                                   (411)       (351)
                   Rangamati                 47             66   223       359     1073        1643
                                                                                   (566)       (696)
                   Langadu                   15             55    42       318      210        1532
                                                                                    (80)        (85)
                   Ranirhat                  30             58   176       316      879        1540
                                                                                    (44)        (71)
                   Banarupa                  -              34    -        129        -         641
                   (September 2001)                                                             (24)
                         Rangamati Total    270         426      1413     2292     6696       10555
                                                                                  (2893)      (2716)
              CHT/ Project Area Total       536         945      2670     4842   12399        22215
                                                                                 (5095)      (5916)
Chittagong         Bahddarhat                61             79   325       443     1616        2106
                   Halishahar                36             76   154       402     746         1867


                                             63
              Pahartali               36      93     162    486      785       2211
              Rajarhat (Nov. 2000)     -      65            390       -        1935
                                                                               (47)
              Mohora (Nov. 2000)      -       48      -     211       -        1035

              Katghar (Sept. 2001)    -       36      -     144       -        718
              Kadamtoli               -       1       -      2        -         10
              Raozan                  -       43      -     179       -        895
                Chittagong Total     133     441     641    2257    3147      10777
                                                                               (47)
   Grand Total (CHT+ City Area)      669     1386   3311    7099    1546      32992
                                                                   (5095)     (5963)


Annex 3: Number of patients by diseases treated at IDF Hospitals
 Disease                  Number of patients received treatment from IDF
                          hospitals during the period under review
                                 2000           2001          2002          Total
 Malaria                          985            540           520          2045
 Diarrhea                         482            216           212           910
 Dysentry                         257            180           186           623
 Viral fever                      115            180           168           463
 Gout                             181            108           127           416
 Pregnancy related                 81            111           124           316
 Tonsillitis                       42             36             -            78
 Pneumonia                         35             12             -            47
 Traumatic injury                  43             18                          61
 Ascariasis                         -             48             -            48
 RTI                                -             24             -            24
 Rheumatoid Arthritis              25             84             -           109
 HTN                                -             36             -            36
 COAD                               -             84             -            84
 Leucorrhoea                        -             25             -            25
 Fungal Infection                   -             45             -            45
 Eczema                             -             48             -            48
 Rheumatic fever                    -             13             -            13
 LBP (Low back pain)                -             65             -            65
 Epilepsy                           -             18             -            18
 Visual problem                     -             27             -            27
 Anaemia                            -             12             -            12
 Cervical Spondylitis               -              9             -             9
 Others                           163            102           750          1015
 Total                           2409           2041          2087          6537




                                      64
                                    Annex 4: IDF Milestones

        Time Line                                           Events
December 1992       IDF came into being formally
October 1993        Credit operation started in Shoalok, Bandarban with fund from Grameen
                    Trust
1993                WFP supported fisheries programme undertaken in Satkania Thana
Late 1994           Non-formal education programme for working children introduced. Two
                    education centers were opened in Bandarban district and subsequently …
                    centers were established in the Chittagong City area
1995                The first Sida grant received for the period from January 1995 to December
                    1996
October 1995        ILO/IPEC child labour programme started in the Chittagong City area.
                    TK1.2 million was received from ILO for the purposes.
December 1995       UNICEF supported ‘Sanitation Awareness Creation Project’
                    (December1995-June 1996) was started.
1997                Starts operation in Chittagong Metropolitan area
1997                Helen Keller International (HKI) supported ‘Home Gardening &
                    Nutritional Surveillance Programme’ started in Rangamati and Bandarban
                    districts
October 1997        Emergency Fund introduced
December 1997       Voluntary Savings introduced
June 1998           Commenced HKI financed ‘Home Gardening’ Programme starts
July 1998           AusAid supported programme of Health and Safe Water Supply starts
1999                Sida supported Health Programe started

April 1999          The present Governing Body was elected
November 2001       IDF Regional Office, Chittagong and 4 Area Offices in Bandarban,
                    Rangamati, Khagrachari and Chittagong City were established




                                               65
                               Annex-5: IDF Staffing Position

Positions/Designations                     Number as            Actual number of staff in
                                           were proposed        place
                                           in the Prodoc.       (as of December 2002)
                                                                Tribal Non-        Total
                                                                         tribal
1.Head Office (PD Office, Dhaka)
Project Director (PD)                      1                    -          1         1
Principal Programme Organizer (PPO)        2 (1for Audit
                                           section)
Senior Programme Organizer (SPO)           2 (1for Audit
                                           section)
Programme Organizer (PO)                   4 (2 for Audit
                                           section)
Assistant Programme Organizer (APO)        1
Driver & Peon                              2
2.Regional/Area Offices
Chief Programme Organizer (CPO)            1
Dy.Chief Programme Organizer               1
(DCPO)
Assistant Chief Programme Organizer        1
Programme Organizer (PO)                   3
Assistant Programme Organizer (APO)        1
Senior Programme Asstt.(SPA)               1
Support staff (Driver/peon)                2
Sub-total 2: Region and Area Offices
3.Branch Offices
Programme Organizer                        20                   5          23        28
Village Organizers                         (20+80) = 100        58         73        131
Cleaner-cum-cook                           20
Agril Programme staff (HKI programme)      -                    3 (one     6         9
                                                                Officer)
Health Programme staff                     -                    7          4 (one    11
                                                                           Doctor)
Sub-total 3: Branch Offices                140                  73         106       179
                                                                                     (13%
                                                                                     female)
Grand Total (1+2+3)                        163




                                               66
          Annex-6: Documents Reviewed by the Study Team

1. IDF Memorandum of Association and Rule and Regulations, March 1993
2. Agreement signed on May 23, 2000 between Sida and IDF on Support of its
    Project ‘Upliftment of Overall Socio-Economic Condition of the Poor People
    of Chittagong Hill Tract’
3. The Project proposal by IDF on ‘Upliftment of Overall Socio-Economic
    Condition of the Poor People of Chittagong Hill Tract’
4. IDF Annual Report 1999, 2001 and 2002 (draft)
5. Monthly Statements on IDF Micro-credit Programme (December 2002 and
    February 2003)
6. IDF News Bulletins (6th and 7th issues)
7. The draft Project Completion Report on ‘Upliftment of Overall Socio-
    Economic Condition of the Poor People of Chittagong Hill Tract’ by IDF
8. IDF Credit Manual, First Volume (draft)
9. IDF Accounts Manual
10. IDF Training Guidelines
11. IDF Service Regulations
12. Business Development Plan for Urban Micro-finance Programme, July 2002
    – June 2005 submitted by IDF to CARE Bangladesh
13. IDF-AusAid Microfinance Project proposal
14. Assessment of Proposed IDF-AusAid Microfinance Project in the Light of
    CHT Accord 1997 by Research and Development Collective (RDC), May
    2002
15. A Review of IDF Credit Programme in CHT, January 1997 by Dr. Saleh
    Uddin, Professor, Department of Economics, University of Chittagong
16. Report on IDF Strategic Planning Workshop held in December 1999
17. Overcoming Marginalization: A Programme Strategy Paper for the CHT
    Region by CARE-Bangladesh




                                  67
                     Annex-7: List of reports and returns prepared by IDF

SL.   Title of the      Responsible   Frequency   Scheduled dates for reaching the report to different
      report            for                       offices
                        preparation
                                              Branch              Area office Regiona            Head
                                              office                          l office           office
1     Weekly            Branch        Weekly Last                 First day   By 3rd             4th day
      Report            Office                working             of the      day of             of the
                                              day of the          following   the                followi
                                              week                week (to    followin           ng
                                              (usually            consolidat g week              week
                                              on                  e)
                                              Thursday)
2     Monthly           Branch        Monthly By 2nd day          By 3rd ay        By 4th        By 7th
      Progress          Office                of the              of the           day of        day of
      Report                                  following           following        the           the
                                              month               month            followin      followi
                                                                                   g month       ng
                                                                                                 month
3     Financial     Branch            Monthly By 2nd day          By 3rd ay        By 4th        By 10th
      Statement     Office                    of the              of the           day of        day of
      (General                                following           following        the           the
      Ledger based)                           month               month            followin      followi
                                                                                   g month       ng
                                                                                                 month
4     Trial             Regional      Monthly -                   -                By 6th        By 7th
      Balance           Office                                                     day of        day of
                                                                                   the           the
                                                                                   followin      followi
                                                                                   g month       ng
                                                                                                 month
5     Fund              Regional      Monthly -                   -                By 6th        By 7th
      Receipt and       Office                                                     day of        day of
      Release                                                                      the           the
      Statement                                                                    followin      followi
                                                                                   g month       ng
                                                                                                 month
6     Income and        Regional      Monthly -                   -                By 6th        By 7th
      Expenditure       Office                                                     day of        day of
      Statement                                                                    the           the
                                                                                   followin      followi
                                                                                   g month       ng
                                                                                                 month
7     Balance           Regional      Monthly -                   -                By 6th        By 7th
      Sheet             Office                                                     day of        day of
                                                                                   the           the
                                                                                   followin      followi
                                                                                   g month       ng


                                                  68
                                                                         month
8    Head/purpos   Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     e-wise Loan   Office           of the       of the       day of     day of
     Analyses                       following    following    the        the
                                    month        month        followin   followi
                                                              g month    ng
                                                                         month
9    Monthly       Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Planning      Office           of the       of the       day of     day of
     and                            following    following    the        the
     Implementat                    month        month        followin   followi
     ion Report                                               g month    ng
                                                                         month
10   Monthly       Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Budget        Office           of the       of the       day of     day of
     Utilization                    following    following    the        the
     Report                         month        month        followin   followi
                                                              g month    ng
                                                                         month
11   Tribal and    Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Non-tribal    Office           of the       of the       day of     day of
     Information                    following    following    the        the
     Sheet                          month        month        followin   followi
                                                              g month    ng
                                                                         month
12   VO-wise       Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Monthly       Office           of the       of the       day of     day of
     Evaluation                     following    following    the        the
     Report                         month        month        followin   followi
                                                              g month    ng
                                                                         month
13   Statement on Branch    Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Defaulting   Office            of the       of the       day of     day of
     Loanees                        following    following    the        the
                                    month        month        followin   followi
                                                              g month    ng
                                                                         month
14   Loan Aging    Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Analysis      Office           of the       of the       day of     day of
                                    following    following    the        the
                                    month        month        followin   followi
                                                              g month    ng
                                                                         month
15   General       Branch   Monthly By 2nd day   By 3rd day   By 4th     By 7th
     Accounts      Office           of the       of the       day of     day of
     Statement                      following    following    the        the
                                    month        month        followin   followi
                                                              g month    ng

                                    69
                                                                           month
16   Fund        Branch    Monthly By 2nd day     By 3rd day    By 4th     By 7th
     Requirement Office            of the         of the        day of     day of
                                   following      following     the        the
                                   month          month         followin   followi
                                                                g month    ng
                                                                           month
17   Staff        Branch   Annuall   At the end   3 days for    5 days     By 10th
     Assessment   Office   y         of each      consolidati   for        day
     Report                          calendar     on after      necessar   from
                                     year         receiving     y          the date
                                                  from          processi   of
                                                  Branch        ng after   initiatio
                                                  offices       receivin   n of the
                                                                g from     process
                                                                Area
                                                                offices




                                     70
                 Annex-8: List of Monitoring Forms and Indicators

Title/Description of the        Key Indicators
Form/Report
Baseline Information                   Member’s name and address
(Membership Application)               Marital status
                                       Age, education and occupation of the member and
                                  other members of the respective family (with a short
                                  description of member’s occupation)
                                       Affiliation with any other NGO or group (self and
                                  any other family member)
                                       Member’s family land (category-wise)
                                       Roof and wall materials of the member’s dwelling
                                  house (including ownership of the house living in)
                                       Basic health and sanitation information (including
                                  description of chronic diseases, if any)
                                       Asset list
                                Family income (annual and monthly/daily income of the
                                household)
Loan Application Form                  Information on previous loan (purpose, amount,
                                  repayment record/regularity, meeting attendance)
                                       Amount and purpose of loan wanted
                                       Number of loans taken before
                                       Recommendation by VO, Branch Manager
                                       Approval by designated officer
                                       Amount of loan disbursed and date of
                                  disbursement.
Weekly Statement (Branch-              No of Centres, Groups, Members
cum-VO-wise)                        Meeting attendance
                                    Savings (number of members depositing and amount
                                  deposited)
Signed by Branch Manager            Savings repaid
and the designated second           Amount of loan outstanding
signing person                      Amount disburse during the week
(Sr VO) in the respective           Loan (number of loanee repaying and amount
Branch                            realized)
                                    Number of installments repaid in full
The report is prepared by the       Number of installments not fallen overdue (last week
                                  and reporting week)
Branch Office on the last day       Groups/Centres organized during the reporting week
of the week, usually on             No. of members waiting for loan
Thursday and passes                 Cash in hand and in Bank (end of last week and
through Area and Regional         reporting week)
Offices to Head Office by 3rd       No. of Centres/loanees visited the Branch Manager
day the following week.         Major decisions of weekly staff meeting




                                            71
Monthly Progress Report                 No, of groups/Centres formed
(Branch-wise)                           No. groups/Centres dropped
                                        New members enrolled in new and old
Signed by Branch Manager            groups
and the designated second                No. of members dropped/died
signing person                          Amount of loan with and savings of
(Sr VO) in the respective           members died
Branch                                  Number of Loanee (by times of loans
                                    received)
The report is prepared by the
                                        No. of loan applications pending
Branch Office on the last day       (classified on the basis purposes/types and no
of the week, usually on             of loans previously received)
Thursday and passes
                                        Amount of loans recovered
through Area and Regional
                                        Amount of loans outstanding (type-wise)
Offices to Head Office by 3rd
day the following week.                 Total no. of loanees
                                        No. of loanees crossing 52 weeks unpaid
                                    amount with them
                                        Overall recovery rate
                                        Service charges realized
                                        No. installments dropped ( crossing 4
                                    weeks)
                                        Amount of savings deposited
                                        Savings repaid
                                        Savings in balance
                                        Loan disbursed from savings
                                        Amount in Emergency Fund
                                        Defaulting loanees (after 12 weeks and 25
                                    weeks)
                                        Union/Village/Ward covered
                                        No. of livestock (animals) vaccinated
                                        No. members given health care services
                                        Workshop organized
                                        No. of sanitary latrines supplied
                                         No. of saplings supplied
                                        Meeting attendance ( average of 4 weeks)


Monthly Report on Budget        Head-wise amounts of approved budget and
Utilization                     actual utilization up to the reporting month.
VO-wise Monthly Report            No. of groups/Centres under care
                                  Amount of outstanding loan
                                  Amount of loan disbursed
                                  Amount of loan realized
Report on overdue loanees              Name of lanee defaulting
(Those who crossed 52weeks)            Amount realized during reporting month
                                       Amount overdue at the end of the month

                                            72
Aging Analysis of loans               No. of loanees and amount of loans by
                                  weeks (each 12 weeks interval)
                                      Repayment rate by the respective loan-age
                                  group
                                      Amount in Emergency Fund
                                      Net Savings
                                      Amount of outstanding loans from savings
                                  fund
                                      Income and expenditure of the Branch
                                  during the month




          Annex 9: Grants and Loans Received by IDF from Different Sources

           Donor                            Amount Received (TK’000)
                              Till Dec.1999           Jan 2000 -          Total since
                                                       Dec.2002            inception
                                        A. Grants
   Sida                           26149                  22287               48,436
                           (beginning from July                          (82% of total
                                  1995)                                     grants)
   AusAid                           300                  2600             2,900 (5%)
   HKI                             1645                  4997            6,642 (11%)
   ILO                              300                   488              788 (1%)
   GoB-Education                    327                   324              651 (1%)
   Programme
   Total Grant (A)                 28721                 30696              59,417
                                           B. Loans
   Grameen Trust (GT)              8633                 7174                 15,807
                                                                          (36% of total
                                                                             loans)
   Grameen                1,100                          Nil              1,100 (2%)
   Bank/UNICEF
   PKSF                            2789                 17,000           19,789 (45%)
   Bangladesh Bank                1,500                 3,000             4,500 (10%)
   (Grihyan Tahbil)
   CARE                            Nil                   3,000            3,000 (7%)
   Total Loans (B)                14,022                30,174               44,196
   Total Fund Received            42,743                60,870              103,613
   (A+B)




                                           73
    Annex 10: IDF Branches in the CHT by degree of Operational Self-sufficiency

   Name of                           Level of Operational self-sufficiency
Branches in the          1999 (in 000 Tk.)                        2002 (in 000 Tk.)
    CHT           Income    Expenditure        OSS      Income       Expenditure       OSS
  Shoalok           202          301           67%         229           263           87%
 Balaghata          432          614           70%         413           483           85%
  Rajbhila          510          572           89%         609           480          126%
   Lama             362          500           72%         652           532          122%
  Betbunia          478          517           92%         527           520          101%
  Rajsthali         363          389           93%         398           323          123%
  Raikhali          817          758          107%        1049           727          144%
 Baraichari         360          474           76%         545           473          122%
Rangamati           364          512           71%         983           760          129%
  Langudu            16           97           16%         483           436          111%
Khagrachari         429          538           79%         991           808          122%
Manikchari          203          368           55%         491           435          116%
  Guimara           109          247           44%         331           310          106%
  Ranirhat          285          350           81%         756           510          148%
   Ruma               -            -             -          82           144           58%
  Baishari            -            -             -         253           314           81%
 Banarupa             -            -             -         138           238           58%
Baghaichari           -            -             -         144           268           55%
 Matiranga            -            -             -         416           369          113%
  Rajarhat            -            -             -         697           542          128%




                                            74
       Annex-11: List of participants in Focus Group Discussions (FGD)
Name of Participants                                     Designation
Venue: Khagrachari, Date: 23.3.2003, Participants: 13
1. Mr. Arun Kumar Barua                                  Branch Manager
2. Mr. Dipyan Chakma                                     VO
3. Mr. Shanti Ranjan Chakma                              VO
4.Mr. Zuyingya Marma                                     VO
5. Mr. Tushar Barua                                      VO
6.Ms Kimi Chakma (F)                                     VO
7. Mr. Nasir Uddin                                       VO
8. Ms Kangmuino Marma (F)                                VO
9.Mr. Abul Bashar                                        VO
10 . Mr. Daneshwar Tanchangya                            Agril. Officer
11. Mr. Pradip Chakma                                    Agril Asstt. (Extension Worker)
12.Mr. Shibulankar                                       Agril Asstt. (Extension Worker)
13.Mika Chakma                                           Nutrition Worker
Venue: Manikchari, Khagrachari, Date: 23.3.2003 , Participants: 10
1.Mr. Pradip Barua                                       Branch Manager
2. Ms. Shutuno Chakma (F)                                VO
3. Mr. Md. Nizamuddin                                    VO
4.Mr. Nusepro Marma                                      VO
5.Mr. Md. Kabir Hossain                                  VO
6.Mr. Kenomong Marma                                     VO
7.Ms. Srabanti Dewan (F)                                 VO
8.Mr. Shojon Kanti Biswas                                Agril. Astt. (Extension Worker)
9…shakanti Sarker                                        Agril. Astt. (Extension Worker
10, Jeki Chakma                                          Nutrition Worker
Venue: Matiranga, Rangamati, Date: 24.3.2003, Participnts: 7
1.Mr. Mamunur Rashid                                     Branch Manager
2. Mr. Aung Thui Chowdhury                               VO
3.Mr. Shujan Kallyan Das                                 VO
4. Mr. Prabir Barua                                      VO
5.Ms. Supta Rani Das (F)                                 VO
6. Shimul Kant Das                                       VO
7. Ms Koheli Chakma (F)                                  VO
Venue: Ranirhat, Rangamati Date: 24. 3.2003 Participants: 8
1. Mr. Bijan Kumar sarker                                Branch Manager
2. Mr. Jahangir Alam                                     VO
3. Mr. Uchakhai Marma                                    VO
4. Ms. Shikha Roy Chy. (F)                               VO
5.Mr. Fauzul Kabir                                       VO
6. Mr. Md. Zunaidul Karim                                VO
7. Mr. Ansar Ahmed                                       VO
8. Mr. Ashim Bikash Sen                                  VO
Venue: Balaghata, Bandarban, Date 25. 3. 2003, Participants: 10
1. Mr. Md. Ishaque                                       Branch manager
2.Mr. Prashiyong Marma                                   VO
3.Mr. Mongyakka Marma                                    VO
4.Ms Ushaching Marma (F)                                 VO
5 Mr. Al –Amin                                           VO
6. Mr. Babul Barua                                       VO
7. Ms Sharbari Barua                                     Health Superviser
8.Mr. Md. Reza Ahmed                                     Technician (Health Centre)
9. Mr. Md. Ashif Islam                                   Health Asstt.
10. Mr. Md. Nazrul Islam                                 Agril. Officer
Venue: Shoalok, Bandarban, Date 25.3. 2003. Participants: 4
1. Aungshaching Marma                                    Branch Manager
2. Mr. Mihir Saha                                        VO
3. Mongpro Marma                                         VO
4.Mr. Enamul Hoque                                       VO




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