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<strong>Samriddhi</strong> Project Document<br />

they show high levels of value addition at producers level, need only little land and can include<br />

also poor and extreme poor by introducing new modalities like service contracts where service<br />

providers make initial investments and render services whereas the poor provide the labour;<br />

eventually the profit is shared accordingly. With a high demand of value added jute products<br />

both on national and international markets, jute crafts still have a high potential of scale. Also<br />

jute handicrafts can be produced by men and women in rural areas with low initial investments<br />

but a high potential of value addition.<br />

For a more detailed rational of value chain selection, the planned value chain analysis, and a<br />

description of the ranking tool see annex 7.<br />

Besides the targeting of value chain interventions, an increased inclusion of the poor and<br />

extreme poor in both social and economic activities will be targeted through sensitisation and<br />

capacity building of community leaders, MSEs and SPAs. The development of human and<br />

institutional capacities also aims at giving poor and disadvantaged members of the society a<br />

voice to be able to take responsibility for their own development by representing and defending<br />

themselves.<br />

Income generating activities (IGAs) have been promoted more for poor and extreme poor who<br />

cannot invest in business but at least can engage in small scale economic activities. The<br />

promotion of IGAs will continue in the first phase of <strong>Samriddhi</strong>. In order to support the extreme<br />

poor, the project will promote a model of service contract where service providers provide inputs<br />

and training to the poorest, and share a part of the profit as service costs. In line with the IGAs,<br />

the project developed the marketing extension tool, which is now seen as a service to the<br />

producers, and will therefore gradually be phased out in the first phase of the project,<br />

considering that there is now a large number of LSPs that can train groups and MSEs in<br />

marketing.<br />

Enabling environment<br />

It is considered crucial for the sustainability of the achievements of <strong>Samriddhi</strong> that value chain<br />

and market development takes place within an enabling environment. Similarly, for social<br />

empowerment and inclusion of the poorest into the society, an enabling and empowering<br />

environment is essential. An increased involvement of the communities in local governance is<br />

necessary to achieve this.<br />

Through the focus on human and institutional development, where one important aspect is to<br />

empower the people to lead their own development while at the same time institutions will be<br />

strengthened to make them more responsive, effective and efficient towards the individuals or<br />

organisations they serve. It is estimated that community platforms and UPs will, after a phasing<br />

out process, establish continuous collaboration. However, not only communities are important<br />

actors to achieve an enabling environment, but also local enterprises, i.e. MSEs, and other<br />

market actors, e.g. SPAs. When building the organisational capacities of the MSEs and SPAs,<br />

their role in the local governance system will be assessed and strengthened.<br />

Wherever possible, <strong>Samriddhi</strong> will work closely together with Sharique and it will also use the<br />

synergies with the Improvement of Local Government Services project (ILGS). See section<br />

alliances for further details.<br />

Intercooperation Bangladesh Page 23

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