SOIL Report 2008 - ACCESS Development Services

Chapter Vcommunity seed banks to maintain crop and varietal diversity, post harvest management pilots in paddyand millet processing and integrating food security programmes by supplying essential commodities topoor households.Community Investment Fund (CIF) for livelihood promotion: The WB projects have supported theestablishment of the CIF to finance demand-driven individual and collective livelihood activities of thepoor in all project mandals. Presently, the CIF is constituted by pooling together funds allocated by WBand SGSY and channelled through the MS-VO-SHG route and reaches the end-user SHG member ascredit. As of March 2008, Rs 811 crore of CIF has been disbursed benefiting about 20 lakh members.Financial Services: Through regular member savings, earnings from inter-lending, receipt of revolvingfund and matching grant subsidy from the government, the resource base of the SHGs has expandedrapidly . IKP seeks to enable the SHG members to access a total loan of about Rs 100,000 over a fiveyearperiod of time which would place the family sustainably above the poverty line (defined as totalincome of Rs 5,000 per family per month). The programme is also encouraging risk mitigation measuresin terms of micro/mutual insurance. The ZSs are facilitating life and asset (livestock) insurance schemesat low premiums in the project districts. Mature VOs and SHGs are piloting health risk fund and providedquick financial support for medical treatment.Sustainability: The integrated CBO structure (SHGs – VOs – MSs – ZS) has ensured long-term sustainabilityof the institutions, besides facilitating resolution of larger social and livelihood issues affectingthe poor. The various tiers of institutions are developing business and management skills, makingthem viable institutions with public, private and cooperative partners. The programme is investing inpromoting value addition at the local level for various agribusiness activities. These investments are alsocontributing to the increased sustainability and viability of individual economic activities taken up by thepoor households. The programme demonstrates that interventions should aim at clustering of villagesin the interests of developing a ‘critical mass’ for marketing and investment purposes. Adequate financingthrough CIF and bank loans has ensured that cost of capital is reduced and dependency on tradercredit is removed ensuring that the households receive adequate price for their produce.Emerging ConcernsTwo importantstrategieswhich havecontributedtowards positiveoutcomes arecareful selectionof a projectfacilitationteam (PFT)and povertytargeting ofproject villagesand households.The programme has expanded beyond the level originally envisioned and unless the government closelymonitors the progress, it is likely that the resources currently available may not be sufficient to coverthe poorest of the poor and thus the benefits will not reach the most needy. There is also a need fordeveloping new institutions around certain livelihoods viz., Dairy, Agriculture, Marketing, NTFP, etc.to deepen the livelihood efforts. Finally, as the institutions develop and grow, higher order managerialand professional staff will be needed.(ii) DPIP Madhya PradeshDPIP Phase-I has been implemented in 14 districts of MP in 2,900 villages covering about 3,50,000households. Two important strategies which have contributed towards positive outcomes in the projectare careful selection of a project facilitation team (PFT) and poverty targeting of project villagesand households. Though the state implemented the project, the BPL list was not the only criteria foridentifying the poor; wealth ranking was carried out to enable the community to identify the poor andvulnerable. The project has a gender and tribal focus and, of the sub-projects financed, 29 per cent arefor women and 26 per cent are for tribals.118Livelihood Promotion StrategyInstitution Building: Multi-tier agencies are being promoted by the project with a flexible approach toforming higher level institutions of the poor. Poor families interested in similar activity have been formed