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Kingdom of Nepal T echnical Assistance Consultant’s Final Report Project Number: 39006 September 2008 Kingdom of Nepal: Technical Assistance to Nepal for Reaching the Most Disadvantaged Groups in Mainstream Rural Development (Financed by the Poverty Reduction Cooperation Fund) Prepared by: Dr. Dwarika Nath Dhungel, Mahendra Sapkota, Kusheswar Mahato, Shankar Aryal, Dr. Vikash Raj Satyal, Manoj Pyakuryal, Tilak Neupane, Kiran Sarkar, Bhupendra Batsa Lamsal, and Arjun Mani Dixit Institute for Integrated Development Studies Mandikhatar, Kathmandu, Nepal For Department of Women Development, Ministry of Women, Children and Social Welfare This consultant’s final report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Reaching the Most Disadvantaged Groups in Mainstream Rural Development (Final Report) Submitted to: Asian Development Bank, Manila, the Philippines Submitted by: Institute for Integrated Development Studies Mandikhatar, Kathmandu, Nepal September 2008 Project Team Members Core Team Members Dr. Dwarika Nath Dhungel Coordinator Mahendra Sapkota Monitoring and Evaluation Expert Kusheswar Mahato Micro Finance Expert Shankar Aryal Project Manager Dr. Vikash Raj Satyal Statistician Field Team Members (Field Supervisors) Manoj Pyakuryal Tilak Neupane Kiran Sarkar Bhupendra Batsa Lamsal Short-term Consultant Arjun Mani Dixit Training Expert i Acknowledgements This study was made possible with the help, support and contributions, direct and indirect, of a number of individuals and institutions. We are thankful to them and would like to acknowledge their help and contributions. First of all, we would like to express our gratitude to ADB and especially to Marzia M. Mongiorgi, Senior Rural Development Economist, for providing us the opportunity of getting involved in the project. The IIDS TA team has benefited greatly from the incisive comments from the professionals of Department of Women Development, Government of Nepal. We would like to acknowledge, especially Mr. Ratna Kaji Bajracharya, Director General of the Department of Women Development for his supportive as well as advisory role during the project period. We would also like to extend our special thanks to Mr. Keshav Prasad Regmi, Director and Project Manager, of the departments for his conceptual and programmatic inputs. Similarly, we want to acknowledge the help provided to us by other staff members of the department. We are deeply indebted to the Women Development Officers and their staff, and staff of the partner NGOs of the Project districts for their assistance and support. This report would not have been complete without the help and cooperation of the project beneficiaries who gave us their valuable time and shared invaluable information with us. We register our appreciation and gratitude towards them. Last, but not least, we want thank our colleagues at IIDS for their unflinching help and support for this Project. We would also like to thank many other people whose names do not appear here but have made a significant contribution to the completion of the Project. September 2008 TA Team ii Contents Project Team Members i Acknowledgements ii Acronyms vi Executive Summary vii 1. Context 1 2. Action Learning 3 2.1 Action Learning on Project Formulation 3 2.1.1 Household Development Grant 3 2.1.2 Project Duration 3 2.2 Action Learning Implementation Arrangements 4 2.3 Action Learning on Targeting Procedure 5 2.3.1 Selection of the Districts 5 2.3.2 Selection of the VDCs 7 2.3.3 Selection of the Wards 7 2.3.4 Selection of the Target Households 9 2.4 Action Learning on Project Implementation Process 12 2.4.1 Groups and Committees and their Functions 12 2.4.2 The Trainings 14 2.4.3 Steps/Process for HDP Formulation 15 2.4.4 Steps/Process for HDP Approval 17 2.4.5 Steps/Process for Fund Release 18 2.4.6 Distribution of HDG 21 3. Action Learning on the Capacity of the Implementing Agencies 25 3.1 DWDOs 25 3.1.1 Jumla 25 3.1.2 Bajhang 25 3.1.3 Rautahat 26 3.1.4 Mahottari 27 3.2 The NGOs 28 3.2.1 Jumla 28 3.2.2 Bajhang 29 3.2.3 Rautahat 30 3.2.4 Mahottari 31 4. Action Learning on Working Conditions 34 5. Action Learning on Record Keeping, Reporting and Monitoring 35 6. Findings of the Baseline Surveys and HDPs 36 6.1 Findings of the Baseline Surveys 36 6.1.1 Ethnicity of the Beneficiaries (Respondents: 993) 36 6.1.2 Literacy and Education Status (Respondents: 993) 37 6.1.3 Marital Status (Respondents: 992) 37 6.1.4 Religion (Respondents: 993) 37 6.1.5 Household Type (Respondents: 993) 37 6.1.6 Training (Respondents: 993) 37 6.1.7 Membership in Other Groups (Respondents: 993) 38 6.1.8 Hygiene and Sanitation 38 6.1.9 Land and Livestock (Respondents 993) 38 6.1.10 Economic Information ((Respondents 993) 39 6.1.11 Gender and Social Information 41 iii 6.2 Findings of the HDPs 43 6.2.1 Preparation of the HDP 43 6.2.2 Components of HDPs 43 7. Observations and Replication Strategy for Future 46 7.1 Observations 46 7.2 Replication Strategy 47 7.2.1 Project Formulation 47 7.2.2 Project Duration 47 7.2.3 Implementation Arrangements 47 7.2.4 Targeting Procedure 48 7.2.5 Project Implementation Process 49 7.2.6 Capacity of the Implementing Agencies 51 7.2.7 Record Keeping, Reporting and Monitoring 52 7.3 Evaluation of the Project 52 List of Table Table 1: Name of the VDCs and Executing Agencies 4 Table 2: Name of the VDCs and Executing Agencies 4 Table :3 Ranking of GEEOW Districts 6 Table 4. Name of the VDCs and Selected Wards 8 Table 5: Number of Beneficiary Household 10 Table 6. Percentage of Beneficiary Households 11 Table 7: Fund Release Modality 18 Table 8: Staff Situation in DWDO, Jumla 25 Table 9: Staff Situation in DWDO, Bajhang 26 Table 10: Staff Situation in WDO, Rautahat 26 Table 11: Staff Situation in WDO, Mahottari 27 Table 12: Staff Situation of Manaviya Sanskriti Vikas Manch 28 Table 13: Staff Situation of Dalit Sewa Sangh 28 Table 14: Executive Committee of Samajik tatha Prabidhik Sewa Samaj 29 Table 15: Executive Committee of Dahabagar Yuva Samaj 15 Table 16: Executive Committee of Gramin Yuva Samaj Sewa Sangh Nepal 30 Table 17: Executive Committee of Mahila Krishi Tatha Bal Bikas Kendra 31 Table 18: Executive Committee of Ratauli Youth Club 32 Table 19: Staff Position in Mahottari District NGO Coordination Committee 33 Table 20: Ethnicity of the Beneficiaries 36 Table 21: Loan Amount and Interest on Loan 39 Table 23: Income Sources and Average Income 40 Table 24: Items of Expenditure and Average Expenditure 40 Table 25: Different Social Activities and Gender Involvement 41 Table 26: Gender Control in Different Social Activities 42 Table 27: Request for Basic Need 44 Table 28: Request for Opportunity Cost 44 Table 29: Request for Livelihood Promotion by number of beneficiaries 45 Maps 53-56 Annexes 57-86 iv Acronyms APPSP Agriculture Perspective Plan Support Programme CBS Central Bureau of Statistics DWD Department of Women Development DAO District Administration Office DDCs District Development Committees DPCC District Project Coordination Committee DPSC District Project Steering Committee DWDO District Women Development Office EC Executive Committee GEEOW Gender Equality and Empowerment of Women GoN Government of Nepal HDG Household Development Grant HDP Household Development Plan HHs Households IIDS Integrated Development Studies ICIMOD Integrated Mountain Development NGOs Non-governmental organizations OCI Verall Composite Index PDI Poverty and Deprivation Index PTAR Project Technical Assistance Report SWC Social Welfare Council SEIDI Socio-economic and Infrastructural Development Index TA Technical Assistant HDG The Household Development Grant VDCs Village Development Committee WDO Women Development Office WEI Women Empowerment Index WE World Education v Executive Summary 1. Context Asian Development Bank (ADB) provided a one-year technical assistance (TA) project, entitled ‘Reaching the Most Disadvantaged Groups in Mainstream Rural Development’, to the Government of Nepal (GoN) in support of the Gender Equality and Empowerment of Women (GEEOW) project, recognizing the need for an additional specific delivery mechanism to reach the most disadvantaged members of society. The project duration was from June 2008 to June 2009. Reduction of extreme poverty through the integration of the most disadvantaged households (HHs) into development programmes was envisaged as the impact of the TA Project. The project was based on the principle of conditional cash transfer based on the following assumptions that: • cash transfers help meet the urgent needs of the ultra poor families and • conditions encourage investment in long-term human capital, breaking the intergenerational transmission of poverty. The two-step approach of the TA project for poverty reduction involved: (a) livelihood protection to reduce the vulnerability of the most disadvantaged HHs; and (b) livelihood promotion to increase their income, productivity and employment opportunities in the long-term through confidence- building and skill development. For this, the beneficiaries were provided with Household Development Grant (HDG) in three categories namely basic needs, opportunity cost and livelihood promotion. The TA project activities were implemented in two remote hilly districts namely Jumla and Bajhang and two Terai districts namely Rautahat and Mahottari. In total, the TA project covered 16 Village Development Committee (VDCs), with four VDCs in each district. The TA project included 1,000 of the poorest and most excluded HHs of the community and its activities were primarily focused on the female members of HHs. The District Women Development Office (DWDO) under the Department of Women Development (DWD) of the GoN and the selected local partner nongovernmental organizations (NGOs) were involved in Project implementation.
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