QUARTERLY ACTIVITY REPORT April-June 2010

By Human and Institutional Development Section

26-C. Nawab Town, Raiwind Road, Lahore PHONE: +92-42-5310471-2, FAX: +92-42-5310473, www.damen-pk.org,E-mail: [email protected]

OVERVIEW

During the quarter April-June 2010 DAMEN has laid strong emphasis to build up as a strong institution for delivering economic and social services to the people of the marginalized communities. DAMEN has always maintained the stance that economic opportunities along with social sector initiatives are the best solution to poverty eradication. The merger of economic and social activities has created a strong model for combating poverty in the operational areas of DAMEN and will be successful in other areas in future.

One of the most important aspects of DAMEN’s endeavors is the blending of social and economic initiatives into a new integrated model of poverty alleviation. The field offices are not only extending their financial services to the clients but also taking a proactive role in the provision of educational and health facilities to the people of their communities. This new approach will provide a new dimension to DAMEN’s efforts to bring a sustainable change in the social and economic status of the people in the target communities.

Presently DAMEN is operating through 2 area offices at district Lahore along with 10 field offices, 1 area office and 5 field offices at district Sheikhupura and 1 area office and 5 field offices at district Kasur along with 100 home schools and 15 health centers. All the field offices are not only operationally sustainable but also covering all cost of the social sector program of DAMEN and supporting area office as well. DAMEN strongly believes that economic opportunities along with social sector program are the most viable solution to poverty eradication. The merger of economic and social endeavors has created a strong model for combating poverty in the area and will be replicated in new areas in future.

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Social Sector Program

DAMEN started its home school education program in May 1992 in the Union Council of Shahpur. Later on, in 1993 this was expanded to the villages of Union Council Chung. DAMEN by supporting the home schools of out of school children had taken this forward. The curriculum used in these home schools is the same as used in the formal schools, children after completing their primary education from these non-formal schools are admitted in the formal system of education for further education.

PERFORMANCE DURING THE QUARTER APRIL-JUNE 2010

Education: DAMEN’s home school education program has now been expanded to 17 villages of Union Councils of Shahpur, Chung, Thokar Niaz Baig, Ali Razabad, Halloki, Maraka, Raiwind, Manga, Sham ke Bhattian, (District Lahore) Begum Kot, Sharaqpur Dhamke, Rachna Town and Muridke (District Sheikhupura) Phool Nagar, Jamber, Pattoki,Chunian and Habibabad (District Kasur). At present, there are 100 home schools in these areas.

Achievements: 1. 100 home schools were strengthened during the quarter April-June 2010. 2. 15 health centers were strengthened in the areas of Shahpur, Chung, Thokar Niaz Baig, Maraka and Halloki, at Lahore District whereas Dhamke, Rachna Town, Muridke and Sharaqpur at Sheikhupura District Phool Nagar, Jamber, Pattoki, Chunian and Habibabad at District Kasur.

Case study of Perveen

Perveen is 28 years old lady having one son. She lives in Halloki situated on Raiwind road. Her husband is factory worker and his earning is Rs.7000 monthly. Her qualification is matriculation. She has two years of teaching experience in private school.

Earlier she was teaching in some other school and could earn Rs.1000/- monthly but people of community enforced her to leave that school and open her own school in that area. But lack of finance was issue for her. Mean while she got the opportunity to join DAMEN’s school program two years back. Another reason of her inspiration to join DAMEN was that she can teach students while

staying at her own place and need not to go outside of her house.

She is very much satisfied while working with DAMEN and want to continue her job with home school education program.

Perveen has attended two teachers training workshops one on “Communication Skills” and the second one on the “Assessment Methodologies” from DAMEN’s platform. According to her, “these trainings have enabled me to introduce new and creative methods of teaching along with the curriculum.” She also added that students like the new methods and take more interest in their

studies and are getting better than before. She is really very thankful to DAMEN who has provided her the opportunity to learn and use her teaching skills in the proper manner.

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Following table is giving the clear statistics of the home schools of the Area 1, 2, 3 and 4:

Area I (District Lahore)

Area No. Of Students Total Schools Total Students Boys Girls Shahpur 145 173 12 318 Chung 215 215 12 430 Niaz Baig 124 110 11 234

Sub Total 484 498 35 982 Area II (District Lahore )

Area No. Of Students Total Total Students Boys Girls Schools Maraka 120 119 6 239 Halloki 117 119 5 236 Manga 19 20 1 39

Raiwind 22 20 3 42 Sub Total 278 278 15 556 Area III (District Sheikhupura)

Area No. Of Students Total Total Students Boys Girls Schools Begum Kot 98 85 5 183 Dhamke 101 157 5 258

Sharaqpur 251 262 5 513

Rachna Town 74 78 5 152 Muridke 164 147 5 311 Sub Total 688 729 25 1,417 Area IV (District Kasur)

Area No. Of Students Total Total Students Schools Boys Girls Phool Nagar 155 226 5 381

Jamber 380 369 5 749 Pattoki 423 300 5 723 Habibabad 273 211 5 484 Chunian 133 125 5 258 Sub Total 1,364 1,231 25 2,595 Grand Total 2814 2,736 100 5,550

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Health Care Health has always been an important topic of discussion in the meetings of WSOs (women social organizations). With the establishment and strengthening of the 15 Health Care Centers in the Union Councils of Shahpur, Chung, Niaz Baig, Maraka, Halloki, (District Lahore) Begumkot, Dhamke, Rachna Town, Muridke and Sharaqpur (District Sheikhupura), Phool Nagar, Pattoki, Chunian, Habibabad and Jamber (District Kasur). DAMEN has taken a step forward from preventive health care and advocacy to actual service delivery of health care facilities to the women of the target communities. During the quarter 7,222 women visited the health centers and availed general health care services.

Consolidation of the Total no. of health centers along with the no. of patients:

No. of Health Center Area District Lahore No. of Patients Shahpur 1 839 Chung 1 925 Thokar Niaz Baig 1 220 Maraka 1 443 Halloki 1 572 District Sheikhupura Begumkot 1 - Dhamke 1 1024 Sharaqpur 1 673 Rachna Town 1 110 Muridke 1 918 District Kasur Phool Nagar 1 258 Jamber 1 384 Pattoki 1 300 Chunian 1 275 Habibabad 1 281 Total 15 7,222

Environmental Consciousness

To create environmental awareness among community members group and individual meetings with the community members and educating students of home schools are the tools used by teachers to highlight the importance of environment in the community. In addition to this one training workshop with 18 members of women social organizations (WSOs) was organized during this quarter. The training enriched the knowledge of the environmental activists regarding the importance of tree plantation, various forms of environmental pollutions and its effect on human lives, sanitation, solid waste management and development of environment friendly behavior and practices.

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Community Transformation

DAMEN is playing an important role in the process of building up the capacity of Women Social Organizations (WSOs) by involving them in the process of development through social activism and broaden the scope of community participation in undertaking collective action. The following tables are showing the statistics of WSOs in Area 1, 2, 3 and 4.

Consolidation of Total no. of WSOs along with the total no. of members: Areas Total No. of WSOs Members of WSOs District Lahore 12 320 Shahpur Chung 12 290 Niaz Baig 11 310 Maraka 6 133 Halloki 6 132 Manga 1 27 Raiwind 3 44 District Sheikhupura Begum Kot 5 73 Dhamke 5 89 Sharaqpur 5 201 Rachna Town 5 39 Muridke 5 77 District Kasur Phool Nagar 5 50 Jamber 5 55 Pattoki 5 85 Habibabad 5 55 Chunian 5 62 Total 100 2,042

Constraints:

· 1 child from district Lahore and 84 from Sheikhupura and 5 from district Kasur have been dropped out of the home school education program reason behind is that their families have been shifted to some other places. Challenges:

· Although 100 schools are successfully running along with their 100 women social organizations but still there is lack of awareness to organize themselves to solve their socio- economic problems.

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Microcredit Program

Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services. More broadly, it is a movement whose object is “a world in which as many poor and near-poor households as possible have permanent access to an appropriate range of high quality financial services, including not just credit but also savings, insurance, and fund transfers.” Those who promote microfinance generally believe that such access will help poor people out of poverty

The vision of microfinance is quite simple to create systemic change in financial systems Worldwide. Instead of the exclusive financial systems that have for decades benefited and protected the wealthy, microfinance intends that they serve the impoverished majorities, help lift them out of poverty, and make them full participants in their country's social and economic development. It is well recognized fact that microfinance is the most suitable way to empower the poor and to increase their income generating capacity. In Pakistan as well as at international level, the importance of microfinance as a tool to eliminate poverty is well accepted.

DAMEN since last seventeen years, being a catalyst of change has deployed a four pronged approach comprising of non-formal education and health care services through home based education program, provision of financial assistance through microfinance program, training, capacity building, research, networking and linkages, to attain long term goal of sustainable development. The synergy created by economic and social sector programs focuses on empowering the people of marginalized communities with main concentration on women and children.

Constant efforts were made to surmount the circumstances produced by global economic slump (during 2009) which not only manipulated world’s economy but also badly affected microfinance industry, like other Microfinance Financial institutions’ operational in Pakistan especially in central Punjab DAMEN was also victimized by delinquency & portfolio at risk. During the reporting quarter, in order to seek out the reasons of PAR Loan Monitoring Review was done initially in two field offices on pilot basis. For this purpose special independent Loan Monitoring Team was designed at head office level to monitor the entire situation. Loan portfolio reviews of remaining offices were assessed by Area Mangers.

As the result of certain curative steps were taken by DAMEN’s management, decline in PAR< 30 from 5.03 %( as on Dec, 2009) to 4.76 (as on June 30th, 2010) shows sturdy control over the situation.

The day by day tightening clutches of inflation, high food pricing and continuous deterioration of currency against kinds and commodities demand any new sort of methodology and requires some sort of fresh microfinance manner for long term sustainability. During reporting period by keeping in sight competition among MFIs and growing need for financial services due to recent socio-economic set back, DAMEN is conducting research study on "Impact Assessment of Social and economic empowerment of clients through DAMEN’s Microfinance Program” in all field offices.

Highlights of Quarter

During the quarter the particular consequence was on capacity building of borrowers through Regular Meetings, Trainings to minimize the risk of stuck up loans & delinquency and also their participation in Regular Open Forums with the purpose to come up with the common issues and end with their solution.

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100 99 98 98 96 96

93 94 92 90

Disbursement Recovery New Clients Repeat Clients %

In this quarter target of disbursement was Rs.128 million whereas disbursed amount was Rs.126 million which was Rs.2 million less than the set target.

Target of recovery was Rs. 154 million and recovered amount was Rs. 143.3 million which was Rs.10.7 million less than the set target.

Target of new loans was 2,308 clients and actual clients were 2,223 which was 83 clients less than the set target.

Target of repeat loans was 4,843 and actual number of repeat loans was 4,751 which was 94 less than the set target.

Categories of Loans

During the reporting quarter DAMEN disbursed loans in four categories i.e. livestock loans, trade & business loans, handicraft and embroidery and tailoring centers. Majority of the loans were disbursed for trade & business category i.e. 48% of the total because majority of the clients are running their enterprises related to Trade and Business. 20% loans were disbursed for Tailoring centers. Almost 16% loans were disbursed for Handicraft & Embroidery purpose. Remaining 16% loans were disbursed for livestock purpose.

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Case Study of Shaheen Bibi

DAMEN from its very inception took microfinance program as one of the action that directly addressed the needs of the women of marginalized communities. It not only helped in achieving its primary goal of socio-economic empowerment of disadvantaged rural women, it also became an effective lending model for eradicating poverty through self employment and social mobilization.

Shaheen Bibi 27, wife of Muhammad Asif occupier of Niaz Baig, since 2002 when she got married with her first cousin with the consent of her parents. Allah bestowed her with two sons and a daughter.

Her husband Muhammad Asif was running Tea café in his native town but a couple of years back he had to close down as facing respiratory and cardiac problem. It became more and more difficult for Shaheen Bibi to make ends meet. It was difficult for her to mange home business and treatment for her husband with their meager earning. She had the proficiency of beautician but lacking finances to start her own beauty salon.

On year back Shaheen Bibi heard about DAMEN‘s microcredit program from one of her relative and got Rs. 10,000/- which she invested to established beauty salon at her home. After meeting the indispensable operating expense she is in the position to start saving in the form of committee.

As stated by her," I am the only one in my residing area, providing cost-effective services to the community people and also contributing towards affluence of four families by employing after training of four females."

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Training and Capacity Building Training is an integrated part for developing participatory approach among women. Several training workshops have been organized pertaining to social and economic mobilization on the issues of Social Mobilization, education, community health and environment. The trainings proved helpful in providing educational and training opportunities for girls and women in order to create awareness on education, environment, health and nutrition. These trainings help them in building up their capacity for collective action to solve socio-economic problems of their respective areas. This broadens the scope of community participation to fight against the social evils. Capacity building mainly concentrates to help the women of marginalized communities through social and economic empowerment and improvement in their skills for income generation. It enables them to change their lives for better with equality, liberation and alleviate poverty by increasing their productivity. It also helps in up-scaling and leveraging the potentials of women entrepreneurs, diversifying/deepening the scope of program through social interventions and awareness building pertaining to social issues and mainstreaming/positioning the women as well as the program towards overall development efforts.

PERFORMANCE DURING THE PERIOD APRIL-JUNE 2010

COMMUNITY TRAININGS - ECONOMIC SECTOR

Plan Achievement 3-Day training workshop on Social Shifted to next quarter Mobilization.

Staff Trainings/Institution:

Plan Achievement 1- Day training workshop on Cash Flow 1- Day training workshop on Cash Flow Analysis in Area I, II,III & IV for Cos & SOs Analysis in Area I, II,III & IV for Cos & SOs

· 1- Day training workshop on Cash Flow Analysis: DAMEN organized 1-day training workshop on Cash Flow Analysis in all the four areas for credit officers and social organizers on 06th April, 2010 in Area II, 8th April in Area III, 12th April in Area IV and on 13th April in Area I. The core purpose of this training was to help them learn about the role of financial Analysis in the process of credit appraisal, to enrich their knowledge about cash flow, develop tools and strategies for base line data collection and assessment. Also provide guidance and basic know-how of poverty along with the direction of correct form filling. Report is attached as annexure A.

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COMMUNITY & STAFF TRAININGS - SOCIAL SECTOR

Plan Achievement 2-Day training workshop on Development 2-Day training workshop on Development Orientation. Orientation. 3-Day training workshop for Community 3-Day training workshop for Community Health Workers Health Workers. 3- Day training workshop for Community 3- Day training workshop for Community Environmental Activist. Environmental Activist.

· Two Days Training Workshop on Development Orientation. Two days development orientation workshop from 5th -6th April 2010 was organized at Sharaqpur field office to strengthen the capacity of 18 members of women social organizations (WSOs). The main objective of this training was to build up the capacity of WSOs by involving them in the process of development through social activism in order to broaden the scope of community participation for collective action.

· Three Days Training workshop for Community Health Workers. Three days training workshop for community health workers was conducted during the previous quarter at Begum Kot office from 11th-13th May 2010. The purpose of this training was to provide information regarding some health related issues pertaining to mother and child health care, food nutrition, family planning, cleanliness, reproductive health and immunization of children. Report is attached as annexure B.

· Three Days Training Workshop for Community Environmental Activist Three days training workshop on environmental awareness for environmental activists was organized from 2nd -3rd June 2010 at Dhamke field office with the purpose to enrich the knowledge of the participants regarding environment, pollution and what are the state obligation regarding environment in order to enable them to identify their environmental problems and their possible solutions. Report is attached as annexure C.

External Trainings/Institution:

· Training workshop on Deposit Mobilization Manager HID attended, “Training Workshop on Deposit Mobilization” organized by Pakistan Microfinance Network (PMN) on 27th -29th April, 2010.

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Networking & Linkages Networking is a matter of creating useful linkages, both within and among communities, organizations, and societies, in order to mobilize resources and achieve various goals. Creation of networks and linkages are an essential component of any development program and provide synergies for the program to build upon from a point of advantage to a point of strength.

Networking and linkages are important for the following reasons:

· The program outreach and visibility can be greatly increased. · Technology transfer, share and dissemination can be facilitated between SGP and the networked organization and among the respective partners · Sharing of knowledge, skill, expertise and experiences helps in improving the effectiveness and efficiency.

By keeping in view above reasons the primary focus of DAMEN has always been on creating linkages and networking at the local and regional level for better collaboration with other organizations and institutions to learn, share and coordinate on issues of common concern and provide a platform for action research on various development initiatives undertaken by DAMEN at grass root level and produce manuals, reports and policy documents.

During the reporting quarter following visitors visited DAMEN in order to share their experiences and to get an exposure of the organization:

v Mr.Zaheer Ahmed Paracha, Senior Vice Executive President/Chief Operating Officer, APNA Microfinance Bank (Proposed) Ltd. Visited DAMEN on 8th April, 2010 for information sharing on microfinance.

v Mr. Anwar Rashid, Chief Executive Officer, Orangi Pilot Project visited DAMEN on 16th April, 2010 for meeting with Executive Director.

v Dr. Rashid Bajwa, Chairperson Board of Directors, Pakistan Microfinance Network visited DAMEN on 16th April, 2010 for meeting with Executive Director.

v Team comprised on twenty five members (Officials & Beneficiaries) from Strengthening Participatory Organization, Thattha, and Sindh Visited DAMEN from 2nd & 3rd June, 2010 for exposure of DAMEN’s working.

v Mr. Ahmed Javaid Zeerak, Executive Director and Mr. Ghazaal Haress, Deputy Executive Director, Afghanistan Rural Enterprise Development Program (AREDP) along with Ms.Momina Sanam, Senior Management Executive, Human & Institutional Development, and Pakistan Poverty Alleviation Fund visited DAMEN on 9th June, 2010 for exposure of DAMEN’s Working.

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Constraints & Challenges

§ Strong mobilization & follow up to manage delinquency and short recovery rate. § Broad track up strategy to recover stuck up loans.

Existing Gaps

§ Weak social mobilization & motivation. § Problem of delinquency due to non fulfillment of policies and procedures in groups and center formation.

Lessons Learnt

§ Improved monitoring (from Head Office, Area/Field offices) can surefire the success of program. § Strong mobilization for group and center formation can ensure the long term sustainability of microcredit program. § Customary interaction with the borrowers can be assured better recovery rate and delinquency loans.

Case Study of Shehnaz Bibi

Shehnaz Bibi aged 45, resident of Ali Razaabad. Her husband is scraper. His earning was insufficient to fulfill the expenses of his family. She is mother of one daughter and three sons, all of her children are school going.

Shehnaz started her own business of cloth selling to support her husband to share the family burden. She had very small saving to start her business. So she approached DAMEN and took loan of Rs.5,000. She utilized this loan amount in expanding her business. She availed eight loans to strengthen her business. She said, “I become able to upgrade my living standard and providing quality education to my children.” She purchased household goods with her saving. She further said that all my success is due to DAMEN’s microcredit program.

She said that DAMEN has proved a blessing in disguise for her. Now her financial conditions are better just because of DAMEN.

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