Terminal Evaluation Report 2014 Rural Economy Advancement Program Phase I Research and Evaluation Division GNH Commission Royal Government of Bhutan Copyright © Gross National Happiness Commission, 2014 Royal Government of Bhutan Published by Gross National Happiness Commission ACKNOWLEDGEMENTS Research and Evaluation Division, GNH appreciation to Dr. Sonam Wangyel Wang Commission would like to thank all those and his team from Happiness Consulting who contributed to this evaluation report. Group for leading the evaluation process In particular, special thanks are extended and preparing this report. This evaluation to the Evaluation Reference Group for their has been made possible with the support of guidance. We would also like to extend our UNDP Bhutan country office. Evaluation Reference Group: 1. Sonam Tobgyal, RED, GNH Commission 2. Lekey Wangdi, RED, GNH Commission 3. Tashi Dorji, UNDP 4. Tashi Yangzom, PPD, Ministry of Agriculture and Forests 5. Gyeltshen, Assistant Planning Officer, Wangdue Phodrang Dzongkhag 6. Wangmo, Tarayana Foundation iii iv Table of Contents Abbreviations .....................................................................................................................................1 Foreword .............................................................................................................................................3 Executive Summary ..........................................................................................................................5 1. Introduction ..............................................................................................................................10 2. Methodology .............................................................................................................................13 3. Findings .....................................................................................................................................16 4. Conclusions ...............................................................................................................................30 5. Lessons Learned .......................................................................................................................31 6. Recommendations and way forward .....................................................................................33 7. Appendices ................................................................................................................................36 Appendix 1: Terms of reference ............................................................................................36 Appendix 2: Evaluation design matrix .................................................................................41 Appendix 3: Questionnaires ..................................................................................................44 Appendix 4: Individual and overall ratings of the program ..............................................51 Appendix 5: Assessment of expenditure progress against planned budget .....................52 Appendix 6: Assessment of achievements against planned Outputs ...............................53 Appendix 7: Histogram and normal curves for descriptive statistics ..............................62 Appendix 8: List of documents reviewed .............................................................................63 v LIST OF TABLES Table 1. Program summary ..............................................................................................................10 Table 2. Budget Outlay and Funding Source .................................................................................10 Table 3. Profile of respondents .........................................................................................................14 Table 4. Evaluation criteria and their description .........................................................................14 Table 5. Evaluation ratings ...............................................................................................................15 Table 6. Mean change in the ability to earn money post and pre REAP I compared ...............21 Table 7. Mean change in annual savings post and pre REAP I compared .................................22 Table 8. Improvement in living conditions of the beneficiaries post REAP ............................I 23 Table 9. Overall ratings .....................................................................................................................25 LIST OF FIGURES Figure 1. Poverty incidence map of Bhutan showing REAP 1 sites ............................................11 Figure 2. Annual incomes from variety of sources .......................................................................20 Figure 3. Correlation between abilities to earn cashand feed families .......................................22 Figure 4. Mean percent distribution of household expenditure on essential goods.................22 Figure 5. Proportion of respondents expending on essential items ...........................................23 Figure 6. Histogram for housing .....................................................................................................24 Figure 7. Histogram for education ..................................................................................................24 Figure 8. Histogram fo health ..........................................................................................................24 vi LIST OF ABBREVIATIONS AWP Annual Work Plan BDFC Bhutan Development Finance Corporation CDR Combined Delivery Report NRP National Rehabilitation Program GNHC Gross National Happiness Commission GNH Gross National Happiness HAB Handicrafts Association of Bhutan HCG Happiness Consulting Group LGs Local Governments MoAF Ministry of Agriculture and Forests NFE Non Formal Education NGO Non Government Organization Nu Ngultrum NWFPs Non Wood Forest Products PB Program Boards PEI Poverty Environment Initiative RED Research and Evaluation Division REAP Rural Economy Advancement Program RGoB Royal Government of Bhutan SAARC South Asian Association for Regional Cooperation SHGs Self Help Groups TE Terminal Evaluation ToR Terms of Reference UN United Nations UNDP United National Development Program USD United States Dollar US$ United States Dollar 1 2 FOREWORD Royal government of Bhutan initiated the achievement of intended outcomes of the Rural Economy Advancement Programme programme and take stock of lessons learnt. (REAP) under Targeted Poverty Initiatives Therefore, the terminal evaluation of REAP during the 10th five-year plan, starting in I was carried out from October to December 2009, to reach out to the poorest of the 2013 by an independent consulting firm, poor. GNH Commission coordinated the Happiness Consulting Group. implementation of REAP I in partnership with local government, central agencies and We hope that this evaluation report will be Tarayana Foundation, which covered 17 useful input in improving REAP II, which poorest villages across the country. While the will have wider coverage during the 11th five- broad-based development programs continue year plan. to alleviate poverty, REAP seeks to target the extreme poverty that may not be adequately addressed through broad-based development programs. (Thinley Namgye) As the implementation of REAP I was Director completed in 2012, it was timely to assess 3 4 EXECUTIVE SUMMARY 1. THE PROGRAM The Rural Economy Advancement Program reached communities who had not Phase I (REAP I) was initiated in 2009 benefited much from broad based poverty for a period of 3 years and implemented reduction interventions and economic during the 10th Plan in 17 poorest growth. A participatory culture-based, villages (Lamtang in Zhemgang; Pam and gender sensitive, and environmentally Chaibi in Mongar; Ungar in Lhuentse; friendly approach was adopted. Mondokha and Choleykha in Chukha; Sanu Dungtoe in Samtse, Ritey in Sarpang; The interventions were targeted at Lopokha, Shoba, Nazhina and Rukha in enhancing income generation and Wangduephodrang; Samcholing in Trongsa; productive capacities of the communities Thangdokha,Ngatsena and Dramekha in focusing on agricultural productivity Haa; Lauri in Samdrup Jongkhar) with through inputs supply, access to market and funding from SDS, UNDP (Poverty Thematic skills development. Trust Fund and Poverty Environment Initiative), and German Embassy. The total 1.2 Outcomes budget allocation was Nu.38.605 million. The program was conceived in line with the Royal The program sought to pursue its purpose Government of Bhutan’s developmental through four key output areas. priorities for the 10th five year plan, which Outcome 1. Capacity of targeted focused on targeted poverty reduction and communities developed to increase sustainable livelihoods for the poorest of the agricultural productivity for income poor. The program was coordinated by GNH generation. Commission and implemented by the local Outcome 2. Increased agricultural governments, MoAF, MoLHR and Tarayana productivity and diversification for food Foundation. security. Outcome 3. Enhanced employment 1.1 Program Purpose opportunities and income. Outcome 4. Improved living conditions. The program aimed to address the specific needs of the extremely remote and un- 5 1.3. Evaluation Objectives and Methodology A scientific inquiry method was developed evaluation also addressed the following and used to carry out the evaluation, while issues: also drawing on the guidelines