today and tomorrow December 2010 Managing Risk Another 10,000 Hours!-9 Handloom-18 Micro-insurance in India-24 livelihoods December 2010 Merry Christmas and Happy and Fulfilling New Year! Let us celebrate Sachin’s Fifty Hundreds in Tests! Let us appreciate the lunar eclipse on a winter solstice day after 372 years! Let the Parliament rule. Let the scamsters be punished. Let Human Rights prevail. Let us cope with transition(s). Let us get ready for Telangana. Let us welcome more direct democracy. Let us have smaller administrative units. Let us incentivise farmers to give the food to us and weavers to cloth us. Let us compensate for their losses so that they do not have to die. As we talk food security to all and rights of fisherfolk, can we ignore the farmers, weavers and other producers and service providers? Let us hope Cancun is better than Kyoto. Let us hope Government(s) succeeds in giving Rs. one lakh income to the poor. Through NREGA, through sustainable agriculture, through value-addition of their produce, and wage/job/self-employment! One animator works with 100 families each. The risks of the poor include life (human beings and animals), accident, ill-health/disease, loss of income, uncertainties in production, demand and prices, increases in costs of production and consumption, likelihood of not getting work and wages commensurate with work etc. Some of these are idiosyncratic and some covariant. Mitigating and managing these risks is not similar. Some need to be anticipated and prevented with appropriate intelligence systems. Some need to be reduced. Some need to be worked on to reduce the impact. Some need to be coped with. Some require preparation for coping, relief and rehabilitation. Some require counselling. Some require reconstruction. Some take the proportion of disasters and calamities and some let them push and stay back in poverty for a long time to come. Insurance coverage may help some of these. Some require mutual support. Some require multiple livelihoods and sources of incomes. In any case, first the poor need to become aware of these risks, reasons for such risks and ways of mitigation. The action may require increasing information, knowledge, skills and resources. Dry-land hinterlands, flood-prone plains, coastal communities etc., need to have their own plans for managing risks and disasters. They need to have capacities and resources for them. They need to be ready to roll-out the plan as soon as they realize the trigger for risk mitigation has to be pressed. Of course, in all these, the communities have to be together as collectives. Some of the existing institutions can take these responsibilities. It is also possible that collectives to manage the risks can also come up. In this context, ‘livelihoods’ explored ‘managing risks’ of the poor. Stephen Hawking, arguably the brightest human being, is contributing to the understanding of the universe and inspiring us to move towards our innate potential. Livestock mutual support shows the economies of scale(s) in insuring the cattle. The same can be seen in health too. Ubiquitous photocopy plus centre is an improved information enterprise all across. AKRSP is an integrated natural resource management and other rural development support organization in Gujarat. Rajeev Kahndelwal leads Aajeevika Bureau that works on migration in/out of Rajasthan. ‘Fish! Omnibus – A Remarkable Way to Boost Morale and Improve Results’ by Stephen Lundin et al introduces FISH principles for us to practice. With the understanding that managing the risks is the key to remain out of poverty and we need risk management endeavours including individuals and institutions, I remain thinking of ways to managing risks and being useful. G. Muralidhar the ‘livelihoods’ team 2 December 2010 livelihoods Inside ... ‘livelihoods’ team Cover Story– Managing Risk 10 Editor in Chief G Muralidhar Risk is intrinsic to every livelihood practiced. Efforts if any in Principal Editor T Nirmala the sphere of risk, are more focused on post-risk reactive Senior Editor K Bharathi methods. However, times have changed and so should the Working Editors K Sridevi approach to risk in development. While some risks have T Venkateshwarlu morphed many new risks have emerged. In this context, Edit Associates G Bhargava ‘livelihoods’ attempts to understand the risks associated with S Laxman the livelihoods of the poor and the mechanisms to manage those B Madhusudhan risks.. V Muralidhar M Nilendu Micro-insurance in India 24 S Rekha In 2010.. M Siddhartha 27 A Uma R Vijay Kiran M Vijaybhasker Srinivas Response 4 News 5 Legend World Genius– Stephen Hawking 7 Intervention Cattle Insurance 8 Perspectives Another 10,000 Hours! 9 Enterprise Xerox Shop 15 Organization Aga Khan Rural Support Program 16 Interview How Does Age Matter? 17 For Private Circulation only Subsector Handloom 18 Opinion National Fibre Policy– Impact on Handloom 22 Sector Policy IRDA (Micro-insurance) Regulations, 2005 28 Case studies Investment in Right Skills Pays 29 Burden of Large Family Development Worker ‘Aajeevika’ Rajiv Khandelwal 30 Books FISH! Omnibus 31 For enquiries contact: AKSHARA Network for Development Story We Are All At Risk! 32 Support Services, Trends Energy Consumption in India 33 HIG II B-25 F-6, APHB Colony, Baghlingampally, Hyderabad - 500044 The Contrasts Paper Plate Making 34 Rope Making Mobile: 09951819345 www.aksharakriti.org ‘Yoga’kshemam 35 livelihoods December 2010 3 Response Please accept our compliments on the latest issue of Akshara. It has really grown in size and content. Keep it up. Harsh Bhargav This is to state that I have greatly enjoyed reading your "Livelihoods" for November 2010. I think there is a lot to learn from the two issues of "Livelihoods" that I have read, especially its practical orientation and style. I hope you keep up your good work in future months. More field- oriented case studies on livelihoods will be useful. Neela Mukherjee I read through the November edition of Livelihood. I was fascinated by the perspective, moved by the narration of experiences leading to self-help and financial recovery...and not to say the least..amazed at the incredible work and energy of your team as they seem to cover their expertise in areas that need it the most. Thanks Murali and team for showing us that intention+dedication results in incredible results. Hari Pothukuchi "Keeping the promise: Mainstreaming disability in the Millennium Development Goals towards 2015 and beyond" 3 December 4 December 2010 livelihoods News Modernization of Employment Company (Sector)-Aircel; Green managed by Equator Capital Partners, Exchanges Under Finalization: Company (PSU’s)-ONGC; Green an independent fund management Upgradation and modernization of the Design (Architecture)-Development company registered in the US - will employment exchanges (EEMMP), World Headquarters Alternatives take equity stakes in regulated, small which has been taken up as one of World Headquarters; Green lenders with high growth potential who the Mission Mode Projects (MMP) Advertisement-Nokia & JWT; Jury can reach neglected groups such as under National-e Governance Plan Special Mention- Jairam Ramesh women entrepreneurs and rural (NeGP) of Government of India, is (Environment Minister), John microenterprises. Key target markets under its completion phase. Under the Abraham (Bollywood Actor); Green will include Bangladesh, the People's project, a national web portal is Legend- Chandi Prasad Bhatt & Republic of China, India, Indonesia, proposed to be developed which will Sunder Lal Bahuguna (For Chipko Pakistan, the Philippines, Sri Lanka, work like a virtual job market. This will Movement); Lifetime Achievement Thailand and Viet Nam. The goal is to contain all the data regarding Award: Veer Bhadra Mishra (For take minority stakes in companies availability of skilled persons on the Ganga cleaning campaign); Special with investments of $2 million to $10 one hand and requirement of skilled Jury Award: Late Amit Jethwa. The million each, and to exit holdings over persons by the industry on the other. awardees received a cash prize of Rs. an average of five years, with Asian It will help youth in getting suitable 100,000, a certificate and the investments making up about half the placement and enable industry to Greenies Trophy. fund's total portfolio. ADB's participation will allow the fund to procure required skills on real time New Food Security Report for Asia reach its target size of $75 million, basis. Launched in Mumbai: A new food help leverage more investment from security report for Asia has been NDTV Announces Winners of the commercial market, and provide a launched in Mumbai by The ‘Greenies Eco Awards’: After a huge model for other private equity funds to International Rice Research Institute success of the NDTV-Toyota follow in the small lenders market. It (IRRI) and the Asia Society, calling for environment campaign Greenathon I also continues ADB's push to scale up increased investment in rice research. & II, NDTV in partnership with Toyota investments in the microfinance The report, “Never an empty bowl: had announced the ‘Greenies Eco sector, in order to spur private sector- sustaining food security in Asia”, Awards’. The winners of India’s first led economic growth and reduce emphasizes the importance of rice as national environment awards- poverty. ‘Greenies Eco Awards’ were the primary staple food in Asia and a announced at an award ceremony in major source of income for Asian Six Indians Get UN Online New Delhi recently graced by the farmers. It also recommends more Volunteering Award: Six Indians President of India, Smt. Pratibha research on: climate change have been chosen for the United Devisingh Patil. A first of its kind in mitigation for farming, farming Nations Volunteers (UNV) online India, the ‘NDTV-Toyota Greenies infrastructure, and market price volunteering award for their articles Eco Awards’ are aimed at stability. The report suggests that which helped spread awareness on encouraging, acknowledging and through greater investment and by the Millennium Development Goals awarding the champions of the Earth growing more and healthier rice in an (MDG).