Pradan Targeting

Professional Assistance for Development Action (PRADAN)

PRADAN: Overview • PRADAN is a Voluntary Organisation registered as a Society in 1983 • Mission: Impacting livelihoods to enable the rural poor • Core belief: Well educated & motivated people need to work at the grassroots to bring about holistic transformation • Target: Rural poor with emphasis on women, Scheduled Tribes, Scheduled Castes, Other backward classes • Operational districts among poorest. Subsistence economies with weak markets and other infrastructure

Criteria for selection of operational area • Degraded natural resources • Adherence to traditional technologies and modes of production • Low productivity of labour and capital • Lack of access to or control over productive assets • Lack of access to financial services, business support services, knowledge resources and markets • Lack of social and economic infrastructure

Client identification and support • Approach of area saturation • Identifying poverty pockets • Attempt to cover the whole of the poor and very poor populations there • Identification more through excluding the visibly better off • Building an area based perspective • Mapping needs and opportunities • Mapping potential activities and developing a proposed course of action in each area

• Provide livelihood support – training, marketing

Microfinance for Livelihoods- role of PRADAN • Promoting SHGs as Mutual Aid Associations – Building robust, autonomous groups, small savings and credit

• Developing SHGs as Financial Intermediaries – Build capabilities for leveraging loans from banks

• Livelihood Planning – Assist women in planning to optimise their resources - land/water, labour, livestock, forests

• Sectoral Interventions – Identify and develop potential sectors to generate large scale livelihoods for the poor - tasar, poultry, dairy, vegetable cultivation, intensive agriculture

• Credit, other business development support – large scale credit to SHGs, training, marketing

The CGAP Study Done in Jharkhand 3000 of PRADAN’s 4500 Self Help Groups exist there PRADAN works in 14 out of 20 districts Survey done between August 10 and October 15, 2002 State divided into 4 regions for sampling 6 villages, 144 sample in each region, 24 from each village • 432 non-members, 144 members • Rationale - more variety in non-members than members - pilot in early August before study • Questionnaire based on the CGAP tool, but adapted to include household debt, access to govt. services and programs, social networks • • • • • •

Jharkhand – India – comparative statistics Proportion of villages with Primary schools High Schools Post office Primary Health Centre Paved roads Bus services Domestic power supply Piped water

India

Jharkhand

.73 .08 .22 .03

.51 .03 .08 .01

.37 .34 .64

.14 .15 .14

.18

.01

Proportion of people Below Poverty Line • 1993-94 National Sample Survey, rural population below national poverty line (~ $ 0.23 per day) 33% •India • % below international poverty line (~ $1 per day) 44% •India • % below national poverty line 57% •Jharkhand • % below $ 1 a day

•

80%

Results of Assessment • PRADAN villages look similar to the rest of the villages in Jharkhand • Villages in the study look more developed than the average PRADAN village, reason may be they are new villages, and larger Study Village Average PRADAN village Literacy rate 31% 28% Primary School 83% 64% Paved roads 21% 12% Households 190 118

• There is exclusion at the bottom 5% and top 10%

Results of Assessment Comparison of survey villages and rural Jharkhand Consumption good Survey Village Average PRADAN village Cereals (Kg/capita/day)

.36 - .66

.46

Clothing expenses

38.5

23.5

Education Expenses

6.4

5.18

Bicycles

58

42

Results of Assessment Selected variables for SHG and non-SHG members Literacy rate Per capita grain cons in scarce months No of rooms in dwelling Land owned (ha) Land cultivated Self employed non-farm Value of durable goods Per capita exp on clothes, footwear Fraction below official poverty line

.39 .34

.41 .37

3.06 1.24 1.03 .14 1922 527 .55

3.35 1.21 .82 .16 2703 553 .53

Comparative Analysis of indicators Indicator Meals in past 2 days No of days/month not enough food rooms in dwelling land owed (Ha) value of durables, livestock

Poorest Middle Richest 5% 90% 5% 3.8 5.5 5.6 5.2 3.4 0.4 1.2 0.2 495

3.1 0.6 7335

9.2 2.9 47601

kg/day – grains normal times

0.5

0.65

0.81

kg/day - grains – bad times

0.25

0.36

0.44

per capita annual exp on edn per capita annual exp on footwear/clothes

5 243

68 534

324 1076

Indicator share of children attending school share of literate adults in household fraction owning radio fraction owning bicycle participation in informal village organisations share that has ever approached a govt. officer share voting in elections

Poorest Middle Richest 5% 90% 5% 0.34 0.48 0.61 0.22

0.40

0.66

0.07 0.2 1

0.26 0.6 1.3

0.68 2.9 1.5

0.07

0.27

0.46

0.93

0.99

1

What PRADAN seeks to achieve • Develop “entrepreneurial capabilities” • Ensure “access to and control over improved production technologies” • Leverage financial resources for programme investments • Ensure “sustainable access to marketing and technical services”

The future • Understand clearly the causes for exclusion of bottom 3% to 5% • Study if they also drop out, individually or as groups • Incorporate methodologies such as social mapping and PWR for targeting • Incorporate tracking of the very poor in the ILS workbooks of staff • Explore possibility of having a separate panel sample of the very poor clients to be tracked using ILS member books