Enhanced Livelihoods of Vulnerable Households from IGAs in
Central Tarai Districts of Nepal: A Tool of LRP
S.B.Thakur1
1
Agriculture Specialist of UNDP, LRP project
ABSTRACT
The five-year Livelihood Recovery for Peace project (LRP) is implemented in all the 271 VDCs of the three Central
Tarai (southern plains) districts of Mahottari, Sarlahi and Rautahat of Nepal since late 2009 where poverty,
conflict, exclusion, gender-based violence and natural disasters have hindered development. The project
interventions were initiated using guideline and procedures focussing people centred participatory methods for
sustainable livelihoods towards peace. A total of 20837 socially empowered members from 904 CG have received
the micro capital grant of NRs 9,000 to carry out economic business of on farm and off farm type IGAs. At a time
the poor are frantically looking for a way out to come out of poverty, UNDP's micro capital grant has created
livelihood options for the poor and contributed to the socio-economic empowerment of the disadvantaged and poor
communities. All these beneficiaries have hopes of making profits and improve their business in the future. The
beneficiaries have hopes of scaling up their business and earn money to improve their living conditions. It is
encouraging to note that 23% of all micro capital recipients or 4000 individuals who received grants in previous
years between 2011 and 2012 have turned to self-employed entrepreneur. Small but meaningful opportunities
created at the community level have enhanced the economic momentum for the poor where they need not necessarily
go out for a daily wage. Animal and trading and service business had more monthly income among off-farm type
and vegetable farming had highest seasonal income. Although, low seasonal income from operating cattle rearing
business, had highest current value. There are 30 agriculture cooperatives registered in 3 districts for institutional
development of poor and vulnerable community.
Key words: LRP, IGA, Livelihood, Poverty
1.
INTRODUCTION
The five-year Livelihood Recovery for Peace project (LRP) was launched in late 2009 and the
implementation started in early 2010. The project is implemented in Mahottari, Sarlahi and Rautahat,
three Central Tarai (southern plains) districts of Nepal, where poverty, conflict (armed groups), genderbased violence and natural disasters have hindered development (Figure 1). These districts have one of
the lowest Human Development Index. The 2.1 million people who live in these districts have a mixed
ethnic makeup and almost 30% people are land less. The project is one of the initiatives through which
UNDP Nepal is promoting local peace through livelihood support as an entry point to directly support the
communities to have better livelihood outcomes.
The overall objective of this integrated, area-focused project is to contribute to local peace building and
restoring the foundations for sustainable livelihoods. The focus is on improving household/community
livelihoods and local economic recovery, enhancing social cohesion, strengthening village and district
level local government and non-government institutions for supporting livelihoods initiatives, and
empowering women.
The project has five main result areas: (i) mobilize and empower communities to improve social cohesion
and peace; (ii) build new community infrastructures and rehabilitate damaged and degraded ones to
benefit communities and create short-term jobs; (iii) facilitate the poorest and most vulnerable individuals
and households to accrue improved livelihood assets; (iv) promote women’s empowerment and gender
equality; and (v) strengthen local government bodies and national institutions to respond to communities’
livelihood needs.
On project result area improved livelihood diversity, capabilities and empowerment at the household
level, it has focused on improvement of livelihood assets of the targeted poorest and most vulnerable
individuals and households for better and sustainable livelihoods.
The identification and implementation of sustainable Income Generation Activities (IGAs), MicroEnterprise (ME) and Appropriate Technologies that (i) adds value to the existing enterprises/income
generating activities or create new enterprises/income generating activities; (ii) reduce human drudgery
and increase efficiency.
Rautahat, Sarlahi & Mahotary
Figure 1: Three LRP working districts in central tarai of Nepal
The term Livelihood describe the capacities, capital (human, social, productive/ economic, natural), and
activities needed to sustain life (Chambers and Conway, 1992). The term "Sustainable Livelihood" is
used here to refer to a livelihood that can cope with and recover from stresses and shocks, maintain or
enhance its capabilities and assets both now and in the future, while not undermining the natural resource
base. The five key elements of livelihoods are: generation of employment; reducing poverty; wellbeing
and skills; adaptation, recovery and vulnerability, and sustainability of natural resources.
Livelihood diversification refers to attempts by individuals and households to find new ways to raise
incomes and reduce environmental risk, which differ sharply by the degree of freedom of choice (to
diversify or not), and the reversibility of the outcome. Ellis (1997) defines livelihood diversification as
the process by which rural families construct a diverse portfolio of activities and social support
capabilities in their struggle for survival and in order to improve their standards of living pointing out,
rightly, that livelihood diversification is not necessarily synonymous with income diversification.
The study is tried to find out the types of the IGA business which are worked well at what geographical
location and at what level.
2.
METHODOLOGY
In order to achieve these objectives, LRP applied an integrated poverty-pocket approach to target the
Vulnerable, Excluded And Economically Deprived (VEED) households within the programme Village
Development Committees (VDCs) to implement all of its activities in the above-mentioned five result
areas and thereby promote peace and social cohesion at the community level. This approach took into
account location factors (e.g. communities living in flood-prone areas), economic deprivation of the
households, as well as social exclusion and historical marginalization of the community groups (CGs). On
priority basis there were 4 CGs identified in cluster first VDCs and 3 in cluster 2 and 3.
The integrated approach applied to livelihood promotion with a focus on building various livelihood
assets (human, social, economical, natural, physical, and political) at both household and community
levels. It prioritized promoting gender equality and social inclusion and also ensures that social harmony
and community cohesion is promoted through LRP’s interventions. Coupled with this approach of
focusing on the VEED households, LRP gives priority to empowering women and those from the
excluded communities.
The project is designed to be implemented in all 271 VDCs of the three districts through cluster approach.
The LRP project activities are in line with policies of the Government of Nepal (GoN) and the project
mobilizes local government institutions and Non-governmental Organizations (NGOs) who have more
than three years working experience in the programme district and specialized in the respective project
thematic outputs. Local NGOs are contracted out for social mobilization and household income
improvement.
Figure 2: Clusters division in 3 LRP districts
The working districts have clustered in 2 in Mahottari and 3 each in Rautahat and Sarlahi (Figure 2).
Social mobilization activities carried out though PAL intensively. The IGA, ME and TT were
implemented through the local NGOs hired in each cluster separately (Table 1) and 9 to 10 IIFs were
mobilized in respective cluster.
Table 1 : NGOs implemented the IGA initiatives in clusters of the district
Cluster
Mahottari
Sarlahi
Rautahat
1
Ratauli Yuba Club (RYC)
Rural Upliftment for Women Awareness
(RUWA)
Village Community Development Centre
(VCDC)
Rural Development Centre
(RDC)
2
Dalit Society Welfare
Committee Nepal (DSWCN)
Village Development Society (VDS)
Jan Kalyan Development
Centre (JKDC)
3
No cluster-III
IGA not yet implemented
To enhancement the livelihood of the VEED, various type of IGAs business implemented in the CG. LRP
formulated the following major IGA implementation procedures to enhance the livelihood of VEED
community:
a.
Intensive and rigorous Social Mobilization
Peace and Livelihood Facilitators (PAL) in each VDC mobilized for conducting Participatory Learning
and Action (PLA) weekly basis on right based issues, access to governmental services and participation
and representation of VEEDs in local based civil society organization. They also empower them to
interact and discuss on their need and right for better lives. It helped and enabled them to identify the best
businesses for addressing the economic issues.
b.
Facilitation though local human resource of local NGO
There is Local NGO was hired on competitive basis to facilitate and support the VEED community group.
NGO was mobilized Income Improving Facilitator (IIF) one for 3 to 4 VDCs to day to day support and
coach for need identification, business selection, business execution, monitoring as well linkage &
coordination with various stake holders. Staff discuss and record progress and share success and failure
cases. Technicians of service centers of agriculture and livestock also support for technical training
facilitation, vaccination and other advisory work at locally.
c.
Analysis of local stake holders in the locality and potential market of the commodity
The mobilized IIFs identified the local stake holders working in the particular area organizing meeting
and interaction to know their support and initiative in the community for value chain approach. In
addition, IIFs assessed the local demand of products and commodities in market for IGA support in
particular community as potential business.
d.
Identification of pro-poor based IGA business
Types of IGA were selected in CG based on their interest, local demand, family resources, skill and
experiences and number of working members in family. Identified IGAs were of basically pro-poor
manageable and locally marketed types. For IGA identification, rigorous discussion conducted by IIF and
PAL together in the CG meeting and family consent have also been regarded.
e.
Contract between UNDP and CGs for transfer of motivational IGA grant
For IGA implementation by individuals of the VEED CG, NRs 9,000 ($100 or less) IGA motivational
grant have supported from UNDP. For the direct IGA grant transfer in CGs, there are agreement between
UNDP and community groups. The signing authority from UNDP Deputy Country Director and
Chairperson form CG.
f.
Bank operation for financial transaction though community groups
The bank account has been opened in the name of CG in the bank of adjacent area of the CGs in current
account. The generally account holders of CG Chairperson, secretary and treasurer. The UNDP has
directly transferred in CG’s bank account for withdrawing of amount as per their business plan need,
better utilization and reduce unnecessary drift of amount by any parties.
g.
Handling of grant through Procurement and monitoring from monitoring
committee
The three member Procurement Committee (PC) among the CG members and 3 members Monitoring
Committee (MC) formed separately. Procurement committee purchase the all the material and equipments
based on business plan in installments. The monitoring committee ensures the utilization of grant and
effective implementation of stated business by individuals. These committees work as watch dog of the
CG for ensuring expenditure of amount in IGA and utilization of IGA grant in IGA implementation as
internal control mechanism.
h.
Development of business/ detailed plan for complete package
The individual detailed business plans are developed for successfully accomplishment of the IGA. The
complete package for identified business is taken in consideration while developing business/ detailed
plan. Like, for starting goat rearing, goat shed, feeder, training, goats (2 pregnant or puberty age),
medicine for de-worming, vaccination, fodder, etc. All the inputs material and training support considered
in business planning. The business plan endorsed by CG for collective accountability.
i.
Practice of maximum transparency and accountability
For achieving good governance in group at local level transparency mechanism applied in CG like
displaying detailed hoarding boards (HH, gender and caste composition, type of IGA and budget).
Regular discussion, expenditure review, and auditing of the grant practiced through minutes and public
audit which carried out at last. In addition, beneficiaries cards distribution to each members receiving
IGA grant. There are also practices of a commitment paper in LOKTA Nepali paper so that ensure the
utilization and continuity of IGA.
j.
Package based capacity building and technical support
Need based field training arranged for better technical know-how. Training facilitation was done on
technical parts as well input supply and marketing part from service and sub service centers of District
Livestock Service Office and District Agriculture Development Office, and MEDEP BDSPO staffs. As
per their demand for promotion and scale up of IGA the trainings/ orientations conducted. Technical
personnel of each livestock, agriculture and off-farm business are interacted directly with the community
to solve the problem encountered for respective businesses. IIF support and carry Participatory Learning
and Action (PLA) on fortnightly basis on themes of business scale and promotion. In addition, cross visit
and sharing of best practices carried out in CGs.
k.
Intensive monitoring at various level
The CG IGA activities implemented by CG with support of PAL and IIF, are monitored and supervised at
different level like UNDP/ LRP staff DPC, Agriculture Specialist, M&E Specialists and other specialists
as process monitoring, integrated monitoring or special task monitoring was also practiced. In addition,
Field Office Biratnagar also visited intensively for process and output monitoring. There is the data base
recording and progress tracking mechanism was also practiced in 3 month duration. Beside this,
documentation of success and failure cases are collected, discussed and documented in reports, manual,
local and national papers too.
l.
Institutional development.
Community group formed from VEED community as informal organization which was excluded for
receiving the governmental services due to non formal institution. For sustainability and stability,
development as cooperative looking at their capacity of empowerment, saving and credit, collective
motives and status of IGA is also done. This generate fund for their business promotion and also develop
linkage for their required support at village and district level. This institution will be encouraged to be a
member of district level cooperative association for further support and assistance.
The periodic data from IGA business implementing CG collected by NGO staffs and interred in LRP
GSI-MIS software and the required output products were extracted from the system. Further detail
outputs calculated using MS-Excel and some information gathered from focused group discussion and
direct contact with individual.
Table 2: Descriptive of thirteen categories of t business
S.No.
1
2
3
4
Business categories
Description of business
Fish Farming
Lease fish culture in river, pond and ditches.
Poultry Farming
Hen, chicks, duck, pigeon, quail farming
Pig Rearing
Farming for meat and piglet
Vegetable Farming
5
6
7
8
9
10
11
Meat and Fish Shop
Offseason on season vegetable, in lease, river belt, water melon, cucumber, seed production,
mushroom farming
Chicken, duck, goat, he-buff raw meat selling, raw meat selling in market
Grocery & Cosmetics
Daily use material selling of kitchen like rice, pulse, vegetable, spices, condiments
Goat Rearing
He, she goat, ram, sheep farming
Cattle Rearing
Calf, heifer, ox, bullock, cow, buffalo, he buffalo,
Snacks Shop
Meat, fish related shop (chicken, buff, mutton) Mom, MURHI, tea, sweet shop
Animal Bird Trading
Chick of hen and duck, hen, duck, goat, he-buff , she buff, bullock selling in market or business
Service Business
furniture, saloon, various utensil, domestic repairing, cooker, stove, by-cycle, motorbike, mobile,
rickshaw, thela, tanga
Product selling in village or door to door like ice-cream, milk, vegetable, any mobile shop on
12 Vendoring
13 Others
KABAD, bee keeping, any IGA type which not covered in above categories.
3.
FINDINGS AND DISCUSSION
The livelihood diversification is an important strategy by which rural people may work to achieve
sustainable livelihoods; it is one that generally operates in conjunction with other strategies which also
contribute to the formation of sustainable livelihoods (Karim and John, 1998). For preparation of this
paper, major observations were found and explained here under during the period from 2010 to till
March 2013 for IGA initiatives.
3.1
VDC overage and community group
The project is designed to be implemented in all 271 VDCs of the three LRP districts of central tarai of
Nepal in cluster approach. The major livelihood influencing component income generation activities for
vulnerable families implemented in different time period since 2010 end. The totals of 416 CGs of 104
VDCs of cluster-1(38 in Mahottari, 33 in Sarlahi and 33 in Rautahat) were covered during 2010-2012
with the facilitation work of local NGO i.e. RYC, Mahottari, VCDC, Sarlahi and RDC, Rautahat. The
totals of 312 CGs from 104 VDCs of cluster-2 (38 in Mahottari, 34 in Sarlahi and 32 in Rautahat) have
been under process of implementation by DSWCN, Mahottari; VDS, Sarlahi and JKDS, Rautahat.
Outputs from the IGAs implementing in cluster 2 have been waiting. Total of 189 community groups
from 63 VDCs of cluster 3 VDCs (32 Sarlahi and 31 Rautahat) have been planned for implementation in
year 2014.
Table 3: Cluster wise VDC distribution and CG formed in LRP 3 districts
Cluster
Mahottari
VDCs
CGs
38
152
38
114
No
0
76
266
Sarlahi
VDCs
CGs
33
132
34
102
32*
96*
99
330
1
2
3
Total
*= not IGA implemented, (Total VDC 271 and CG 917)
3.2
Rautahat
VDCs CGs
33
132
32
96
31*
93*
96
321
HH benefited and its composition
The most vulnerable HHs made to involve in project as lives are very fragile and risky. Target
beneficiaries decides the project achievement. The beneficiaries covered in LRP include 21,215 (96%
women and 60% dalit) vulnerable, excluded and economically deprived households distributed over 917
community groups (CG) formed in cluster I (416 CGs), II (312 CGs) and III (63 CGs) of Mahottari,
Sarlahi and Rautahat districts. The women participation had highest in Rautahat (98.3%) followed by
Mahottari (96%) and Sarlahi (94.3%) (Figure 3).
Table 4: Number of beneficiaries HH and its gender categories
Details
Mahottari
Sarlahi
Rautahat
No. of CG s
252
234
228
No. of HHs
7402
6718
6717
100.0
80.0
60.0
96.0
94.3
98.3
Women
Men
40.0
20.0
0.0
4.0
Mahottari
5.7
Sarlahi
1.7
Rautahat
Figure 3: Gender wise beneficiary composition of cluster 1 & 2 till 2013.
There were highest beneficiaries from the dalit community i.e. 57.6% and 2.1% from tarai dalit hill dalit,
respectively. The other madhesi community were of 16.6% and the tarai janjanti and hill janjati
participation was 7.7% and 6.1%, respectively. The minority muslim were of 7.7% where as Brahmins
chhetri participation were of 2% only (Figure 4). Total IGA benefited HHs are 20,837 of this 7402 of
Mahottari, 6718 sarlahi and 6717 of Rautahat (Table 3).
Other
Madhesi %,
16.6
Muslim %,
7.7
Hill BC %, 1.2
Tarai BC %,
0.8
Hill
Tarai dalit %,
57.6
Janajati %,
Tarai6.1
Janajati
%, 7.7 Hill dalit %,
2.1
Figure 4: Ethnicity wise beneficiary composition in percent of cluster 1& 2 till 2013
The district wise inclusiveness of tarai dalit had highest in Matottary (63.4%) and less in Sarlahi
(55.7%) and Rautahat (53.3%). Tarai janjati is highest in Mahottari (12.7%) and lower in Rautahat
(5.8%) and Sarlahi (4.1%). Other madhesi participation was highest in Rauataht (25.6%) and lowest
in Mahottari (10.8%). Hill BC beneficiaries were highest in Sarlahi (13.9%) and lowest in Mahottari
(0.7%). The muslim was highest in Rautahat (14.1%) and lowest in Sarlahi (3.2%) (Figure 5).
70.0
63.4
60.0
55.7
53.5
50.0
40.0
30.0
25.6
20.0
14.6 13.9 13.9
12.7
10.0
1.7
10.8
5.8
4.0
0.8 0.7
4.5 4.1
0.8
3.6
14.1
5.8
0.0
0.5 0.9
3.2
0.0
Mahottary
Tarai dalit %
Tarai BC %
Sarlahi
Hill dalit %
Hill BC %
Figure 5: District wise beneficiary composition
Rautahat
Tarai Janajati %
Other Madhesi %
Hill Janajati %
Muslim %
3.3
Types of IGA business implementation
Type of IGA is very important for the vulnerable family for improving the livelihoods. Out of
the total, 21,215 households from 917 CGs of the 3 districts, 20837 HH (83%) have received
IGA grants so far for improved economic livelihoods following LRP guidelines and norms.
Table 5: Number of various type of business in 3 LRP districts of cluster-1 till 2013 March
S.N
1
2
3
4
5
6
7
8
9
10
11
12
13
Total
Business Type
Animal & Bird Trading
Cattle Rearing
Fish Farming
Goat Rearing
Grocery & Cosmetics
Meat & Fish Shop
Pig Rearing
Poultry Farming
Service Business
Snacks Shop
Vegetable Farming
Vendoring
Others
Mahottari
2
1782
0
137
116
5
17
15
110
44
154
40
47
2,469
%
0.08
72.17
0.00
5.55
4.70
0.20
0.69
0.61
4.46
1.78
6.24
1.62
1.90
100
Sarlahi
60
319
0
682
89
0
337
1
38
0
84
4
12
1626
%
3.69
19.62
0.00
41.94
5.47
0.00
20.73
0.06
2.34
0.00
5.17
0.25
0.74
100
Rautahat
13
1014
1
352
111
15
30
2
125
21
129
33
111
1957
%
0.66
51.81
0.05
17.99
5.67
0.77
1.53
0.10
6.39
1.07
6.59
1.69
5.67
100
Total
75
3115
1
1171
316
20
384
18
273
65
367
77
170
6052
Among the type of IGA business, cattle rearing IGA were found highest (51.47%) and followed by goat
rearing (19.35%), pig rearing (6.35%), vegetable farming (6.06%) and grocery and cosmetic shops
(5.22%). The fish farming was found lowest (0.02%) (Table 4). Cattle rearing was highest in Mahottari
(72.17%) followed by Rautahat and sarlahi. The goat rearing was highest in Rautahat (19.35%) followed
by Sarlahi and lowest in Mahottari. Pig rearing business was observed highest in Sarlahi (20.73%) and
followed by Rautahat and lowest in Mahottari of cluster 1.
Business Status
Declining
5%
Running
33%
Closed
3%
Progressive
59%
Figure 6 : Status of the business during 2 years period in cluster 1 of 3 districts till 2013 March
%
1.24
51.47
0.02
19.35
5.22
0.33
6.35
0.30
4.51
1.07
6.06
1.27
2.81
100
The status of the IGAs businesses were categorized based on their level of income and continuity. It was
observed that 59% businesses found to be progressive and 33% running. However Declining type
business were of 5% and 3% were closed due to epidemic disease and others reasons.
3.4
Income level of various type of IGA
Income from any business will decide whether the implementing business will influence the economic
livelihood of the family to cope the shocks and risks or not. The start of income depends on the type of
business, their gestation period, market value and type of products and services. There were mainly 2
types on-farm and off-farm type business under implementation. The on-farm types were of agriculture
based like vegetable farming, fish farming, mushroom farming, and animal based like cattle (heifer, cow,
buffalo) rearing, goat rearing, pig rearing, poultry farming. The off-farm types were animal and bird
trading, grocery and cosmetic shop, meat and fish shop, snack shop and vendering.
Table 6 : Average income (Rs.) per person from various operating business in 3 LRP districts till 2013
March
SN
Business Type
Operating
Income(Rs)
Operating
Income (Rs)
Operating
Income(Rs)
1
2
16300
57
442,400
13
229000
2
Animal&Bird
Trading
Cattle Rearing
1781
107500
298
2,273,595
1013
71500
3
Fish Farming
0
0
0
0
1
7000
4
Goat Rearing
136
19000
657
4,922,340
352
20000
5
Grocery&Cosmetic
116
1509800
87
1,238,800
111
1438450
6
Meat & Fish Shop
5
40000
0
0
15
253000
7
Pig Rearing
17
0
302
2,251,500
30
0
8
Poultry Farming
15
34000
1
0
2
21000
9
Service Business
110
1638700
37
498,500
125
803100
10
Snacks Shop
44
462500
0
0
21
224500
11
Vegetable Farming
154
1588900
69
1,035,580
128
1030700
12
Vendoring
39
452200
4
33,000
33
306000
13
Others
47
536300
12
337,000
111
1429600
2,469
6,405,200
1626
Total
Mahottari
Sarlahi
Rautahat
13,032,715
1,955
5833850
The operating business and income was analyzed and it was observed that operating cattle rearing
business were maximum in number (1781) and the animal and bird trading were minimum (2) in
Mahottary. Similarly, operating goat rearing were maximum (656) and poultry farming was minimum (1)
in Sarlahi. Likewise, the operating cattle rearing businesses were maximum (1013) and fish farming was
minimum (1) in Rautahat.
The econometric analysis shows that access to physical and human capital has a significant influence
on total household income. The area owned the value of other assets possessed, as well as the number
of livestock and family laborers positively influence household income. (Stefan Schwarze, 2004).
HH income is important parameter for livelihood improvement of family. Analysis of operating business
showed that off-farm businesses had highest monthly income though it is less in number (15%). The offfarm type business could not be operated in large number in particular area due to competition and need
special business skill. The off-farm type business had rendered quick income in short span of time. The
business of on-farm type had more in number (85%) due to its social, cultural, ethical and security value
for vulnerable HHs in society. The income analysis showed that average income was comparatively less
in short span of time but it had more social, ethical and cultural value.
Table 7: Average income from various operating business in 3 LRP districts ( Rs.)
Business Types
Average
NRs.
Monthly
Animal and Bird Trading
Income
Average Business
Value (NRs.)
No. Of HH
( %)
7,292.48
17,777.78
337 (2%)
Grocery and Cosmetics
4,461.13
16,483.83
726 (4.2%)
Meat and Fish Shop
3,375.00
13,312.50
49 (0.3%)
Service Business
7,085.02
21,726.61
541 (3.2%)
Snacks Shop
4,573.91
15,152.17
170 (1%)
Vendoring
Others
Monthly Average
4,547.13
6,387.59
5,375.82
18,948.28
14,994.68
17,383.63
261 (1.5%)
404 (2.3%)
2488 (15%)
Seasonal (3 months)
Cattle Rearing
Goat Rearing
Pig Rearing
Poultry Farming
Vegetable Farming
Seasonal Average
757.79
2,620.06
3,406.78
1,525.42
11,357.80
1,770.27
15,560.57
12,122.24
12,290.06
3,067.80
14,315.03
14,492.69
9153 (53.3%)
3820 (22.9%)
744 (4.6%)
37 (0.2%)
718 (4.3%)
14472 (85%)
Average
1:1.65(cost:current value)
14,897.73
16960
Among the off-farm type businesses the animal and bird trading and service business had highest monthly
income Rs 7,292.48 and 7085.02, respectively. The current business value had high in service and vendoring
business Rs 21,726 and 18,948, respectively. Among on-farm type business, cattle rearing had highest in number
(53.3%) and followed by goat rearing (22.9%) but poultry farming had less in number (0.2%). The highest seasonal
income as well current value was observed in vegetable farming (Rs.11, 357.80) and least income was in cattle
rearing. 14,315) but the current value was highest in cattle farming (Rs. 15, 560.57) and least in case of poultry
farming (Rs 3, 067.80) (Table 7).
The analysis showed that overall average current value of each business with Rs 9,000 investment, it was Rs 14,
897.73. The cost or invest and current value ratio is 1:1.65. It showed that the business growth rate was 60.41% till
2013 March.
However, the Baseline study 2010 reported that HH Average annual Income – NRs. 26,537 and Per Capita Income –
NRs. 4,795.
The choice of cattle rearing had highest with less income and highest current value as of reporting period. The
reason behind the more interest to cattle rearing of the target people are: household of southern tarai had lack of
social security for any hazard as most of them landless and income less, lack of cooking fuel as cattle dung used for
cooking cowdung cake, managed with less resources and spare time and feeling of morally strong with cattle at
home.
3.5 Institutional development of community group
There are 30 cooperatives registered in cluster 1st of 3 districts 10 in each. The cooperative are of
agriculture types with multifarious objectives including 2-3 CGs of the VDC. Registered cooperatives
based of one VDC one cooperative. There were 970 member participated (women 97%, dalit56% and
Janjati 13%) and 10 cooperatives received seed grant total of NPR 300,000 from the Division Cooperative
office of GoN i.e. 6 from Rautahat and 4 from Mahottari.
Table 8: Cooperatives details with members and capital
Cooperative
registered
District
Members detail
Total (No)
Female (%)
Dalit (%)
Janajati (%)
Total
capital
(Rs)
Mahottary
10
Sarlahi
10
274
256
96
96
77
42
8
33.5
205200
185600
Rautahat
10
260
100
43
0
Total
30
790
97
56
13
Seed grant from
Div. Cooper off.
Amount
No
(Rs)
4
120000
0
0
195360
6
180000
586160
10
300000
4. MAJOR LEARNING

Engagement of leisure time of women in productive work like learning session, keeping
livestock, farming different crops and running off-farm type business for hopes for livelihoods
improvement by diversifying the source of income.

More number of livestock businesses meets and add the social, cultural, economical and moral
demand and value to poorest and poor, needs more promotional activities.

With objective of synergy between LRP and MEDEP of UNDP, the collaborative work as
piloting, was found in-effective towards the economic empowerment of poorest of poor with
MEDEP package in place of micro-grant of IGA of LRP. This was due to hard core poor client,
lack of timely support for micro enterprises start up and irrelevant ME selection.

Linkages with Micro Finance Institutions (MFIs) like Chhimek Bikas Bank, NERUDE bank and
Gramin Bikas Bank were found effective for scale of the business; however it was troublesome
due to high interest rate and bound to repay installment weekly irrespective of gestation period
for return from business.

As exit out strategy for sustainability of community group and LRP interventions, agriculture
cooperative have become relevant and realistic as government priority and community enable to
manage themselves.

Self employment from various businesses was observed that at least 20% of IGA receiving IGA
grant individuals were self employed as of reporting period.

Traditionally dependency of poor and vulnerable households on local land lord at high interest
rate for credit or loan to meet the family needs (future and emergency) reduced drastically.

Individuals engaged in IGA and ME developed better bargaining capacity and leadership with
skill of doing the IGA businesses.
5. MAJOR ISSUES
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
No technical support and follow up from project for further sustainability of IGA and LRP
interventions.
Linkage for technical support and preventive and curative measure from government service
center is difficult due to lack of human resource and budget.
Lack of concrete linkage mechanism with MFI for capital development and its proper
mechanism for further scaling up of businesses.
Lack of livestock insurance provision or access and its awareness has discouraged for scaling up
and bear from any risk of endemic diseases and sudden occurrence.
No saving mechanism in project after earning has made individual to save for coping mechanism
and capital development.
Though immense potentiality of vegetable farming, due to availability of land for landless HH
because of land reform policy the land lord deny to give long term land in leasing. The
individuals don't accept land for short term it takes more investment to make more fertile and
productive.
Confusion for economic activity due to lack of clear cut provision of IGA implementation in
cluster 3 of Rautahat and Sarlahi.
Huge amount of cow dung from cattle daily, due to no proper management skill, cow dung is
burned as cooking fuel by making dung cake this is dire need of vulnerable HH in southern terai.
However, the cow dung has high potential to make organic manure for agriculture purpose
which is burning.
Within shortly, huge amount of milk and meat will be produced from cattle and goat. There is no
proper vision of product marketing and it's processing.
Due to lack of capacity building and strengthening mechanism of cooperatives of vulnerable
groups may have risk of failure.
6. RECOMMENDATION






Where possible, the CGs should be re-organized into new multipurpose cooperative or link with
likeminded existing cooperatives of the VDCs.
Efforts should be made to provide short-term vocational and skill trainings to the interested
members of beneficiary households of CG for sustained service in the locality.
A comprehensive capacity development program for both members of CGs and cooperatives
needs to be developed and implemented before phasing out.
Comprehensive farm based IGA strategy should be implemented around district market hubs for
import substitution of fresh seasonal vegetables, fish, goat, poultry and milk products.
The provision of collection, marketing linkage, processing of milk, meat and other produce is
essentially required.
Linkage of community group with financial institution and proper saving and lending provision
for financial access and services.
FEW SUCCESS CASES
Box 1: A case of Pragati CG, kalingjor, sarlahi
Among 23 women members from Badi, Kami, Sarki, Pariyar, Tamang, Magar,
Chhetri community of economically deprived families have begun Income Generation
Activities (IGA) with support of UNDP/ Livelihood Recovery for Peace (LRP) project in
year 2011. The major IGAs executed by group He-buffalo rearing (4) and Goat rearing
(19) from NRs 207,000.00 for improvement of their livelihoods. Among goat rearing
members, Ms Krishna Maya Bohara aged 60 years became success to change her hard
life towards happy life. She is living with one old mother in hill of Sidhipur in hut. She
has received 2 goats an amount of Rs 8,000.00 from the group in designed process of
LRP. Now, there are 6 goats including 3 kids and 2 References
pregnant total cost of Rs 40,000.00.
She smiley says " I have sold a he goats for meat of Rs. 10,000.00, then 2 he goats in
Rs 16,500.00 and recently Rs 11,000.00". She replies of question of use of the huge
amount of Rs 37,000.00 that Mrs Bohra and old mother are eating night and day
happily. She spent the earned money in good clothing and medicine.
She laughingly also added that she has given Rs 10,000.00 in interest to others at rate
of 36% for changing the thatched hut into cemented tiles. Mrs Bohara is not facing
problem of feeding goats as grazing in forest nearby. In spite of this success, she
sometimes afraid due to endemic diseases.
Likewise, Ms Sant Maya B.K. of aged 55 years of the group has also felt happy with receiving IGA
grant from LRP as member of Pragati Mahila community group Kalingjor, Sarlahi. She is living with son
and daughter in law and 3 grand children. She expressed that my son had tough life in past only one
employment as a labor to feed the family. I have been engaged in goat rearing from last two years with
two goats. Goat as the short gestation period to earn money, "I have earned Rs 29,000.00 from selling of
2 he-goats as meat" she said. In her house, there are 13 goat heads (5 birthing she goats, 7 he-goats and 1
kid) to look after. She is educating her 3 grand children in boarding school. Now, her family can manage
daily food, necessary clothing and daily expenses. She is also saving Rs 10
every month in group from 5 months for future uncertainty.
Similarly, Rita Bisunlke aged 27 years is Chair person of Chauki danada
Community group of Kaslingjor 1, received IGA grant of Rs 8,500 with
other 24 members. She belongs to dalit community. She started pig rearing
purchasing one pig with the support of IGA grant from LRP. After 6 months,
she got 9 pig lets (4 female and 5 male) from one pig. She sold 4 piglets for
Rs 8,000 at the rate of Rs 2000 each and 5 female for Rs 15,000 at the rate of
Rs 3000. Latter, she also sold meat of pig 35 DHARNI (1 Dharni contain 2.5
kg) at Rs 400 per DHARNI and recently sold 33 DHARNI meat at 400.
Figure Ms Sant Maya BK of Pragati CG,
Kalingjor
From the pig rearing, she became success to buy 3 kathhas of farming
land with cost of Rs 80,000.00. She is having 3 children, husband and mother in law in her family. She is
happily educating her children including daily food. She has learned how to live and earn. Not the money,
she also gained respect and more love from her husband and community is also treating respectfully. Still,
she is continuing her business. She is saving Rs 10 each month in group for coping emergency and
uncertainty.
Likewise, Mangali Maya Baiwa and Saji Maya Baiwa of Chetana CG, Kalingjor has also benefited
from goat rearing. Ms Mangali earned Rs 11,000 from sale of he-goat and she is having a total of 8 goat
heads including kids. One goat is pregnant to give kids soon. And, Ms Saji has earned Rs 12,000 and she
is caring 6 goats in her house for future income. They told in group discussion with LRP and Social
Mobilization NGO NEWs officials.
7. REFERENCES
Final Project Document on Livelihood Recovery for Peace (LRP), Project No: 00057322, UNDP
A Guideline on Implementation of IGA, ME and Technology Transfer, UNDP/LRP, Mujailiya 14,
Janakpur, Dhanusha.
Final Report on Income Generating Activity (IGA), Micro-enterprise Development (ME) and Technology
Transfer (TT) for period from 17th October 2011 to 16th October 2012, Submitted by Rural
Development Center (RDC), Gaur, Rautahat.
Third Quarterly Report on Income Generating Activity (IGA), Micro-enterprise Development (ME) and
Technology Transfer (TT) Submitted by Ratauli Yuba Club (RYC), June, 2012, Janakpur
Municipality-7, Dhanusha.
Second Quarterly Report on Income Generating Activity (IGA), Micro-enterprise Development (ME) and
Technology Transfer (TT) for period from January to April 2012 Submitted by Village Community
Development Center (VCDC), Haripur, Sarlahi.
Midterm report, 2013, LRP, UNDP, IGA assessment and market analysis report, 2012, LRP/UNDP
Stefan Schwarze 2004, Determinants of Income Generating Activities of Rural Households, A
Quantitative Study in the Vicinity of the Lore-Lindu National Park in Central
Sulawesi/Indonesia Dissertation, zur Erlangung des Doktorgrades ,der Fakultät für
Agrarwissenschaften
Stark, O. and D. Levhari (1982) `On Migration and Risk in Less Developed Countries’, Economic
Development and Cultural Change, 31:190-196.
Ellis, F ,1997, Household Strategies and Rural Livelihood Diversification. Paper submitted to the
Journal of Development Studies.
Carter, M. (1997) `Environment, Technology, and the Social Articulation of Risk in West African
Agriculture’, Economic Development and Cultural Change, 45(3): 557-591.
Chambers R. and Conway G. (1992). 'Sustainable Rural Livelihoods: Practical Concepts for the 21st
Century'. IDS Discussion Paper 296. Brighton: IDS.
Karim Hussein and John Nelson, 1998, 'Sustainable Livelihoods and Livelihood Diversification', IDS
Working Paper 69