Studies conducted by IRIS, University of Maryland, USA shows that the very (ultra) poor households, who earn under US$1 per day per person are generally not micro finance customers. These households “suffer greater instability, have less developed skills, fewer social and institutional connections, fewer economic opportunities” than the ‘better off’ poor. The ultra poor therefore need support and preparation before they can become micro-finance clients. In response to this finding, BRAC created the Income Generation for Vulnerable Group Development (IGVGD) Program, and based on IGVGD the Targeting the Ultra Poor (TUP) was created. TUP is an intensive training, financial education and savings in 18 months. The intention is to graduate the ultra poor into a micro finance program.
In Pakistan the TUP is called Social Safety Net (SSN) Project and is being pilot tested by BRDS, OCT, AKPBS, IET and Safwco. The 2 year pilot testing started in October 2007. The main activities in the pilot include targeting, training, asset transfer, food and health allowances, and savings. The SSN project is supported by CGAP, World Bank through the PPAF.
The Safwco pilot project was implemented in 18 villages of Kharochhan in District Thatta, Sindh. Kharochhan is one of the poorest localities in Pakistan and the 18 villages selected are representative of Kharochhan. The two year piloting started in October 2007. For Safwco, the purpose of the pilot was to organize the ultra poor, as such Safwco aimed to provide Rs.12.2 million to 200 ultra poor families in the form of asset and to train them to productively use the asset and build up further assets and savings. The specific objectives of the program were:
- Life skill and technical capacity development
- Improving livelihood conditions
- Improving economic conditions and aid in asset building
- Include into mainstream microfinance and poverty alleviation programs
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Project activities were categorized under 11 main headings, viz.
- Research including PRA, base line surveys and conflict management
PRA and base line surveys for 20 villages have been completed.
- Capacity building including developing training manual and enterprise development
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Training manual has been developed and enterprise development capacity building package delivered to the beneficiaries.
- Market survey, identification of livelihood options and developing business strategies
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Market survey and goat rearing has been identified as a suitable livelihood option.
- Revalidation of 18 villages
Completed
- Public lottery for selection of beneficiaries
Carried out and beneficiaries have been selected
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TNA and training has been carried out. Trainings have been imparted for
Asset transfers are being made in two stages. In the first stage assets have been transferred to all beneficiaries
- Provision of subsistence allowances
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Voluntary savings is being made at the rate of Rs.320 Per persons in groups. By end of December 2009, savings accumulation amounted to Rs. 60,880
Monitoring is done every quarter and reports are taken out.
Activities under the pilot testing will be completed by May 2010, following which an evaluation will be done to bring out the learning. Presently, Safwco has done some case studies of beneficiaries and brought out a publication on that. |
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