Mid Term Evaluation of “Poverty Emancipation Project” in Rangpur district

Background

Rangpur Unnayan Samajik Sangstha (RDSS) established in 1986 as a local NGO has been implementing development activities in Rangpur and Nilphamary districts in North of Bangladesh. RDSS has been a partner of Strømme Foundation since 1993 receiving support to the "Poverty Emancipation Project (PEP)". The most recent phase of the project was planned for five years (2001 to 2005), aiming at promoting sustainable development of the participants through training, income generation activities (IGAs), credit support and savings generation. At end of 2003 both SF and RDSS agreed to conduct a mid term review of the project for which an external development consultant was engaged to study the progress and lessons learnt that would help the project during its remaining part of its planned life time.

Purpose/objective

The objectives of the review are:
- To study whether the partner has implemented the program as planned in regard to selection of
target people, training, strategy and management;
- To get an overall view, salient features, special characteristic, strengths and weakness of the project;
- To examine and assess the effects and impact of the project;
- To assess specific objective of how income and employment generation have helped the participants;
- To identify and suggest future course of direction.

Methodology

The study covered both quantitative and qualitative aspects and used data and information collection through individual interviews, Focus Group Discussions with groups, workshops and spot visits in all three Unions covering 12% of the total number of groups of the project. In order to study the objectives, data collection instruments and techniques were developed and used.

Key findings

a. Beneficiary coverage, savings and credit utilization performance
The project has covered a total of 1,714, 32% more than what was planned. The average amount of savings per group member stood at Taka 911 and the amount would have been more if members deposited savings regularly.
b. Institutional Development
Average size of a group was planned to be 22 but in reality the number was 33 making it difficult to manage group activities well. Further it was observed that group meetings could not be held regularly without the presence of group organizer and 40% of weekly meetings and savings
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collection have been irregular. Group members raised the issue of frequent change/dropout of group organizers. This has been a problem for both group and staff to maintain continuity of works as planned on the basis of field needs.
Group members are outspoken and clear on their perception of 'group solidarity'. Management staff of RDSS conducted 'Group management' course for group members and found 58% of those trained have been involved with their respective work/duties.
c. Health and Sanitation
Group members were well aware of the value of safe drinking water with 97% of group members' households using tube-well water for drinking. They are also aware of arsenic mitigation of tube-well water. Regarding use of hygienic latrines very little progress has been made with only 36% use ring-slab latrines.
d. Micro-credit and Economic Development
Of the total number of 1,714 members, 1,645 (96%) have taken at least one loan, 59% taken loans two times 23% three times within the three year period indicating that almost all members had access to the loan programme with an average amount Taka 3,605 (Principal), which is a reasonable amount for a poor person to start a small-scale income generation activity. On time loan repayment rate was 97.7%, which is appreciable in terms of maintaining regular repayment system by the respective groups and by group organizers. Average monthly income per head was Taka 4,556 compared to Taka 3,035 per head/per month at the time of baseline survey, an increase of 50%.
The revolving loan fund has increased by 217% in the second year, and a further increase by 33% in the third year. While the trend indicated a gradual increase of loan disbursement to borrowers, yet RDSS was accumulating huge liabilities with loan funds to SF, group members and to other projects.
e. Social issues and Women's status
The project planned that all children of age group 6-10 of group members would attend local primary schools but only 132 children of this age group i.e. 75% attend nearby primary schools. Out of the total group members under this study, 52% women were directly involved in running their own income generation activities.
f. Project Management
It was observed that the budget - expenditure variances were analyzed periodically. Financial monitoring is a continuous process, practiced by the management.

Recommendations

- There is a need to develop group/group leaders' capacity to 'facilitate', not become dependent on the staff. Group members should be encouraged to think of shouldering responsibility on their own to establish 'people's institutions at the grassroots level. In order to develop group organizers' capacity, there is a need to provide training on group management and institution building, savings and micro-credit operation, especially on different rate calculation in a simpler way.
- Average size of a group should be within 20 to 25 members. Otherwise it would be difficult to maintain group cohesion in the long run.
- Group members should be encouraged to save regularly to increase their savings and allowing them to borrow from their own savings fund in case of emergency.
- In order to carry out social programme activities it is necessary to develop group organizers' and supervisors' knowledge and skills on analyzing social issues, and help people to find practical ways that would benefit them.
- Two Supervisors for this project is sufficient to manage all activities. In that case another 'Project Coordinator' for this project would not be needed. The Programme Coordinator of RDSS from head office can easily monitor project activities.

- RDSS should be careful and work towards minimizing its liabilities. It should plan to revolve money from its revolving loan fund. RDSS should also help develop long-term action plans for people to achieve sustainability at individual/household levels.

Comments from the organisation

It was a 5-year microfinance project from 2001 to 2005. A mid-term evaluation of the project was conducted in the last quarter of 2003. The project did not improve as per the recommendations since the mid term evaluation. There was a serious drop of capacity at the Chief Executive Officer level due to his ill-health and the Project lost direction and pace. The governing body failed to take any remedial action in spite SF's continuous efforts. Finally SF support from the project was withdrawn after 2004.