adaptation strategies of the sustainable livelihood considerations for the internal displacement...

Adaptation Strategies of the Sustainable LivelihoodConsiderations for the Internal Displacement Women in Sri Lanka

Kennedy D Gunawardana

Professor of Accounting

University of Sri Jayawardanapura. Sri Lanka

[email protected]

ABSTRACT

Intensification of forced population displacements as anonslaught of ethnic conflicts and human rights violationnegatively affected the socio-economic status of many South Asiancountries. Sri Lankan Internal Displacement (IDP) populationescalated at a soaring rate subsequent to the historical militarytriumph over Tamil Eelam (Civil War) rebellions. Cataclysms ofthe prolonged insurgence disrupted livelihood activities thusimposing socio-economic impediments amidst thousands of displacedpeople.

Among the affected, women were considered as most vulnerable.Owing to the loss of their counterpart family burdens shifted ontheir shoulders, in making them the de facto heads of households.These women engaged in numerous entrepreneurial activities indiverse sectors of the economy in order to supplement theirfamilies. Unfortunately, the outbreak of Eelam war 3 eruptingfrom Eastern Sri Lanka destroyed many of their livelihoods.

Despite such trauma women of North-eastern part of Sri Lanka, thesample under study were recently resettled from IDP camps totheir previous villages. The IDP women were depend ongovernment and International nongovernmental organization (INGO)assistance than adapting to the changes of their independentsustainable livelihood pattern. These women entrepreneurs foundnothing than war ruins on their return hence, facing immenseconstraints to continue their livelihood activities as addressed,dependence rate also very high and current initiatives taken by

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the government/INGOs, were not sufficient and prevailing withsome issues of their assistance programmes. There is requirementto make them independent entrepreneurs by providing training,changing mind sets for adaptation of the new livelihood. Furtheradaptation strategies by using local resources were discussed.

1 Introduction

The colossal intensification of forced population displacementsas an onslaught of ethnic conflicts, and human rights violationsacross the globe had accrued 26 Million internally displacedpeople by the end of 2008 according to the IDMC (2009). Duringthis period the South and South East Asian IDP population grew ata staggering 13% with Sri Lanka the country under study reporting485,000 IDPs as a cataclysm of the recently concluded Eelam wars.

A recent study by the HRW, 2008 (cited in IDMC, 2009) highlightedwomen and children represent more than 80% of the Sri Lankan IDPpopulation, and most of these women had either lost theirbreadwinners or were struggling to attain sustainable livelihoodin order to satisfy their basic socio-economical needs. Eventhough the number of donor agencies and assistance programmes hasseemed to paramount, their effect and focus on sustainabledevelopment has been criticised by academics and practitioners.

Women entrepreneurship, as a successful remedy to addresssustainable livelihood development in such post disastersituations has been evolving since the end of the cold war. Itscapability to eradicate major issues such as unemployment,dependency, sexual harassments and socio-economic growth issueshas spurred it as one of the most influential mechanisms to bedeployed in such trauma.

Recent work of ILO - SAAT (International Labour Organisation –South Asian Multidisciplinary Advisory Team) in Bangladesh,Vietnam and China has created many successful women entrepreneursthrough the introduction of intense training programmes, microfinancing, business development services etc.

Hence this study especially focussed on the IDP women ofBatticaloa, Sri Lanka, thrives to validate the vitality of women

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entrepreneurship as a measure to overcome the socio-economicconstraints while reviewing success and failures of suchinitiatives taken by donor agencies and the local governmentduring the post disaster rebuilding process of the Tsunamiaftermath in Sri Lanka.

1.2 Problem statement

Excruciating Government expenditure to subsidy the internallydisplaced persons of Sri Lanka and resource constraints faced bythe IDP Women of Batticaloa in seizing the evolvingentrepreneurial opportunities in order to make sustainablelivelihoods prompted the investigation of possible remedies toovercome these issues. Hence this study commenced with thecritical question;

“What are the evolving entrepreneurial opportunities in the postconflict areas of Batticaloa? How will these entrepreneurialopportunities bring sustainable livelihood opportunities to theIDP Women?”

This research question paved the instigator of this study tounderstand the importance of Women Entrepreneurship as aninfluential tool to empower IDPs in a resource starvedenvironment with optimum use of resources in order to createsustainable livelihoods. Hence screening the issue from differentviewpoints to deliver remedies using extant literature to benefitall stakeholders involved, whilst highlighting critical successfactors of entrepreneurs emerging from similar socio-economicconditions.

1.3 Problem justification

Women entrepreneurs in the Northeast of Sri Lanka played apivotal role in economic development (Ayadurai and Sohail, 2004)prior to the outbreak of Eelam War III which began in 2006.Ayadurai further pointed these women entrepreneurs operated inagriculture, Fisheries, livestock rearing and MSMEs with minimumresources and support by donor agencies hence hindering theirgrowth and development.

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Signs of hope rose among thousands of IDPs living in camps whenhistory was made as government concluded the protracted Eelamwars, but their envision of prosperity did not remain for long asthey returned to their own villages this ill fated people hadnothing left for themselves than ruins of war.

Destruction of infrastructure, market place and high securityzones has left this people with no other option than to rely onthe assistance of government/ NGOs aid programmes. This situationhas increased government expenditure, human rights issues, andadverse socio-economic constraints despite such catastrophesunfortunately the number of academic, professional research onthis subject area in Sri Lanka is insignificant.

Therefore this study deems its importance as pivotal in order toaddress a huge research gap in such a resource starvedenvironment.

1.4 Objectives of the study

This investigation comprises of 6 objectives in order to solvethe issue under study, the objectives are as follows;

To find out the entrepreneurial profiles and theentrepreneurial opportunities of the IDP Women of Batticaloa.

To find out the resource constraints of these women withresponse to their respective entrepreneurial profiles,previous entrepreneurial activities and opportunitiesidentified.

To find out the initiatives taken by the Government and INGOsto address the resource constraints and entrepreneurialopportunities identified.

To find out the issues with regard to initiatives taken by theGovernment/INGO in developing women entrepreneurs towardsattaining sustainable livelihoods.

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To recommend the most preeminent set of initiatives requiredto assist women entrepreneurs of Batticaloa with reference toextent literature and previous case studies.

1.5 Significance of the study

This study will provide holistic unbiased insights into thecurrent resettlement and rebuilding policies and practices of theGovernment and other interested stakeholders operating in thepost conflict areas of Batticaloa in order to reduce theambiguity among academic practitioners, politicians, generalpublic and the Internally displaced persons. Whilst assessing thestrengths and weaknesses of current policies deployed to createsustainable livelihood through entrepreneurship.

The reference materials and the literature reviewed in this studywill provide foreign and local NGOs a broader idea of previoussuccesses and failures of Sri Lankan entrepreneurs in situationsquite similar to the current context.

Despite, its emphasis on Women Entrepreneurship this study willbe a classical case study for Managers involved in strategicdecision making, resource allocations and problem solving.

1.6 SCOPE OF THE STUDY

This study only focuses on Internally displaced personsgeographically situated within the boundaries of Batticaloa

This study demographically focuses only on resettled WomenIDPs with particular interest on Entrepreneurship asidentified under objective 01.

This study will only review the initiatives taken by the SriLankan Government and the INGOs operating within Sri Lankawith specific focus on the strategies deployed for theperiod from 2007-2010.

Due to the lack of transparency on some government fundedprojects, this study will only consider projects publishedunder the three year master plan for Eastern provincedevelopment.

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The IDPs of concern in this study are the ones whom havebeen displaced by manmade catastrophes thus eliminatenatural disasters such as floods, tsunamis and storms.

This study will not consider political view points orcriticisms as this study is solely for academic purposes andhence concentrates only on Socio-economical issues.

2.1 Evolution of women entrepreneurship

Discovery of the antecedents of entrepreneurship is anintimidating task as entrepreneurship by nature is a multifacetedarea of research (Audretsch, 2002) with an ill defined paradigm,Shane and Venkataraman, 2000 (cited in Murphy et.al. 2006)evolving from the fields of economics, business, sociology andpsychology (Herbert and Link 1989; Murphy et al. 2006). Prehistoric interpretation on entrepreneurship by De Roover in 1963,Drayton in 2004 and Baumol in 1990 (all cited in Murphy et al.2006) foreshadowed the prevalence of entrepreneurship even duringthe 50th BCE as a successful mechanism for survival inconstrained environments.

The “paradoxical legacy” for women during the post-Soviet context(Ashwin, 2000 cited in Allen et. al, 2007) mainstreamed theemergence of ‘Women Entrepreneurship’. Women were forced to takeover the patriarchal role of their families as their husbandswere dead or engaged in war, during this era. Thus prompting themto explore for wealth generating opportunities by recognisingtheir own capabilities in those resource starved environments forsurvival, hence to this extent women began their legendary taleof entrepreneurship by setting up MSMEs in informal/formalsectors (Singh and Belwal, 2007) and engaged inproduction/service industries familiar to them (i.e. Food,transportation, textiles etc) Allen et.al.2007.

Women’s role as breadwinners prolonged with the outbreak of WorldWar 2 which was consecutively followed by cataclysms of the ColdWar thus, burdening women with more responsibilities on family

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subsistence. Efforts of these women entrepreneurs proved to makedistinct differences within constrained communities (McClellandet al. 2005) as they surpassed their primary objective of selfsufficiency whilst creating employment opportunities, andeconomic activities which led to sustainable socio-economicdevelopment (Singh and Belwal, 2007; Greene et al. 2003) byremedying pivotal issues such as human trafficking, unemploymentand sexual harassment against their companions (Aidis et al.2006; Jalbert, 2000).

According to Hisrich et al. 1997 (cited in Riebe, 2003) womenowned businesses grew at a staggering pace during 1970 - 1997from 5% to 38% and by the end of 2003 internationally, one in tenwomen were considered to be managing their own businesses whilstaccounting for one third of all businesses in developed countries(Riebe, 2003). Today, in America 10.1 million firms are owned bywomen entrepreneurs thus creating 13 million jobs and generatingover $1.9 trillion in sales (Center for Women’s BusinessResearch, 2009).

In comparison, to the developed economies augmentation of womenentrepreneurship in the South Asian region (developing countries)seems less as women entrepreneurs are clustered more in theinformal sector (i.e. unregistered in small units), hencecreating discrepancies in accurately estimating statistics oftheir prevalence (UNESCAP, 2005). Despite this issue, it isevident by analysing the work of USAID 2005 and UNESCAP, 2005 thepivotal role these women play as producers, traders, owners andoperators of MSMEs Greene et al. 2003 in both production andservice sectors.

Hence to this extent Women entrepreneurs are considered andrecognised as a “key ingredient in the modern economic development recipe”(Kirschoff and Philips, 1989 cited in Singh and Belwal, 2007)with the capability to remedy socio-economic impediments asdiscussed previously thus stimulating governments and NGOs toactively seek ways and means to promote entrepreneurship inconstrained environments as a catalyst to attain sustainabledevelopment (Singh and Belwal, 2007).

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2.2 Defining entrepreneurship

Multifarious contributions to the concept from diverse academicdisciplines (Audretsch, 2002) resulted in the absence of auniform definition for entrepreneurship thus, promptingresearchers to turn their attention in fulfilling this gap.

Herbert and Link (1989), were able to classify the work ofprominent researchers (Schumpeter, Knight and Kirzner) in thefield of entrepreneurship into three distinct academic traditionsas the German, Chicago and Austrian respectively prior definingentrepreneurship from an economic point of view as; makinginnovative, responsible decisions of available resources amongalternative uses in turn to affect the appropriateness of itsusage.

Donnely et al. 1990 (Cited in Singh and Belwal, 2007) in theirdefinition from a management perspective added entrepreneurshipas something propelled by an idea, personal goals or ambitions ofan individual which requires resources and proper management.

Despite numerous definitions, the OECD, 1998 (cited in Audretsch2002) proposed the most prevalent and convincing definition ofentrepreneurship which is accepted by a majority of academics andpractitioners they defined;

“Entrepreneurs as agents of change and growth in a market economy and theycan act to accelerate the generation, dissemination and application of innovativeideas... Entrepreneurs not only seek out and identify potentially profitableeconomic opportunities but are also willing to take risks to see if their hunchesare right”

OECD, 1998 (cited in Audretsch2002)

As accepted by many practitioners and academics this report toois depicted around the OECD, 1998 definition.

All though the theoretical population of this study is all IDPwomen entrepreneurs in Sri Lanka the author of this reportderives a sampling frame from ILO, 2005 report on IDP women with

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utmost vulnerability hence, the sampling frame includes onlywidowed and heads of households as per the ILO categorisation.Therefore the study sample contains women from 5 of the mostvulnerable areas of Batticaloa.

Title Authority YearThree-year EasternProvince DevelopmentPlan: 2007

Department ofNational Planning

2007

Livelihood AndEmployment Creation

ILO 2005

Livelihood GapAnalysis

ILO 2008

Common HumanitarianAction Plan

UN 2009

DEVELOPING WOMEN ENTREPRENEURS IN SOUTH ASIA: ISSUES, INITIATIVES AND EXPERIENCES

UNESCAP 2005

Rural women in Sri Lanka’s post-conflict rural economy

Center for Women’sResearch Sri Lanka

2006

Statistical information

Batticaloa DistrictSecretariat

2009

Table 1 .1 Time lines

4.1 Entrepreneurial profiles and evolving opportunities

4.1.1 Significance of the objective from a theoretical perspective

Eminence of investigating women entrepreneurial profiles wasprevalent from the inception of the concept (i.e. the concept ofwomen entrepreneurship); in fact it was deemed and dealt withmuch priority among academics due to its aptitude of dealing withconstrained environments. Greene et al. 2003 in their expeditionon the theoretical evolution of women entrepreneurship found

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plenty of research on this area, especially by Hisrich andO’Brien the most prominent Table 1.2 advocates of investigatingfemale entrepreneurial profiles.

These researches focussed more on the demographics (Age, maritalstatus, education) and industrial choice of women entrepreneursthus, highlighting the distinct intensions, motivational factorsand strategic orientation of them in comparison to their malecounterparts. Therefore, understanding these differences andissues is pivotal (Greene et al. 2003) in laying a strongfoundation to this study. Hence to this end, the author of thisreport enlightens its readers with important information withregard to women entrepreneurs of Batticaloa and evolvingentrepreneurial opportunities as an initial first step, priormoving to remainder of the objectives.

4.2 Entrepreneurial profiles of the women in Batticaloa

Demographics CharacteristicsAge 25-40Motivation Due to the loss of their bread winnersMarital status WidowedEducation Less than or equivalent to grade 54.2.1. Age and Motivation to start up

A UNESCAP, 2005 study on women entrepreneurs of South Asia found;a majority of women entrepreneurs within the age group of 25-40hence, illuminating on their roles as heads of households. Mostof widowed women in the East of Sri Lanka, within the above agegroup (Ayadurai and Sohail, 2004) went into start their ownbusiness due to the loss of their bread winners. Such stimulus toengage in entrepreneurial activity is termed by Das, 2000 citedin (UNESCAP, 2005) as ‘forced entrepreneurship’ (refer table 2 below).

Forced entrepreneurship evolved amidst the Batticaloa women as amechanism to address their financial difficulties. They becameentrepreneurs by default in order to protect their family andthemselves from malnutrition (Center for women’s research, 2006),

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vulnerability and sexual harassment evolving due to the lack ofprotection/privacy needs Watchlist, 2008 cited in (1).

Table 1: Types of women entrepreneurship

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4.2.2 Marital Status

Catastrophes of war in Batticaloa left many women dear departedhence, burdening them with the patriarchal role of theirfamilies, a recent survey by the ILO (2008) reported the numberof widows in Batticaloa to be 4833 whilst the female headedhouseholds recording a confounding number as it amounted to 5152.

Owing to this situation, Batticaloa reports the lowest femalelabour force participation in Sri Lanka. Female proportion of thelabour force in Batticaloa reports to be only 16.2% (Departmentof Census & statistics, 2008) in comparison to a country averageof 33.2%. This situation therefore has made these women highlydependent on foreign/local aids for survival.

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4.2.3 Education

Women entrepreneurs in the East of Sri Lanka have been ill fatedin many ways in spite of the cataclysms of war, cultural barriersprevailing from traditional norms, values and beliefs restrictedwomen from attaining adequate education. According to a survey ofthe Center for Women’s Research Sri Lanka (2006) 64% of femalesdid not study beyond grade 5.

As an aftermath most of the IDP women entrepreneurs who had losttheir previous livelihoods since the outbreak of the 3rd Eelamwar (as discussed in the next), are employed in informal sectorsearning a marginal wage as low as Rs 90/- per day (IDMC, 2009) orare highly dependent on the Rs 200/- and dry rations worth of Rs175/- provided to each family on a weekly basis by the localgovernment of (INFORM, 2005 cited in IDMC, 2009).

4.3 Previous livelihood activities of women entrepreneurs

The rich natural resource base in Batticaloa varying from a 73.5Km lagoon famous for its crabs, 58734 Hectares of paddy land,32000 acres of cashew cultivation land, 49339 Hectares ofHighland and Home gardens (Batticaloa District Secretariat, 2009)made the district a significant agricultural hub of Sri Lankaprior to the ethnic conflicts (Three year Eastern provincedevelopment plan, 2007). This rich heritage of natural resourcessupported the living of 46300 families in Batticaloa.

Close to an 80% of the entire population of the district(Batticaloa District Secretariat, 2009) were engaged inagriculture and the remainder were active in MSMEs/Industryactivities. Henceforth, the following sub-sections of this reportwill confer the contribution of Women entrepreneurs and theirlivelihood activities, prior to the recently concluded scandalsof the LTTE.

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4.3.1 Agriculture

Women’s participation in the field of agriculture and fishing(i.e. In the shallow waters of the lagoon) expanded at theabsence of their spouses whom were, disabled or dead due to thecruelty of war (Center for Women’s Research Sri Lanka, 2006), andtheir main entrepreneurial activities were paddy cultivationduring the day time and collecting fish for drying and salting inthe evenings to make a sufficient income for living (Center forWomen’s Research Sri Lanka, 2006).

4.3.2 Livestock rearing

Among other agricultural activities were livestock rearing ofchicken, goats and cattle. According to the survey of (Center forWomen’s Research Sri Lanka, 2006) for Sri Lanka livestock rearingin the North and East surpassed the all island growth ratesduring 1990 -1995. Some women engaged in fish harvesting as wellin order to process and market them at a higher price.

4.3.3 MSME

Meanwhile, women whom were landless or extremely poor wereengaged in marketing the catch of their companions and tradingthe agricultural output as middlemen (Center for Women’s ResearchSri Lanka, 2006) these women extended their earnings by aminiscule via preparing rice flour based food for sale, puttingup very small grocery shops or while selling handicrafts. 4.3.4 Informal industry

Batticaloa reports a staggering 58.7% of its labour force in theinformal sector (Department of Census & statistics, 2008) to topthe country statistics. The main reason for the existence ofinformal industry is their resource constraints (discussed indetail in objective 2). Among the entrepreneurial activities ofwomen in this sector are mat weaving, rice pounding, dressmaking, preparation of fishing nets and selling betel leaves(Batticaloa District secretariat, 2009).

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4.4 Evolving entrepreneurial opportunities

Policy reforms and more emphasis on developing women has beenstemmed by UN Millennium Development Goals programme hence,making Sri Lanka the first country in South Asia with earlyinvestments in Gender empowerments reported Neil Buhne (UNDP RCC,2008). In addition, the NEP agricultural program reserves aspecial clause in assisting women due to recognition of theirefforts at the absence of their spouse (Center for Women’sResearch Sri Lanka, 2006).

Despite positive policy reforms development projects ascomprehensive as the ‘Nagenehira Navodaya’ (i.e. The EasternRevival) has planned mammoth investments in developingagriculture, tourism, industries and MSME sectors (discussedextensively in chapter 4) of the Eastern province.

These developments together with cultural reforms and acceptanceof women entrepreneurship in the province has increased potentfor success and sustainability in the future. Although theseenvisions draw a better image for women entrepreneurship, it isimportant to note the remaining constraints in responding toopportunities as discussed in the following sections.

4.5 Resource constraints of women entrepreneurs


The second phase of women entrepreneurship dating back to theearly 1990’s stemmed from Gartner 1989 (cited in Greene et.al.,2003) who heavily criticised academics for giving more prominencein investigating only the traits of women entrepreneurs,acknowledging this challenge Brush and Hisrich 1991 (cited inGreene et.al., 2003) in their work identified constraints ofwomen entrepreneurship in order to change the global emphasis onwomen entrepreneurship literature in to a new paradigm. Sincethen much work on women entrepreneurship focussed on resourceconstraints (i.e. financial/knowledge based), inhibiting factorsof growth etc...

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A recent study by Andotra and Pooja, 2006 in post-conflict Kathuaa state within the borders of India-Pakistan with similar socio-economic conditions to Batticaloa found, among the prominentconstraints of rural entrepreneurs were; wastage of resources dueto poor managerial skills, lack of knowledge regarding inputs,markets and technology.

Their findings were similar to the study of Ayadurai, 2005 whominvestigated on the constraints faced by women entrepreneurs ofthe North-East Sri Lanka, in which she concluded Finance/fundingto start up/continue, lack of adequate support and recognitionfrom NGOs and the local government, capacity building throughstructured entrepreneurship programs, technical and technologicaldevelopment as imperative to enhance the productivity andprofitability of these women.

Hence to this extent the following sub-section of the reportinvestigates current resource constraints of women entrepreneursliving in Batticaloa with regard to their entrepreneurialprofiles, previous livelihood activities and the evolvingopportunities identified above .

4.5.2 Resource constraints in general

As observed in the previous chapter women entrepreneurs werehighly dependent on the natural resources in order to supplementtheir basic livelihood. However few years after the militaryinsurgence, when these women IDPs returned back to theirvillages, with hope to resume their traditional entrepreneurialactivities they had to face many constraints (Three year EasternProvince Development Plan, 2007) varying from infrastructure,access to markets, landlessness and lack of basic inputs to namea few.

This situation is apparent when, employment sector wisestatistics prior to the outbreak of the 3rd Eelam wars, arecompared with current labour force statistics. The yearlyemployment survey of the Department of Census and Statistics,2006 (cited in Center for Women’s Research Sri Lanka, 2006)reported 21% of women were engaged in agriculture hence, making

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it the prominent sector of the East. In comparison, data sets for2008 (Department of Census & statistics, 2008) reports thesituation vice versa, and industry and services have gainedprominence with 86.3% (52.3%, 34% respectively) of employmentgeneration thus, clearly indicating the impact of war on theirlivelihood patterns. 4.5.3 Resource constraints sector wise

The following sub-sections of this report will address basicresource constrains faced by women of Chenkalady, Batticaloa withreference to their previous entrepreneurial profiles and sectorsfirst. Then, highlighting assistance needs to all women ingeneral to succeed as entrepreneurs in response to the evolvingopportunities.

4.5.3.1 Agricultural sector

Basic inputsAs reported earlier in chapter 1 the agricultural sector played apivotal role among women entrepreneurs, despite minimal supportfrom the interested stakeholders, due to its substantialavailability. But the situation they experience today, is thetotally opposite hence, demanding women to learn how to surviveand grow (i.e. strategic orientation for anyone in the moderneconomy) with what they get. The basic resource constraints of women entrepreneurs stemmingfrom the agricultural sector are extracted from an ILO, 2008study and depicted in table 3.

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Table 2: Basic input requirements: Agriculture

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Sub-Sector wise requirementsPaddy Home

GardenHighlandcrops

Cashew Coconut

Basicinputs

Qualitypaddyseeds &fertilizer, cashgrants,insecticides

Waterpumps,Agrowells,cashgrantsand homegardeninputs

Inputsandfencingmaterial

Goodqualityplant &fertilizer, cashgrants

10seedlings perbeneficiary,fencingmaterial& seeds

Totallandrequirement

2697acres

323acres

321acres

23 acres 436acres

Trainingrequired

Post harvest technology, use of machines, pestand disease controls, seeds processing andgermination, seed paddy production

Source – ILO,2008

4.5.3.2 Key issues hindering performance

The three year master plan for Eastern development, 2007highlighted the following factors as inhibiters of growth

Low productivity, slow growth rate, inadequate diversificationand applicability of resources

Slow adaption into modern agricultural practices Lack of management, capital and technological skills.

4.5.4 Fisheries sector

Basic resource requirements of women entrepreneurs engaged infish harvesting, processing, fishing net mending, drying andsalting etc are addressed under this sub section. Women normallyconduct their fishing activities in the lagoon as discussed inchapter 1 whilst, some engage in preparing the nets, processingfish and marketing them in order to make a living. Even thoughthey fall into the small business category we make an exceptionhere to identify resources required to continue the sector on itsentirety.

The following table highlights the basic requirements to resumewomen entrepreneurial activities in the fisheries sector.

Table 3: Basic resource requirement: Fisheries

NEEDS FISHERIES SECTOR (In general)Basic resources Fishing nets, canoes and Rs. 25000 capital grant

per personTrainingrequired ingeneral

In fish processing, net and cage mending,capacity building

Source – ILO, 2008

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4.5.5 Livestock sector

Women entrepreneurs stemming from the Livestock rearing sectorrequires the following basic resources in order to resumeproceedings, the data on this table are abbreviated from the ILO,2008 report.

NEEDS LIVESTOCKSub-Sector wise requirementsCattle Goats Backyard

poultryBasic resources Fencing

material, crossbred milkingcows, cattlesheds

Goat sheds,cross bredgoats

Hybrid chicks &poultry pens

Source – ILO 2008


The key issues for underperformance in the livestock rearingsector identified by the local government include.

Loss of traditional farming knowledge erupting from braindrain and the fleeing of farmers from war affected areas.

Loss of productive stock (i.e. death and disruption of bothlivestock and farmers)

Transportation issues leading to reluctance of poultryproduction (i.e. they are perishable soon)

(Three year Eastern ProvinceDevelopment Plan, 2007).

4.5.6 Business industry

The predominant industry for women entrepreneurs currently is theinformal business and service sector (as discussed in the

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previous chapter), although considered as predominant the resultsof Census and statistics, 2008 survey for Batticaloa unveils only22.9% of the entire women population are economically activedespite their presence on formal or informal sector.

NEEDS BUSINESS INDUSTRY (Informal sector)Sub-Sector wise requirementsBrickmaking

Small shops Cementblocks

Palmyrahproducts

Basicresources

Start upcapital ofRs. 20,000each

Start upcapital ofRs.25,000each



Totalnumber ofwomenAssistantSeekers

135 85 42 61

Source- ILO, 2009


The local government also identified many reasons pertaining tolow productivity of the business industry in the Eastern ProvinceDevelopment plan, among them are

Lack of markets to sell their products directly in order togain more profits

Lack of skills due to the lack of trainers and assistance tohelp knowledge transfer.

Lack of information centres and communication modes in orderto understand current demand and trends.

(Three year Eastern Province DevelopmentPlan, 2007)

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4.5.7 Lack of management skills in general (Agriculture, Fisheries, Livestock, business)

As discussed in the previous chapter 4.2.3 most of the womenentrepreneurs lack basic education hence, the probability of themmisusing/wasting resources in a highly resource constrainedenvironment (as discussed above) is very high. And despite this,some women recently entering the field of entrepreneurship due tothe latest calamities of Eelam wars are in high need of trainingand skill development in order to successfully undertake theirnew roles reported ILO, 2005.

4.5.8 Micro financing needs of women entrepreneurs (In all sectors)

The next most common resource constraint for all womenentrepreneurs is micro credit. This situation has led manyentrepreneurs to borrow from private lenders (Three year EasternProvince Development Plan, 2007) at a high interest rate hence,pressurising them with over burdensome that leads to depressionor failure of businesses. ILO, 2008 identified the number ofwomen entrepreneurs in need of micro credit and their respectivesectors as shown in table.

Table 4: Micro credit needs

NEEDS MICRO CREDITAgriculture Livestock Fisheries Business

industriesAmountneeded inSLR

60,000 perbeneficiary




Three-year Eastern Province Development Plan: 2007

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4.6 Initiatives of the Government and INGOs


Literature on women entrepreneurship headed towards a new sphereafter the catastrophes of the 2004 Tsunami hence, some academicsand practitioners merged the ideology of entrepreneurship withdisaster management literature, in order to increase theefficient use of humanitarian aids and effectiveness ofdevelopment goals in the affected countries towards buildingsustainable livelihoods Alexander et al, 2006.

The UN team present in many of these post-conflict countries takecharge in governing responses of local governments and NGOshence, they are considered as the experts of addressinginitiatives pertaining to the work of interested stakeholders,which is the next objective of our expedition.

ILOs work in Bangladesh, 2001 (cited in Ayadurai and Sohail,2004) to promote self-employment for women, revealed aggressivegovernment policy changes towards integrating women into economicdevelopment as the major success of Bangladeshis. ILO launched asimilar program for Vietnamese in 2003 cited in (cited inAyadurai and Sohail, 2004), in collaboration with the localgovernment to train and develop women owned MSME, at the end ofthe program women reported to have dramatic increases in salesbetter living conditions.

These changes Governments and INGOs can make to a constrainedenvironment in order to stabilise it stimulated the author ofthis report in investigating the local conditions of theBatticaloa women, thus the following sub-sections of this studywill look into the initiatives taken by the local Government andINGOs in supporting the women entrepreneurs under study.

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4.6.2 Initiatives taken by the local government; sector wise

4.6.2.1 Agriculture

Initiatives proposed by the Government in addressingentrepreneurial constraints (as discussed above) can becategorised into two major areas that is as initiatives toaddress Agriculture sector constraints, and Initiatives toaddress entrepreneurial constrains. Please refer appendix A toget a comprehensive idea of the proposed financial investment ofthese projects.

4.6.2.1.1 Objectives of these initiatives in generalIn general purview proposed initiatives of the Governmentconcentrates more towards attracting private sector investmentwith the propensity to increase employment opportunities whilstenhancing technical skills of farming communities in order to bemore productive.

4.6.2.1.2 Significance; constraints addressedGovernment objectives on agriculture sector development pertainsto resolve most of the technical incapability’s of people thus,to reduce issues related to slow growth, technical/ technologicalskills and basic input related problems.

4.6.2.1.3 Initiatives to address Agriculture sector constraintsProgrammes categorised under this study are derived from thelocal governments ‘three year master plan’ (Three year EasternProvince Development Plan, 2007) towards developing theagricultural sector. Hence the objectives and significance ofthese plans as depicted in table 1 are more towards solvingissues related to infrastructure development and investmentattraction.

4.6.2.1.4 Initiatives to address Agriculture sector constraintsTable 5: Initiatives to address Agriculture sector constraints

Programmes Objectives Significance;Constraintsaddressed

Duration

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Production andproductivityenhancement

To increase thecultivationarea andcroppingintensity

Mitigates issuesrelated to lands andcultivation areasruined by war

2007-2010

Promotion ofindustrial cropsand agro-basedindustries

To establishindustrialzones andstimulateprivateinvestment

Helps agro-industrydevelopment

2007-2010

Agriculturalresearch andextensionsystems

To increaseagriculturalresearchstations

In order to identifyopportunities andissues related tothe agro sector

2007-2010

Three year Eastern Province Development Plan, 2007

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4.6.2.1.5 Initiatives to address individual entrepreneurialconstrains

The Government initiatives taken to resolve individualentrepreneurial constraints and basic requirements arecategorised under table. The focus of these initiatives is mainlyto solve technical short comings (as discussed) of theentrepreneurs.

Programmes Objectives Significance;Constraintsaddressed

Duration

Farmmechanisationand post-harvesttechnology

To fill skillsgaps byintroducingappropriatefarmmechanisation

Helps entrepreneursby training themwith adequate skillsto operate.

2007-2010

Agriculturalmarketing

To establisheconomiccentres,storages,communitymarket centresin order toimprove marketfacilities

Providesentrepreneurs accessto markets in orderto stimulateagriculturalactivities

2007-2010

Cropdiversification

To encouragecultivation ofnew crops andcultivationpractices

Helps expandentrepreneurshipthrough productdiversification.

2007-2010

Three year Eastern Province Development Plan, 2007

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4.6.2.2 Fisheries sector

The main objectives of the government in solving constraints withregard to the fisheries sector also can be divided into theprevious categories as illustrated in table1 (Initiatives toaddress individual entrepreneurial constraints) and Initiativesto address Fisheries sector constraints (illustrated in table).

4.6.2.2.1 Objectives of these initiatives in generalGovernment’s proposed projects in developing both individual andfisheries sector is mainly focussed to ensure the food securityand nutritional status of people. Despite its prime focus, theinitiatives of the government in providing training and storingfacilities by investing in infrastructure development; highlightsits emphasis on improving the quality and standards of fishproducts.

4.6.2.2.2 Significance; constraints addressedThese initiatives by the government emphasises more on the basicrequirements of entrepreneurs by providing them withboats/fishing gears whilst remedying the key issues faced byentrepreneurs through developing access to markets, appropriatetraining and storing facilities much needed by entrepreneurs toprotect their harvest.

4.6.2.2.3 Initiatives to address individual entrepreneurialconstrainsTable 6: Initiatives to address individual entrepreneurial constrains

Programmes Objectives ingeneral

Significance;constraintsaddressedin general

ProjectDuration

Development of inlandfisheries

To provide accessto markets

To provideadequateknowledge and

Providesbasicinputs

Providesentrepreneu

2007-2010

Introduction/replacement of boatsand fishing gearUpgrading of fish

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markets and retailsales centres

training

To protect andsafeguard theirharvest

rs a goodprice totheirproducts

Construction offishery trainingcentreConstruction of 2 iceplants and 2 fishprocessing centres.Three-year Eastern Province Development Plan: 2007

4.6.2.2.4 Initiatives to address Fisheries sector constraintsTable 7: 4 Initiatives to address Fisheries sector constraints

Programmes Objectivesin general

Significance; constraints addressed ingeneral

Duration

Development of fishery harbours To induce wholesale auctioning

To ensure quality ofproducts

Addresses issues related to safety, storage, quality and infrastructure.

2007 -2010

Construction of fish landingcitesConstruction of fisheriesoffice/quarters


4.6.2.3 Livestock rearing sector

The government proposed initiatives to address constrains of thelivestock sector also can be divided into Initiatives to addressindividual entrepreneurial constrains (as depicted in table) andInitiatives to address Livestock sector constraints (illustratedin table)

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4.6.2.3.1 Objectives of these initiatives in generalThe government objective in proposing initiatives for this sectormainly focuses on reintegrating livestock rearing into economicdevelopment. Most of the infrastructure development, researchcentres and training facilities proposed under this sector willhelp entrepreneurs in value addition whilst smoothly transferringtechnology to fill skills gaps (as addressed under objective 2).

4.6.2.3.2 Significance; constraints addressedThese initiatives are focussed to mitigate technical constraintsof entrepreneurs, evolving from brain drain and destruction ofproductive stock

Programmes DurationDairy development

2007 - 2010Poultry developmentUpgrading livestock animalsLivestock feed resources development projectEstablishment of cold storage facilitiesEstablishment of animal husbandry schools

Table 8: Initiatives to address individual entrepreneurialconstrains

Table 9: Initiatives to address Livestock sector constraints

Programmes DurationEstablishment of model integrated farms

2007 - 2010Establishment of veterinary investigationcentres Establishment of milk processing unitExpansion of production capacity of Milco (pvt)Ltd.

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4.2.6.4 MSME sector

4.2.6.4.1 Objective of the initiativeMSME sector in the eastern province has grown in rapid successionas an after math of the war hence; the proposed developmentallocates Microfinance facilities to encourage entrepreneurs inresuming/starting business ventures in order to achieveshort/long term economical goals of the province.

4.2.6.4.2 Significance; constraints addressedAs discussed in chapter most women entrepreneurs despite theirrespective sector of employment, required a loan or some form ofcash grant to precede their previous entrepreneurial activities.Some recently widowed women with family responsibilities werehighly in need of start up capital.

4.6.3 Initiatives taken by INGOs

4.6.3.1 Initiatives supporting women entrepreneurs

Prior to the Midyear review, CHAP there were UN, 2009 5 INGOprojects under consideration to develop Agricultural basedlivelihood activities of Batticaloa, 2 projects on economic andinfrastructure development. The objectives of these projects areportrayed on table (11, 13)

4.6.3.2 Initiatives supporting basic needs of IDP

Despite the 7 programmes mentioned above all other projects werefocussing on emergency relief (i.e. temporary assistance andbasic needs) for IDPs. The focus of the remainder of initiativesare as follows; 1 project on providing food aids, 3 projectsaddressing health related issues and 5 projects on assistinghousing, water and sanitation requirements. The following tablesrespectively (12,14 & 15) illustrate the objectives of theseinitiatives.

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Table 10: Initiatives supporting women entrepreneurs: Agriculture

Table 11: Initiatives to assist IDPs

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Table 12: Initiatives supporting women entrepreneurs: Economic


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4.7 Issues of the initiatives

Gilbert 2005 (cited in Alexander et.al. 2006) in his study,criticised INGOs for underestimating long term recoveryinitiatives in many of their aid programmes. He further statedthat INGOs concentrate more on immediate emergency relief hence,

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seldom responding to income generating activities of theaffected.

Alexander et.al. 2006 counter argued Gilberts thought andcommented such response to be quite obvious as INGOs need moretime to analyse and understand locally affected people and theirdevelopment needs.

Despite these arguments the Tsunami Evaluation Coalition, 2006(cited in Alexander et.al. 2006) highlighted the importance ofquickly adapting from emergency relief to sustainable livelihooddevelopment assistance of the affected communities, in order toreduce the level of dependency of displaced persons as well asaffected countries.

Since then, this ideology was adapted by many INGOs andGovernments and today most of the relief programmes in manydeveloping countries looks into restoring/developing sustainablelivelihood activities through MSMEs UNDP, 2006 (cited inAlexander et.al. 2006).

Henceforth, the following sub-sections of this study closelyobserves the initiatives of both INGOs and the local governmenttaken to assist livelihood needs of women entrepreneurs, incomparison to the levels of support they provide to emergencyrelief.

4.7.1 Issues related to initiatives of the local government

4.7.2 Training managerial skills of entrepreneurs

As discussed under the previous chapter, most of the Governmentobjectives in revitalising agriculture looked into developingtechnical skills of entrepreneurs in order to ensureproductivity. But seldom addressed a key aspect that the authorpointed in chapter 1, which is the level of inadequate educationamidst women entrepreneurs.

In order to understand and manage a business well an entrepreneurshould be trained first of all on how to manage scarce resources(Kodthuwakku and Rosa, 2002).

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4.7.3 Heavy emphasis in infrastructure development

As discussed in the previous chapter most of the government’sinitiatives are towards infrastructure development and sectorwise development hence neglecting individual entrepreneurs andselecting private investors as their focal point of interest,this statement is very much evident as we look at the tables1,2,3

4.7.4 Legislation issues

According to an IPCS, 2008 cited in report (IDMC, 2009) the SriLankan government has no special legislation to address thespecific needs of IDPs hence to this end, the biggest issue thewomen entrepreneurs recently resettled undergo is the number ofcheck posts hindering them from moving freely within theirvillages.

4.7.2 Issues related to INGO initiatives

Project cancellation

The INGOs governed by United Nations have contributed to socio-economic development in many countries through the promotion ofwomen entrepreneurship, as we discussed throughout this paper.But unfortunately their effect on the socio-economic developmentin Batticaloa is yet to be seen.

One of the main reasons behind this is the cancellation of 5major livelihood development projects by UN, 2009 during theirmidyear review of the development programs, these programs aredepicted in table X,C This decision has and will affect the womenentrepreneurs of Batticaloa in many ways thus, hindering themfrom gaining world renowned expertise of many organisations.

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Table 15: Project cancellation of INGOs

Table 16: Project cancellation of INGOs

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4.7.2.1 Unavailability of sufficient funds

As pointed out in the previous chapter, 11 out of the 12remaining projects approved for Batticaloa in 2009 are stillpending (UN, 2009) due to lack of funds. The UN team in Sri Lankahas been facing this problem for more than two years now.According to 1 the main reason for such drawback is the negativeimage of the local Governments treatment of IDPs amidst someforeign countries. Despite these issues United Nations continuesto be the prominent donor agency for Sri Lanka, theircontribution for 2009 up to date is $ 97 million (UN, 2009) andthey donated $ 173 million in 2008 (UN, 2009).

Emphasis on emergency relief than livelihood

Another pivotal issue of the INGO programs for Batticaloa is itsemphasis on providing emergency relief and basic needs; asdepicted in table VVV. Currently only 2 projects out of 7 arefocussed on livelihood development, the major issue hinderingINGOs to enforce sustainable livelihood development as pointed in(IDMC, 2009) is restricted access to some areas due to securityconcerns.

4.8 Recommendations

4.8.1 Issues hindering women entrepreneurship viewed from all possible viewpoints.

As discussed in chapter 02 women entrepreneurship is a mechanismto overcome hardships stemming from constrained environments andbuilding sustainable livelihood has been prevalent since thepost-soviet context (Ashwin, 2000 cited in Allen et.al. 2007).The competition of the business environment has hastened withtime hence, women requires more support and motivation to conquerall barriers.

Hence, the following section of the study amalgamates all theissues discussed from objectives 1 to 4 in order to view issueshindering women entrepreneurs from attaining sustainable

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livelihood, from all possible viewpoints (i.e. from entrepreneursprofiles, evolving opportunities, resource constraints,government/INGO initiatives, issues related to such initiatives)prior recommending appropriate solutions which have beensuccessful in similar socio-economic contexts. Also importantlyall recommendations given here are accepted norms by theInternational Labour organisation.

A practical example

Research work of Kodithuwakku and Rosa (2002) based on a naturalexperiment on the resettlement of entrepreneurs in a villageclose to Mahaveli dam Sri Lanka, identified the importance ofmanagement skills as a prime tool an entrepreneur should posit inorder to be successful.

In 1984, the Government of Sri Lanka resettled theseentrepreneurs by providing them basic inputs in the forms of cashand land. The Government also built infrastructure (similar tothe current government initiatives discussed in) in order tosupport entrepreneurial activities, but ten years later a surveyby the government found majority of the entrepreneur’s gonebankrupt. The findings of the root cause bought into limelightmost of the villagers were unsuccessful due to lack of managementand wastage of resources. Among other reasons was borrowing fromprivate investors at a higher interest rate (as discussed in).

4.8.2 Recommendations and conclusion

4.8.2.1 Economic mapping exercises

As achieved through the first and second objectives of thisstudy, it is pivotal for policy makers to understand the profilesof women entrepreneurs and their constraints relative to evolvingmarket opportunities, in order to provide them with the necessarydevelopment assists, it is fair enough to develop infrastructureand providing them with basic inputs (as the SLG is doing) butwhat’s pivotal here is to understand their current requirementsfirst (ILO, 2005).

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4.8.2.2 Business Development Services

The very first objective of this study highlighted 64% of womenentrepreneurs lacked education beyond grade 5 hence; it was amongthe biggest constraints for women in order to response to theevolving entrepreneurial opportunities. This issue was overlookedby the Government’s initiatives as discussed in the 3rd objectiveof this study therefore making it among the deficiencies ofinitiatives (as discussed in the 4th objective) that needs to beaddressed in order to ensure sustainable livelihood attainment ofwomen entrepreneurs.

According to the ILO, 2005 BDS is an effective tool to addresspoor levels of education, weak management skills, productdeficiencies and lack of marketing skills of women entrepreneurs.BDS are also pivotal in filling skills gaps erupting from theloss of experts (as discussed).

4.8.2.3 Collaboration with partner organisations

As discussed in p18 successful women entrepreneurs for instance;the EAP Edirisinghe group of companies led by a Mrs. SomaEdirisinghe or the owner of ODEL outlets Mrs. Ottara Chandiram,women of this calibre stemming from the same country can be usedin decision making processes as they have experienced manyhardships prior reaching the acme of their careers.

4.8.2.4 Building up associations for entrepreneurs

Encouraging women entrepreneurs to from networks and communities(ILO, 2005) can help them share their expertise and evenresources/capabilities with another. Today in the business worldwe see large scale companies merging together in buildingsustainable competitive advantage, so why not these small scalebusiness women.

4.8.2.5 Sustainability

The ultimate goal of all the recommendations discussed aboveshould be aimed towards sustainability, the ability to make these

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women standalone is very important because assistance from agovernment/INGO will not last forever, hence these women shouldbe rigorously trained to attain sustainability no matter whichinitiative is used.

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APPENDICES

APPENDIX A


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APPENDIX B


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APPENDIX C


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APPENDIX D


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adaptation strategies of the sustainable livelihood considerations for the internal displacement...

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