proposal on productive use of remittance 1 by amol acharya: nepal badal osipov: uzbekistan angelita...

Proposal on Productive Use of Remittance

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By

Amol Acharya: Nepal

Badal Osipov: Uzbekistan

Angelita Prado: Philiphines

Richard Bayel Trumah: Ghana

Dr. Chintamani Malviya: India

May 27, 2015

International Training on Course Policies, Strategies and Support Systems for Rural Revitalization

Submitted To:The Weitz Center for Development Studies

• Nepal is a remittance receiving country• One third of the country’s USD 19 billion GDP• 3.5 million people have gone for int’l labor

migration• More than 54% of total 5.4 million Households

(HHs) in Nepal receives remittances• Each HHs receive near about $ 100/month

Context

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• No productive use

Context

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• Most of the money is being spent in importing foods, clothes and other luxury goods which is again sending the money back to foreign land, creating a vicious circle of dependence on remittance.

• So, to break this vicious circle, it is necessary to tap the remittance money and use it in a productive way to create income and employment.

Context

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Project Summary

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Country: Nepal

Geographic Area(s): Gadhawa VDC, Dang District, Mid-Western Development Region

Project Name: Productie use of Remittance

Main goal of the project:

To increase the productive use of remittance in Gadhawa, Dang

Total amount applied for $476,164

Approx. No. of HH covered Direct – 105 HHs, Indirect - 523 HHs

Report Compiled By: Amol Acharya, Badal Osipov, Angelita Prado, Richard Bayel Trumah, Dr. Chintamani Malviya

Phase Period: July, 2015 – December, 2017

Project Area

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NEPAL

Project Area

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Vision• To enhance the socio-economic condition of local

people in Gadhawa Village Development Committee (VDC) in the Dang district of Nepal

Mission• To direct/channelize remittances in Income

Generating Activities (IGA) through the formation of informal cooperatives for the livelihood improvement of the people

VMOSA

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Objectives• By 2017, 3 cooperatives will be formed• By 2017, at least 10% of remittance receiving

Households (HHs) will be involved in agriculture related IGA

• By 2017, agriculture production of the targeting area will be increased by 10%

VMOSA

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Strategies• Educate remittance receiving HHs about

cooperative and its importance• Educate remittance receiving HHs about

agriculture related IGA• Create awareness on remittance receiving HHs

about temporary nature of remittance• Coordinate with local governmental bodies about

the project and use their infrastructures and services

VMOSA

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Model

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1. Cooperatives

2. Grant ($6000)

5. Self Funding from Remittance

(30%)

4. A-IGA

3. Soft Loan (5% interest rate) to HHs

for IGA (upto $1200/HHs or 70% of total budget in

Business Plan

Interest6.MSME and

Scaling Up

Action Plan

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Action Step Person Responsible

Completion Date

Required Resources

Potential Barriers

Collaborators

Coordination with local authority (VDC and DDC)

Project Manager

Through the project cycle

$9000 Lack of time

Local Bodies (VDC, DDC, etc.)

Baseline survey Training Coordinator

July, 2015 $2775 Local Vernacular Language

Households, Local Political Parties, Local NGOs, etc.

Awareness campaign to sensitize local people on productive use of remittance

Training Coordinator

July, 2015 – July, 2016

$17250 Climate and seasonal conditions

Community and Religious Leaders

Action Plan

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Cooperative formation

Project Manager

October, 2015

$2625 Heterogeneous Demography

Local Government Bodies, etc.

Training cooperatives on account keeping, organizational management, etc.

Project Manager

November, 2015 – July, 2017

$21600 Low Literacy/Educational Status of the members in the cooperatives

Sector Experts, District Line Agencies

Farmer Selection for IGA Grant b

Project Manager

and Cooperatives

November, 2015 – December, 2015

$1050 Limited budget ($6000) available

Local Bodies like VDC and DDC

Business plan preparation

Project Manager

December, 2015 – January, 2016

$2250 Unstable prices Low literacy of the farmers

FNCCI, NCB, DAO, DLSO, etc.

Action Plan

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Fund Transfer

Admin/Account Officer

February, 2016 – July, 2017

$18000 None Identified

Bank

Project Monitoring

Project Manager

Throughout the project cycle (Twice a Year)

$4400 None Identified Local Government Bodies, Donors

Formal registration of the Cooperatives

Training Coordinator

September, 2017 – October, 2017

$300 Failure of Cooperatives in creating some kind of business

NCB,District Administration Office (DAO)

Evaluation and Future Planning

Project Manager

November, 2017

$2250 Donor, Consultant

Logical Framework

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Objectives Narrative Summary

Measurable Indicators

Means of Verification

Assumption

Goal To increase the productive use of remittance in Gadhawa, Dang

Percentage of remittance being used in capital formation

Official Report from Nepal Rastra Bank/ Ministry of Finance/Thesis

Sufficient saving from the remittance received by HHs involved in Cooperatives

Logical Framework

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Assumption

Purpose To utilize remittance in agriculture related IGA though new cooperative formation for income and employment generation

50% increase in Income of 15 directly benefitting HHs 45 people from HHs involved in cooperatives employed

Official Report from the VDC Field Monitoring and Observation Nepal Living Standard Surveys 2017

The climate remains stable (no extreme climate conditions) and there will be sufficient rain

Logical Framework

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Assumption

Output Form Cooperatives Involved HHs in Agricultural and Livestock Farming Establish Market outlets in Lamahi, Dang

3 cooperatives formed Farmers involved in 15 agriculture related IGA 2 Market Outlets

Registration Documents Registration documents from District Agriculture Office Field Monitoring and Observation

People are interested to work in agriculture IGA together in the model of cooperative

Logical Framework

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Objectives Narrative Summary Measurable Indicators Means of Verification Assumption

Activities Maintain good coordination with local bodies (VDC and DDC)

10 meetings and round-tables conducted with local bodies

Reports, minutes of meetings and letters of invitations

Local officials have enough time

Conducted a detail Baseline survey of the VDC 1 Data collection training conducted, Primary data collected in 2500 HHs of the VDC, 1 Baseline report prepared

Reports, minutes of training, Baseline Survey, etc.

HHs give actual and factual data to the data collector

Organize awarenesstrainings and prepare & distribute communication materials to sensitize local people on productive use of remittance, benefits of cooperative, modern agriculture, etc.

7500 communication materials (leaflets, brochures, etc) prepared and distributed. 3 different trainings (one each in 3 cooperatives) including community leaders, VDC Officials, bank representatives and local people organized

Local mass media coverage Minutes of meetings Interview with Beneficiaries

Stable climatic conditions Easy availability of Resource Persons for related trainings

Form New Cooperative

3 new cooperatives formed Constitution, By-laws and Code of Conduct of the cooperative Field Visit and Interview with members of Cooperatives

Respect and Appreciation for Heterogeneity of population

Organize various trainings to help cooperatives on account keeping, organizational management, government policies, agriculture, animal husbandry, marketing

4 different types of training (one each in 3 cooperatives) conducted with the member of cooperatives

Training program manualCertificates of trainingTerms Of Reference (TOR)Trainer/Consultant

Stable climatic conditions Safe conditions for organizing trainings

Farmer Selection for IGA Grant 15 farmers, 5 each from 3 cooperatives, selected and recommended eligible for receiving grant

Letter of testament from the cooperative Appraisal of selected farmers Monitoring Report

Selection of the direct beneficiaries is done in peaceful way

Logical Framework

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Objectives Narrative Summary Measurable Indicators Means of Verification

Activites Prepare Business plan

15 Business plan prepared TOR for consultant hired Business Plan

Easy availability of Resource Persons

Fund Transfer 3 Bank accounts, one each of three cooperatives, opened $18,000 given to 15 HHs in 3 installments

ATM Card and Cheque of the bank account Voucher/ receipt of payment

….

Conduct Monitoring of the Project

The project monitored by 5 times, once in every six months

Monitoring report Minutes of meetings with stakeholders

….

Formal registration of successful Cooperatives

3 cooperatives successfully registered in NCB

Certificate of Registration No drastic changes in policies regarding cooperative registration

Evaluation of the project and do future planning

1 project evaluation conducted involving local governmental bodies, donor, beneficiaries, etc.

Project Evaluation ReportMinutes of Meetings

No significant political change or natural disaster take place

Prepare Business plan for 15 agriculture related IGA

15 Business plan prepared TOR for consultant hired Business Plan

Easy availability of Resource Persons

• The grant will be transferred to cooperatives via. bank account, same will be applicable for soft loan

• Program and financial reporting will be done every three months.

• Monitoring will be program will be done every six months.

• Financial Guideline and Policy of the organization will be followed strictly.

• In case if someone is found guilty, stern action shall be taken.

Tackling Corruption and Building Integrity

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• The money being spent in consumables would be channelized to productive investment particularly in agricultural revitalization of rural villages

• Improved social and economic situation of HHs• Decreased dependency in foreign migration• Control brain drain and thus create

entrepreneurship within the country

Expected Outcomes

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• Development Fund – Norway (USD 4500)• Israel Embassy in Nepal (MASHAV)• Gadhawa Village Development Committee (VDC)• District Development Committee (DDC) Dang

Potential Sources of Budget

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