The Aga Khan Rural Support Progra A Third Evaluation -. kg~~~~~~~~~~~; -' * ~~~ '.~ _ ''; ,' /X t~~~~~932"' ''." 44 Z - ' a,' - ' 4 .' - 4,{, ' : A World Bank Operations Evaluation Study The Aga Khan Rural Support Program A Third Evaluation Other Titles in the Series PREPARED BY THE WORLD BANK OPERATIONS EVALUATION DEPARTMENT Lending for Electric Power in Sub-Saharan Africa (1996; contains summaries in French and Spanish) Industrial Restructuring: World Bank Experience, Future Challenges (1996; contains summaries in French and Spanish) Social Dimensions of Adjustment: World Bank Experience, 1980-93 (1996; contains summaries in French and Spanish) 1994 Evaluation Results (1996; contains summaries in French and Spanish) Ghana Country Assistance Review: A Study in Development Effectiveness (1996; contains summaries in French and Spanish) Evaluation and Development: Proceedings of the 1994 World Bank Conference (1995) Developing Industrial Technology: Lessons for Policy and Practice (1995; contains summaries in French and Spanish) The World Bank and Irrigation (1995; contains summaries in French and Spanish) 1993 Evaluation Results (1995; contains summaries in French and Spanish) Structural and Sectoral Adjustment: World Bank Experience, 1980-92 (1995; contains summaries in French and Spanish) Gender Issues in World Bank Lending (1995; contains summaries in French and Spanish) The World Bank's Role in Human Resource Development in Sub-Saharan Africa: Education, Training, and Technical Assistance (1994; contains summaries in French and Spanish) 1992 Evaluation Results (1994; contains summaries in French and Spanish) New Lessons from Old Projects: The Workings of Rural Development in Northeast Brazil (1993; contains summaries in French, Portuguese, and Spanish) World Bank Approaches to the Environment in Brazil (1993; contains summaries in French, Portuguese, and Spanish) Evaluation Results for 1991 (1993; contains summaries in French and Spanish) Trade Policy Reforms under Adjustment Programs (1992; contains summaries in French and Spanish) World Bank Support for Industrialization in Korea, India, and Indonesia (1992; contains summaries in French and Spanish) Population and the World Bank: Implications from Eight Case Studies (1992; contains summaries in French and Spanish) Forestry: The World Bank Experience (1992; contains summaries in French and Spanish) The Aga Khan Rural Support Program in Pakistan: Second Interim Evaluation (1990; contains summaries in French and Spanish) The Aga Khan Rural Support Program A Third Evaluation THE WORLD BANK WASHINGTON, D.C. Copyright © 1996 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing July 1996 The opinions expressed in this report do not necessarily represent the views of the World Bank or its member governments. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. Some sources cited in this paper may be infor- mal documents that are not readily available. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission prompt- ly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A. The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Iena, 75116 Paris, France. Cover: Traditional wheat threshing with a bullock team in the Northern Areas (Pakistan) Photo Credit: Julian Blackwood ISSN: 1011-0984 Library of Congress Cataloging-in-Publication Data The Aga Khan Rural Support Program: a third evaluation. p. cm.-( A World Bank operations evaluation study, ISSN 1011-0984) Evaluation made by the World Bank's Operations Evaluation Dept. Includes bibliographical references. ISBN 0-8213-3664-9 1. Aga Khan Rural Support Programme-Evaluation. 2. Rural development-Pakistan-Case studies. I. World Bank. Operations Evaluation Dept. II. Series. HN690.5.Z9C61864 1996 307.1'412'095491-dc2O 96-22782 CIP Contents Foreword xi Editor's preface xii Prefacio xiii Nota del redactor xiv Avant-propos xv Preface du redacteur xvi Acknowledgments xvii Abbreviations and acronyms xviii Executive summary 1 Resumen 10 Resume analytique 21 1. Introduction 31 2. Program impact 34 Asset creation 35 Production and income 36 The economy within households 38 Changes in household welfare 40 Equity in impact 41 Changing attitudes and socioeconomic conditions 44 3. Program instruments 45 Village institutions 45 Productive physical infrastructure 54 Natural resource management 60 Human resource development 74 Marketing and enterprise development 79 Savings and credit 81 vii 4. Women's participation in the Aga Khan Rural Support Program 94 The social context 94 Women's roles in the rural household 94 Women's organizations 96 Production packages 97 Savings and credit 100 AKRSP female staff and integration 101 Women's organization links with other agencies 103 Social change and the empowerment of women 103 5. The Aga Khan Rural Support Program as an organization 105 Staffing issues 105 Integration and decentralization 106 Monitoring, evaluation, and research 107 Management, the board, and donors 110 Expenditure and funding 111 Nongovernmental organizations 111 6. Replicability-transfer of experience 113 7. Future direction and outlook 116 The strategy 116 Village organizations 118 Infrastructural development 120 Natural resource management 120 Human resource development 122 Savings and credit 123 The gender issue 127 Management, organization, and governance 128 Annexes 131 References 161 Boxes 3.1 Some findings of institutional maturity index studies on village organizations in 1991 48 3.2 Some findings of institutional maturity index studies on women's organizations in 1991 52 viii Tables 2.1 Per capita income in the program area, 1982-91 35 2.2 Asset creation through productive physical infrastructure, 1989-94 36 2.3 Percentage increases in selected assets subject to AKRSP activities, 1981-91 36 2.4 Household income by program region 37 2.5 Selected comparisons-Baltistan 1991 38 2.6 Household labor distribution by gender for household activities and crop production in Gilgit district, 1989 39 2.7 Literacy rates by region (10 years of age and older) 41 2.8 Equity and program resource allocations 42 2.9 Farm size and resource endowment 43 3.1 Uptake of agricultural supplies through AKRSP, 1989-94 60 3.2 Women's organizations and vegetable development, 1989-94 64 3.3 Value of vaccines/medicines distributed through AKRSP 66 3.4 Technological innovations to improve winter feed utilization 67 3.5 Poultry improvement through women's organizations 68 3.6 AKRSP forestry activities, 1989-94 69 3.7 Natural resource management specialists active 75 3.8 Farmer contacts by village specialists (VS) 76 3.9 Average earnings of livestock master trainers 77 3.10 Savings by members of village and women's organizations by district, 1983-94 81 3.11 Short-term credit disbursed by loan purpose and group membership, 1983-94 82 3.12 Medium-term credit disbursed, 1984-94 83 3.13 VO/WOCP loan disbursement to members, 1989-94 84 3.14 Microenterprise Credit Program disbursements, 1992-94 85 4.1 Subjects in which women participated in household decisionmaking 95 4.2 Women's progress in forestry development, 1994 100 4.3 AKRSP female staff, 1989-94 102 ix Foreword This is the third independent evaluation by * People sustain their support for a coopera- the World Bank's Operations Evaluation De- tive venture that yields them obvious bene- partment of the Aga Khan Rural Support Pro- fits. Community organizations normally gram (AKRSP) in northern Pakistan. Request- need assistance and training to manage their ed and funded by the Aga Khan Foundation affairs, and guidance on how activities of and its co-donors, the evaluation was under- communal benefit can be expanded. These taken to help reposition the program as it en- organizations should progressively be linked ters a new phase. with the regular public sector development framework. Now in its thirteenth year, the program has attracted wide interest. Publication of the eval- * Nongovemmental organizations, more read- uation report provides an opportunity not ily than governments, can provide the high- only to supply fresh information about an in- ly participatory and responsive approaches novative and successful approach to rural de- that facilitate self-help activities. To do this velopment but also to highlight the issues that they need appropriate working methods and arise as a program of this nature matures. Sev- performance incentives for their staff. eral of the lessons to be drawn from the pro- gram's experience have broad relevance: OED consulted with all the stakeholders of the pioneering AKRSP initiative. Their views, in- * Poor rural communities can be mobilized to cluding those in dissent, were carefully taken become active participants in their own de- into account. However, the opinions expressed velopment if they are given the chance to in the report do not necessarily represent the choose and realize investments with readily views of the government of Pakistan, the appreciated economic benefits. Foundation, the other donor agencies, or the World Bank. * Grants and technical assistance to comple- ment local labor can make priority invest- Robert Picciotto ments possible and provide the incentive Director General for community action. Operations Evaluation xi Editor's preface The Aga Khan Rural Support Program (AKRSP) mounted joint monitoring missions each year. was conceived as a new approach to fostering The findings of these efforts provided useful the development of rural people. It was estab- insights. tished by the Aga Khan Foundation1 with the support of numerous donor agencies. The pro- In April/May 1995, an OED evaluation team gram's primary purpose is to involve rural peo- visited regional and central headquarters and ple in their own development. It also aims to villages in each of the four program areas- provide a model of rural development applica- Astore, Baltistan, Chitral, and Gilgit. The team ble in other settings. also exchanged views with representatives of AKRSP's board and donors at the beginning A Strategy Development Committee appointed and end of the field visit. The draft report was by the board of AKRSP made substantial pro- discussed at a meeting held in Brussels with posals in 1994 for the program's future direc- representatives of the Pakistani government, tion. In view of the program's importance and donor agencies, and the Aga Khan Foundation visibility in this culturally and politically sensi- on September 15, 1995. Individuals from the tive area of Pakistan, and the intention to capi- team also discussed the report with the donor talize on existing achievements in a new phase, liaison group in Islamabad, and with represen- the Foundation invited the World Bank's Oper- tatives of the Foundation's Canadian affiliate ations Evaluation Department (OED) to under- in Ottawa. take a third progress evaluation. Earlier evalu- ations, also published by OED, were under- Dennis Purcell taken in 1986 and 1989. Editor The program's monitoring, evaluation, and research section has conducted benchmark Note surveys and evaluations since the early 1990s. These complement a wide array of individual 1. The Aga Khan Foundation is a private, non-denominational, studies as well as an attempt to quantify the philanthropic network established by His Highness the Aga Khan. It seeks to promote social development, primarilv in maturity of each vlllage orgazzatlon. In addl- low-income countries of Asia and Africa, by funding programs tion, since 1991 the program's donors have in health, education, and rural development. xii Prefacio Esta es la tercera evaluaci6n independiente del * La gente presta firme apoyo a los esfuerzos Programa de apoyo rural del Aga Khan en el de cooperaci6n que les reportan beneficios norte del PakistAn realizada por el Departa- evidentes. Generalmente, las organizaciones mento de Evaluaci6n de Operaciones (DEO) comunitarias necesitan asistencia y capac- del Banco Mundial. La evaluaci6n, que fue itaci6n para desarrollar sus actividades, solicitada y financiada por la Fundaci6n Aga ademas de orientaci6n para ampliar las ac- Khan y los organismos codonantes, tiene por tividades que beneficien a la comunidad. objeto ayudar a determinar el lugar que debe Estas organizaciones deben vincularse pro- ocupar el programa al iniciarse su nueva gresivamente al plan de desarrollo del sec- etapa. tor publico. El programa, que ya se ha venido aplicando a Las organizaciones no gubernamentales desde hace 13 ainos, ha despertado mucho in- pueden ofrecer, con mayor facilidad que el teres. La publicaci6n del informe de evaluaci6n estado, enfoques sumamente participativos brinda la oportunidad no s6lo de proporcionar y ajustados a las necesidades para la pro- las uiltimas informaciones acerca de una moci6n de actividades de autoayuda. Para estrategia de desarrollo rural novedosa y efi- ello, deben contar con metodos de trabajo caz, sino tambien de destacar los problemas adecuados y ofrecer incentivos a sus que surgen cuando un programa de este tipo se empleados. afianza. Varias de las ensefianzas derivadas del programa revisten gran importancia: El DEO consult6 a todos los interesados en este programa pionero. Sus opiniones, inclu- * Es posible movilizar a las comunidades ru- idas las de quienes estan en desacuerdo, se rales pobres para que participen activamente tuvieron muy en cuenta. Sin embargo, los pun- en su propio desarrollo si se les da la oportu- tos de vista expresados en el informe no repre- nidad de elegir y realizar inversiones cuyos sentan necesariamente las opiniones del go- beneficios econ6micos son evidentes. bierno del Pakistan, la Fundaci6n, los demas organismos donantes ni el Banco Mundial. * Con donaciones y asistencia tecnica desti- nadas a complementar la mano de obra local Robert Picciotto es posible realizar inversiones prioritarias e Director General incentivar la participaci6n de la comunidad. Evaluaci6n de Operaciones xiii Nota del redactor El Programa de apoyo rural del Aga Khan se desde 1991 los donantes del programa han or- concibi6 como un nuevo enfoque para ganizado misiones anuales conjuntas de obser- promover el desarrollo de la poblaci6n rural. vaci6n. Las observaciones derivadas de esta Fue establecido por la Fundaci6n Aga Khan' labor proporcionaron ideas utiles. con el respaldo de muchos organismos donantes. Su principal objetivo es lograr que la En abril y mayo de 1995, un equipo de evalu- poblaci6n rural participe en su propio desar- aci6n del DEO visit6 la sede central, las sedes rollo. Ademas, se propone servir de modelo de regionales y los poblados de las cuatro regiones desarrollo rural susceptible de aplicaci6n en comprendidas en el programa: Astore, Baltistan, otras partes. Chitral y Gilgit. Ademas, al comienzo y al final de la visita de observaci6n, el equipo intercam- En 1994, el Comite de formulaci6n de estrate- bi5 opiniones con representantes del directorio gias designado pOr el directorio del programa del programa y los donantes. La versi6n preli- formul6 importantes propuestas relativas a la minar del informe fue examinada con los repre- futura orientaci6n del mismo. En vista de lo sentantes del gobiemo del Pakistan, los organis- destacado e importante que es el programa en mos donantes y la Fundaci6n Aga Khan en una esta zona cultural y politicamente inestable del reuni6n celebrada en Bruselas el 15 de septiem- Pakistan, y dado que se pretende aprovechar bre de 1995. Asimismo, los integrantes del los avances logrados en la pr6xima etapa del equipo tambi6n analizaron el informe con el programa, la Fundaci6n solicit6 al Departamen- grupo de enlace de los donantes en Islamabad, y to de Evaluaci6n de Operaciones (DEO) del con los representantes de la filial canadiense de Banco Mundial que Ilevara a cabo una tercera la Fundaci6n en Ottawa. evaluaci6n de los progresos alcanzados. Las evaluaciones anteriores, tambien publicadas Dennis Purcell por el DEO, se realizaron en 1986 y 1989. Redactor La secci6n de seguimiento, evaluaci6n e inves- tigaci6n del programa ha venido realizando Nota encuestas de referencia y evaluaciones desde comienzos de la decada de 1990. Estas 1. La Fundaci6n Aga Khan es una red de organizaciones hu- sirvieron de complemento a una amplia va- manitarias privadas y no confesionales creada por su Alteza el riedad de estudios de casos, y al intento de Aga Khan. Tiene por objetivo promover el desarrollo social - principalmente en los paises de ingreso bajo de Asia y Africa-, cuantificar el nivel de desarrollo alcanzado por mediante el financiamiento de programas de salud, educacion cada organizaci6n comunitaria. Ademas, y desarrollo rural. xiv Avant-propos Le present rapport retrace les resultats de la * La population appuie durablement les actions troisieme evaluation independante du Programme entreprises avec sa collaboration lorsque de la Fondation Aga Khan a l'appui du developpe- celles-ci leur procurent des avantages tan- ment rural (AKRSP) dans le Nord du Pakistan. gibles. Les organisations communautaires ont Effectuee par le Departement de l'evaluation retro- normalement besoin d'assistance et de forma- spective des operations (OED) de la Banque mon- tion pour gerer leurs affaires et de conseils sur diale, cette evaluation avait ete demandee, et fi- les moyens a mettre en oeuvre pour develop- nancee, par la Fondation Aga Khan et les autres per les activites profitables a l'ensemble de la donateurs, en vue de repositionner le programme communaute. Elles devraient etre pro- alors qu'il entre dans une nouvelle phase. gressivement liees au processus normal de developpement sous la responsabilite du L'AKSRP, qui est dans sa treizieme annee d'ex& secteur public. cution, suscite beaucoup d'int&et. La publication du rapport d'evaluation retrospective est l'occa- * Les organisations non gouvernementales peu- sion non seulement d'apporter de nouveaux 6l6- vent, plus facilement que le secteur public, ments d'information sur une approche du adopter le type d'approche souple et partici- dsveloppement rural novatrice et fructueuse, pative qui encourage l'auto-assistance. Elles mais aussi d'appeler l'attention sur les questions doivent pour cela faire appel a des methodes qui se posent lorsqu'un programme de cette na- de travail appropriees et savoir motiver leur ture arrive a maturite. Plusieurs des lecons a tirer personnel. de 1'AKRSP presente un int&ret general: L'OED a consulte toutes les parties associees a * I1 est possible de mobiliser les communautes l'initiative novatrice que constitue 1'AKRSP. rurales pauvres et de les associer activement a Leurs points de vue, meme critiques, ont ete leur propre developpement lorsqu'on leur duiment pris en consideration. Cependant, les donne l'occasion de choisir et d'entreprendre opinions exprimees dans le rapport ne des investissements dont les avantages representent pas necessairement celles du gou- 6conomiques sont manifestes. vernement pakistanais, de la Fondation, des autres organismes donateurs ni de la Banque * L'octroi de dons et la fourniture d'une assistance mondiale. technique en complement des apports en main- d'oeuvre de la population locale peut rendre Robert Picciotto possible la realisation d'investissements priori- Directeur general taires et encourager une action communautaire. Evaluation des operations xv Preface du redacteur Le Programme de la Fondation Aga Khan A l'ap- sation villageoise. De plus, depuis 1991, les pui du developpement rural (AKRSP) a ete bailleurs de fonds organisent chaque annee des concu comme une nouvelle approche du rmissions de suivi conjointes. Les resultats de developpement au profit des populations tous ces travaux ont apporte tous les elements rurales. Il a et cree par la Fondation Aga Khan' de formation pour la presente evaluation. avec l'aide de nombreux organismes donateurs et a pour principal objectif de faire participer la En avril/mai 1995, une equipe de l'OED s'est ren- population rurale A son propre developpement. due au siege de I'AKRSP, dans ses bureaux Il s'agit aussi d'etablir un modele de developpe- regionaux et dans des villages de chacune des ment rural reproductible dans d'autres quatre zones du programme Astore, Baltistan, conditions. Chitral et Gilgit. Elle a aussi pris contact avec des representants du Conseil d'administration de Le Comite de pilotage strategique nomme par le I'AKRSP et des bailleurs de fonds au d6but et a la Conseil d'administration de I'AKRSP a fait des fin de sa mission sur le terrain. Le projet de rap- propositions de fond en 1994 sur les orientations port a ete examine lors d'une reunion tenue a futures du programme. Compte tenu de l'impor- Bruxelles le 15 septembre 1995, avec des tance et de la visibilite du programme dans cette representants du gouvernement pakistanais, des region du Pakistan sensible sur le plan culturel bailleurs de fonds et de la Fondation Aga Khan. comme sur le plan politique, la Fondation, Des membres de l'equipe ont egalement examine voulant tirer parti des resultats dejA obtenus pour le rapport avec le groupe de liaison des bailleurs optimiser la prochaine phase, a invite le Departe- de fonds a Islamabad et avec des representants de ment de 1'6valuation retrospective (OED) de la l'antenne canadienne de la Fondation, a Ottawa. Banque mondiale a entreprendre une troisieme 6valuation de l'avancement du programme. Les Dennis Purcell deux precedentes, publiees aussi par l'OED, ont R6dacteur et effectuees en 1986 et en 1989. La section de suivi, evaluation et recherche de Note I'AKRSP effectue des enquetes de reference et des evaluations retrospectives depuis le debut 1. La Fondation Aga Khan est une organisation philan- des annees 90. Celles-ci viennent completer thropique, laique et privee, qui a ete creee par l'Aga Khan. Elle a tout un eventail d'etudes sur des questions par- pour objectif de promouvoir le progres social, principalement dans les pays A faible revenu d'Asie et d'Afrique, en finani;ant ticulieres et le travail d'analyse entrepris pour des programmes dans les secteurs de il sante, de 1l'ducation et mesurer le degre de maturite de chaque organi- du developpement rural. xvi Acknowledgments The evaluation team consisted of Dennis Purcell extensive interviews with program staff, gov- (team leader), Graham Donaldson, Julian Black- ernment officials, and interested parties-per- wood, J.D. von Pischke, and Pamela Hunte mitted an appreciation of what the program (World Bank), and consultants Mike Collinson has accomplished. The data also served as a and Tariq Siddiqui. Charles Sheerin provided basis for an analysis that, hopefully, leads to research support. Angie Gentile-Blackwell was sound conclusions and useful recommenda- responsible for copy and production editing. tions for the program's next phase. Interaction Charina Go and Diana Qualls provided admin- with staff and the new management of AKRSP istrative support in report preparation. was especially important for the evaluation team, as these individuals are facing the same The evaluation was not intended to collect sub- issues being considered by the program's Strat- stantial primary source data to undertake its egy Development Committee and external re- analysis. Rather, it relied largely on statistics viewers. The study team gratefully acknowl- and reports presented by AKRSP's manage- edges these individuals who provided fertile ment, consultants, and Monitoring, Evaluation, ground for discussion on how the program and Research Section. These data-along with should be developed to meet the emerging de- field visits to each of the program districts and mands of the Northern Areas and Chitral. xvii Abbreviations and acronyms ADB Asian Development Bank AFL Agriculture, forestry, and livestock AKES Aga Khan Educational Service AKF Aga Khan Foundation AKHS Aga Khan Health Service AKRSP Aga Khan Rural Support Program BAMA Baltistan Apricot Marketing Association BRSP Balochistan Rural Support Program CADP Chitral Area Development Project CVP Commercial vegetable package EDD Enterprise Development Division ESC Enterprise Support Company FAO Food and Agriculture Organization GAMA Gilgit Apricot Marketing Association GFI Gross farm income GHI Gross household income GTZ Deutsche Gesellschaft fur Technische Zusammenarbeit HBP I & II Home-based Poultry Package I and II HRDI Human Resource Development Institution IFAD International Fund for Agricultural Development IMI Institutional maturity index IUCN World Conservation Union JMM Joint monitoring mission KIDP Kalam Irrigation Development Project LBRDD Local Bodies and Rural Development Department MECP Microenterprise Credit Program MER Monitoring, evaluation, and research NARC National Agricultural Research Center NGO Nongovernmental organization NORAD Norwegian Agency for International Development NRDB Northern Region Development Bank NRM Natural resource management NRSP National Rural Support Program xviii NWFP Northwest Frontier Province PARC Pakistan Agricultural Research Council PPI Productive physical infrastructure PP&P Plant production and protection RIMI Revised institutional maturity index RWSS Rural water supply and sanitation SAP Social Action Program SDC Strategy Development Committee SFDP Sustainable Forestry Development Program SFP Social Forestry Program SIAP Swabi Irrigated Agricultural Project SO Social organizer SOU Social organizer unit SRSC Sarhad Rural Support Corporation UNDP United Nations Development Program UNICEF United Nations Children's Fund UST Treatment of wheat straw with urea VOCP Village Organization Credit Program VO Village organization VP&P Vegetable production and protection VS Village specialist WID Women in development WO Women's organization WOCP Women's Organization Credit Program xix Executive summary This summary highlights the main findings of munities to develop their own self-help capa- an evaluation of the Aga Khan Rural Support bility, provided that the agent has the appro- Program conducted by the World Bank's Op- priate strategy and the facilities and staff to erations Evaluation Department (OED). Chap- implement it effectively. ter 7 examines in detail the implications of these findings on the program's future. AKRSP has reached a stage where it needs to take a hard look at where it stands vis-a-vis de- AKRSP, in its thirteenth year of operation, con- velopment in the north, and what its future role tinues to be an effective instrument to improve should be in attaining its objectives of sustain- community productivity and family welfare in able and equitable development. The rural pop- Pakistan's Northern Areas and Chitral. Im- ulation's participation in VOs is already very provements have resulted from the program's high in the district of Gilgit, where nearly three- interventions in productive investments, in quarters of households are members, and in production-support investments, such as ac- Chitral and Baltistan, where about two-thirds of cess roads, in training, and in financial and households claim VO membership. In the re- technical services. A key element has been in- maining parts of these regions and in the district stitutional development at the village level- of Astore, which was only recently included in village organizations (VOs) and women's or- the program, there is still opportunity to contin- ganizations (WOs)-which has provided the ue and expand the traditional AKRSP activities. framework to organize the energies of com- However, in districts where AKRSP has been munity members to avail themselves of out- active for longer periods, a different set of issues side assistance, as well as to direct their own needs to be addressed, namely, how to: resources into more productive endeavors. * ensure that the savings and credit mecha- Not all of the positive changes that have nisms are sustained after AKRSP; accrued in the Northern Region are due to AKRSP. Many non-program' investments and a strengthen village and women's organiza- activities have contributed to development, a tions so that they can function as semi- prime example of which is the Karakoram permanent entities for the good of all com- Highway. Other government and nongovern- munity households; ment investments and services have played a role in social and economic change. Neverthe- * organize and fund further major productive less, AKRSP has demonstrated that an external and social infrastructure, which is still sore- agent can facilitate the organization of com- ly needed; * manage natural resources to realize their The land area under cultivation has substantial- potential in contributing to sustainable de- ly increased due to productive physical infra- velopment; and structure projects (PPIs), which have enhanced the supply of irrigation water. This has been * stimulate local entrepreneurial capacity to important for the expansion of cash crops such enhance the area's economy. as fruit trees and vegetables, and also for forestry, which has a longer-term benefit, and These issues gave rise to the appointment of alfalfa as a fodder crop for livestock produc- a Strategy Development Committee (SDC) tion. The enhanced ability to procure inputs in 1992 to assist the owners and board of and dispose of outputs through program ser- AKRSP in defining the appropriate future di- vices and improved village access has comple- rection and scope of the program. The OED mented the improvement in the resource base, evaluation mission examined these same is- resulting in greater productivity and lower unit sues and the committee's proposals, which costs of production. were being finalized at the time of the mission. The evaluation also reviewed the Credit has been made easily accessible so that program's impact to date, and the efficiency households have been able to purchase more and effectiveness of its various development production inputs and hold onto produce instruments. when prices are low. The women members of households have benefited from special pro- grams through WOs, including vegetable and Program impact small-scale poultry production, and have real- ized a degree of independence by having their Comprehensive household income surveys, own personal savings accounts. undertaken for the first time in 1992, do not provide a basis for an overall quantitative as- However, not all program activities have been sessment of the program's impact on the tar- equally successful, and major adjustments geted population. However, AKRSP has inten- need to be made to improve the effectiveness sively monitored the implementation of its of some development instruments. Also, the development instruments and undertaken nu- persistence of the typical household economy merous studies to evaluate their effectiveness. model, in which nearly half of the income is This and secondary data provide a reasonable non-farm related, emphasizes the need to ex- basis for program evaluation. amine longer-term prospects and opportuni- ties in designing support strategies. Average household income appears to have almost doubled in real terms during the pro- gram implementation period. The basic pro- Equity issues duction system of most households, which is a mixture of agricultural/livestock production The Gilgit region has more complete coverage and off-farm, often nonagricultural, use of fam- than other areas, which is largely related to its ily labor, has not changed. However, agricul- longer period of program participation. It also ture is still usually the major source of house- has more economic development, but this can hold income, and improvements in agriculture be linked to its location, which provides more have made a major contribution to income im- opportunities than the other regions. Howev- provement. AKRSP has been a partner in this er, overall, AKRSP appears to be substantially agricultural development. meeting its objective of distributing develop- 2 ment opportunities equitably among regions, change in the traditional role of women, more communities, and households. This does not so in some locations than others, and the pro- mean that benefits have been distributed gram has to be realistic in estimating the pace equally. Rather, it means that differences can at which change can be achieved. Nevertheless, be largely explained by variations in the level programs should be carefully designed and of resources available to, and in the initiative monitored to be responsive to these constraints of the leadership within, a community or wherever this is feasible. More targeted pro- household. grams may be warranted to reach the less for- tunate women in communities. AKRSP aims at (a) improving the welfare and income of the majority of households, (b) en- suring that its grant and any subsidized sup- Village organizations port are, indeed, equitably distributed, and (c) undertaking specific programs targeted to im- There is a growing realization of the value of prove the conditions of those who appear un- the village organization concept. The govern- able to benefit from available opportunities ment of Pakistan has agreed to use the village without special assistance. Performance is satis- organizations as the instrument to channel its factory in all three functions, and the women's national Social Action Program in the Northern program is an example of the latter function. Areas; the chief secretary of the Northern Areas However, continued vigilance is required in has instructed line departments to maximize monitoring this aspect of AKRSP support with- use of village organizations in implementing in communities. government programs; and the government recently used the VOs and AKRSP to distribute The PPIs in communities are often land-based rehabilitation funds following the disastrous (for example, irrigation channels and new crop rains of 1992. Many village organizations have land) and are distributed equally to all land- been in existence since 1982 and 1983, and it holders, with favorable effects on resource dis- could therefore be expected that they have ma- tribution. However, although the Northern tured into stable self-sustaining entities if the Region is unique in Pakistan in that virtually program's objective of developing self-help all rural households who rely on income from institutions is realistic. In practice, there are agriculture actually own land, situations could many that now exhibit these characteristics, arise in which poorer households do not own especially in some areas of Gilgit region, but land and do not share in land-based PPI bene- successful VOs are also found in the other two fits. Such situations would require special in- regions. However, the majority still need assis- terventions to realize AKRSP's equity objec- tance if they are to realize their potential. tive. Similarly, the uptake of services also warrants careful monitoring to ensure that Improving the skills of individuals and the those with more resources do not capture an leadership in VOs will help, but the most im- inappropriate share. portant factor determining their future will be a perception in the community that the VO will Within households, despite the creation of continue to provide significant benefits that are women's organizations and significant ad- not likely to be obtained by other means. The vances in a targeted program to assist mem- initial benefits have been very obvious, but the bers, it has been more difficult to effectively task is now to verify and demonstrate that the provide equal opportunities to all women. Illit- longer-term benefits of continuing with the in- eracy and religious and cultural factors inhibit stitution are worthwhile. Advantages could be 3 in the form of (a) more effective interaction for communities to form village organizations with outside agencies to acquire benefits and and enter into development partnerships with services for the majority, (b) greater access to AKRSP. However, the program has slowed capital resources for productive or consump- down in recent years, especially in areas that tive use through sustainable savings and lend- have had longer exposure to AKRSP activities. ing arrangements, (c) organization of the use Although many VOs have been able to avail and maintenance of common and shared prop- themselves of additional investment support erty, and (d) provision of a mechanism for re- from AKRSP by being involved in multi-com- solving internal or inter-community disputes. munity "cluster" projects and by participating in such programs as forestry development An important development has been the links contracts, the policy has been to limit the PPI encouraged by AKRSP between the village or- graint to a single investment. This is consistent ganizations and outside agencies to allow VOs with the objective of fostering a self-help atti- to capture more development and social ser- tucle and avoiding the dependency syndrome. vices. To fully realize this potential, however, However, there is obviously a big potential to AKRSP will have to be perceived as having no accelerate development by more infrastructur- biases and as providing no preferential treat- al investment. This is especially so for irriga- ment to any particular area, sect, or type of tion development, as this not only expands the community. Despite the potential advantages productive resource base, but also allows the of these links, it should not be assumed that a use of higher value crops, both of which have government agency can simply substitute for a demonstrated their contribution to program nongovernmental organization like AKRSP in benefits. implementing effective dialogues and action programs with communities through the VO. It This suggests that AKRSP should become more is likely that AKRSP will have to provide train- proactive in identifying additional infrastruc- ing to relevant government agencies if this ture investments that (a) provide substantial mechanism is to be used effectively. common good, (b) are beyond a community's capacity to initiate and fund by itself, (c) are of a To date, the program has not encouraged the type where the VO labor resource could make a formalization of the village organizations' sta- significant contribution, and (d) would be tus to maximize community perceptions that amenable to VOs' taking responsibility for op- VOs are their own institutions. However, in eration and maintenance subsequent to con- view of the VOs' emerging role as partners in struction. This is consistent with the wider area government investment programs, and as enti- planning function envisaged for AKRSP's engi- ties involved with the proposed Northern Re- neering section. The latest Strategy Develop- gion Development Bank, it appears necessary ment Committee paper proposes an expanded that consideration now be given to the adop- program and assumes that funding would be tion of some legal or quasi-legal structure. largely provided by govemmental, bilateral, and other nongovernmental programs comple- menting community contributions in cash, in Productive Physical Infrastructure kind, or as borrowed money. However, there Program are likely to be many situations in which a grant frorn AKRSP would make a funding package The PPI Program has had a substantial viable and would give the program greater economic development impact and has been leverage to ensure efficient implementation and very effective in providing the basic incentive the opportunity to influence any equity consid- 4 erations that might be warranted. Such partici- Recent initiatives have attempted to make the pation should not exacerbate dependency, as program more responsive to local needs by the communities would be active contributors decentralizing it to the regions and ultimately and would be responsible for eventual opera- to field management units. While this appears tion and maintenance. Success in involving logical, the difficulty of attracting and retain- VOs with government agencies in this type of ing skilled staff has to be taken into account productive or social infrastructure would do when locating personnel and formalizing links much toward introducing a system that allows among the different levels of AKRSP's natural communities to become directly involved in the resource management program. Nor does the local and regional planning process. evaluation team believe that, on its own, this will be enough to instill the required farming system perspective in NRM staff and meet the Natural resource management requirements for more appropriate technology (NRM) development. Important new technologies have been intro- Suggestions are made for an approach that duced in fruit, vegetables, potatoes, and involves key farmers in project design and in forestry, and significant advances have been evaluation of the results of experimentation. made in animal health and poultry production. This, however, would require more staff and However, much less impact has been obtained funding than is currently envisaged. Never- in cereals and animal nutrition, the production theless, this approach is sufficiently important and provision of which account for the majori- to warrant its consideration as a specially ty of resources, in terms of time and money, in funded project. It is also possible that interna- rural households. The evaluation considers tional entities that specialize in this field may that significant improvements can be made in be interested in collaboration. A relatively high the NRM program, and that greater emphasis profile project with international collaboration should be placed on it in the next phase. This is may be able to overcome the problem of also in accordance with the Strategy Develop- retaining natural resource management staff of ment Committee's recommendations and with quality. Links with the national research sys- the thinking of AKRSP's senior staff and man- tem would also be essential to ensure the long- agement. Improvements can be made in the term sustainability of the adaptive research techniques used to identify the needs of differ- investment. The possibility of contracting out ent types of farming households and to gener- parts of the adaptive research program to enti- ate relevant technologies to meet these needs. ties with comparative advantage should be considered. A greater understanding of the constraints and potentials of households in the major categories of production systems should not influence Human resource development only technology development, but also the whole dialogue process through which AKRSP AKRSP's training programs have made a plans its interventions with communities. The major contribution to developing human re- relatively standard solutions to problems iden- sources. The concept of training villagers in tified in dialogues suggest that the responsive- specific fields so that these individuals will ness of the process is less than it should be, es- continue to provide services within their com- pecially when some of the "solutions" have munities has been a key element in the AKRSP achieved only low levels of adoption. strategy. 5 However, results have not been uniformly will require substantially expanded training of good, particularly in the technical fields. Where selected individuals in accounting and man- the specialist provides a service that is general- agement. This program will also need more ly appreciated as a specialized skill, such as intensive follow-up support in the field if it is budding/grafting fruit trees, or involves a skill to realize its full potential. and incurs a cash cost, such as administering vaccines or drugs, there is a greater willingness Another important aspect of human resource for other members of the community to pay development relates to the training of AKRSP the individual for services rendered. There is staff. It has always been the program's policy less willingness to pay for general agricultural to recruit local staff to the maximum extent advice. It has also been difficult for AKRSP possible. However, in the case of senior staff staff to adequately support the specialists. positions it has often been necessary to recruit AKRSP has responded to this situation by re- non-northerners because of the scarcity of suit- cently focusing a lot of attention on the devel- ably trained local candidates. This approach opment of "master trainers." This involves has been legitimate, but AKRSP has probably more intensive training of selected specialists not placed sufficient emphasis on ensuring to increase their skill level, but also assistance that local staff receive preferential advanced to carry on a business associated with the spe- training opportunities to enable them to as- cialized skill area, such as the supply of inputs sume senior posts in their local area. Had this as vaccines or pesticides. This program promis- bee n done in a concerted program, some of the es to add a permanence to the technical service recent staffing difficulties referred to below system, as these master trainers should consid- might have been avoided. This matter, howev- er it in their interests to continue to enhance er, has recently received management's atten- their skills and to provide appropriate advice tion, and appropriate scholarship arrange- along with their provision of inputs. They are merits are in place. also likely to solicit the cooperation of the more numerous specialists who would be represent- ed in most communities. However, after Marketing AKRSP terminates its intervention, it will still be necessary to have a technical support sys- The marketing program has evolved consider- tem for such experts. This emphasizes the need ably. The earlier emphasis on cooperative mar- to increasingly promote links not only with keting has decreased, and the focus is now private sector providers but also with govern- more appropriately on improving the skills of ment departments that can provide some rele- producers in handling, processing, and present- vant support in the future. ing their produce and on providing links with established markets and/or traders. The two Realization of the intended role of village or- cooperative marketing ventures that have been ganizations as full partners in development established have been beneficial in achieving will be enhanced if there is a greater depth of higher prices for their members, as both in- management training in VOs. In addition, the volved products that were particularly suited to future program is likely to imply cooperation this type of intervention. However, both ven- by a number of VOs in larger projects in many tures-the Baltistan and Gilgit apricot market- instances, and a cadre of managers with spe- ing associations-still need nurturing to ensure cial skills will be needed to assume leadership that business acumen is adequately instilled in roles in a multi-community setting. The pro- management. The marketing section has also posed new developments in village banking expanded its horizons into promoting the es- 6 tablishment of nonagricultural business enter- The Northern Region Development Bank's prises, such as village guest houses to capitalize unique financial structure-in having grant on the potential tourist market, and in 1992 equity that does not have to yield dividends changed its title to enterprise development di- for shareholders-provides it with several op- vision (EDD). tions to increase its outreach to clients. First, it could undertake more lending by offering The proposed creation of the Enterprise Sup- longer-term loans. This would increase the port Company (ESC) will necessitate a clear risk in its portfolio, as risk is created by definition of its and the EDD's responsibilities. longer-term commitments. It would require a high level of market and client information. Second, it could take advantage of the low Savings and credit cost of NRDB's funding by subsidizing lend- ing for particular types of investment. Subsi- The Savings and Credit Program has contrib- dized lending was suggested by the pro- uted to the establishment of VOs as useful gram's consultants for social infrastructure community institutions and has facilitated eco- projects with a large "common good" element. nomic development by making credit accessi- This, however, can create expectations that are ble to the majority of the population in the pro- hard to contain and incentives to deal with gram area. It has been a flexible and responsive losses in a nontransparent way. The inclusion instrument that has evolved as it learned from of a transparent grant element in an invest- experience. The village and women's credit ment package to make a loan on regular terms programs introduced in the 1990s have been more viable may be more appropriate. Finally, particularly effective in involving communities NRDB could choose to subsidize savings and households in the credit process. However, through attractive interest rates and staff costs there is a trend of deteriorating repayment per- required for an aggressive savings program. formance in AKRSP's credit portfolio that must Since all VO/WO members save, and because be monitored closely. others in the area also save, a subsidy for sav- ings would benefit the greatest number of The proposal to formalize the Savings and people. Credit Program in a bank specifically for the Northern Region (NRDB) is appropriate. It The Enterprise Support Company is intended provides the opportunity to build on the rela- to finance investments that potentially have tively good performance this instrument has high social and catalytic benefits, but carry ex- enjoyed to date and to create a permanence cessive risk for a regular lender. The company's needed to provide continued financial support business projections show that it is unlikely to for local development. Successful establish- be profitable. Some of NRDB's annual profits ment of this institution, however, will require will be transferred to ESC's equity. It also has a increased professionalism in financial interme- number of features that allow it to interact ef- diation. This will include a shift in strategic fectively with local markets and entrepreneurs. focus from meeting credit needs to creating This is a challenging role that will require very debt capacity, building financial information skillful management. If failure to repay, for any systems, introducing other measures to control reason, is widely witnessed and not effectively and manage risk, improving operations sup- dealt with, some of those who are in a position port and training at the VO/WO level, and to repay may decide to attempt to evade repay- increasing controls and other internal pruden- ment. One way to avoid formation of this cul- tial oversight. ture is to try to ensure that borrowers stand to 7 lose more than lenders when loans are not The links AKRSP has been encouraging repaid. among VOs/WOs and governmental and non- governmental agencies in health, water sup- Because of the importance of containing any ply, and education are especially beneficial to expectation of debt forgiveness, it may be woimen. AKRSP, through the women's organi- more appropriate to include in ESC the social zation vegetable and poultry packages, has infrastructure lending currently proposed for directly enhanced household nutrition and NRDB, as this appears to be the most problem- provided a source of cash income for many atic activity proposed for the bank. women. Integration of gender-related staff and activi- Gender issues ties into the mainstream program should be continued, but not without careful planning The women's organization has proved to be an and. constant evaluation of this complex accepted and viable forum for village women's process. The role of each region's women-in- participation in the Northern Region's devel- development monitors will be especially im- opment process. The WO should be strength- portant in monitoring the effects of the inte- ened in the next phase of AKRSP's work. gra tion process. Additional gender-related While requests from new communities should workshops should be organized to encourage be met, the program should now focus on the open discussion of difficulties that will quality of interaction with existing WOs, along inevitably occur. with encouraging more household coverage in each community. MaInagement, organization, Improved staff monitoring and follow-up of and governance the women's organizations is called for, and more flexible implementation of various pack- AKRSP's new management has already ages is also necessary. AKRSP's activities in demonstrated a capacity to address manage- the area of appropriate technology should be ment, personnel, and operational issues effec- carefully reviewed. The introduction of viable tively. However, a number of significant labor-saving technology that is accepted by morale problems are affecting productivity. the local populace is crucial-especially for These will have to be addressed quickly if women-but has not been very successful AKRSP is to return to its former levels of to date. efficiency. In the process of implementing AKRSP's emerging strategy, open communica- In introducing program activities of a more tion among all levels of staff and management sophisticated financial nature, it will be impor- will be essential. tant that women are not left out of the process. This calls for intensive training of selected An expanded role for AKRSP as a facilitator or women from WOs in entrepreneurial skills. At catalyst is appropriate and should enable in- the other end of the continuum of women's creased and more effective development in- organization membership are the vulnerable vestment in the Northern Region. To maximize women of poor households. These women, the potential benefits of this role, however, who are most in need of assistance, are often AKRSP will have to maintain a reputation as left out of WO activities, and this problem an unbiased, nonsectarian, development sup- needs special attention. port institution. A completely transparent 8 structure and relationship among the owners, there is little doubt that its principles are wide- board, and management of AKRSP will sup- ly applicable. This is proven by the fact that port its position. The emergence of the two they are being actively used in other programs new institutions-Northern Region Develop- in, and beyond, Pakistan. ment Bank and Enterprise Support Compa- ny-make this transparency even more essen- AKRSP must be considered a successful pro- tial, as these will involve control over gram. It has made a substantial development considerable financial resources in the region. impact in a very difficult environment. It has not attempted to maintain an enclave develop- The program's monitoring, evaluation, and ment approach, but has progressively integrat- research section has accumulated extensive ed into the overall development process, with evaluation data, especially over the last five government and other investors. This, and the years, which has the potential to allow man- principle of insisting on developing a self-help agement to make more informed decisions on capability with cooperating communities, program strategy and content. However, this augur well for sustainability of its impact. wealth of information is not being used prop- erly. Of particular importance is the household The program has imperfections. However, income and village and women's organization these can be addressed through adjustments in performance data. This data can make a very policy and in resource allocations. It is hoped useful contribution to developing greater un- that this evaluation will make a contribution to derstanding of the circumstances of different these adjustments. The next phase of the pro- types of households in the various parts of the gram will give birth to a new series of problems program area, which is necessary to develop a and challenges. However, with a clear strategy total household perspective when considering and the appropriate relationships among staff, project interventions. Categorization and de- management, the board of AKRSP's institutions scription of the population should feed into and their owners, and the donor community, most types of training and into the formula- the program's successes should continue. tion of AKRSP's longer-term and annual programs. The evaluation team's recommendations and suggestions for the program's future direction are further elaborated in Chapter 7. Replicability Debate continues on the extent to which the Note AKRSP model is replicable. However, while it is unlikely that the experience can be, or even 1. "Program" is synonymous with the Aga Khan Rural Sup- should be, transferable in every component, port Program. 9 Resumen En este resumen se destacan las principales Otras inversiones y servicios publicos y no conclusiones de la evaluaci6n del Programa de publicos han contribuido tambien al cambio apoyo rural del Aga Khan realizada por el De- econ6mico y social. Sin embargo, con el progra- partamento de Evaluaci6n de Operaciones ma se ha demostrado que un agente externo (DEO). En el Capitulo 7 se examina en detalle puede ayudar a las comunidades a organizarse la trascendencia que tienen estos resultados para desarrollar su capacidad de autoayuda, para el futuro del programa'. siempre que cuente con una estrategia adecua- da, los medios y el personal necesarios para Tras 13 afios de funcionamiento, el programa aplicarla eficazmente. sigue siendo un instrumento eficaz para aumentar la productividad de la comunidad El programa ha Ilegado a una etapa en la que y el bienestar de las familias en el norte del es preciso examinar cuidadosamente su papel Pakistan y en Chitral. Estas mejoras han sido el en el desarrollo de la regi6n norte y el que le resultado de la activa participaci6n del progra- cabe cumplir para alcanzar el objetivo de un ma en inversiones para la producci6n, en desarrollo sostenible y equitativo. El nivel de inversiones de apoyo a la producci6n (como participaci6n de la poblaci6n rural en las orga- los caminos de acceso), en capacitaci6n y en nizaciones comunitarias ya es muy alto en el las esferas de servicios financieros y tecnicos. distrito de Gilgit, donde son miembros de ellas Uno de los componentes esenciales ha sido el casi las tres cuartas partes de las unidades f a- fortalecimiento institucional a nivel de los miliares, y en Chitral y Baltistan, donde poblados (la creaci6n de organizaciones comu- alrededor de las dos terceras partes afirman nitarias y de mujeres), que ha proporcionado la serlo. En las demas partes de la regi6n y en el estructura para organizar a los miembros de la distrito de Astore, que recien se incluy6 en el comunidad a fin de obtener asistencia externa y programa, aun cabe continuar y ampliar las de encauzar sus propios recursos a empresas actividades tradicionales del programa. Sin mas productivas. embargo, en los distritos en que el programa se ha venido aplicando desde hace mAs tiempo No todos los cambios favorables registrados en es preciso abordar otras cuestiones, a saber, el norte del pais se deben al Programa de apoyo c6mo: rural del Aga Khan. Muchas inversiones y ac- tividades ajenas al programa han contribuido al * garantizar que los ahorros y mecanismos de desarrollo; un excelente ejemplo de ellas son las credito se mantengan una vez terminado el correspondientes a la Carretera de Karakorum. programa; 10 * fortalecer las organizaciones comunitarias y periodo de ejecuci6n del programa. El sistema de mujeres de manera que puedan funcionar basico de producci6n de la mayoria de los como entidades semipermanentes en benefi- hogares-que suele consistir en la producci6n cio de todos los hogares de la comunidad; agropecuaria y el trabajo de la familia fuera de las explotaciones agricolas y, muchas veces, en * crear y financiar mas infraestructura pro- actividades no agricolas- no ha cambiado. ductiva y social importante, que sigue sien- Sin embargo, la agricultura sigue siendo nor- do muy necesaria; malmente la principal fuente de ingresos fami- liares, y las mejoras logradas en ese ambito * ordenar los recursos naturales para han contribuido sustancialmente a aumentar aprovechar el aporte que estos pueden los ingresos. El Programa de apoyo rural de hacer al desarrollo sostenible, y Aga Khan ha contribuido a este desarrollo agricola. * estimular la capacidad empresarial local a fin de mejorar la econonmia de la zona. La superficie cultivada ha aumentado conside- rablemente gracias a la ejecuci6n de proyectos Para abordar estas cuestiones se cre6, en 1992, de infraestructura fisica productiva que han un Comite de formulaci6n de estrategias a fin permitido aumentar el suministro de agua de de ayudar a los responsables y al directorio del riego. Esto ha sido crucial para la ampliaci6n programa a establecer la orientaci6n y el al- de cultivos comerciales como los arboles fru- cance adecuados del mismo en el futuro. La tales y las legumbres, y para la silvicultura, misi6n de evaluaci6n del DEO examin6 estas que aporta beneficios a mas largo plazo, y la cuestiones asi como las propuestas del comite, alfalfa, un cultivo forrajero para la producci6n que se estaban ultimando cuando se realiz6 la pecuaria. Al mejoramiento de la base de recur- misi6n. Tambien se evaluaron los efectos del sos se ha sumado una mayor capacidad para programa hasta la fecha y la eficiencia y suministrar insumos y dar salida a los produc- eficacia de sus diferentes instrumentos de tos gracias a los servicios del programa y al desarrollo. mejor acceso a los poblados, lo que se ha traducido en un aumento de la productividad y la reducci6n de los costos unitarios de Efectos del programa producci6n. Las encuestas generales sobre los ingresos fa- Al facilitarse el acceso al cr6dito, las unidades miliares, realizadas por primera vez en 1992, familiares han podido adquirir mas insumos no sirven de base para una evaluaci6n cuanti- de producci6n y retener los productos cuando tativa global de los efectos del programa en la los precios bajan. Las mujeres se han beneficia- poblaci6n beneficiaria. Sin embargo, se ha do con programas especiales -como el cultivo seguido intensamente la aplicaci6n de los ins- de legumbres y la producci6n de aves en pe- trumentos de desarrollo del programa y se han quena escala- aplicados a traves de las orga- realizado muchos estudios para evaluar su nizaciones de mujeres, y han logrado cierto eficacia. Ello, junto con el tratamiento secun- grado de independencia al ser titulares de sus dario de los datos, ofrece una base aceptable propias cuentas de ahorro. para la evaluaci6n del programa. Sin embargo, no todas las actividades del pro- Al parecer, los ingresos familiares medios casi grama han dado tan buenos resultados y es se han duplicado en terminos reales durante el preciso introducir ajustes importantes para 11 que algunos instrumentos de desarrollo sean ma exige una labor continua de vigilancia en mas eficaces. Ademas, la persistencia del sis- las comunidades. tema tradicional de economia familiar, en el que casi la mitad de los ingresos proviene de Muchas veces, los proyectos de infraestructura actividades no agricolas, pone de relieve la fisica productiva para las comunidades suelen necesidad de analizar las oportunidades y vincularse al uso de la tierra (por ejemplo, perspectivas a largo plazo cuando se formulan canales de riego y nuevas tierras de cultivo) y estrategias de apoyo. se distribuyen de manera uniforme entre los propietarios rurales, lo cual tiene un efecto positivo en la distribuci6n de recursos. Sin em- Problemas de equidad bargo, si bien la regi6n norte del Pakistan es peculiar, en el sentido de que practicamente La cobertura de la regi6n de Gilgit es mas todas las unidades familiares del sector rural completa que la de otras regiones, lo que en cuyos ingresos provienen de la agricultura son gran medida se debe a que en ella el programa propietarios de tierras, es probable que las se viene aplicando desde hace mas tiempo. unidades familiares mas pobres no sean Ademas, en dicha regi6n se registra un mayor propietarias de la tierra y no aprovechen los desarrollo econ6mico, lo que tal vez se deba a beneficios de los proyectos de infraestructura su ubicaci6n, que ofrece mejores oportuni- fisica productiva vinculados a la tierra. En dades que la de otras regiones. Con todo, en estos casos sera necesario adoptar medidas general al parecer el programa esta cum- especiales a fin de lograr el objetivo de pliendo en gran medida su objetivo de distri- equidad del programa. Del mismo modo, la buir de manera equitativa las oportunidades captaci6n de servicios hace necesaria tambien de desarrollo entre las diversas regiones, co- una cuidadosa labor de seguimiento a fin de munidades y unidades familiares. Esto no sig- garantizar que quienes tienen mas recursos no nifica que los beneficios se hayan distribuido obtengan una parte desproporcionada de los de manera uniforme; significa mas bien que beneficios. las diferencias se deben, en gran medida, al distinto nivel de recursos disponibles de cada A nivel de los hogares ha resultado mas dificil comunidad o unidad familiar, y de iniciativa ofrecer igualdad de oportunidades a todas las de sus lideres. mujeres, a pesar de haberse creado organiza- ciones de mujeres y de haberse logrado progre- El Programa de apoyo rural del Aga Khan tiene sos considerables con un programa orientado a por objetivos: (a) aumentar el bienestar y los in- asistir a los miembros de las familias. La falta gresos de la mayoria de las unidades familiares; de instrucci6n elemental y factores religiosos y (b) garantizar la distribuci6n equitativa de sus culturales obstaculizan -en algunas regiones donaciones y de cualquier respaldo subvencio- mas que en otras- la modificaci6n de la fun- nado, y (c) emprender programas especificos ci6n tradicional de la mujer. Por lo tanto, el orientados a mejorar las condiciones de aque- ritmo de cambio debe estimarse en forma rea- Ilos que, sin asistencia especial, al parecer no lista en el programa. No obstante, para hacer pueden aprovechar las oportunidades exis- frenite a estas restricciones en la medidas de lo tentes. Los tres objetivos se estan cumpliendo posible, los programas deben prepararse y satisfactoriamente; el programa para la mujer es seguirse atentamente. Tal vez deban aplicarse un buen ejemplo del progreso logrado en lo que programas de orientaci6n mas especifica a fin respecta al tercero de ellos. Sin embargo, el de Ilegar a las mujeres mAs desfavorecidas de seguimiento de esta esfera de apoyo del progra- las comunidades. 12 Organizaciones comunitarias tenimiento de la propiedad comun y comparti- da, y (d) la creaci6n de un mecanismo de solu- Se estd reconociendo cada vez mas el valor de ci6n de las controversias que se susciten dentro la idea de organizaci6n comunitaria. El go- de la comunidad y entre las comunidades. bierno del Pakistan ha acordado usar estas or- ganizaciones como instrumento para encauzar Un factor importante ha sido la creacion-pro- su Programa de acci6n social en el norte, el movida por el programa-de vinculos entre las secretario de la regi6n norte ha dado instruc- organizaciones comunitarias v entidades exter- ciones a los departamentos de operaciones nas con el objeto de capacitar a dichas organi- para que hagan el mayor uso posible de las zaciones para captar mas servicios de desarro- organizaciones comunitarias a los fines de la llo y servicios sociales. No obstante, para ejecuci6n de los programas publicos. Ademas, aprovechar plenamente esta posibilidad es pre- hace poco el gobierno se vali6 de las organiza- ciso que los interesados perciban que el progra- ciones comunitarias y del Programa de apoyo ma esta libre de favoritismos y que no se otor- rural del Aga Khan para distribuir fondos para ga trato preferencial a ninguna regi6n, sector o tareas de rehabilitaci6n tras las catastr6ficas tipo de comunidad. A pesar de las posibles lluvias de 1992. Dado que muchas de las orga- ventajas que ofrecen estos vinculos, no debe nizaciones comunitarias existen desde 1982 o suponerse que un organismo estatal puede 1983, cabria esperar -si el objetivo del progra- sustituir a una organizacion no gubernamental ma de crear instituciones autosuficientes es como el Programa de apoyo rural del Aga realista- que se hayan convertido ya en enti- Khan en el establecimiento de un dialogo efi- dades estables y autosuficientes. En la practi- caz y en la ejecuci6n de programas de acci6n ca, muchas de ellas lo lograron, sobre todo en con las comunidades a traves de las organiza- algunas zonas de la regi6n de Gilgit, aunque ciones comunitarias. Es probable que para tambien en otras regiones. Sin embargo, la hacer un uso eficaz de este mecanismo sea pre- mayoria de estas organizaciones aun necesita ciso proporcionar capacitaci6n a traves del pro- asistencia para manifestar su potencial. grama a los organismos publicos pertinentes. Si bien el perfeccionamiento de las aptitudes de Hasta ahora en el programa no se ha alentado la los miembros y lideres de las organizaciones formalizaci6n de la condici6n juridica de las or- comunitarias sera de gran utilidad, el factor mas ganizaciones comunitarias, lo que serviria para importante para el futuro de estas entidades aumentar la percepci6n de la comunidad de que sera la percepci6n por parte de la comunidad de dichas organizaciones les pertenecen. Sin em- que estas seguiran ofreciendole beneficios im- bargo, en vista de su incipiente participaci6n en portantes que probablemente no se obtengan los programas de inversi6n piublica y su calidad por otros medios. Aunque los primeros benefi- de participantes en el propuesto Banco de De- cios han sido bien evidentes, habrd que sarrollo de la Regi6n Norte, al parecer es nece- demostrar ahora los beneficios a largo plazo que sario que ahora se estudie la adopci6n de algu- justifican que estas organizaciones sigan na estructura juridica o cuasijuridica. existiendo. Las ventajas pueden consistir en: (a) una interacci6n mas eficaz con las entidades ex- temas con miras a lograr beneficios y servicios El Programa de infraestructura fisica para la mayoria; (b) mayor acceso a los recursos productiva de capital para la producci6n y el consumo a traves de mecanismos sostenibles de ahorro y El Programa de infraestructura fisica producti- prestamo; (c) la organizaci6n del uso y el man- va ha producido efectos importantes en el de- 13 sarrollo econ6mico y ha logrado proporcionar supone que el financiamiento sera proporciona- incentivos basicos para que se formen organi- do en gran medida a traves de programas zaciones comunitarias y se establezcan acuer- p6blicos, bilaterales y no publicos, que comple- dos de desarrollo con el Programa de apoyo mentarian las contribuciones de la comunidad rural del Aga Khan. Sin embargo, en los ulti- en efectivo y en especie, y los fondos obtenidos mos anos el programa se ha desacelerado, en prestamo. No obstante, es probable que en sobre todo en las zonas que han estado mas muchos casos una donaci6n del programa haga expuestas a las actividades del programa. Si viable un plan de financiamiento, permitiendo bien muchas organizaciones comunitarias han al programa tener un efecto multiplicador a fin obtenido apoyo adicional de inversiones a de asegurar la ejecuci6n eficiente y la oportu- traves del programa al participar en "grupos" nidad de influir en el aspecto relativo a la de proyectos multicomunitarios y en algunos equidad cuando se justifique. Esta participaci6n programas como los contratos-plan forestales, no debe acrecentar la dependencia, ya que las la norma ha sido limitar las donaciones del comunidades contribuirian activamente y con programa de infraestructura fisica productiva el tiempo se harian cargo de las operaciones y a una sola inversi6n. Esto es coherente con el el mantenimiento. El establecimiento de vincu- objetivo de fomentar una actitud de autoayu- los entre las organizaciones comunitarias y or- da y evitar el sindrome de la dependencia. Sin ganismos piublicos en el ambito de este tipo de embargo, es innegable que hay buenas posibi- infraestructura productiva o social contribuiria lidades de acelerar el desarrollo econ6mico a que se establezca un sistema que permita a las mediante el aumento de las inversiones en in- comunidades participar directamente en los fraestructura, sobre todo en lo que respecta al prccesos de planificaci6n local y regional. desarrollo de los sistemas de riego, lo que no s6lo permitiria ampliar la base de recursos productivos, sino tambien usar cultivos de Ordenaci6n de los recursos naturales mayor valor comercial, aspectos ambos que han demostrado contribuir considerablemente Se han introducido importantes tenicas nuevas a los beneficios del programa. de producci6n de frutas, legumbres, papas y productos forestales, y se han hecho grandes Esto parece indicar que el Programa de apoyo avances en materia de sanidad animal y pro- rural del Aga Khan deberia ser mas anticipato- ducci6n de aves. Sin embargo, fue mucho rio en cuanto a la identificaci6n de inversiones menos lo que se logr6 en materia de cereales y adicionales en infraestructura que: (a) contri- nutrici6n animal, a cuya producci6n y abaste- buyan considerablemente al bien comun; (b) la cimiento se atribuye la mayor parte de los re- comunidad no puede iniciar y financiar por si cursos -en terminos de tiempo y dinero- de misma; (c) permitan un grado importante de los hogares rurales. En la evaluaci6n se consid- participaci6n de la mano de obra disponible de era que se pueden introducir mejoras impor- las organizaciones comunitarias, y (d) se preste tantes en el plan de ordenaci6n de los recursos a que las organizaciones comunitarias se hagan naturales, en el que deberia hacerse mas hin- cargo de la operaci6n y el mantenimiento una capie en la etapa siguiente. Ello se ajusta tam- vez terminada la construcci6n. Ello es congru- bien a las recomendaciones del Comite de for- ente con la funci6n mas amplia de planificaci6n mu:Laci6n de estrategias y a las opiniones de los de zonas contemplada para la secci6n de inge- altos funcionarios y la administraci6n del Pro- nierIa del programa. En el ultimo documento grama de apoyo rural del Aga Khan. Es posible del Comite de formulaci6n de estrategias se mejorar las tecnicas usadas para identificar las propone la ampliaci6n del programa y se necesidades de los diferentes tipos de explota- 14 ciones agricolas familiares y crear tecnologias gunos organismos internacionales que se espe- que permitan satisfacerlas. cializan en este terreno tengan interes en prestar su colaboraci6n. Un proyecto relativa- Una mayor comprensi6n de las restricciones y mente destacado, con colaboraci6n interna- posibilidades de las unidades familiares en las cional podria superar el problema de mantener categorias mas importantes de los sistemas de personal competente para la ordenaci6n de los producci6n deberia influir no s6lo en el desa- recursos naturales. Ademas, seria esencial es- rrollo tecnol6gico, sino tambien en el proceso tablecer vinculos con los organismos nacionales de dialogo con las comunidades mediante el de investigaci6n a fin de garantizar la sosteni- cual se planifican las actividades del progra- bilidad a largo plazo de las inversiones en in- ma. Las soluciones relativamente uniformes vestigaci6n con fines de adaptaci6n. Deberia adoptadas para afrontar los problemas identi- estudiarse la posibilidad de contratar los servi- ficados gracias a dicho dialogo parecen indicar cios de organismos que tengan ventajas com- que el proceso no es tan adecuado como de- parativas para que se hagan cargo de algunos beria ser, especialmente si se tiene en cuenta aspectos de este programa de investigaci6n. que algunas de las "soluciones" han tenido poca aceptaci6n. Perfeccionamiento de los recursos Hace poco se intent6 adecuar mejor el progra- humanos ma a las necesidades locales descentralizando su administraci6n y encargandosela a las Los programas de capacitaci6n del Programa de regiones y, en ultimo termino, a las unidades de apoyo rural del Aga Khan han contribuido con- administraci6n en el terreno. Si bien esto parece siderablemente al perfeccionamiento de los re- 16gico, debe tenerse en cuenta la dificultad de cursos humanos. La idea de capacitar a los habi- atraer y mantener personal calificado al asignar tantes de los poblados en disciplinas especificas personal y formalizar los vinculos entre los para que sigan prestando servicios dentro de diferentes niveles del plan de ordenaci6n de los sus comunidades ha sido un componente fun- recursos naturales del Programa de apoyo rural damental de la estrategia del programa. del Aga Khan. El equipo de evaluaci6n tampoco cree que esto s6lo bastara para lograr que el per- Sin embargo, los resultados no siempre fueron sonal encargado de la ordenaci6n de los recur- buenos, sobre todo en los ambitos tecnicos. Los sos naturales adopte una perspectiva adecuada demas miembros de la comunidad estan mas en materia de sistemas agricolas a fin de satis- dispuestos a pagar al especialista por los servi- facer la necesidad de desarrollar tecnologias cios prestados cuando en general consideran mas apropiadas. que estos son una especialidad, como el injerto de arboles frutales, o cuando dichos servicios Se propone utilizar un enfoque que incluya la entrafnan conocimientos especializados y un participaci6n de los agricultores mas impor- costo en dinero, como el suministro de vacunas tantes en la formulaci6n de los proyectos y en la o medicamentos. En cambio, muestran menos evaluaci6n de los resultados obtenidos median- disposici6n a pagar por los servicios de aseso- te los experimentos. Para esto, sin embargo, ramiento agricola de caricter general. Ademas, seria necesario contar con mas personal y finan- para el personal del programa ha sido dificil ciamiento de lo previsto, y la importancia de asistir adecuadamente a los especialistas. Ante este enfoque justificaria que se le considere esta situaci6n, en los ultimos tiempos en el pro- como un proyecto susceptible de recibir finan- grama se ha centrado mucha atenci6n en la ciamiento especial. Tambien es posible que al- formaci6n de "instructores superiores". Esto 15 supone una labor mas intensiva de capaci- medida posible. Sin embargo, muchas veces taci6n de especialistas seleccionados a fin de fue necesario contratar a funcionarios perfeccionar sus aptitudes, asi como tambi6n directivos en otras regiones debido a la escasez asistencia para desarrollar operaciones vincu- de candidatos debidamente capacitados en el ladas con su especialidad, como el suministro norte. Si bien ello se justificaba, probablemente de vacunas o plaguicidas. Este programa en el programa no se haya hecho suficiente promete asegurar la continuidad del sistema hincapie en asegurar que el personal local de servicios tecnicos, puesto que los instruc- tenga oportunidades especiales de capacitaci6n tores superiores considerarian que seguir per- avanzada para poder acceder a puestos direc- feccionando sus aptitudes y proporcionar, tivos en sus propias comunidades. De haberse ademas de insumos, un asesoramiento adecua- hecho esto de manera concertada en el marco do, redundaria en su propio beneficio. Tambien de un programa, podrian haberse evitado al- es posible que soliciten la cooperaci6n de mu- gunos de los problemas de contrataci6n de per- chos mas especialistas de la mayoria de las co- sonal antes mencionados. Con todo, en los lti- munidades. Sin embargo, una vez finalizada la mos fiempos la administraci6n ha prestado labor del programa sera necesario contar con atenci6n al asunto y se han establecido un sistema de asistencia tecnica para estos ex- sistemas adecuados de becas. pertos. Esto pone de relieve la necesidad de fomentar cada vez mas los vinculos con prove- edores del sector privado y con organismos Comercializaci6n publicos que puedan prestar el apoyo pertinente en el futuro. El programa de comercializaci6n ha evolucio- nado mucho. Ha disminuido el enfasis en la Una capacitaci6n mas intensa en materia de comercializaci6n cooperativa, y ahora se ha gesti6n favoreceria la prevista funci6n de las pasado a centrar la atenci6n en el perfecciona- organizaciones comunitarias como participes miento de las aptitudes de los productores en el desarrollo. Ademas, es probable que en et para administrar, procesar y presentar sus pro- futuro el programa incluya en muchos casos la ductos agricolas y en el estabtecimiento de vin- cooperaci6n de varias organizaciones comuni- culos con los mercados y los comerciantes. Las tarias en proyectos de mayor envergadura y dos empresas de comercializaci6n cooperativa que se necesite personal directivo especializa- creadas hasta ahora lograron aumentar el pre- do que pueda cumplir funciones de liderazgo cio de los productos comercializados por sus en un contexto multicomunitario. Los cambios miembros, dado que las condiciones para re- propuestos en materia de sistema bancario de alizar esa operacion eran especialmente favora- los poblados haran necesario ampliar sustan- bles. Sin embargo, ambas empresas -las so- cialmente la capacitaci6n de algunas personas ciedades de comercializaci6n de damascos de en materia de contabilidad y administraci6n. Baltistan y de Gilgit- siguen necesitando A fin de que este programa sea cabalmente apoyo para inculcar un nivel adecuado de ha- eficaz, debera contar con un seguimiento mas bilidad empresarial entre sus directivos. La sec- intenso en el terreno. ci6n de comercializaci6n tambien ha ampliado sus funciones para fomentar la creaci6n de em- La capacitaci6n del personal del Programa de presas no agricolas, tales como las casas de apoyo rural del Aga Khan es otro aspecto im- huespedes en los poblados, a fin de aprovechar portante del perfeccionamiento de los recursos el potencial del mercado del turismo, y en 1992 humanos. La politica del programa siempre ha cambi6 su nombre por el de Divisi6n de sido la de contratar personal local en la mayor fomento empresarial. 16 La creaci6n propuesta de una Sociedad de La singular estructura financiera del Banco de apoyo empresarial exigira que se definan con Desarrollo de la Regi6n Norte-cuyo capital precisi6n sus obligaciones y las de la Divisi6n social consiste en donaciones y no debe deven- de fomento empresarial. gar dividendos para los accionistas- propor- ciona a la instituci6n varias posibilidades de mejorar los servicios a sus clientes. Primero, Ahorro y credito podria aumentar el nivel de financiamiento ofreciendo prestamos a mas largo plazo. Como El Programa de ahorro y credito ha contribuido de esa manera aumentarian los riesgos de a convertir a las organizaciones comunitarias en cartera, seria necesario contar con mas infor- instituciones utiles y ha fomentado el desarrollo maci6n sobre los mercados y clientes. Segun- econ6mico al dar acceso al credito a la mayor do, podria aprovechar sus bajos costos de fi- parte de la poblaci6n beneficiaria. Ha sido un nanciamiento subvencionando prestamos para instrumento flexible y adaptable que ha ido determinados tipos de inversi6n. Los consul- evolucionando con la experiencia adquirida. El tores del programa recomendaron que se programa de credito comunitario y para la otorgue financiamiento subvencionado para mujer, que empez6 a aplicarse en la decada de proyectos de infraestructura social que con- 1990, ha logrado especialmente la integraci6n tribuyan considerablemente al "bien comun". de las comunidades y unidades familiares al Esto, sin embargo, podria crear expectativas sistema de credito. Sin embargo, se ha adver- desmedidas e incentivar el uso de sistemas tido una tendencia al deterioro de la situaci6n poco transparentes para encarar las perdidas. de reembolsos en la cartera de prestamos del Tal vez sea mas conveniente incluir un claro Banco que sera necesario seguir de cerca. elemento concesionario en un programa de inversiones para hacer mas viable un presta- Es oportuna la propuesta de estructurar el Pro- mo otorgado en las condiciones ordinarias de grama de ahorro y credito en un banco especf- mercado. Por tiltimo, el Banco de Desarrollo ficamente creado para la regi6n norte (el Banco de la Regi6n Norte podria optar por subven- de Desarrollo de la Regi6n Norte). Dicha pro- cionar el ahorro mediante tasas altas de puesta brinda la oportunidad de consolidar interes, asi como los gastos de personal nece- los resultados relativamente buenos logrados sarios para llevar a cabo un programa intensi- hasta ahora con este sistema y de crear la esta- vo de ahorro. Como todos los miembros de las bilidad necesaria para suministrar respaldo organizaciones comunitarias y de mujeres financiero continuo al desarrollo de la regi6n. ahorran, al igual que otras personas de la Sin embargo, para lograr establecer esta insti- regi6n, una subvenci6n al ahorro beneficiaria a tuci6n hara falta una mayor competencia en un mayor numero de personas. materia de intermediaci6n financiera. A tal fin serd necesario atribuir menos importancia a la Se preve que la Sociedad de apoyo empresarial cobertura de las necesidades de credito y cen- financie inversiones que puedan aportar bene- trarse en crear capacidad de endeudamiento, ficios sociales y catalizadores importantes, pero establecer sistemas de informaci6n financiera, que presentan demasiados riesgos para el crear otros mecanismos de control y adminis- prestamista ordinario. Segun las proyecciones traci6n de riesgos, mejorar el apoyo a las ope- de las actividades de la Sociedad, es poco pro- raciones y la capacitaci6n a nivel de las orga- bable que esta sea lucrativa. Parte de las utili- nizaciones comunitarias y de mujeres, y dades anuales del Banco de Desarrollo de la aumentar el control y otras medidas de fisca- Regi6n Norte seran transferidas al patrimonio lizaci6n interna. de la sociedad de apoyo empresarial. Ademas, 17 tiene varias caracteristicas que le permiten una da. La adopci6n de tecnologias viables que eficaz interacci6n con los mercados y los em- permitan economizar mano de obra y que presarios locales. Esta es una tarea dificil que sean aceptadas por la poblaci6n local es de exigira una administraci6n muy competente. vital importancia -sobre todo para la mujer- Si, por alguna raz6n, se generalizan los aunque hasta ahora no ha sido muy eficaz. incumplimientos en materia de reembolsos y no se toman medidas eficaces al respecto, algu- Al iniciarse actividades del programa mas nas personas que estan en condiciones de complejas desde el punto de vista financiero, reembolsar sus prestamos tal vez traten de es importante no excluir a la mujer. A tal fin evadir sus obligaciones de pago. Una forma de debera capacitarse intensamente a algunas evitar esto es procurar que los prestatarios in- mujeres de las organizaciones que las nuclean curran en mas perdidas que los prestamistas en materia de aptitudes empresariales. La par- cuando no se reembolsan los prestamos. ticipaci6n de mujeres pertenecientes a hogares pobres -que son mas vulnerables- consti- Dada la importancia de limitar las expectati- tuye otro problema diferente. Estas son las que vas en materia de condonaci6n de la deuda, tal mas asistencia necesitan, pero suelen quedar al vez sea mas conveniente incluir la actividad margen de la actividad de las organizaciones de financiamiento de la infraestructura social de mujeres, problema al que debe prestarse -la actividad mas problematica propuesta atenci6n especial. para el Banco de Desarrollo de la Regi6n Norte- entre las funciones de ta Sociedad de Los vinculos que el Programa de apoyo rural apoyo empresarial. del Aga Khan ha venido fomentando entre las organizaciones comunitarias y de mujeres y los organismos puiblicos y no publicos en las es- Cuestiones relacionadas con la mujer feras de salud, abastecimiento de agua y edu- caci6n son especialmente beneficiosos para la Las organizaciones de mujeres han demostra- mujer. El programa, a traves de los planes de do ser un foro aceptado y viable para que la producci6n de legumbres y aves de las organi- mujer de los poblados participe en el proceso zaciones de mujeres, ha mejorado directamente de desarrollo de la regi6n. La pr6xima etapa la nutrici6n en el hogar y proporcionado una del Programa de apoyo rural del Aga Khan fuente de ingresos monetarios para muchas deberia servir para fortalecer estas organiza- mujeres. ciones. Si bien es necesario atender las solici- tudes de las nuevas comunidades, ahora Deben seguir integrandose en el programa el programa deberia centrarse en mejorar personal y actividades vinculados a las cues- la interacci6n con las organizaciones de tiones relacionadas con la mujer, aunque no mujeres, ademas de promover la cobertura sin una planificaci6n cuidadosa y una evalua- de mas unidades familiares en todas las ci6n constante de este complejo proceso. La comunidades. labor de los encargados del seguimiento de la funci6n que cabe a la mujer en el desarrollo Es preciso mejorar la labor de seguimiento de revestira especial importancia para evaluar las organizaciones de mujeres por parte del los efectos del proceso de integraci6n. Deben personal, y la ejecuci6n de los programas debe organizarse cursillos adicionales sobre las ser mas flexible. Tambien deben reexaminarse cuestiones relacionadas con la mujer a fin de cuidadosamente las actividades del programa fomentar una discusi6n abierta acerca de las en lo que respecta al uso de tecnologia adecua- dificultades que inevitablemente surgiran. 18 Gesti6n, organizaci6n y buen importancia y podrian ayudar a que se entien- gobierno da mejor la situaci6n de los distintos tipos de unidades familiares comprendidos en el am- La nueva administraci6n del Programa de bito del programa, lo que es preciso a fin de apoyo rural del Aga Khan ha demostrado su tener una perspectiva global de los hogares al capacidad para abordar eficazmente los pro- considerar la ejecuci6n de los proyectos. La blemas operacionales, de gesti6n y de personal. clasificaci6n y descripci6n de la poblaci6n de- Sin embargo, hay varios problemas relativos al beria formar parte de la mayoria de los progra- estado de animo que estan afectando la produc- mas de capacitaci6n e incluirse en la formula- tividad y que deberan abordarse rapidamente ci6n de los planes a largo plazo y anuales del para que el programa sea tan eficaz como antes. Programa de apoyo rural del Aga Khan. En la aplicaci6n de la nueva estrategia del pro- grama sera vital mantener una comunicaci6n abierta entre todos los niveles del personal y Aplicaci6n del programa en la administraci6n. otras partes Es conveniente ampliar la funci6n catalizadora Se sigue discutiendo la medida en que el mo- del Programa de apoyo rural del Aga Khan, delo del Programa de apoyo rural del Aga pues permitiria aumentar el volumen y la efi- Khan podria aplicarse en otras partes. Si bien cacia de las inversiones para el desarrollo de la es poco probable que todos sus componentes regi6n. No obstante, para maximizar los bene- puedan o deban aplicarse en otros casos, no ficios que puede reportar esta labor, el progra- cabe duda de que sus principios son de apli- ma debera mantener su reputaci6n de institu- caci6n general. Prueba de ello es que otros ci6n imparcial dedicada a respaldar el programas dentro y fuera de Pakistan se estan desarrollo. A tal fin contribuira la existencia de rigiendo por dichos principios. una total transparencia en su estructura y la relaci6n entre los organismos de ejecuci6n, el El programa ha sido exitoso. Ha tenido efectos directorio y la administraci6n. Con la creaci6n importantes en el desarrollo en un medio muy del Banco de Desarrollo de la Regi6n Norte y dificil. En lugar de tratar de aplicar un enfoque de la Sociedad de apoyo empresarial, la trans- independiente, el programa se ha ido integran- parencia cobra mayor importancia, puesto que do progresivamente, con el sector puiblico y las nuevas instituciones controlaran un volu- otros inversionistas, al proceso global de desa- men considerable de recursos financieros rrollo. Gracias a esto y a la importancia asigna- en la regi6n. da en el al fortalecimiento de la capacidad de autoayuda de las comunidades participantes, La secci6n de seguimiento, evaluaci6n e inves- los efectos tienen buenas perspectivas de tigaci6n del programa ha acumulado una gran sostenibilidad. cantidad de datos de evaluaci6n -sobre todo durante los ultimos cinco anXos- que pueden Si bien el programa tiene algunas imperfec- ayudar a la administraci6n a adoptar decisio- ciones, estas pueden resolverse mediante nes mejor fundadas en materia de estrategia y ajustes en las politicas y la asignaci6n de los componentes del programa. Sin embargo, este recursos. Se confia en que esta evaluaci6n fa- cuimulo de informaci6n no se esta utilizando cilite dichos ajustes. En la pr6xima etapa del debidamente. Los datos sobre los ingresos fa- programa surgiran nuevos problemas y de- miliares y el desempefno de las organizaciones safios. Sin embargo, con una estrategia bien comunitarias y de mujeres revisten especial definida y una relaci6n adecuada entre el 19 personal, la administraci6n, el directorio de luaci6n relativas a la futura orientaci6n del las instituciones del programa, los respon- programa. sables de 6ste y la comunidad de donantes, el programa deberia seguir dando buenos resultados. - Nota En el Capitulo 7 se examinan mas detallada- 1. El termino "programa" se usa como sinonimo del Progra- mente las recomendaciones del grupo de eva- ma de apoyo rural del Aga Khan. 20 Resume analytique Le present resume expose les principales investissements et services tant publics que conclusions de l'valuation de I'AKRSP (Pro- prives ont joue un role dans les evolutions so- gramme de la Fondation Aga Khan A l'appui ciales et 6conomiques observees. Neanmoins, du developpement rural) par le Departement I'AKRSP a prouve qu'un agent exterieur peut de l'evaluation retrospective des operations faciliter l'organisation de communautes qui (OED) de la Banque mondiale. Leurs implica- soient capables d'exploiter leurs propres possi- tions pour l'orientation future du programme' bilites d'auto-assistance, A condition que sa sont developpees au Chapitre 7. strategie soit adaptee aux besoins et qu'il dis- pose des moyens et du personnel necessaires L'AKRSP, qui est dans sa treizieme annee pour l'appliquer de facon efficace. d'execution, reste un moyen efficace d'amelio- rer la productivite des communautes des Terri- L'AKRSP est parvenu a un point oui il doit se toires du Nord et du Chitral (Pakistan), ainsi demander serieusement oui il se situe par rap- que les conditions de vie des familles qui en port au stade actuel de developpement de la font partie. Cette amelioration resulte de l'aide region du nord et ce que devra etre son r6le apportee A des investissements productifs et A dans les annees a venir pour atteindre son des investissements a l'appui de la production, objectif d'un developpement durable et equi- tels que routes de desserte, actions de forma- table. Le pourcentage de la population rurale tion et services financiers et techniques. L'un faisant partie d'OV est deja tres eleve dans le des principaux elements du programme est la district de Gilgit (pres des trois quarts des me- creation d'institutions locales - organisations nages) et il est d'environ les deux tiers dans le villageoises (OV) et organisations f6minines Chitral et le Baltistan. Ailleurs et dans le dis- (OF) - qui permettent aux membres des com- trict d'Astore, qui n'a et que recemment in- munautes de mobiliser leurs energies pour clus dans le programme, il est encore possible tirer parti des aides exterieures et utiliser leurs de poursuivre et de developper les activites propres ressources de maniere plus productive. traditionnelles de I'AKRSP. Cependant, la oui l'AKRSP est actif depuis plus longtemps, il Les changements favorables dont la r6gion faut s'attaquer A un tout autre ensemble de du nord a beneficie ne sont pas tous dus A questions: I'AKRSP. Nombre d'investissements et d'activites non lies au programme1 ont aussi * comment garantir la perennite des meca- contribu6 au developpement. La route de nismes d'epargne et de credit apres Karakoram en est un bon exemple, et d'autres l'achevement du programme; 21 * comment renforcer les organisations villa- Le rievenu moyen des menages semble avoir geoises et feminines de maniere qu'elles presque double en termes reels depuis le puissent fonctionner comme des entites debut du programme. Dans la plupart des cas, semi-permanentes pour le bien de tous les le systeme de production des menages (pro- menages de la communaute; ductions animales et veg6tales et utilisation de la main-d'oeuvre familiale pour d'autres acti- * comment organiser et financer les grandes vites, souvent non agricoles) n'a pas change. infrastructures productives et sociales qui Cependant, l'agriculture reste habituellement font encore cruellement defaut; la principale source de revenu des menages et les ameliorations qui lui ont ete apportees ont * comment gerer les ressources naturelles amplement contribue a l'accroissement des pour qu'elles contribuent dans toute la revenus. L'AKRSP a ete l'un des partenaires de mesure du possible a un developpement ce developpement de l'agriculture. durable; et La superficie cultivee a sensiblement augmente * comment encourager l'esprit d'entreprise sous l'effet des projets d'infrastructure mate- pour stimuler l'economie locale. rielle productive qui ont ameliore l'approvi- sionnement en eau d'irrigation; cela a et im- Ces questions ont suscite la creation en 1992 portant non seulement pour l'expansion des d'un Comite de pilotage strategique (SDC- cultures de rapport telles que fruits et legumes, Strategy Development Committee) pour aider mais aussi pour la foresterie, dont les avan- les bailleurs de fonds et le Conseil d'adminis- tages se manifesteront a plus long terme, et tration de I'AKRSP a definir la portee et les pour la production de fourrages. De meilleures orientations futures du programme. Les possibilites d'approvisionnement en intrants et representants de l'OED ont examin6 ces d'ecoulement des produits, grace aux services memes questions, ainsi que les propositions fournis par le programme et a la plus grande que le SDC mettait au point lors de leur mis- facilite d'acces aux villages, sont venues s'a- sion. Ils ont egalement examine l'impact actuel jouter a l'amelioration de la base de ressources du programme, ainsi que l'efficacite et l'effi- pour accroitre la productivite et reduire les cience de ses divers instruments d'aide au couits unitaires de production. developpement. L'acces au credit a et rendu plus facile et per- met aux menages d'acheter plus d'intrants et Impact du programme de differer la commercialisation de leurs pro- duits pour obtenir des prix plus eleves. Les li n'est procede a des enquetes detaillees sur le femmes ont beneficie de programmes speciaux revenu des menages que depuis 1992 de sorte (production de legumes et petite aviculture, que leurs resultats ne peuvent pas servir de base par exemple) par le truchement des OF et elles a une evaluation quantitative globale des effets ont acquis une certaine autonomie en ayant du programme sur les populations ciblees. leurs propres comptes d'epargne. Cependant, I'AKRSP suit de pres l'application de ses instruments d'aide au developpement et Cependant, les activites du programme n'ont il a effectue de nombreuses etudes pour en pas toutes remporte le meme succes, et d'im- determiner l'efficacite. Ces elements d'informa- portants ajustements s'imposent pour amelio- tion et des donnees secondaires constituent une rer l'efficacite de certaines interventions. Par base raisonnable pour evaluer le programme. ailleurs, la persistance du modele economique 22 typique (les menages tirent pres de la moitie de partis entre tous les paysans, ce qui a des effets leur revenu d'activites autres que l'agriculture) favorables sur la repartition des ressources. souligne la necessite de prendre en compte les Cependant, bien que le nord soit la seule re- possibilites et perspectives a plus long terme gion du Pakistan oui pratiquement tous les me- dans l'elaboration des strategies d'aide. nages ruraux tirant l'essentiel de leurs revenus de l'agriculture sont proprietaires de leurs terres, il pourrait se faire que les plus pauvres Questions d'equitW ne possedent pas de terres et ne tirent aucun profit de ces amenagements, auquel cas iA La proportion des participants est plus elevee faudrait des interventions speciales pour at- dans la region de Gilgit, ce qui est dia en grande teindre l'objectif d'equite de I'AKRSP. I1 est de partie au fait que le programme y existe depuis meme indispensable de suivre de pres la repar- plus longtemps. En outre, son developpement tition des services pour s'assurer que les mieux economique est plus avance, mais cela peut nantis ne soient pas indament favorises. s'expliquer par sa situation geographique qui lui offre davantage de debouches. Cependant, A l1'chelle des menages, en depit de la crea- dans l'ensemble, 1'AKRSP semble atteindre tion d'OF et d'importants progres dans la rea- reellement son objectif d'une distribution lisation d'un programme d'aide ciblee, il a ete 6quitable des possibilites de developpement plus difficile d'offrir des chances egales a entre regions, communaut6s et menages. Cela toutes les femmes. L'analphabetisme et des ne veut pas dire que ses avantages soient 6gale- facteurs religieux et culturels freinent l'evolu- ment r6partis, mais les differences s'expliquent tion du r6le traditionnel de la femme, dans dans une large mesure par les niveaux certaines zones plus que dans d'autres, et les differents de ressources dont disposent les com- responsables de 1'AKRSP doivent determiner munautes ou les menages et le degre d'initia- avec realisme le rythme des changements pos- tive dont ils font preuve. sibles. Neanmoins, il faudrait elaborer des pro- grammes et en suivre l'application avec soin L'AKRSP a pour objectifs: (a) d'ameliorer les pour remedier a ces contraintes chaque fois conditions de vie et les revenus de la majorite que possible. Un plus grand nombre de pro- des menages; (b) de veiller a une repartition grammes cibles serait sans doute justifie pour equitable de ses dons et de toute aide subven- atteindre les femmes les plus demunies. tionnee; et (c) d'organiser des programmes speciaux pour ameliorer la situation de ceux qui semblent ne pas pouvoir exploiter les pos- Organisations villageoises sibilites existantes sans assistance speciale. Les resultats obtenus sont satisfaisants dans les L'interet que presente la formule d'organisa- trois domaines et l'ensemble du programme tions villageoises est de mieux en mieux percu. destine aux femmes temoigne des efforts en- Le gouvernement pakistanais a accepte de pas- trepris pour atteindre le troisieme objectif. I1 ser par ces organisations pour l'application de importe toutefois de continuer a suivre atten- son Programme national d'action sociale dans tivement cet aspect de l'aide de 1'AKRSP. les Territoires du Nord; le responsable de l'ad- ministration de la region a demande a ses ser- Les projets d'infrastructure materielle produc- vices de recourir au maximum aux organisa- tive visent souvent des amenagements fonciers tions villageoises pour l'application des (canaux d'irrigation et mise en valeur de terres programmes publics; recemment, le gouverne- nouvelles, par exemple) et sont egalement re- ment a fait appel aux OV et a I'AKRSP pour dis- 23 tribuer des secours aux victimes des pluies de tout parti pris et impartial dans sa facon de desastreuses de 1992. Beaucoup d'OV existant traiter differentes regions, sectes ou categories depuis 1982 ou 1983, on pouvait esperer que de communautes. En depit des avantages po- celles-ci seraient deja devenues des entites tentiels de ces liens, il ne faudrait pas croire stables et autonomes s'il etait realiste de vouloir que l'on puisse simplement remplacer une en faire des institutions d'entraide permanentes. ONG comme I'AKRSP par un organisme En effet, elles sont nombreuses aujourd'hui a public pour assurer un veritable dialogue presenter ces caracteristiques, specialement avec les communautes et executer d'efficaces dans certaines zones de la region de Gilgit, mais programmes d'action par l'intermediaire on en trouve aussi de tres performantes dans les des OV. IL est probable que 1'AKRSP devra deux autres regions. Cependant, la majorite des dispenser une formation aux organismes organisations villageoises ont encore besoin publics concernes avant que ce mecanisme d'aide pour realiser leur potentiel. puisse etre utilise efficacement. L'amelioration des competences de leurs ad- Jusqu'a present, on a, A juste titre, evite d'offi- herents et de leurs dirigeants sera utile, mais le cialiser le statut des organisations villageoises plus important pour l'avenir des organisations pour maximiser leurs chances d'apparaitre villageoises est que les communautes aient le aux communautes comme leurs propres insti- sentiment que ces organisations continueront tutions. Cependant, etant donne le r6le de de leur procurer de substantiels avantages partenaires que les organisations villageoises qu'elles auraient peu de chances d'obtenir commencent a jouer dans le cadre des autrement. Les premiers avantages ont ete tres programmes d'investissements publics et evidents, mais il s'agit maintenant de prouver la place qu'elles occuperont dans la future que le maintien de ces institutions aura des Banque de developpement de la region du effets benefiques a plus long terme qui valent nord, il semble necessaire d'envisager main- la peine de poursuivre l'experience. Ceux-ci tenant de leur donner une structure legale ou pourraient prendre diverses formes: (a) inter- quasi legale. action plus efficace avec des organismes exterieurs de maniere A procurer des avan- tages et des services A la majorite; (b) elargisse- Programme d'infrastructure ment de l'acces aux ressources financieres a materielle productive des fins de production ou de consommation, par la mise en place de dispositifs durables Le Programme d'infrastructure materielle d'epargne et de credit; (c) organisation de l'u- productive a eu de substantielles reper- tilisation et de l'entretien des biens collectifs; cussions sur le developpement economique. I1 et (d) creation d'un m6canisme permettant de a fortement incit6 les communaut6s a creer resoudre les differends internes ou les conflits des organisations villageoises et a etablir des entre communautes. relations de partenariat avec 1'AKRSP Cepen- dant, la realisation de ce programme s'est Les efforts deployes par 1'AKRSP pour encou- ralentie ces dernieres annees, specialement rager les OV a etablir des liens avec des orga- dans les zones qui ont ete les premieres A nismes exterieurs pour beneficier de plus beneficier des activites de 1'AKRSP. Bien que nombreux services de developpement et soci- de nombreuses OV aient pu obtenir des aides aux sont d'une grande importance. Pour ex- supplementaires en participant a des projets ploiter pleinement ce potentiel, L'AKRSP interessant une << grappe >> de communautes et devra toutefois etre per,u comme d6pourvu A des initiatives comme les contrats de develo- 24 ppement forestier, 1'AKRSP a pour principe accentuer la dependance puisque les commu- de limiter a un seul investissement les nautes contribueraient activement elles aussi dons accordes au titre de son Programme aux investissements et qu'elles seraient respon- d'infrastructure materielle productive. Ce sables de leur exploitation et entretien. Si l'on choix reflete sa volonte d'encourager les com- reussissait a associer ainsi les organisations vil- munautes a se prendre en charge et a eviter lageoises et les organismes publics a la realisa- ainsi le syndrome de la dependance. I1 existe tion d'infrastructures productives ou sociales, toutefois d'indeniables - et nombreuses - cela contribuerait pour beaucoup a la mise en possibilit6s d'accel6rer le developpement par place d'un systeme permettant aux commu- de nouveaux investissements d'infrastructure. nautes de participer directement au processus Cela est particulierement vrai de l'expansion de planification locale et regionale. de l'irrigation, dont l'experience montre qu'elle contribue pour beaucoup aux avan- tages du Programme a l'appui du developpe- Gestion des ressources ment rural, ayant pour effet non seulement naturelles (GRN) d'elargir la base des ressources productives, mais aussi de rendre possibles des cultures de De nouvelles techniques importantes ont et plus grande valeur. introduites pour la production de legumes et de pommes de terre, ainsi que pour la foresterie, et L'AKRSP devrait donc chercher plus activement de nets progres ont ete realises en matiere de a identifier de nouveaux investissements d'in- sante animale et d'aviculture. Cependant, l'im- frastructure (a) qui promettent de substantiels pact a ete bien plus faible pour les cereales et avantages a la collectivite; (b) que les commu- les produits d'alimentation animale, auxquelles nautes ne pourraient executer ni financer par les menages ruraux consacrent la majeure par- leurs propres moyens; (c) qui se pretent a une tie de leurs ressources. La mission d'evaluation utilisation intensive des ressources en main- considere que des ameliorations importantes d'oeuvre des organisations villageoises; et (d) pourraient ere apportees au programme GRN qui soient susceptibles d'etre exploites et et qu'il faudrait lui faire une plus grande place entretenus sous la responsabilite des OV. Cette au cours de la prochaine phase. Cela est aussi approche cadrerait bien avec l'6largissement conforme aux recommandations du Comite de envisage des fonctions de planification de la pilotage strategique et a l'avis des dirigeants de section ingenierie (PIES) de 1'AKRSP. Dans le l'organisation. Les techniques utilisees pour plus recent de ses documents, le SDC propose identifier les besoins des differents types de me- un programme elargi qui serait finance en nages agricoles et les moyens mis en oeuvre grande partie par lYteat, des programmes pour trouver des technologies adaptees pour- bilateraux et des ONG, en complement des con- raient etre amelior6s. tributions demandees aux communautes en na- ture ou en espees (au besoin a l'aide de fonds Une meilleure comprehension des contraintes qui leur seraient pre&). Cependant, il y aura et des possibilites des menages, pour chaque vraisemblablement de nombreux cas oui un don grand systeme de production, devrait guider de l'AKRSP assurerait la viabilite du plan de non seulement le travail de recherche tech- financement, tout en donnant a I'AKRSP de nologique, mais aussi l'ensemble des discus- meilleures possibilites de garantir une execution sions engagees par l'AKRSP avec les commu- efficace et de faire en sorte que soient duiment nautes en vue de la planification de ses prises en compte toutes considerations d'equite interventions. Les solutions relativement pertinentes. Cette participation ne devrait pas stereotypees proposees aux problemes identi- 25 fies lors de ce dialogue donnent A penser que Valorisation des ressources humaines le processus n'est pas aussi constructif qu'il devrait l'Ftre, particulierement en vue du fait L'AKRSP a beaucoup contribue a la valorisation que certaines de ces < solutions >> n'ont et des ressources humaines par ses programmes adoptees que par de faibles minorites. de formation. L'un des elements cles de sa strategie est de former certains villageois dans De r6centes initiatives ont tente de rendre le des domaines particuliers pour qu'ils puissent programme plus sensible aux besoins locaux ensuite partager leurs connaissances avec les en le decentralisant au niveau regional d'a- autres membres de la communaute. bord, puis par la creation de cellules locales. Cette demarche parait logique, mais it faudra Les resultats n'ont toutefois pas et uniform& prendre garde aux difficultes que l'on pourrait ment bons, en particulier dans les domaines rencontrer A attirer et A retenir du personnel techniques. Lorsque les specialistes fournissent qualifie et experimente avant de decider du un service generalement reconnu comme exi- lieu d'affectation des agents et des liens a geant des connaissances specialisees (ecusson- etablir entre les differents echelons du pro- nage/greffage d'arbres fruitiers, par exemple) gramme GRN. En outre, la mission d'evalua- ou impliquant un cout monetaire (administra- tion ne pense pas que ces initiatives suffiront tion de vaccins ou de medicaments), les mem- pour amener le personnel GRN A raisonner bres de la communaute sont plus disposes A A 1'echelle des systemes agraires, ni pour remunerer le service rendu. En revanche, ils se repondre A l'exigence d'un developpement montrent moins empresses A payer des conseils technologique plus approprie. d'ordre general. Par ailleurs, il a et difficile au personnel de 1'AKRSP d'apporter l'aide neces- Des propositions ont ete faites pour associer sai:re aux specialistes. Face a cette situation, les agriculteurs cles A la conception des experi- 1'AKRSP a recemment prete une attention par- mentations et A l'evaluation de leurs resultats. ticuliere au concept de << maitres-formateurs >>. Mais il faudrait pour cela des effectifs plus Cette initiative consiste a dispenser aux sp6- nombreux et des financements plus eleves que cialistes selectionnes une formation plus inten- ceux qui sont actuellement prevus. Cette ap- sive pour rehausser le niveau de leurs comp& proche est neanmoins suffisamment impor- tences et aussi A les aider A exercer une activite tante pour qu'il soit envisage d'en faire l'ex- en rapport avec leur domaine de specialisation, perience dans le cadre d'un projet finance par comme la fourniture d'intrants tels que vaccins des ressources speciales. Il est egalement pos- ou pesticides. Ce programme devrait con- sible que des entites internationales specia- tribuer A la perennite du systeme de services lisees dans ce domaine soient disposees A techniques dans la mesure oui ces maitres- collaborer et il se pourrait qu'un projet relative- formateurs devraient considerer qu'ils ont in- ment visible, beneficiant d'un appui interna- teret a continuer A parfaire leurs connaissances tional, permette de retenir durablement un et Ai dispenser de bons conseils parallelement A personnel de qualit6. I1 serait en outre indis- la fourniture d'intrants. En outre, ils seraient pensable d'etablir des liens avec le systeme probablement incites A rechercher la coopera- national de recherche pour assurer la viabilite tion des specialistes presents en plus grand A long terme de l'effort de recherche adapta- nombre dans la plupart des communaut6s. tive et il faudrait envisager aussi la possibilite Cependant, une fois le programme parvenu a de sous-traiter certains elements du pro- son terme, ces experts continueront d'avoir be- gramme A des entites beneficiant d'un avan- soin d'un appui technique. Cela souligne la tage comparatif. necessite d'encourager de plus en plus l'eta- 26 blissement de liens non seulement avec le Commercialisation secteur prive, mais aussi avec les organismes publics qui pourraient etre une source d'aide A Le programme de commercialisation a consi- l'avenir. derablement evolue. Aujourd'hui, la priorit6 n'est plus tant la mise en place d'arrangements Les organisations villageoises rempliront cooperatifs, et il s'agit surtout, A juste titre, d'autant mieux leur r6le de partenaires a part d'aider les producteurs a traiter et a presenter entiere de l'effort de developpement si elles leurs produits et a etablir des liens avec les recoivent une formation A la gestion plus marches et/ou negociants 6tablis. Les deux poussee. De surcroit, il est probable que, dans cooperatives qui ont vu le jour ont permis a bien des cas, le futur programme supposera leurs adherents d'obtenir des prix plus 6leves la cooperation de plusieurs organisations vil- car, dans les deux cas, les produits en cause se lageoises pour la realisation de projets de pretaient particulierement bien A ce type d'in- plus grande envergure. I1 sera en outre neces- tervention. Cependant, l'une et l'autre (les as- saire qu'un groupe de gestionnaires specia- sociations de commercialisation de I'abricot du lises puissent jouer un r6le de chef de file Baltistan et de Gilgit) ont encore besoin d'etre dans un cadre multicommunautaire. L'expan- encadrees pour perfectionner les competences sion envisagee des activites bancaires a commerciales de leurs dirigeants. En outre, la l'echelle des villages exigera de donner a cer- section de commercialisation a elargi son taines personnes une formation beaucoup champ d'action en encourageant l'etablisse- plus poussee en comptabilite et en gestion. ment d'entreprises commerciales non agricoles, Ce programme exigera aussi un suivi plus comme la creation de maisons d'hotes dans les attentif sur le terrain pour atteindre pleine- villages pour exploiter le potentiel du marche ment ses objectifs. touristique. En outre elle a change de nom en 1992 pour devenir la Division de promotion de Un autre aspect important de la valorisation l'entreprise (EDD - Enterprise Development des ressources humaines a trait A la formation Division). du personnel du programme. L'AKRSP a tou- jours eu pour principe de recruter sur place I1 faudra clairement definir les attributions chaque fois que possible. Cependant, pour respectives de 1'EDD et de la Societe d'aide A pourvoir les postes de responsabilite, il a sou- l'entreprise (ESC - Enterprise Support vent du recruter hors de la region en raison de Company) dont la creation est envisagee. la rarete des candidats locaux ayant la forma- tion requise. Cette approche etait legitime, mais I'AKRSP semble ne pas s'tkre suffisamment Epargne et credit preoccupe de donner de preference aux agents locaux la possibilite de recevoir une formation Le Programme d'epargne et de credit a con- specialisee de maniere qu'ils puissent ensuite tribue a faire des OV d'utiles institutions com- occuper des postes de responsabilite. La mise munautaires et a facilite le developpement en place d'un programme concerte lui aurait 6conomique en donnant acces au credit A la peut-etre permis d'eviter certaines des majorite de la population de la region couverte difficultes de personnel qui se sont recemment par I'AKRSP. II s'est revele etre un instrument posees. Cependant, la direction s'est recemment souple et adaptable et des ajustements lui ont attaquee au probleme et des dispositions ap- ete apportes A la lumiere de l'experience. Le propries ont ete prises pour l'octroi de bourses programme de credit mis en place dans les d'etudes. annees 90 pour les organisations villageoises 27 et feminines a permis en particulier d'associer Cela risquerait toutefois de creer des attentes les communautes et les menages au processus difficiles a maitriser et de favoriser un manque de credit. On constate toutefois une certaine de transparence dans le traitement des pertes. Il degradation de la performance du portefeuille serait sans doute plus approprie d'incorporer de prets de l'AKRSP et la situation des rem- un element-don transparent au plan de finance- boursements devra etre suivie de pres. ment des investissements pour rendre plus viable l'octroi de prets assortis de conditions La proposition visant a institutionnaliser le Pro- normales. Enfin, la NRDB pourrait choisir de gramme d'epargne et de credit par la creation subventionner l'epargne en servant des taux d'une banque specialement destinee a la region d'interet attractifs et en prenant en charge les du nord (NRDB) est appropriee. Cela permet- couits de personnel necessaires a un programme trait de tirer profit des resultats relativement dynamique de collecte de l1'pargne. Etant bons obtenus jusqu'ici et de mettre en place le donn6 que tous les membres des OV/OF dispositif permanent necessaire pour continuer epargnent et que la region compte d'autres d'apporter une aide financiere au developpe- 6pargnants, le subventionnement de l'epargne ment local. Pour y parvenir, il faudra toutefois profiterait a la vaste majorite de la population. accroitre le professionnalisme de l'intermedia- tion financiere. Cela impliquera notamment de La Societe d'aide a l'entreprise doit financer des redefinir l'objectif strategique : il ne s'agirait investissements dont on peut attendre de gros plus seulement de repondre aux besoins de avantages sociaux et de substantiels effets cat- credit, mais de creer une capacite d'endet- alytiques, mais qui comportent des risques ex- tement, d'etablir des systemes d'information cessifs pour un preteur ordinaire. Les projec- financiere et d'adopter d'autres moyens de con- tions relatives a ses operations montrent qu'elle tr6le et de gestion des risques, d'ameliorer les a peu de chances d'etre rentable. Une partie des activites de soutien operationnel et de forma- benefices annuels de la NRDB lui sera trans- tion au niveau des OV/OF, et de renforcer les feree. Elle presente en outre un certain nombre moyens de contr6le et autres mesures pruden- de caracteristiques favorables a d'ufiles interac- tielles de supervision interne. tions avec les marches et les entrepreneurs lo- caux. C'est un r6le difficile qui exigera beau- La structure particuliere de son capital (ses cotup de talent de la part de ses dirigeants. Si fonds propres provenant de dons, elle n'aurait l'oIn devait constater de nombreux defauts de pas a verser de dividendes a ses actionnaires) paiement, pour une raison quelconque, et ne offrirait a la NRDB plusieurs possibilites de rien faire de s6rieux pour y rem6dier, certains mieux servir sa clientele. Premierement, elle des emprunteurs qui ont les moyens de rem- pourrait developper ses activit6s de pret en ac- bourser pourraient chercher a se soustraire a cordant des credits a long terme. La prise d'en- leurs obligations. Une facon de prevenir l'ap- gagements plus longs accroitrait les risques de parition de pareil comportement serait de faire son portefeuille et elle devrait disposer de bons en sorte qu'en cas de defaut de paiement, 1'em- systemes d'information sur le marche et sur les prunteur y perde plus que le preteur. clients. Deuxiemement, elle pourrait tirer parti de son faible cout de financement pour subven- Il importe d'eviter que les emprunteurs s'at- tionner les prets destines a certains types d'in- tendent a beneficier d'une remise de leur vestissement. Les consultants de I'AKRSP ont dette. Aussi serait-il sans doute plus approprie preconise l'octroi de prets bonifies pour les pro- que les prets a l'infrastructure sociale relevent jets d'infrastructure sociale presentant de gros de l'ESC plut6t que de la NRDB, comme cela avantages pour l'ensemble de la communaute. est actuellement envisage, car de toutes les 28 activites proposkes pour cette banque, c'est ONG travaillant dans les domaines de la celle qui semble etre la plus problematique. sante, de l'approvisionneme.nt en eau et de l'education sont particulierement avantageux pour les femmes. L'aide apportee par 1'AKRSP Problematique hommes/femmes aux organisations feminines pour le lancement de programmes de production maraich&re et Les organisations feminines se sont reveles avicole a directement contribue a des amelio- un moyen acceptable et viable d'integrer les rations de la nutrition des menages et offert femmes au processus de developpement dans une source de revenu monetaire a de la region du nord et il serait bon de les ren- nombreuse femmes. forcer lors de la prochaine phase de 1'AKRSP. Les demandes 6manant de nouvelles commu- Les efforts entrepris pour unifier le programme nautes devraient certes etre satisfaites, mais le par l'int6gration des activites destin6es aux programme devrait desormais s'attacher a la femmes et du personnel responsable de ces qualit6 de l'interaction avec les OF existantes, activites devraient etre poursuivis, mais ce tout en encourageant la participation d'un processus devra faire l'objet d'une planification plus grand nombre de menages dans chaque soigneuse et d'une evaluation permanente. Les communaute. responsables RFD (R6le des femmes dans le developpement) de chaque region auront un I1 conviendrait d'ameliorer le suivi des organi- r6le particulierement important a jouer dans le sations feminines et d'assouplir l'application suivi du processus d'integration. I1 faudrait des divers programmes. Les activites de organiser d'autres ateliers de sensibilisation a I'AKRSP concernant l'identification de tech- la problematique hommes/femmes pour en- nologies appropriees devraient etre soigneuse- courager un debat ouvert sur les difficultes qui ment passees en revue. L'introduction de tech- ne manqueront pas de se poser. nologies viables et exigeant moins de travail qui soient jugees acceptables par la population locale revet une importance cruciale, speciale- Gestion, organisation et direction ment pour les femmes, mais les resultats n'ont guere ete satisfaisants jusqu'a present. La nouvelle direction de I'AKRSP a deja prou- ve son aptitude a faire face aux questions qui Lorsqu'on ajoutera au programme des acti- se posent au niveau de la gestion, du personnel vites financi&res plus complexes, il importera et des operations. Cependant, il subsiste d'im- de faire en sorte que les femmes n'en soient portants problemes de motivation qui portent pas exclues. I1 faudra pour cela donner a cer- prejudice a la productivite. I1 faudra s'y atta- taines adherentes des organisations feminines quer rapidement pour que 1'AKRSP retrouve une formation intensive a la gestion appli- son niveau d'efficacite ant6rieur. 11 est essentiel quee. A l'autre extreme, les OF regroupent que la mise en place de la nouvelle strategie de aussi des femmes vulnerables venant de me- I'AKRSP s'accompagne de l'etablissement de nages pauvres qui sont souvent exclues des communications franches et ouvertes a tous les activit6s de 1'AKRSP, alors que ce sont elles echelons du personnel et de la direction. qui ont le plus besoin d'aide. Ce probleme doit faire l'objet d'une attention particuliere. L'elargissement des fonctions de facilitation de I'AKRSP ou de son r6le de catalyseur est justi- Les liens etablis avec l'appui de I'AKRSP entre fie et devrait contribuer a accroitre le volume les OV/OF et les organismes publics ou des et l'efficacite des investissements a l'appui du 29 developpement de la region du nord. Pour que ses principes sont susceptibles de nom- maximiser les avantages potentiels de cet elar- breuses applications, comme le prouve le fait gissement, 1'AKRSP devra conserver sa repu- qu"ils sont couramment utilises pour d'autres tation d'institution d'aide au developpement programmes, au Pakistan et ailleurs. exempte de tout parti pris ou sectarisme. Une structure et des relations entierement transpa- L'AKRSP doit etre considere comme une reus- rentes entre ses bailleurs de fonds, son Conseil site. I1 a eu un impact substantiel sur le d'administration et sa direction l'y aideront. developpement dans un environnement tres La creation de la NRDB et de le Comite de pi- difficile. I1 n'a pas cherche A gerer ses activites lotage strategique rend cette transparence en vase clos, mais bien plut6t A les integrer d'autant plus indispensable, car ces deux nou- progressivement au processus global de velles institutions seront responsables de sub- developpement, en association avec les pou- stantielles ressources financieres. voirs publics et d'autres investisseurs. Cet ef- fort d'integration et sa volonte de conduire les La section suivi, evaluation et recherche a accu- communautes participantes a l'autonomie au- mule une masse de donnees d'6valuation, en gurent bien de la perennite de son impact. particulier au cours des cinq dernieres annees, qui pourraient utilement guider les decisions Le Programme de la Fondation Aga Khan A de la direction sur la strategie et le contenu du l'appui du developpement rural a des imper- programme. Cependant, ce tresor d'informa- fections, mais il est possible d'y remedier au tions n'est pas bien exploite. Les donnees sur moyen d'ajustements de ses politiques les revenus des menages et la performance des generales et de la repartition de ses ressources. OV/OF revetent une importance particuliere, Nous esperons que la presente evaluation fa- car elles pourraient etre tres utiles pour mieux vorisera ces amenagements. La prochaine comprendre les particularites de la situation phase du programme n'ira pas sans nouveaux des differentes categories de menages dans les problemes et defis. Cependant, avec une diverses zones de la region du programme, ce strategie claire et des relations adequates entre qui est indispensable pour definir les activites le personnel, la direction, le Conseil d'admi- ; entreprendre sur la base d'une vue globale nistration et les bailleurs de fonds de l'AKRSP, des menages. Ce travail de categorisation et de ainsi qu'avec l'ensemble de la communaute description de la population devrait etre pris des bailleurs de fonds, le programme devrait en compte dans la plupart des actions de for- continuer de donner de bons resultats. mation et dans la formulation des programmes annuels et A long terme de 1'AKRSP. Les recommandations et propositions formulees par la mission d'evaluation sur l'orientation future du programmes sont ex- Reproductibifite posees de facon plus detaillee au Chapitre 7. La question n'est pas tranchee de savoir dans quelle mesure le modele AKRSP est repro- Note ductible. Cependant, s'il est peu probable que 1'experience puisse, ou mrime doive, etre re- 1. Le terme "programme" designe le Programme de la Fonda- produite A l'identique, il ne fait guere de doute tion Aga Khan a l'appui du developpement rural. 30 1. Introduction The basic objectives of the Aga Khan Rural benefits arising from externalities such as the Support Program (AKRSP) in Pakistan's construction of the Karakoram Highway Northern Areas and Chitral have not changed through the Northern Areas. The program de- appreciably since the program's inception in signers' intention was that the program 1982. These objectives seek to increase the ca- demonstrate its replicability, and that AKRSP pacity of local people to become involved in as a development organization have a limited their own development, so that they can im- life-that is, the village institutions would prove their income and welfare in a sustain- eventually be sustainable without an external able and equitable manner. Key elements in sponsoring entity. the approach to meet these objectives are (a) the establishment of village-level institutions The program's accomplishments have undoubt- (known as village and women's organizations) edly been substantial (Annex Table 1.1). By end- to manage the development process; (b) the 1994, more than 1,800 village organizations use of a productive physical infrastructure (VOs), covering two-thirds of rural households project with a grant element from AKRSP to in the program areas, had been established; support economic development and provide more than 1,500 productive physical infrastruc- the initial incentive for community organiza- ture (PPI) projects had been initiated; 745 tion; (c) the introduction of an obligatory indi- women's organizations (WOs) were active; close vidual savings scheme to mobilize capital, and to 1,000 regular or refresher training courses had the use of credit from village organizations to been given to villagers; 200 ha of forestry and assist small farmers; and (d) the training of more than 2,000 VO/WO forest nurseries had local people in a range of organizational and been established; nearly 2.5 million fruit trees technical skills to support them in their self- had been planted; and, in 1994 alone, more than help activities. Rs. 90 million were disbursed in the form of loans, largely using community savings as col- The program's focus has been on income- lateral. Govemmental and nongovernmental generating investments and activities, consid- (NGO) agencies' current use of the program and ered essential for attaining the intended in- village organizations to facilitate implementa- creases in living standards. Apart from the tion of non-AKRSP programs in the north testi- direct benefits emanating from productive and fies to the program's accomplishments. Never- production-support investments such as access theless, the fact that AKRSP is now in its roads, these interventions would enable the thirteenth year and has, indeed, already made a local communities to internalize the potential substantial contribution to northem develop- 31 ment suggests that a review be made to define training and encouragement of group and AKRSP's future direction and strategy. individual economic activities; As could be expected, after a number of years * helping the organizations establish links of AKRSP activity in a given district, develop- with governmental and nongovernmental ment benefits have been accompanied by a algencies and programs with special empha- decline in the rate at which new VOs are creat- sis on the provision of social services; ed and PPIs initiated. Also, on average, the village organizations have become more ma- * improving the capability of VOs to plan ture as institutions. This is obvious in Gilgit, infrastructure investment in both the pro- the initial area of concentration, while Astore cluctive and social sectors without AKRSP as a relatively new district is still in a less ma- incurring the major capital costs; and ture, expansionary phase. Does this mean that AKRSP activities should cease in Gilgit and in * enhancing the natural resource manage- other districts as they reach an equivalent rnent aspects of village and individual farm stage of maturity, or is continued support war- clevelopment. ranted, and if so in what way? Withdrawal would satisfy the objective of AKRSP's inter- It also proposed that the AKRSP-managed vention being self-limiting. savings and loan arrangements be converted into a permanent banking system that could The need to address these questions became respond to the requirements of communities obvious in the early 1990s, and eventually led and of individual entrepreneurs. In essence, to the AKRSP board's appointment of a Strate- the SDC indicated that AKRSP should contin- gy Development Committee (SDC) in 1992. ue to operate throughout the north, but also The committee is currently in its third and intimated that it had reached a stage where final phase of deliberation on these questions. significant changes were warranted to ensure To date, it has reaffirmed the goals of AKRSP the development framework's sustainability. in promoting village organizations to partici- pate in their own development, and of raising This OED evaluation analyzes most of the is- incomes and welfare through diversified eco- sues addressed by the Strategy Development nomic activities, while maintaining a fair dis- Committee and comments at length on partic- tribution of opportunities. It also, however, ular proposals such as the savings and credit has analyzed the current environment in the arrangements. The study accepts the centrality Northern Areas and Chitral and recommend- of the village institutions. Further, it believes ed where AKRSP activities be concentrated in that most communities that have experienced future for the long-term benefit of local a productive physical infrastructure project communities. have passed the stage where they need to be convinced that acting together would allow Despite considerable maturity in many indi- them to articulate needs and receive benefits vidual VOs, the committee did not consider it through cooperation in investments and ser- appropriate for AKRSP to withdraw from any vices. Now the priority is to increase the area at this time. Rather, it recommended that awareness in communities (and among out- AKRSP concentrate on: side agencies) that VOs are able to be equal partners in development and to facilitate this * further developing the capacity of village role. The evaluation pays special attention to and women's organizations through the process by which programs to improve 32 natural resource management (agriculture, port accepts as legitimate the objective of pro- livestock, and forestry) have been determined viding equitable opportunity for improved and supported, and makes recommendations income and welfare. However, it also points to enhance their effectiveness. This has impli- out that this need not lead to a narrowing of cations for staffing plans, for annual and the income gap within the area. Individuals longer-term program planning, and for the (and even groups) with different levels of re- traditional dialogues undertaken with village sources (land, labor, capital, education) and communities. Emphasis is also given to the different characteristics (cultural/sectarian potential for further high-return infrastructure values, risk aversion) can be expected to re- development in the area. Because the program spond to opportunities differently, with a con- succeeded in promoting rural development in siderable range in the individual benefits ob- this difficult environment, the report discusses tained. This must be accepted. An institution the replicability of its principles in other situa- like AKRSP has the opportunity, however, tions, both inside and outside Pakistan. to ensure that any investment grant or sub- sidized program is equitably distributed, and Improvement in the role of women as house- can monitor the overall impact of develop- hold members is the subject of a chapter in ment activities on the different intended bene- which suggestions are made to more fully real- ficiary groups. This, then, can allow program ize this important equity goal. The chapter managers to appropriately target interventions takes into account the cultural constraints af- for those who have not been able to respond to fecting AKRSP's activities in this area. The re- generally available opportunities. 33 2. Program impact Using the 1981 Census as a base and assuming women has continued to be strong in all dis- a 3.2 percent yearly growth rate, AKRSP esti- tricts, but with some decline in 1994, except in mated that by the end of 1994 the total popula- the new program area of Astore. tion of the Northern Areas and Chitral would have approached 1.1 million, with 85 percent The expanding coverage has not only involved living in approximately 1,150 rural villages productive investments, but has also been ac- (Annex Table 1.2). Based on experience that companied by a widening and changing port- large villages have more than one village orga- folio of activities supported by evolving credit nization, AKRSP estimates that the area has a mechanisms and technical assistance. Several potential for close to 2,200 VOs, with about 50 of the early activities such as lending for land households in each. development, appropriate technology, and farm machinery were wound down after 1989. These numbers hide a great diversity across New ventures, particularly in vegetables, veg- villages, in terms of differences in climate, en- etable seeds, and fruit and forest trees, have dowments of irrigation water and land, cul- expanded. The scope of the training program ture, and physical access to markets, and with- has widened in accordance with demand. in villages, in terms of differences in wealth and capabilities among households. The re- One should expect a significant impact from a sulting variation in potential requires a devel- program that covers so substantially the rural opment strategy responsive to such diversity. population (about two-thirds) in the Northern Areas and Chitral. The ultimate measure of By the end of 1994, the program's coverage had impact would be the program's effect on the increased from about 55,000 households in income and welfare of households in the tar- 1,158 village organizations in 1989 (the year of geted areas. This would necessitate measure- the previous OED evaluation) to more than ment of changes in these phenomena in differ- 75,000 households in 1,834 VOs. Most of this ent socioeconomic sets of the population, and expansion in coverage (85 percent) occurred in an assessment of the extent to which AKRSP the Chitral and Baltistan regions, more particu- has contributed to these changes. larly in the earlier years of this period (Annex Table 1.3). The Astore district, entering the pro- Unfortunately, benchmark household income gram in 1993, accounted for the rest of the in- surveys were not undertaken until 1992. These crease. Only minor changes occurred in Gilgit. wil]. provide a sound basis to measure change The influence of women's organizations on in the future by follow-up surveys, but do not 34 provide a basis for an overall quantitative as- In the absence of a suitable basis for an overall sessment at this stage. Even with reliable data quantitative evaluation of impact, the study on income/welfare changes, the extent to reviewed the available data to identify mea- which the program can be attributed with sures that might allow a reasonable assess- changes will still have to be estimated. Many ment to be made. Measures identified include government and nongovernment investments asset creation, production improvements, and activities exogenous to AKRSP have con- changes in household economy and welfare, tributed to development. The Karakoram and equity issues. Highway is a prime example. In the 1992 benchmark surveys, an attempt was Asset creation made to relate survey results to earlier secon- dary data to provide an assessment of income AKRSP's own statement of achievements changes. From 1982 to 1991, per capita income highlights the creation of assets at the VO in the program area was estimated to have al- level. Major categories of assets include pro- most doubled in real terms (Table 2.1). In a 1995 ductive physical infrastructure projects (PPIs), paper ("Future Vision") submitted to the Strate- land development associated with irrigation- gy Development Committee, AKRSP refers to focused PPIs, and fruit and forest tree estab- this improvement-incomes in the local area lishment. Table 2.2 records the progress in increased from 40 percent to 60 percent of the productive physical infrastructure projects national average-and asserts that its activities since 1989. have made a substantial contribution to it. The PPIs initiated by end-1994 represent an AKRSP has the data to support this assertion. investment of Rs. 250 million by AKRSP. These Although overall quantitative impact informa- grant funds are highly leveraged through the tion is scarce, the program has intensively use of self-help labor from the villagers. monitored implementation of the instruments it has used to meet its objectives. It has also Irrigation PPIs made up 56 percent of projects done numerous studies to evaluate the effec- initiated by end-1994; detailed estimates of tiveness of various activities in attaining their additional land brought into cultivation as a intended outcomes. The monitoring, evalua- result of these investments are not available. tion, and research section has been particularly AKRSP estimated in 1995 that physical active in this area since OED's 1989 review, infrastructure projects had brought 21,000 ha and has frequently involved the respective of land under command; this would repre- technical service sections. sent 28 percent of the estimated total of TABLE 2.1: PER CAPITA INCOME IN THE PROGRAM AREA, 1982-91 Pakistan Gilgit Chitral 1982-83 1990-91 1982-83 1990-91 1982-83 1990-91 Per capita income (rs.) 4,131 9,170 1,905 5,628 1,772 5,900 Proportion of Pakistan per capita income - - 46 62 36 64 Real increase (%) - 26 - 94 - 89 Souirce: Bhatti, Tetlay, and Malik 1994. 35 74,000 ha now under irrigation in the pro- Production and income gram area. However, it appears that the rate at which the new command area has been The benchmark surveys record the continuing brought into full production has been rela- importance of agriculture as a means of liveli- tively slow. An estimated 5,500 ha of land de- hood in the Northern Areas and Chitral, where velopment was financed under medium-term it remains the most important source of family credit, but this credit line was virtually sus- income. Table 2.4 records the main sources of pended after 1989. The AKRSP forestry pro- agricultural income, and its contribution to gram has provided some acceleration in com- household income. Comparable data for an ear- mand area development in the last few years, lier date are unavailable. However, assuming but the rate at which individuals can develop the validity of the analysis cited earlier (Bhatti, their land using their own resources is limit- Tetlay, and Malik 1994), which used secondary ed by conflicting labor demand, and by in- data to imply a doubling of income in the clement weather conditions in the winter 1980s, the household data indicate that agricul- months. ture should have been an important contributor to this improvement. Consequently, as AKRSP Changes in selected productive assets were has had major activities in the agricultural sec- presented in the summary of the regional toi, it can reasonably be linked to the improved benchmark surveys (Bhatti, Tetlay, and Malik income, although there are no means to identify 1994). The 1981 Agricultural Census provides the extent of this contribution. a baseline to assess increases in tree holdings and vegetable cultivation (Table 2.3). The benchmark survey done in the Baltistan region included a comparative analysis of Through end-1994, AKRSP fruit tree planting program and nonprogram households. Two totaled 2.43 million plants, and forest tree samples were surveyed: one of 160 households plantings supported by AKRSP totaled more in the program (VOs), and the other of 40 than 5 million. In addition, the village organi- households outside the program (in villages zations themselves planted a further 14 mil- without village organizations, referred to as lion forest tree seedlings (AKRSP 1994b). NVOs). Table 2.5 makes some comparisons. TABLE 2.2: ASSET CREATION THROUGH PRODUCTIVE PHYSICAL INFRASTRUCTURE, 1989-94 (ntimber) Year 1989 1990 1991 1992 1993 1994 PPIs initiated (cumulative) 901 1,067 1,204 1,315 1,425 1,501 PPIs initiated in the year 144 166 137 111 110 76 PPIs completed 630 763 882 995 1,123 1,204 PPIs completed in the year 118 133 119 113 128 81 TABLE 2.3: PERCENTAGE INCREASES IN SELECTED ASSETS SUBJECT TO AKRSP ACTIVITIES, 1981-91 Gilgit Chitral Baltistan Increase in area of vegetables 100 300 76 Increase in fruit trees per farm 65 210 96 Increase in forest trees per farm 313 - - 36 TABLE 2.4: HOuSEHOLD INCOME BY PROGRAM REGION Regionz Gilgit Chitral Baltistant Astore Family size 9.5 8.7 7.9 9.1 Irrigated area (karnalsa) 30.6 26.0 30.1 36.1 Crops (percent of area) 37.0 47.0 43.0 42.0 Irrigated pasture (percent of area) 63.0 53.0 57.0 58.0 Gross value produced (rs.) Crops 16,235 9,884 9,402 8,137 Livestock 8,264 4,970 4,996 10,056 Fruits 2,962 3,406 3,089 346 Vegetables 2,413 2,317 1,862 528 Forestry 3,218 5,584 2,362 272 Poultry 914 1,480 386 269 Other 2,596 279 613 8,516b Gross farm income (GFI) 36,602 27,921 22,710 28,124 Farm cash costs 6,845 3,829 4,483 9,246 Net farm income 29,757 24,092 18,227 18,878 Other household income 23,712 27,241 10,351 20,916 Gross household income (GHI) 60,314 54,532 33,061 49,040 GFI as percent of GHI 61 51 69 57 GHI per capita 5,628 5,900 3,617 5,405 a. One karnal is approximately 0.05 ha. b. Includes Rs. 5,739 for "grass" sales, which is 20 percent of farm income. The data indicate that VO households have a this factor alone, as only about two-thirds could substantially larger farm size and irrigated area, be expected to have benefited from an irriga- much higher population of fruit and forest trees, tion PPI. Consequently, it appears that the pro- significantly greater use of fertilizer on crops, gram has attracted communities with a higher and higher cereal yields and vegetable produc- irrigated land asset base; this confounds the tion levels. However, the cropped area (assume- comparison somewhat. dly in annual crops) is not significantly differ- ent, and the cropping intensity (apparently also The VO group's lower cropping intensity could on the annual crop area) is lower than for NVO be linked to labor resources being used in grad- households. Cash farm income is higher for VO ual development of the new command area in households, but not as high as might be expect- fruit and forestry, and to higher crop yields, ed considering their better asset situation. with hence less urgency for more intensive crop- ping. The restricted income benefit exhibited in A larger farm size and irrigated area could be 1991 by the VO households is probably associat- anticipated for the village organization group; ed with delayed benefits typically obtained investment in irrigation makes up 63 percent of from forestry and fruit investments, and from the PPIs in Baltistan, and as common land is slow development of the new command area. brought under irrigation command it is allocat- ed to specific households. However, based on Overall, the comparative study of Baltistan the average incremental irrigation area for these confirms that the AKRSP activities have had a households receiving irrigation (about 12 kar- major impact on agriculture in participating nals), the figures can hardly be explained by village organizations. 37 TABLF 2.5: SELECTED COMPARISONS-BALTISTAN 1991 1981 Agricultural 1991 VOs NVOs Survey Census average 1991 1991 Farm size (karnals) 23.6 37.0 41.0 25.1 Irrigated area (karnals) 30.1 33.3 20.4 Cropped area (karnals) 12.8 12.7 13.1 Cropping intensity (%) 124.0 123.1 112.6 153.7 Fruit trees (no.) 25.0 48.7 52.1 35.7 Forest trees (no.) 222.1 275.0 67.2 Wheat (kgs/karnal) 124.0 136.0 88.0 Barley (kgs/karnal) 116.0 132.0 92.0 Vegetables (rs./karnal) 2,098.0 2,586.0 972.0 Using fertilizer (percent) 42.1 71.9 82.5 40.0 Net cash farm income (rs.) 18,227.0 18,777.0 16,559.0 Net cash farm income per capita (rs.) 4,185.0 4,533.0 3,285.0 The economy within households An evaluation of the vegetable introduction package was conducted in all three regions It is clear that since the early 1980s there have among a total of 210 women from 42 women's been positive changes in the incomes of house- organizations (Hussain 1993). It found that holds in the program area. This is associated vegetable production increased on average by with expanded employment options for men 111 percent, with the marketing of vegetables in local urban centers and in down-country increasing the women's income by 144 percent. Pakistan and the Middle East, as well as in- In addition to household consumption, fresh creased production and returns from on-farm vegetables were marketed locally or taken to activities. AKRSP can possibly claim to have nearby towns, while portions of the crop may had some impact on the former by improving have been dried and later sold. More than 50 village access, but, as intimated earlier, its percent of the sample in all three regions mar- major contribution will have been in agricul- keted produce. ture. The higher cash income has obviously benefited rural families, but the income Inccme obtained from vegetable sales was changes have affected the functioning of the used primarily for the: household unit, with specific effects on women. * education of children (school fees, books, and so on); AKRSP has significantly enhanced women's economic activities and increased their status * purchase of household items for daily use, within households (Kalleder 1994a, 1994b, such as sugar, tea, soap, cooking oil, and Malik and Kalleder 1995). The opportunity to electricity/phone bills (where relevant); save money, access credit, and undertake training in how to make better use of their re- * agricultural expenditures (fertilizers, farm- sources has had an important effect, as has the ing tools, and seeds); and introduction of production packages specifi- cally designed for women. The latter have in- * savings at women's organization meetings. cluded vegetable, poultry, and nursery inter- ventions, which have the potential to generate Poultry production by WO members has gen- cash income. erally led to an increase in consumption of 38 both eggs and chickens (the latter usually only enterprise patterns, and in women's additional on special occasions), but has not always led to activities encouraged by the program have cash sales. In a study of five women's organi- added to women's workloads. zations participating in the poultry package in Baltistan, eggs functioned as currency in the For off-farm activities, wherever possible one mixed cash/barter economy and were also ex- male member from a household is sent out, changed as gifts. However, eggs were usually while others remain on the farm. In many cases not sold in the local markets. Nevertheless, of nuclear family units, however, a male may mothers with school-going children were more engage in off-farm employment and, if the em- likely to earn cash from their egg-producing ployment is not local, temporary female-head- activities; the education costs provided the in- ed households are created. Where female- centive for cash income (Durrani and Naz headed households exist, male relatives and 1993). Another Baltistan evaluation had similar neighbors often provide assistance, or a hired observations, but noted that the more commer- hand may be engaged for such tasks as plow- cialized communities often reduced consump- ing and planting trees-tasks that women do tion in favor of sales (Durrani 1991). not traditionally undertake. However, the net effect is that women assume more of men's The benefits obtained by women, however, agricultural tasks, working longer hours and have not been without some costs. Women engaging in new areas of decisionmaking. and children have traditionally assumed a heavy workload in the household production The emergence of vegetables as a cash crop system (Table 2.6). Changes that have occurred has meant additional workloads for women. in off-farm and migration labor, in farming With men undertaking off-farm wage labor TABLE 2.6: HOUSEHOLD LABOR DISTRIBUTION BY GENDER FOR HOUSEHOLD ACTIVITIES AND CROP PRODUCTION IN GILGIT DISTRICT, 1989 (hours) Labor activity Women Men Children Household activitiesa 2,034 342 419 Livestock 885 349 431 Crop production 538 523 83 Collection of water 283 50 132 Collection of firewood 100 176 47 Orchards 38 37 20 Total 3,878 1,477 1,132 Crop production breakdown Land preparation 51 163 21 Irrigation 67 202 36 Weeding 241 64 45 Fertilizing 31 17 12 Harvesting 137 131 41 Threshing 34 34 15 Total 538 523 83 a. For women, the category "household activities" often includes a large agricultural component. Soutrce: Khan 1989. 39 and more children (both boys and girls) cial service programs to address these issues. attending school, a general lack of individuals Most social service interventions are through to graze animals has resulted in more stall government programs with local or external feeding of animals by women regardless of funding and through nongovernmental orga- season. This correspondingly demands more nizations, especially the Aga Khan Health Ser- fodder collection and preparation than before vice and Aga Khan Education Service. AKRSP when animals were grazed in mountain pas- has played an important role, however, by cre- tures in spring and summer. ating the village institutions that can facilitate social welfare activities, and in recent years by Despite the increased workload, the benefits prcmoting links between VO/WOs and sup- obtained by families from increased cash in- poIrt agencies. comes are clearly evident to women. Although they may complain, they most frequently state Due to poor sanitation, unclean water supply, that the pros outweigh the cons. For example, and lack of access to health services, the North- in the impact study on vegetable introduction ern Areas and Chitral have traditionally been packages cited above (Hussain 1993), some 92 affected by numerous health problems. Women percent of the respondents reported spending and children especially have been affected. considerably more time in their vegetable plots Women's organizations have been actively in- for land preparation, fertilizer incorporation, volved with the Aga Khan Health Service-in and proper sowing. But, appreciating the po- their training of community health workers tential cash returns from this activity, most and birth attendants, largely in Gilgit and Chi- women also decided to increase the area of tral., and in their links with government pro- their vegetable cultivation area and, corres- grams for immunizations and control of iodine pondingly, their workload. Thus, women ap- deficiency. Significant results are being pear to adjust their daily schedules to accom- obtained (Rasmussen et al. 1992). AKRSP has modate the many economic changes occurring, recently started to work with the government's and many continue to seek additional means Social Action Program to provide clean drink- by which they themselves can bring additional ing water; the action program will link with money into their household units. VOs to establish water distribution schemes. AKRSP's physical infrastructure projects too In general, with women's increased ability to have begun to address the issue of safe drink- save, access credit, and bring cash into the ing water. No health impact has yet occurred household or, at least, to assist their male rela- from these investments, but a significant im- tives more effectively in this process, their self- pact can be anticipated. confidence has increased. Through their sched- uled activities in the women's organizations, AKRSP has had a more direct impact in im- they also engage more in long-term group and proving nutrition, which affects both health individual planning for the future. and productivity. Women's organization members are quick to point out nutritional changes that have occurred in recent years, Changes in household welfare the most notable of which is increased veg- etable consumption, a goal of AKRSP's veg- In addition to economic changes within house- etable introduction package. Not only have holds, there have been improvements in gen- more traditional vegetables been produced eral welfare-health, nutrition, and education. through improved seeds and better cultural AKRSP has not been directly involved in so- techniques, but new types of vegetables have 40 been introduced. Improvements in poultry ter churns, heating coils, irons, and, in a few production, which have been taken up by 80 cases, even washing machines). percent of WOs, have increased animal pro- tein intake. Equity in impact The literacy rate is especially low in the Northern Areas and Chitral. As will be seen As pointed out in Chapter 1, AKRSP has a le- later in this report, literacy of community gitimate objective in aiming to provide equi- leaders can have an important influence on table opportunities for improved income and the development of village institutions and, welfare. It must be acknowledged that no pro- hence, on the improvement in community gram can provide equitable development for productivity and welfare. Education is also every household. The existing resource base, essential for the younger generation if they education level, entrepreneurial skill, drive, are to benefit from the expanded opportuni- and management ability will influence the rate ties created by economic development in the at which individuals and households advance. area. AKRSP has recently coordinated with However, AKRSP's objective also implies that the government's Social Action Program in it should avoid the disproportionate capture of primary education; village organizations ac- program benefits by village residents who are tively participate in the establishment and already more fortunate than the majority. This maintenance of community schools. It also especially applies to any activities with a grant cooperates with the Aga Khan Educational or subsidy element. Service. However, these programs are long- term in nature, and little impact has yet been Although initiated in the dominantly Ismaili attained, apart from the realization by areas of Gilgit, the program has shown no evi- villagers of the benefits of education and a dence of discrimination among regionis or among willingness to use cash to support it. commutnities. Indeed, the expansion into both Baltistan and Astore, where there are very few AKRSP's development of small village hydro- members of the Ismaili sect, and into the south- electric (hydel) schemes through physical in- ern part of Chitral, which is largely Sunni, is frastructure projects in Chitral is having a pos- witness to the wide nonsectarian program itive effect on family living conditions. By mandate. However, at this stage, the Gilgit re- end-1994, there were 30 hydels constructed as gion still has more complete coverage than PPIs. In addition to furnishing light by which other areas and tends to have more economic children can study and household members development. This can be linked to the longer can participate in productive or recreational time it has been in the program, and to the in- activities in the evenings, there is a growing herent benefits it has by virtue of its location, use of electricity for labor-saving devices (but- which provides more economic opportunities. TABLE 2.7: LITERACY RATES BY REGION (10 YEARS OF AGE AND OLDER) Gilgit Chitral Baltistant Diamer Percent literate 18.1 14.6 13.8 10.8 Males 28.6 23.9 23.8 17.1 Females 5.5 3.2 2.1 2.0 Source: Government of Pakistan 1981. 41 The absence of bias has not meant that each than the other regions. This has not been a con- participating community receives equal bene- scious policy, but likely reflects the difficulty in fits. Table 2.8 shows significant differences in recruiting qualified staff in this region, and the the value of PPI grants to village organi- general problem of retaining suitable staff who zations, and also reveals variation in AKRSP do not originate in the area. However, this staff ratios among regions. issue needs to be carefully monitored, given Baltistan's lower off- and on-farm incomes Chitral has the highest grant expenditure per compared with other regions (Table 2.4). PPI, per village organization, and per house- hold. This is associated with the opportunities Wit]h respect to equity within communities, base- available for PPI investment. In Chitral, link line surveys show the range of resource en- roads make up a bigger percentage of total PPIs, dowments across the program area. Table 2.9 and unit costs are substantially higher (Rs. uses farm size as a proxy for resource endow- 70,000/km) than in the other regions (Rs. ment. It shows a strongly skewed land distrib- 59,000/km in Gilgit and Rs. 47,000/km in ution-19 percent of households hold 57 per- Baltistan) because of local circumstances. cent of the land, and 23 percent of households Although there has been a budgeted average hold only 5.4 percent of the land. There is obvi- figure per PPI, the main considerations have ously a significant wealth differential within been priority and feasibility, which is a legiti- cormmunities, which the program needs to take mate rationale. In practice, an upper limit on into account. grant per household is imposed by the common heavy reliance on community labor in the in- One of the program's most significant activi- vestments. A smaller community would usually ties is the productive physical infrastructure not be able to mobilize the labor required for a project. There is much anecdotal evidence that very high-cost, labor-demanding investment. land brought under irrigation command is di- vided equally among all VO members. All vil- Regarding staff resource allocation, Baltistan lages visited by the evaluation mission veri- receives a lower level of professional attention fied this. The impact of extra land area on TABLE 2.8: EQUITY AND PROGRAM RESOURCE ALLOCATIONS (number, unless otherwise indicated) Region Gilgita Chitral Baltistan VO households 28,018.0 22,601.0 24,596.0 Village organizations 623.0 581.0 630.0 Women's organizations 432.0 194.0 142.0 Professional staff 60.0 51.0 46.0 VOs per professional 10.4 11.4 13.7 Households per professional 467.0 443.0 535.0 Productive physical infrastructure 403.0 560.0 539.0 PPI/village organization 0.65 0.96 0.86 PPI grants (rs. '000s) 80,779.0 126,880.0 77,540.0 Grants/PPI (rs. '000s) 200.0 227.0 44.0 Grants/VO (rs. '000s) 130.0 218.0 123.0 Grants/household (rs. '000s) 2.9 5.6 3.2 a. Gilgit includes data for Astore. 42 families owning very small holdings is more urgency for food from annual crops or cash significant than it is for larger landowners. income from off-farm employment, will inhibit This is a positive equity contribution concern- participation in slower yielding interventions ing a key resource. However, AKRSP needs to that have a significant labor investment. Hu- be vigilant in this area as, should poorer sain (1992) highlights the choice faced by poor households not own land in some instances, farmers in Gilgit-between earning immediate they would not benefit directly from a land- cash from off-farm work and planting their related development investment. staple wheat on time. In this context, the intro- duction of shorter maturing wheats created the With respect to the supply and use of inputs flexibility to plant wheat later and still ensure a and services, in most situations VO members crop, and was therefore a very relevant inter- appear to be offered equal opportunity to par- vention for poorer farmers. ticipate in AKRSP interventions. However, this does not ensure that poorer households will Consequently, although the record is generally equally benefit from this access. In Table 2.7 the satisfactory for the distribution of inputs and uptake of fruit trees appears to have a reason- services among households, it will be impor- ably equitable distribution, with 23 percent of tant for AKRSP to monitor this equitv aspect farms holding 5 percent of farm area and ac- of activities. The resource base of individual commodating 14 percent of the intervention. households should be taken into account in Forestry uptake is skewed very much toward the design of interventions, realizing that rich- the larger land holders in the same table. How- er households can take more risks, be more ever, there is logic in this; forest trees need a flexible, and access complementary inputs long period before any return is obtained and needed to implement a package. Poorer fami- smaller farmers have other priorities for their lies will continue to need packages that fit limited land areas. However, to the extent that their household resources if the program is to this is a subsidized investment, a degree of in- maximize its impact on them. equity could arise. Within houtseholds, it is obvious that both men The above suggests that priorities differ and women have benefited from the program. according to household resource levels. Clear- Nevertheless, based on the number of VO ly, an intervention such as access to exotic live- members compared with the number of WO stock is irrelevant to farmers with no animals members alone, it is evident that more men or with scarce labor or fodder resources. For than women are actively participating (Table these small farmers who may have more than 2.6). This is in part due to the area's conserva- two-thirds of the cultivated land under wheat, tive social attitudes toward women's involve- land shortage, often combined with a greater ment in nonhousehold activities and to diffi- TABLE 2.9: FARM SIZE AND RESOURCE ENDOWMENT Farm size Farms Farm area Fruit trees Forest trees (karnals) (%) (%) (%) (%) Under 8 23.4 5.4 14.3 2.9 8 to 20 32.8 16.7 26.8 15.3 20 to 40 24.6 21.6 27.0 30.9 Above 40 19.1 56.7 31.8 50.9 43 culties in recruiting female staff who can more Changing attitudes and effectively monitor WO formation. AKRSP socioeconomic conditions must be considered an NGO leader in its at- tempts to involve women in its activities. The intangible impact of AKRSP has been well expressed in documentation by external It is clear that both within society and within reviewers: The program's most significant con- the household itself, females in the Northern tribution is not so much in the number of trees Areas and Chitral face a number of situations planted or additional area irrigated, but in the of inequity (for example, in the areas of mobil- changing attitudes. People begin to believe ity, decisionmaking, access to education, and they can influence and achieve their develop- daily workload, as compared with men). ment agenda, and the effect of giving women Change is occurring, however, as indicated kncwledge and self-esteem may outweigh all above in the elaboration on the economy with- the detailed problems of package adoption. in the household, and AKRSP has been a key These indirect benefits are important. A princi- actor in this process, especially through its ple of AKRSP philosophy is that social change women's organization program. is brought about through economic develop- ment. In the early days, the PPI grants mobi- Within the women's organizations themselves, lized communities and gave the program mo- equal opportunities may be presented to all mentum. That stage is nearing an end. In members. However, it is frequently the many VOs, empowerment is advanced and its women of the most well-to-do households sustainability is demonstrated in many who are the most active, assume leadership ways-the power to survive disputes, the evi- positions, become specialists, and generally dent social cohesion, and the turnaround by take advantage of the options presented to the skeptical communities, which are now group. Poor women, who are often the most in demnanding to be part of the program. need of economic input for their households, may be excluded by the more powerful mem- As both government and nongovernment in- bers of the group. There may also be a tenden- vestments and programs expand in the area, cy for some WO social organizers to give pref- the local economy is changing. AKRSP has to erence to more capable members so that a adjust to these changing circumstances in its particular activity has a greater chance of suc- partnership with village organizations. cess. Women of female-headed households are Resource endowment, population growth and inclined to be in this potentially disadvantag- migration, economic and policy trends, and ed category, and often do not join the women's market and technological opportunities need organization. This is a difficult problem to ad- to be taken into account in determining the dress, but suggests that social organizers most appropriate long-term development of should identify the vulnerable households in a communities. Dialogue remains crucial to community and that special subprojects partnership, but AKRSP, with its insights into should be developed to target this group on changing conditions, can provide guidance equity grounds. that will benefit the majority of households. 44 3. Program instruments Village institutions PPIs, however, has meant that often more than one village organization has to cooperate in the Progress in village organizations venture, whether within a large village or with a different village. Nevertheless, the smaller The village organization has been the basic village organization has proven to be more ap- building block of AKRSP's participatory rural propriate for social organization and continued development model. Without the village orga- commitment, and for VO management. nizations' impressive coverage of the rural population since the program's inception in The number of village organizations has con- 1983, the reported achievements would not tinued to increase each year in all of the dis- have been possible. At end-1994, there were tricts (Annex Table 1.4). However, the division 1,834 VOs in the program area, with a house- of VOs exaggerates this figure. The increase in hold membership of 75,215. This represents a total household membership is more indica- coverage of more than two-thirds of total rural tive of the rate of progress. Total membership households.1 Gilgit (started 1983) has the high- in Gilgit has leveled since 1986 after a very ac- est coverage at 73 percent, but is closely fol- tive initial three years. In Chitral and Baltistan, lowed by Baltistan at 68 percent (pilot 1985, additions in annual membership have contin- full program 1986), and Chitral at 66 percent ued, but the rates have declined significantly (pilot 1983, full program 1986). Astore, whose since 1991 (Annex Table 1.3). A decline in the program only started in 1993, has a lesser cov- growth rate must be expected as district cover- erage of 36 percent (Annex Tables 1.1-1.3). age expands. However, the lesser coverage of the total rural population in Chitral and As, on average, not all village households are Baltistan suggests that there is still potential to VO members,2 the program covers a higher initiate more VOs and expand the program's proportion of villages than it does of house- coverage in these districts. Astore, of course, holds. The average size of village organizations has high potential for additional coverage and has decreased over time, with membership de- impact, as would any future expansion into clining from an average of 87 to 41 per group Diamer. (Annex Table 1.4). This has been caused by the division of many of the earlier whole-village AKRSP records indicate that the incidence of VOs (especially in Gilgit) into smaller units, village organizations actually withdrawing and by the establishment of smaller village or- from the program is very rare. It appears that ganizations since 1986. The scale of many of the six village organizations have disbanded in 45 Baltistan and nine in Gilgit. Although the an- staffing problems discussed later in this report. nual reports do not indicate any disbanding of Current proposals call for a very much simpli- VOs in Chitral, the evaluation learned that fied form of assessment, which village organi- there were two or three that had not been zation managers should be able to complete properly established and later disbanded. with minimum assistance. The assessment What is of more concern, however, is the de- wouald be designed to provide village organi- gree to which these organizations are active. zation and program management with quick Without significant activities, their sustainabil- feedback to facilitate program monitoring. ity is unlikely. This appears to be a practical proposition. Given the program's primary goal of develop- When AKRSP ceases its intervention-which ing VOs' ability to operate as partners in local will have undoubtedly made a substantial con- development and their long-term sustainabili- tribution to local area development and ty, it would appear essential to also measure improvement in human resources-unsustain- development investments and activities un- able village organizations would detract from dertaken on a self-help basis and with other the program's potential long-term impact. In external assistance. 1991, AKRSP initiated a survey of more than 90 percent of village organizations (and WOs) in The program's monitoring, evaluation, and the three operating districts to rate them research section (MER) has done a number of according to an institutional maturity index, studies to identify the social processes that known as IMI (Tetlay 1993). This was a quanti- support village and women's organizations tative measure of the extent to which individ- wit]h high IMI scores. Two of the findings coin- ual VOs were developing the capabilities that cide with the almost universal results of stud- should ensure their continuation. The indica- ies on cooperative behavior: tors included how participatory group pro- cesses were carried out; the extent of depen- * Individual resources will be used for collec- dency on AKRSP; the management capacity for tive action when the action is able to pro- planning, finance, and conflict resolution; the vide significant and important benefits and links formed with non-AKRSP agencies; and would not be feasible with individual en- how well new technology was being mastered deavors. with the help of trained village specialists. * Capable management that provides leader- The institutional maturity index exercise pro- ship and involves members in decisionmak- vided useful data on changes; some of these ing is a key element of cooperative activity. data are used in this evaluation (Box 3.1). An important observation was that there was a These findings have implications for the broad range in IMI scores among village orga- program's future, in which ensuring the sus- nizations, and even among groups of VOs in tainability of the VOs must be a primary different social organizer units. This implies consideration. that there is still much room for improvement. However, with 23 major indicator areas, the AKRSP has the opportunity to provide an in- IMI task was too complex and costly to under- centive for VO persistence in the near term by take on a regular basis, especially by VO man- maintaining its direct involvement (albeit agement, as originally intended. A revised in- on a reduced funding scale) as a partner in stitutional maturity index was designed but infrastructure development; this proposal is not implemented, largely due to a number of discussed later in the report. However, to en- 46 sure their longer-term sustainability, VOs will many parts of Baltistan and Chitral being have to develop links and partnerships with more conservative. Indeed, there are areas of other agencies working in the productive and Chitral and Baltistan where, although village social sectors. This especially applies to govem- organizations exist, there are no WOs because ment agencies, as government is the only entity of local cultural rules of female seclusion likely to be able to allocate funding resources based on religious doctrine. for "common good" investments on the scale needed for the continued development of the Assuming one woman member per household, Northem Areas and Chitral. Equally important women's organization regional coverage at will be the continued improvement in human end-1994 was only 25 percent (43 percent in resources and the enhancement of governance Gilgit, 18 percent in Chitral, 12 percent in within the VOs, so that they are capable of en- Baltistan, and 14 percent in Astore). This is sig- tering into sound partnerships for the good of nificantly lower than village organizations' the majority of their members. Emphasis on coverage of 73, 66, 68, and 36 percent respec- improved competence in financial management tively in each of these areas. within VOs will also be critical if members are to be able to maximize the benefits from credit A number of issues are involved in this gen- access through the proposed new financial in- der-based differential, including limitations on stitutions. In itself, continued access to develop- the availability of female staff and cultural ment credit could be a powerful incentive for constraints mentioned above. These issues are participation in the VO as an institution and discussed in Chapter 4. could contribute to its sustainability. In earlier years, AKRSP's social organizers ac- Progress in women's organizations tively approached communities and facilitated the formation of new women's organizations. Village-based women's organizations are also This followed the successful establishment of a key component of the AKRSP strategy. They local village organizations and the correspond- provide a much-needed forum for village ing familiarization of the local populace with women in the Northern Areas and Chitral to the program's objectives. Since 1993, however, actively participate in the development the policy has been mainly to establish WOs in process. communities where formal requests are re- ceived from the villagers themselves. The At end-1994 there was a total of 768 women's focus is now on quality rather than quantity. organizations, with a membership of 26,089 However, women's organizations are still fos- (AKRSP 1994b). Similar to their counterpart tered in areas where few exist. The number of village organizations, the majority of WOs are WOs continues to grow, with a dramatic in- in Gilgit (372), with fewer in Chitral (194), crease from 292 in 1989 to 768 in 1994. This Baltistan (142), and Astore (60) (Annex Table reflects more than a doubling in membership, 1.5). The women's organization program from 11,000 to more than 26,000. As with VOs, began in Gilgit in 1983, in Chitral in 1987, in from 1986 women's organizations had smaller Baltistan in 1989, and in Astore in 1993. This memberships than the earlier ones formed in sequencing was partly due to the entry of Gilgit. Average membership is 34 women per overall program activities into districts, but organization. also to differing orientations toward women's mobility and potential to organize in groups. Each women's organization chooses a presi- In this respect Gilgit is more liberal, with dent and a manager from among the women 47 Box 3. 1: SOME FINDINGS OF INSTITUTIONAL MATURITY INDEX STUDIES ON VILLAGE ORGANIZATIONS IN 1991 The districts of Gilgit, Baltistan, and C-hitral VCO savings. However, variation in meeting fre- averaged about 40 households per village or- qluency among and withinf social organizer ganization (VO) in each social organizer unfit, units indicated much room for imnprovement. Gilgit had fewer illiterate VO managers, fewer Maintenance of the physical productive infra- farmners as managers; anid more managers who structure developed under the program was Were teachers or ex-govenmnent emnployees generally satisfactory -indicatingi the effective- ness of the project identification process. Glilgit Baltis tan Chiitral illiterate 7a 19 ~16 The extent to wvhich VO management -proce- Farmers 39 52 51 dures Were developed va-ried considerably, in Teachers and both social orgaizer units anid districts. ex-government 49 30 27 - ~~~~~~~Gilgit Baltis tan Chitral Household coverage was high in all social or- VOs having -written ganizer units (SOUs). Gilgit units hadd somfe rules for governance 45 69 25 of the lowest coverage, possibly because of Dispu4te resolution the more diverse (often nonaricultural), a-1 between VOs 35 13 28 tivities in SOU households with greaterl ac- witihin the VO 17 5 1 18 cess to the major center of Gilgit.,- ____________________________ I By 1991, the Village organizations were Gilgt Baltistan4 Chitral adaptin to the concept Of service charges on Coverage per iloans, Which was introduced in 1988. SOU 61-91 82-95 73-100 With >70% Gilgit Baltistani Chitral covrage 74 91 87 Loans bearingt service charges 45 46 34 Attendance at meetfings Was' higher in more i recently established (younger) village Members' use of credit Within the borrow- organizations. inig VOs wads high.~ Meeting frequency was positively correlated Gilgt BaltiIstani Chitral With meeting afttendance, record keeping with-4 VO meombers takfing in the villag ognztn,ad peformac in subloans 82 95 74 members. Due to the low female literacy rate general degree of autonomy a women's orga- of 4 percent, however, in many cases a literate nization can achieve from either the village male villager (who is usually a member of the organization or AKRSP. Unless the women's local VO) must serve as the group's manager organization is displeased with the officers, in order to record financial transactions and they do not change over time. Women usually meeting minutes. This has implications for the take their officer roles very seriously, although 48 (Box 3.1 continued) Gilgit was quickest to enter the Village Orga- Water supply 36 21 36 nization Credit Program (VOCP) introduced Electricity investment in 1989. (commenced) 33 28 6 Access roads 36 15 13 Gilgit Baltistan Chitral Operations with local VOs with VOCP counselors 36 26 19 loans 25 6 8 When managers were illiterate, the village or- Many of the village organizations were en- ganization tended to depend more on gaged in procuring their production inputs AKIRSP, and links were less well developed. for cash without AKRSP intervention; this was more prevalent in the older VOs. In all districts, the percentage of working spe- cialists was highest in the livestock field. Gilgit Baltistan Chitral VOs making cash Gilgit Baltistan Chitral purchases of inputs 36 44 42 Livestock 73 61 71 Plant production The amount of links formed by village orga- and protection 38 54 45 nizations with external entities other than Forestry 55 20 45 AKRSP varied considerably among VOs, Marketing 32 23 21 and there were some differences among districts. The studies found considerable evidence that specialists had a positive impact on village Gilgit Baltistan Chitral organizations' adoption of recommended Marketing links technologies. But the low adoption rates of Potatoes 19 14 1 some technical packages indicated difficul- Fruits 11 20 10 ties in defining technologies with widespread Fertilizer 39 16 71b relevance in particular production areas. The Health services 61 36 57 section on natural resource management Education services 45 27 50 elaborates on these difficulties. a. Data in tables are percentages. b. This was associated with the Northwest Frontier Province having an Agricultural Development Agency responsible for fertilizer distribution. Soarce: AKRSP, those men functioning as WO managers often for more frequent contact without limits on have little incentive to perform their work female mobility. WO members are largely with enthusiasm. made up of older, nonliterate women over the age of 35. At this stage in life they have more The most successful WOs are those whose free time for meetings, have achieved some members live in close proximity; this allows status within their households, and have 49 daughters-in-law/daughters to help them The index has not been administered to date with their many household chores. because of staffing problems, but it (or a further refined model) needs to be introduced to pro- A new generation of younger literate women vide accurate measurement of WO progress is also joining the women's organizations, toward maturity. A series of qualitative case however. Although small in number, these in- studies of selected women's organizations was dividuals have the potential to create groups undertaken in order to ascertain important in- in the future that are less dependent on the dicators to be included in the revised IMI. village organizations and/or male community These reports have furnished some valuable in- members and AKRSP. Indeed, in the Gilgit re- depth data about the social dynamics of some gion some WOs have split along generational women's organizations in Gilgit and, to a lesser lines due to differences in orientation of the extent, in Chitral and Baltistan. older members with status and the younger members with literacy skills. Given the relatively high degree of dependency of existing WOs on male community members, Institutional maturity of WOs VOs, and AKRSP itself, much additional work needs to be done with already established fe- The IMI exercise was also administered to the male groups to increase their capacity for self- women's organizations in 1991. Some of the reliance and sustainability. This is the responsi- major findings are presented in Box 3.2. This bility of female social organizers who each information provides a valuable database and cover an average of 50-60 WOs, female staff in allows for some general comparisons of WOs the technical sections, and also all senior and in different regions. As with village organiza- middle-level management personnel. The mul- tions, however, the complexity and cost of the tidisciplinary, cross-gender teams in the pro- undertaking limit its continued use for gram's decentralization plan will also have an women's organizations. important role in promoting this increased ca- pability. Especially important in this context is In general, IMI survey results indicate that the encouragement of links between women's women's organizations lag behind village or- organizations and other agencies. In this area ganizations in degree of institutional maturity. AKRSP has an ongoing and crucial role to play AKRSP itself has acknowledged though, that as facilitator. The link process is well underway comparisons between village and women's in all regions, but still has a long way to go organizations using the same indicators and until the majority of women's organizations scales is inaccurate "due to the very different themselves take the initiative. The training of circumstances that shape their lives" (Tetlay individual members in basic literacy, account- and Khan 1993). Examples of these circum- ing skills, and management techniques will be stances include gender-based differences in of utmost importance for the development and access to markets, literacy rates, experience in sustainability of WOs. extra-household decisionmaking, and so on. Links with other entities Thus, monitoring, evaluation, and research and women-in-development staff subsequently de- The importance of links between village veloped a revised institutional maturity index organizations (and, as appropriate, women's for WOs. The revised index has a smaller set of organizations) and external agencies involved indicators and is particularly suited to women's in investment and services has already been organization activities and cultural constraints. emphasized. AKRSP's initial focus on develop- 50 ing a partnership with the village community munities are to provide a building, choose has gradually been expanded to include the local female teachers, and establish a local promotion and facilitation of these links. Sig- education committee. The government pro- nificant progress has been made since 1992 in vides a grant of Rs. 100,000 for each participat- establishing agreements with both governmen- ing VO as an endowment to provide contin- tal and nongovernmental organizations. ued support for the program. One thousand schools are to be established in the Northern The current chief secretary of the Northern Areas during the first five years of Social Areas has encouraged government line agen- Action Program, and to date 600 education cies to involve village and women's organiza- committees have been formed in Gilgit and tions as local participatory partners in devel- Baltistan. However, many delays in planning opment. This commitment at the most senior and decisionmaking have affected the imple- level has had a positive influence on the devel- mentation schedule. opment of links, and the rate of progress to date would not have been possible without Coordination difficulties have occurred between this support. However, the implementation of the education department and AKRSP at the joint programs has not always been without operational level. The DOE has sometimes se- difficulties. lected village organizations different to those recommended by social organizers, whose deci- The government's Five-Year Plan (1993-98) in- sion was based of their knowledge of communi- cludes a Social Action Program. This has four ties. The education department has also on oc- components-primary education, water supply casion appointed nonlocal teachers rather than and sanitation, basic health, and nutrition. In those nominated by the village organization. the Northern Areas, the first two components This illustrates the problem of government de- are being implemented through AKRSP-spon- partments-which have traditionally worked in sored village organizations. As these two activi- a supply-driven, top-down arrangement- ties are of particular concern to women, WOs adopting a participatory approach to develop- are usually actively involved in the discussions ment in which the community as a whole is a at village level. In the terms of the partnership contributing partner. However, steering com- contract for planning, implementation, and mittees involving the education department, continued maintenance and operation, howev- AKRSP, and the Aga Khan Educational Service er, the village organizations represent the total have been formed to improve the action pro- community. Chitral, as part of the Northwest gram's implementation. Frontier Province, has not involved AKRSP in the Social Action Program to date. Parts of the In the Social Action Program's rural water district have a government rural development supply and sanitation component, AKRSP acts program with its own village organizations, but as a catalyst in establishing links between vil- there appears to be no reason why AKRSP vil- lage organizations and the government's Local lage organizations should not be used in the Bodies and Rural Development Department Social Action Program. (LBRDD). The communities are to provide land and labor for construction, while the The action program's primary education com- United Nations Children's Fund assists with ponent involves the Department of Education construction material. Each village organiza- (DOE), which, with AKRSP assistance, inter- tion is to establish a committee comprised of acts with village organizations. The compo- an accountant, a plumber trained by LBRDD, nent stresses the education of girls. The com- and a women's organization member trained 51 Box 3.2: SOM4E FpINDINGS OF INSTITUTIONAL MATURITY INDEX STUDIES ON WOMEN'S ORGANIZATIONS IN 1991 The average size of the women's organiza- (Some 10 preto h oe' raia tions (WOs) was approximately 35 mnemfbers tioins in Chitral and Baltistan did not meet at in all districts. all, becaus§e of disputes among members or weak outreach.) With the low female literacy rate of 4 percent, miany of the -women's organization ma-nages The percentages of active women's organiza- wvere maile, which held implic~ations for WO tions with the following attributes varied: autonomy._____________________ __________________________________________ ilgit Baltistan Chit ral Gilgit Baltistqn Chitral Received AKRSP Male managers 61" 81 28 project 25 62 23 (Note: Maniy femfale managers in Chitral are Members derived "token.") benefits ~~~ ~~~ ~~~~~89 88 19 Has self-financed The6 average household coverage in commu- prjet 13 7 4 nities With womnen's organizatioins WAS high-~ Loan was taken from est in Baltistan, And signifiantly lower in AIKRSP 14 5 6 Gilgit and Chitral. Has trained __________________________________ specialists 87 79 55 Gilgit Baltistan Chit ra Specialists are Household coverage 38 75 23 Working I 61 64 42 Not All women's organizationsg held regular G6eneally lo-wer figures in Chitral reflected meetfings, althouigh the following percent- difficultis in AKRSP outreach there, along ages didmeet6 on more than 50 percent of the with a more conservative environmenit for fe- annually plannd occasionis. mhales. ini all regions the-re Was A reticence to take loans, which was partly dufe to a fear of Gilgit~ Ba1tistanCita being unable to repay. Of the loans taken out, WO meetings 80 28 6 most were used for household activities or in public health. The program is to construct of im-plementation. AKRSP is attempting to or rehabilitate 345 primary water distribution address this problem by organizing work- schemnes over a period of eight years in the shops and training courses for LBRDD staff Northern Areas. However, the program is through a United Nations Development Pro- making slow progress; only ten schemes were gramn/World Bank rural water supply and planned for 1995. sanitation group. Monthly review meetings are held to facilitate progress. The Aga Khan LBRDD is limited by a lack of resources and HeaLIth Service, which is active in Chitral and skilled personnel, which constrains the rate Gilgit and, to a lesser extent, in Baltistan, has 52 (Box 3.2 continued) were given to the husband. Trained specialists dividual household level between husbands in vegetables and poultry were widespread, and wives. Only in Gilgit did women's orga- but not all were actively working. nizations form part of village organizations (12 percent). WOs may have planned actions to solve their specific problems, but, due to mobility limi- Links between the WOs and agencies other tations and lack of experience in decision- than AKRSP in both the productive sector (for making, they often faced the constraint of example, United Nations Children's Fund, having to rely on their menfolk to opera- Food and Agriculture Organization, and gov- tionalize their plans. Any activity "beyond ernment) and social sector (for example, Aga the village,' such as marketing, health care, Khan Health Service and Aga Khan Educa- and so on, had to involve men. tional Service) varied arnohg districts, with most being formed in Gilgit where more op- Management characteristics showed that tions exist. many women's organizations were active in dispute resolution, although very few had Gilgit Baltistan Chitral any written rules. Vegetable ,development 13 2 4 Gilgit Baltistan Chitral Livestock WOs having written development 10 0 2 rules/regulations 10 14 8 Fruit development 4 2 0 Dispute resolution Financial Inter-household 51 81 4 management 29 29 6 Between members 70 86 4 Health 92 17 15 Education 37 29 9 1 Communications between women's and Potable water 20 14 11 village organization members usually took Cooking/heating place through informal interaction on the in- stoves 3 7 2 a. Data in tables are percentages. Source: AKRSP. also conducted research on water supply and Province. The project is largely modeled on sanitation and health at the village level; this the Aga Khan Rural Support Program in its provides valuable information for planning infrastructure development and services to and implementation. village organizations. It has used AKRSP for training and as a member of its steering com- Since 1988, the Asian Development Bank and mittee. A significant difference is that the pro- the International Fund for Agricultural Devel- ject is being implemented by a government opment have been funding the Chitral Area line agency, which means that it is obliged to Development Project in the Northwest Frontier adhere to national and provincial policies in 53 implementing its components. This has caused ing from the association to enhance their abili- some problems for AKRSP in Chitral in its cost ty to interact with women's organizations in recovery policies for services and inputs, this aspect of welfare. which are geared to minimize village organi- zation and household dependency on grant Links between village and women's organiza- funding. However, apart from this, coordina- tions and the private sector have been facilitat- tion among the government, AKRSP, donors, ed for agricultural marketing and input sup- and the project appears to be satisfactory. To a ply; these are elaborated later in the report. large extent, the project has concentrated on the southern part of Chitral while AKRSP has AKRSP in Baltistan has also sent 15 women, been more active in the north and west. How- each from a different women's organization, to ever, some VO communities are served by a training school run by a foundation attached both entities, especially where there is a multi- to the Pakistan army; this training, in cutting village productive physical infrastructure pro- and sewing, is in response to requests for en- ject sponsored by either organization. As hanced of income-generating skills. AKRSP further expands its activities in the southern, dominantly Sunni areas of Chitral, It is evident that AKRSP has made significant coordination will be even more essential to progress in fostering links between village and rationalize external assistance to the villages women's organizations and nongovernmental, and avoid excessive dependency. private and public sector development, and service agencies. Most activity has been in AKRSP is also cooperating with the Chitral health, education, and water supply, for which Public Health and Engineering Department in AKRSP has not had direct responsibility, with assisting Germany's Kreditanstalt fur Wieder- the exception of water supply-the subject of aufbau work with VOs in the vicinity of Chi- some recent physical infrastructure interven- tral City. This scheme provides potable water tions. Overall, cooperation between AKRSP to these villages and the city itself. and other parties has been satisfactory, but ex- perience under the Social Action Program in- AKRSP also works with the Aga Khan Health dicates that AKRSP will need to give priority Service, which provides a primary health care attention to building effective cooperation referral system. Working with the village and arrangements between village and women's women's organizations, villagers (both male organizations and public sector agencies. This and female) are trained to provide services issue is developed further in the chapter on within their communities. The Social Action futur-e directions. Program's nutrition component, which is just beginning, will give priority attention to moth- er and child nutrition; this involves participa- Productive physical infrastructure tion by the Department of Health, AKRSP, Aga Khan Health Service, and the village and The role of PPI women's organizations. AKRSP also coordi- nates with the Family Planning Association of The grant-assisted productive physical infra- Pakistan in directing responses tofamily plan- structure project is the catalyst and incentive ning requests. The Family Planning Associa- for the initial organization of village organiza- tion works directly with women's organiza- tions and for the accumulation of savings. It is tions in Gilgit, Baltistan, and Chitral. AKRSP at the heart of AKRSP's social organization social organizers have recently received train- strategy. On an historical note, PPIs are com- 54 parable to what was called the "entering and lacked social cohesion. Such groups of wedge" in the community development move- villagers eventually split off to form smaller, ment of the 1950s and early 1960s. That move- more homogenous groups, which then quali- ment, which had to rely mostly on sister line fied for their own PPI grant. agencies to provide resources for the "wedge" but which too rarely appeared, soon fizzled Village organization members are warned that out. AKRSP has successfully avoided that fate once complete, maintenance of their PPI infra- with its PPI grants. structure is their responsibility. Although one of the prime features of the AKRSP approach Criteria for approving PPI proposals are that: is flexibility and adaptability to changing cir- cumstances, this policy has held firm to date. * The project must be productive. For example, a request for a supplementary grant to repair storm damage to a completed * At least 70 percent of the VO households PPI (an irrigation channel) was turned down. would benefit. Progress * Villages can execute the project without outside contractors and heavy equipment. As of end-1994, 1,501 productive physical in- frastructure projects had been initiated and * Projects must take no more than two years 1,204 completed (Annex Tables 1.6 and 1.9). to complete. The most popular type of project is gravity irrigation channels, which are fed by springs, * Mostly local materials are required. streams, from glacial melt, and river offtakes. Some 700 gravity irrigation channels have m The project can (and will) be maintained by been initiated, 46 percent of all PPIs. Almost the village organization. half of these are new schemes; the rest are for widening and extending existing channels. m The project is free of disputes within the There are also 72 pipeline or lift irrigation village or with other villages. schemes, which brings irrigation schemes of all types to 52 percent of PPIs. The next most The project selection, within these conditions, popular group of schemes is link roads, vehi- and design is done with the full participation cle and foot bridges, and pony tracks to im- of the village organization members, not by prove communications (359, or 24 percent of offering them a set of options but by allowing the total). A high proportion of link road phys- them to choose freely. As will be seen below, ical infrastructure projects have been in Chi- however, the pattern of physical infrastructure tral, 59 percent of the program total, reflecting projects soon got into a familiar track dominat- that area's relatively undeveloped road sys- ed by irrigation schemes and link roads. This tem. Other large categories are protective track reflects the widespread need for more works (162), mainly gabions for flood protec- agricultural income in a "mountain desert," tion, boundary walls (73), and storage reser- and the desire to spread to the village level the voirs (71). Other projects include sedimenta- benefits of government's substantial main tion tanks, plant nurseries, flour mills, and road construction in recent years. AKRSP's river channelization. strategy allows for only one PPI grant per vil- lage organization. In the early enthusiasm for By district, Chitral has initiated 560 physical VO formation, some organizations were large infrastructure projects, Baltistan 539, Gilgit 55 374, and Astore 42. On average the number of Rs. 144,000 ($4,800). As pointed out in Chap- households per project has been notably high- ter 2, the prevalence of link roads and their er in Gilgit at 66, compared with only 46 in higher unit cost in Chitral explains the high Baltistan and 40 in Chitral. The earlier larger average grant per infrastructure project in that PPI investments were more common in Gilgit region. and may partly explain these figures. On visiting a range of PPIs, the overriding im- Despite the different program starting dates in pression is one of admiration for what can be Gilgit, Baltistan, and Chitral, progress on the achieved by the villagers with some material projects is about the same-with around 80 and technical assistance from AKRSP. Many of percent completion in the three districts. How- the ilrrigation channels, seen from both the ever, in AKRSP's list of slow-moving PPIs, ground and from a helicopter, are remarkable Gilgit has only ten, whereas there are 35 in constructions in difficult terrain. Traveling on Baltistan and 27 in Chitral. A high proportion some of the more spectacular roads leads to (71 percent) of the slow schemes are irrigation wonder that such roads could be constructed channels, reflecting perhaps the special prob- withiout sophisticated materials, and at low lems of schemes that are sometimes quite diffi- cost, in such challenging conditions. The secret cult feats of engineering, in harsh and unpre- may lie in that the populations of these areas dictable situations. It is too early to comment have survived for centuries in these harsh sur- on progress in Astore except to note that out of roundings, without much connection to the 42 PPIs initiated, three had been completed at outside world and its technologies; much of end-1994. A high proportion (64 percent) of the :PPI construction employed the same local Astore's early schemes are for irrigation. skills on a larger scale. Some construction is dependent on modern inputs such as compres- The mix of PPIs has not varied much over the sors for rock drilling and dynamite. The years, except that some 36 micro-hydels have resulting irrigation tunnels and spectacular been initiated since 1992. Thirty-one of these alignments of roads and channels are an un- are in Chitral, where this type of scheme has derstandable source of pride to the village or- been the main focus of the program's increased ganizations and AKRSP staff. activities in the southern non-Ismaili areas. In addition to the grant-assisted PPIs, various Grants totaling Rs. 285 million ($9.5 million) AKRSP papers refer to a large number of have been made for productive physical infra- physical infrastructure projects self-financed structure projects (see below for comments on by the village organizations. Some of these the total costs of PPIs). The Chitral program may have received technical help from AKRSP, has received 44.5 percent of the total amount but there is relatively little information on of grants, Gilgit 28 percent, and Baltistan 27 these PPIs, compared with the great deal avail- percent. The average program PPI grant is Rs. able on the grant-assisted ones. Self-financed 190,000, or about $6,300. As a proportion of physical infrastructure projects are of great total program costs, the PPI grants have grad- interest in that they indicate VO resourceful- ually declined from about half to a third dur- ness rather than dependence on outside agen- ing the 1980s, down to 11 percent in 1994. cies and funds. The 1994 Annual Review There is a notable difference among regions in (AKRSP 1994b) records that 22 self-financed the average size of AKRSP grants, with Gilgit PPIs were initiated during the year, but does at Rs. 200,000 ($6,600), Chitral approaching not reveal cumulative total numbers, list the Rs. 230,000 ($7,400), and Baltistan with only mix of projects, or discuss this important ini- 56 tiative by many village organizations. The av- Land development erage cost of Rs. 111,000, if this is total cost, seems to show that these projects are much Past OED reviews have commented on the fact smaller on average than grant-aided that land development is not included in irri- infrastructure projects. gation PPIs and generally follows some years behind the water supply. Hence, irrigation in- The 1991 institutional maturity index study frastructure projects do not in fact become used self-financed PPIs as one of its many "productive," or fully productive, until some measures of maturity. The study identified the years after engineering costs have been number of village organizations with self- incurred. While a gradual buildup to full pro- financed physical infrastructure projects as duction is normal and to be expected in most follows: 128 in Gilgit, 120 in Chitral, and 211 in irrigation schemes, the AKRSP schemes have a Baltistan, making 459 in total. In the context of long built-in delay in that land development is monitoring institutional maturity and justify- not included in the initial funding or imple- ing future program support for these projects, mentation plan. there is a need to study and keep track of self- financed PPIs. A more comprehensive under- AKRSP management has said in the past that standing would seem especially relevant to the land development in areas commanded by irri- debate on whether another round of program gation channel PPIs is the village organization's PPIs should be initiated. prerogative. This applies especially to the rate at which land is developed to the point where PPI historical trends irrigation supplies are fully used and maximum benefits to the infrastructure investment can be Annex Table 1.9 shows trends for grant-assist- achieved. The 1991 IMI studies confirmed that ed physical infrastructure projects since the most village organizations were undertaking program started in 1983. There has been a gen- land development to some degree (74,43, and erally lower number of such projects initiated 50 percent of VOs in Gilgit, Chitral, and in the 1990s compared with the late 1980s, as Baltistan, respectively). Unfortunately, for a va- regional coverage has increased and the num- riety of reasons the rate at which land is devel- ber of new village organizations per year lev- oped has often been relatively slow compared eled off (Annex Table 1.4). However, in 1994 with the rush of energy and commitment that there was an exceptional drop to about half lead to the generally quite rapid construction of the peak of the late 1980s, when between 160 the channel or pipeline. An earlier attempt to and 180 PPIs were approved each year. Part of speed land development by making medium- this fall may be attributable to the diversion of term loans available came to an end in 1989. AKRSP's resources into emergency rehabilita- The main reason appears to have been that fol- tion of irrigation channels damaged by the lowing civil unrest in 1989, AKRSP was forced heavy rains of 1992. to forgive the land development loans of some devastated villages. Faced with the prospect of Since about half the projects are irrigation increasing defaults on loans, as news of this schemes, the decline in numbers also implies a debt forgiveness spread, AKRSP ceased making decline in the amount of incremental land de- medium-term loans, within which land devel- velopment based on new water supplies. opment was the dominant item. At that time Overall, therefore, there has been a substantial there were 222 loans totaling Rs. 32.1 million decline in the core physical activities of ($1.1 million) to develop about 5,600 hectares at AKRSP. a cost of Rs. 5,700 ($190) per ha. This implies 57 that only about one-third of the irrigation PPIs However, this figure includes only the cost of initiated to end-1994 had a land development the AKRSP grant and therefore substantially loan to accelerate development. Land develop- undercounts the value of the program's infra- ment seen by the OED missions has varied structure investments. This has the effect of un- from quite straight-forward minor irrigation derselling the case for a continued PPI Program. layouts and (mainly) tree planting, to difficult and labor-intensive clearance of rocks and boul- OED's past two reviews of AKRSP have been ders, and intricate terracing. The reinstatement content with anecdotal evidence that if the PPIs of a credit program for land development activ- were constructed by a private contractor, the ities would be desirable, provided it could be cost would be in the region of three times the managed as a viable credit line. grant cost. Some estimates of the multiplier ef- fect are even higher (Hai 1989). Although there Maintenance of PPIs may be debatable points in such estimates, cal- culation of the PPI portfolio's true value is de- During the most recent visit of the OED team, sirable from several perspectives. It would bet- as well as on earlier visits, no serious cases of ter recognize the contribution made by the inadequate maintenance of PPI schemes were village organizations to their own projects; it seen. AKRSP shows appropriate concern for would record and demonstrate the high level of maintenance standards as a measure of sustain- infrastructure investment being achieved by the ability and for the effectiveness of dialogues program with relatively low external funding; with village organizations in identifying high- and it would provide a large measure of the priority infrastructure projects. Thus, since irri- justification for continued funding of such in- gation channels and link roads are producing a frastructure investments. AKRSP should use constant flow of benefits to villagers, mainte- the real cost of physical infrastructure projects nance is good. There are various established, in all its documentation, especially documents traditional systems for maintaining common intended for fundraising purposes and the gen- assets that have worked well with the physical eral public. The construction and upgrading of infrastructure projects. They depend mainly on roads and bridges (a public good) throughout well-understood obligations of all beneficiaries the program area-at no cost to government, to provide labor, or an agreed payment in lieu, with relatively low external funding, and main- whenever maintenance is required. The 1992 tained by VOs-is a major achievement and a IMI report found that more than 90 percent of great benefit to the Northern Region. AKRSP's village organizations in Gilgit and Chitral were submission to the second phase of the Strategy maintaining their PPIs adequately. However, in Development Committee says that the program Baltistan the figure was 80 percent, which has created new assets "worth billions of rupees might be a level at which there should be con- at a fraction of the cost," but more substantiated cem as to the selection of PPIs and the arrange- figures would have strengthened this assertion. ments for their maintenance. Lack of funds for maintaining irrigation channels was reported as AKRSP staff have commented in this connec- a problem in some cases following visits to tion that they have been accused in the past of seven villages in Gilgit (Hai 1995). overclaiming the program's results and impact. But so long as the data are well-founded and Costs and valuing the PPI portfolio the methodology is explained, there should be no danger of this problem in connection with Annex Table 1.9 shows the total "cost" of PPIs to monitoring and publicizing the total costs of date to be Rs. 285 million (about $9.3 million). PPIs. The response to AKRSP's approach in 58 terms of mobilizing other resources is an im- An earlier draft of the Strategy Development portant aspect of program impact. As resources Committee's paper was adamant that grants allow, investigation of a sample of PPI cases not be repeated (costs would be totally recov- would provide more substantive data to ered). AKRSP's submission of August 1994 to demonstrate the physical infrastructure pro- the SDC, however, proposes a further five-year gram's leverage effects. program of PPIs funded by a combination of credit, AKRSP grants, and villagers' own re- The future of the PPI Program sources. The paper identifies a large portfolio of new projects with a cost over five years of As the rate of forming village organizations Rs. 727 million (about $24 million). Some of has fallen off with higher coverage of Gilgit, these PPIs are larger than most have been to Baltistan, and Chitral districts, so the single date and involve several villages, particularly grant PPI Program has begun to wind down. multi-village irrigation schemes and roads Astore's entry to the project has slowed what projects. The difficulties in large projects of otherwise would have been a greater rate of this type should not be underestimated, but decline in this work. Even so, the workload of the proposal deserves serious consideration. AKRSP's infrastructure and engineering ser- vices has begun to fall and other activities have Planning by productive infrastructure and received more attention. AKRSP's original phi- engineering services (PIES) losophy of only one grant per village organiza- tion was to not create VO dependency on exter- AKRSP's experience in physical planning has nal funding and to allow self-reliance to grow. largely revolved around village land-use plan- Various measures in the IMI surveys indicate ning, usually in association with a particular that there has been considerable success in this PPI. Recent proposals have been to expand the respect, which is a credit to both the strategy capacity of PIES to take a broader view of and the villagers' resourcefulness and energy. planning at both the settlement level and over wider functional areas such as a whole valley. In recent years there has been a growing de- bate as to whether to revive the physical infra- At the settlement level, this was to include both structure project program with another round. natural resource management and the built en- There is certainly great demand and interest vironment. In 1994/95 the infrastructure and from villagers, but funding has been an issue. engineering services section prepared long- This has led to the one grant principle coming range village development plans for Passu as a under increasing pressure in the face of obvi- pilot activity. Such an undertaking would have ous demands for more infrastructure, the suc- to involve high levels of beneficiary participa- cess of the PPIs to date, and AKRSP's capabili- tion for it to be useful. However, in June 1995, it ty to assist more infrastructure development was decided that the Aga Khan Housing Board than it is in the current shrinking program. (rather than AKRSP) would be responsible for Given the successful central role that PPIs activities concerning the built environment. have played in the early formation of village organizations, and the potential they have to PIES will need to engage infunctional area plan- generate favorable economic and social bene- ning to properly organize development involv- fits as well as enhanced member commitment ing a number of villages. This could include to VOs as institutions, AKRSP now has the op- productive or social sector investment in which portunity through a second round of PPIs to it is necessary to integrate resource use or ser- build on earlier achievements. vices created by an investment. If the proposed 59 increase in infrastructural development is real- AKRSP's approach to introducing new technol- ized, then PIES will have an important role to ogies has been to develop packages and to pro- play in this type of planning and definition of mote them through specific sectoral programs management procedures for large projects. that include demonstrations, input supply, and technical assistance. Technical staff work with community members who are trained as spe- Natural resource management cialists in a particular area of expertise, and who periodically receive refresher courses. Table 2.3 evidences the current importance of agriculture as a source of income in the North- AKRSP has traditionally had separate agricul- ern Areas and Chitral. Alternative employment ture and livestock sections. Following a collabo- opportunities are of growing importance to the rative pilot forestry program between the World area, but the limited base from which these Conservation Union and AKRSP's agriculture must grow dictates that agriculture will contin- section, a section specifically for forestry was ue to be of primary importance for local liveli- added in 1991. The three sections were subse- hoods in the foreseeable future. Consequently, que:ntly amalgamated into a natural resource in accordance with AKRSP's philosophy that management division in 1994 to improve inte- communal effort is best nurtured around eco- gration of the services offered to farmers. nomic advancement, improved agricultural productivity must play a central role in future Agriculture program strategy. This section evaluates the instruments AKRSP has used to promote nat- Table 3.1 provides an overview of the uptake of ural resource management. technical packages promoted by the agriculture TABLE 3.1: UPTAKE OF AGRICULTUTRAL SUPPLIES THROUGH AKRSP, 1989-94 1989 Yearly additions 1994 Agriculture cumulative 1990 1991 1992 1993 1994 cumulative Improved seeds Wheat (tons) 95.0 29.6 16.1 25.0 18.5 18.9 203.0 Maize (tons) 12.8 0.8 24.3 4.6 1.0 0 43.5 Fodder (kgs) 1,094 1,341 6,237 2,010 238 199 11,116 Potatoes (tons) 40.9 2.0 4.2 5.8 2.6 2.2 57.8 Vegetables (kgs) 1,056 670 225 3,602 6,182 1,554a 13,289 Fruit trees ('OOOs) AKRSP-supplied New orchards 250 56 33 53 40 62 494 Rehabilitation - - 15 24 23 25 87 VO planted 1,499 201 172 18 9 30 1,929 VO/WO nurseries and orchards (no.) 66 38 4 5 16 109 238 Fertilizer credit (rs. millions) 46.1 9.4 7.9 8.9 8.4 4.3 85.0 Pesticide distributed (rs. 'OOOs) 478 134 141 117 263 183 1,316 a. In Gilgit, vegetable seed production (4,342 kgs of the 1993 total) has been almost wholly privatized. 1994 figures apparently ornit these. 60 section. There are no strong trends in the data. private sector, and act as resource persons in Most instruments have doubled their uptake AKRSP training. One hope expressed for the over the last five years, but the actual levels are scheme is the reactivating of inactive specialists. modest compared to levels of agricultural activ- ity across the program area. Vegetable seed is Wheat, maize, andfodder. Wheat is the traditional one instrument showing a dramatic increase in food staple and wheat straw is the main winter use, and potatoes and fruit are also expanding livestock feed across the program area. In view enterprises. Others are relatively static. Of of the local availability of subsidized down- these, maize and fodder seeds are characterized country wheat, it is the importance of the straw by strong surges, then a loss of momentum. The that has probably maintained wheat as the crop use of AKRSP short-term credit for fertilizer occupying the largest hectarage. Wheat occu- purchase has declined, but this should not be pies between 35 percent (Gilgit and Baltistan) linked to a reduced use of fertilizer. The pro- and 55 percent (Chitral) of the cultivated irri- gram has encouraged direct transactions gated area. For small farmers it occupies as between the private sector and the village orga- much as 70 percent of their cultivated lands. nizations, and the multi-purpose VO credit pro- Both these facts make it an important focus for gram's credit line has become more popular development. High productivity in the crop than commodity-specific short-term lending. In absorbing most land, labor, and cash, even Gilgit, where this devolution and the credit pro- when its production is for subsistence, releases gram are most advanced, and where fertilizer resources for cash earning opportunities. use has been well established since the 1960s, no short-term fertilizer loans were made in Byerlee and Husain (1992) document the intro- 1994. Pesticide distribution has similarly moved duction of new wheat varieties and chemical toward private supply fertilizers to the area in the 1960-65 period. They record that farmers in Gilgit were using There are three categories of village agricultur- new varieties in the late 1960s and grew Mexi- al specialists: plant production and protection, pak, an early semi-dwarf wheat, in the mid- vegetable production and protection (these 1970s. AKRSP introduced Pak-81 seed in 1985, specialists are women), and nursery managers. and Byerlee and Husain credit the program By the end of 1994, 2,499 specialists, most of with a strong impact on its introduction and them in plant production and protection, had diffusion. By 1989 it was grown by 24 percent been trained and had completed an average of of farmers in Gilgit. Suneen, another early ma- 1.5 refresher courses. The IMI surveys show turing semi-dwarf, is also being promoted by that while the 1,800 agricultural specialists AKRSP. The IMI scores for 1991 showed new trained by 1991 were more than enough for all varieties of wheat adopted by 22 percent of the village organizations then established, farmers in Gilgit, 20 percent in Chitral, and 46 only 40 percent of VOs had working special- percent in Baltistan. ists (AKRSP 1992). This represented a very high rate of attrition. Table 3.1 shows that in 1994 AKRSP supplied 18,902 kg of improved wheat seed to village Since 1992 selected specialists have received organizations, the approximate level for the advanced instruction as master trainers. Their last five years. At local planting rates of 200 kg roles are to stimulate the village specialists, de- per hectare, this is equivalent to the seed re- velop their own farms as models for local com- quired for under one-fifth of 1 percent of the munities, provide services to their own com- estimated wheat hectarage in the program munities and to others, form a link with the area, and represents the annual introduction of 61 new, improved seed into the area. However, * cattle able to graze maize longer into win- seed dissemination is largely based on multi- ter, which conserved wheat straw for feed- plication and dissemination by farmers them- ing later in the winter; and selves-hence, the 20 to 46 percent rates of adopting new wheat varieties mentioned * freeing up family labor for other work in above. Nevertheless, this adoption rate is low the autumn, which is important to poor considering the importance of wheat in the households in areas where autumn labor farming system. offers a cash earning opportunity. Wider adoption of new wheat varieties has Such understanding needs to be drawn into been inhibited by the higher levels of fertilizer the design and evaluation of all experimenta- required, and by seed adulteration as reported tion. This requires a thorough knowledge of in the 1989 OED review. The potential gains the local farming systems. In its cooperation from using high levels of fertilizer are proba- with the Pakistan Agricultural Research Coun- bly obscured by the adulteration problem. cil and its affiliate, the National Agricultural AKRSP has addressed the adulteration prob- Research Center, AKRSP should continue to lem by designating seed villages where master ensure that in testing new wheat material, trainers are instructed on seed production straw quantity and quality and the variety's to maintain purity. In 1993, 27 village and maturity period will be important evaluation women's organizations were selected as wheat criteria. Ongoing research to identify improved seed villages. It is too early for these measures wheats for the single cropping zone needs to to show impact but it is an important initia- be similarly informed. tive. Use of outside expertise in artisanal seed production would be helpful. Maize is the second most important crop to farnmers in both Gilgit, where 1991 surveys AKRSP adoption studies (AKRSP 1990) calcu- showed it occupying 24.5 percent of the culti- lated Rs. 1,500-2,000 per ha as the extra net vated area, and in Chitral, where it occupied income from new wheat varieties grown 20.5 percent. In Baltistan, where maize accounts under optimal conditions when compared for 2.1 percent of the cultivated area, it is much with traditional varieties. These calculations less important than barley, which occupies 26.1 included the indirect benefits of shorter matur- percent (Bhatti and Tetlay 1994). Maize is ing wheats in increasing farmers' flexibility to grown for both grain and fodder in the double manage their farming system. This is an exam- cropping areas, and for fodder at higher alti- ple of the kind of assessment needed if AKRSP tudes. In all systems it is sowed at high densi- is to respond to the diversity of farming situa- ties. Green thinnings of maize are an important tions across the program area. Early maturing seasonal livestock fodder and maize stover is wheat varieties meant that farmers could plant an important winter feed. maize earlier and be more certain of grain from the maize or, at higher altitudes, of a AKRSP has supplied improved seeds over the greater yield of fodder for winter feed. Early last ten years, but they have not been in heavy maturity also let farmers plant wheat later, demand; coverage is negligible. Farmers' prior- with a variety of benefits depending on the ities make it difficult to characterize improve- individual household: merits to the maize crop. As with wheat, the conventional experimental criterion for im- * accumulation of more manure through the provement-grain yield per unit of land-does winter to use on the crop; not tell the appropriate story. The longer matu- 62 rity of the improved maize varieties available of effort to identify reasons for this variation has obviously not been appropriate for the cir- and to define and adopt measures to address cumstances of most farmers. Again, research the problem. Improved integration should be a objectives need to be informed by a careful priority for the future natural resource man- analysis of farmers' priorities for the crop. agement program, which should also include a component to develop a greater understanding Heisey and others (1992) examined the im- of above-the-channel feed resources (summer provement of maize farmed and used in a sim- pasture) in the various systems. ilar way in the Swat mountains. They suggest- ed research thrusts. The 1989 OED report also Potatoes, vegetables, and fruit. Potatoes, vegeta- suggested lines for experimentation. Clearly bles, and fruit, both for domestic use and for the wheat/maize interaction, in terms of time marketing locally and down-country, are at the in the ground and the speed of turnaround be- cutting edge of development in the program tween crops, is an important research focus. area. The suitable disease-free climate, the Shorter maturing varieties, and the manage- opening of markets, and the early efforts of a ment of maize to maximize grain or fodder de- Food and Agriculture Organization (FAO) pro- pending on family and seasonal circumstances, ject and private companies have encouraged look like useful initiatives. The program has the production of a seed potato crop. Both FAO not yet sought resources to experiment with and the companies have used the VO forum to the maize crop in any detail. However, with negotiate the crop's development and sale. maize occupying up to 25 percent of the land AKRSP became more directly active in supply- area, and with major implications for the live- ing seed through 1992 when the crop spread stock enterprise, it deserves more attention. beyond the well-established potato growing areas of upper Gilgit to both Baltistan and Chi- As wheat straw and maize stover are the main tral. AKRSP has enabled the establishment of a sources of winter feed for livestock, the agri- seed certification laboratory in Gilgit. During culture section should be ultimately involved 1993, the Gilgit Apricot Marketing Association, infodder production. As pointed out above, originally set up to market apricots, expanded feed value must be an essential criterion in into seed potatoes in three selected villages. It cereal assessments. The agriculture section has sold 25 tons in 1993 and 100 tons of seed pota- been involved in the supply of alfalfa, rape, toes down-country in 1994. and vetch seed as fodder catch crops. Howev- er, seed supply had fallen to very small levels Vegetables are a labor-intensive crop and occu- by 1994, although alfalfa continues to be dis- py less than 10 percent of the cultivated area per tributed for undersowing forest plantings by household in the program area. As Table 2.2 the forestry section. As will be pointed out shows, however, there has been a significant later, the livestock section is involved in fod- increase since 1981 in area used to cultivate veg- der utilization. etables, ranging from 76 percent in Baltistan to 300 percent in Chitral. The 1991 IMI survey Despite the participation of the three natural identified the proportion of households having resource management sections in fodder sup- adopted improved vegetable growing practices ply, there is not an integrated strategy that re- through AKRSP as 27 percent in Gilgit, 9 per- sponds to the needs of the various types of cent in Chitral, and 11 percent in Baltistan. production systems. This is evidenced not only AKRSP is thus responsible for only a proportion in the variable results being obtained by the of the shift into vegetable growing, yet it clearly alfalfa program, but also in the apparent lack offers a dynamic focus for program efforts. 63 Vegetables are conventionally a women's crop; "The dialogue for CVP ought not to be a 'top- the program's vegetable and vegetable seed de- down' what-to-do speech by AKRSP staff velopment was initiated through the women's [which happens unwittingly] but in fact a organizations. Table 3.2 shows the spread of more interactive process where the beneficia- demonstration plots in women's organizations ries' suggestions and opinions are taken seri- and, in 1992, the introduction of a commercial ously and individual variations made there vegetable package (CVP) now being expanded and then ... there is a need to avoid accepting to selected village and women's organizations. the 'blue print' approach in the initiation and Men's interest in growing vegetables for cash has implementation of packages which are under- increased. The introduction of plastic tunnels is taken by people in different economic and cul- extending the vegetable season by two months; tural contexts" (Ahmad et al. 1993). users can start growing a month earlier after winter, and continue a month longer in autumn. Like vegetables, fruit tree plantings have also expanded considerably since 1981 (Table 2.2), Three evaluations included case studies of the increasing by 65 percent in Gilgit and by as vegetable initiatives (Tajammal 1993, Ahmad et much as 210 percent in Chitral. As with vegeta- al. 1993) and the use of plastic tunnels (Ghani bles, AKRSP has successfully identified and and Raza 1994). Each confirmed the profitabili- reinforced a dynamic trend in local agriculture. ty of the initiatives to most of the beneficiaries The 1991 IMI survey (Tetlay 1993) recorded involved, and the high potential of the pack- adoption of AKRSP improved fruit planting ages if yields improved. The evaluations called material by 27 percent of households in Gilgit, attention to the need for strong marketing sup- 6 percent in Chitral, and 11 percent in Baltistan. port to encourage participants and to ensure Table 3.1 shows that by 1994, AKRSP sources the sustainability of the initiatives. They also donminated the supply of fruit trees for planting called for stronger technical support from in the villages covered by the program. This is AKRSP, particularly in vegetable seed produc- a major change from 1990 and 1991 when vil- tion where the report emphasized its sophisti- lage organization plantings exceeded AKRSP cation. Gilgit's Regional Program Office, in its supplies by 4-5:1. However, the figures show 1995 operational plan concerning dissemina- significantly reduced total fruit tree planting tion of the introductory and commercial veg- over the same period. etable packages, reinforced the findings of the 1993 evaluations on weak program support. The program is seeking to sustain its influence The following conclusion from the evaluation by helping households establish fruit orchards of the commercial vegetable package added a when there is a commitment by at least 50 per- further dimension to these critiques: cenit of VO members to dedicate one karnal of TABLE 3.2: WOMEN'S ORGANIZATIONS AND VEGETABLE DEVELOPMENT, 1989-94 (number) Women in 1989 Yearly additions development cumulative 1990 1991 1992 1993 1994 cumulative Vegetable (WOs) demonstration 183 71 60 58 11 15 398 Commercial (WOs) vegetable package - - - 10 12 14 36 64 land each to the enterprise. At their request, animal losses, and improvement in animal nu- the package was extended to women's organi- trition and in the genetic base of local livestock. zations in 1994, and as Table 3.1 shows, the The strategy is implemented by developing orchard initiative expanded dramatically packages, organizing delivery of production in 1994. inputs, and training village specialists, as it is for the crop improvement program. Overall, AKRSP has successfully improved the quality of new fruit tree plantings. AKRSP Delivery of packages has been achieved by fruit orchards in Gilgit and Baltistan were training selected farmers as livestock special- evaluated in 1994 (Hafeez 1994). This study ists to provide advice and health interventions concluded that progress with orchard devel- in their own villages. Some 1,300 village live- opment and with renovation of older orchards stock specialists had been trained by the end was well appreciated by beneficiaries. Howev- of 1994 and had averaged three refresher er, the report was critical of AKRSP technical courses after their basic training. This repre- staff, mainly for their lack of contact with the sents potential coverage of 71 percent of the village and women's organizations. It also established village organizations. The IMI sur- records farmers as critical of their plant pro- veys in 1991 reported some 70 percent of duction and protection specialists; an ineffec- trained livestock specialists as active. This is tive specialist would, of course, exacerbate the the highest "survival rate" for all disciplinary need for direct AKRSP support. specialists and provides 50 percent of VOs with some technical support in livestock. Livestock Selected livestock specialists have received Livestock generate about 20 percent of gross advanced instruction as master trainers to pro- farm income across the program area. This vide services beyond their own village com- ranges from 18 percent in Chitral to an excep- munity, and to link with the private sector for tional 36 percent in Astore (even up to 55 per- the supply of vaccines and medicines. The cent if the sale of grass is credited to the live- general livestock has been complemented by stock enterprise) (Table 2.3). Livestock absorb training in poultry health and production, a disproportionate 37 percent of farm cash largely for women. Some 1,500 WO poultry costs, making them the most cash-intensive specialists had been trained by December enterprise in local farming (Bhatti and Khan 1994, which represents about two specialists 1992; Bhatti, Tetlay, and Khan 1993, 1994). per women's organization established by that Comparisons of livestock numbers between date. A further 150 WO members were trained 1981 and 1991 show small increases in cattle as livestock specialists, mainly in goat man- and in sheep and goats, but a doubling of agement and disease control. poultry populations in all regions. No analysis is available from AKRSP, but other sources The concept of having beneficiaries pay for ser- (Byerlee and Husain 1992, Adams 1994) sug- vices (the cost of the product plus a small appli- gest livestock are an important source of in- cation fee) has not been uniformly successful. It come for the poorer families, through owner- appears, however, that the more capable live- ship and herding, particularly when common stock specialists and all master trainers have land is available for pasture. been able to institute payment for services. A complication in each of the regions is the provi- AKRSP has pursued a three-pronged strategy sion of a vaccination service free of charge (or for the improvement of livestock: reduction in for a nominal fee) by the government animal 65 health departments and, in the case of Chitral, 163,000 sheep and goats, and 403,000 poultry. by the Chitral Area Development Project, which Poultry treatment through the women's orga- is executed through government line depart- nizations in Chitral (c. 115,000 poultry treated) ments. These alternative services are limited by and Baltistan (c. 270,000 poultry treated) domi- budgetary support and mobility. However, nated the 1994 figures. when and where they have significant activity, they do cause complications. As rnoted in the 1989 OED report, difficulties have resulted from the poor handling of vac- In Gilgit and Baltistan, livestock master train- cines, especially those that are not heat-stable. ers have grouped together for the procurement The Baltistan benchmark survey (Bhatti, Tetlay, and delivery of inputs and to supply services and. Khan 1993) made an attempt to evaluate for payment. Ten master trainers in Baltistan the impact of these veterinary interventions. It have already established a formal partnership. compared animal mortality in villages with Although still in its early days, the concept of (VC)) and without (no village organization) ac- linking with the private sector and devolving cess to AKRSP treatments. The study found an activities from AKRSP seems to be working average mortality rate of about 5 percent in well. It provides the incentives for trained indi- cattle, slightly higher in sheep and goats, with viduals to give the right advice, and to deliver a nominally worse rate in VO villages. Howev- relevant and viable inputs in order to profit er, it is especially difficult to obtain reliable from their businesses. It is envisaged that these data on mortality when using this type of sur- groups of master trainers will replace village vey with very small numbers of animals specialists or use them as village agents for a owned per household; the robustness of this small fee. However, the Baltistan group still comparison is questionable. needs AKRSP support in procuring viral vac- cines and in managing heat-sensitive vaccines. Mo:re favorable results are indicated by indirect The same pattern is being followed with poul- evidence: 70 percent of livestock specialists, the try specialists. Selected individuals are encour- higlhest percentage of any section, continue to aged as master trainers and supported in set- be active, and there is a greater adoption of ting up chick brooding centers as a business, vacc.ination programs (by a factor of three) in which itself should benefit from their provid- Gilgit and Baltistan villages that have a special- ing advice to farmers. ist. These observations and the rapid expan- siorn of treatment recorded in Table 3.3 indicate Reducing losses. Table 3.3 shows the use of vac- a high demand for these services. cines and medicines through AKRSP. Use has increased tenfold since the 1989 OED evalua- Improving nutrition. In addition to the program tion, and in 1994 the vaccines and medicines for improving fodder production, AKRSP has supplied were used to treat 106,000 cattle, had three activities in its livestock section to TABLE 3.3: VALUES OF VACCINES/MEDICINES DISTRIBUTED THROUGH AKRSP (rupees 'OOOs) 1989 Yearly additions 1994 cumulative 1990 1991 1992 1993 1994 cumulative Vaccines 74 78 86 103 141 178 660 Medicines 108 132 128 298 314 207 1,187 66 improve feed preservation and utilization-the tend to be the major interventions promoted improvement of mangers to reduce waste, the by the program to overcome the universal ensiling of maize, and the treatment of wheat winter nutrition problems with ruminants. straw with urea (UST). Data proved difficult to This situation is a symptom of a deficiency in consolidate, but Table 3.4 attempts this. The the process of diagnosing, discussing, and silage and UST activities were launched in 1990 resolving problems together with village with the training of specialists in these tech- communities. niques and through demonstrations. Improving animal quality. An early AKRSP ini- Mangers have been used by 8 percent of house- tiative was the introduction of improved live- holds, while maize silage has been demonstrat- stock to the village organizations. Breed im- ed in 1.5 percent and UST in 1 percent of provement in ruminants has had little impact households. Case studies have shown that so far, while in poultry, when combined with households with silage feed about 12 kg of the vaccination program, good progress has maize silage per milk cow per day, and those been made. The initial attempts at collectively with UST about 4 kg per cow per day, which operated VO enterprises in both improved results in an extra liter of milk per day (Tetlay cattle and poultry were a failure, as was an et al. 1991). The level of uptake of mangers is early attempt to artificially inseminate cattle. confirmed by the IMI results (Tetlay 1993). These efforts have been abandoned, and the cattle sold to individuals. Once animal health Adoption of the maize silage and straw treat- is improved, there is scope for significant ben- ment technologies is especially low. Silage efits from enhanced genetic potential, as long tends to be used only for high-value animals as animal feed and management conditions (usually for milk production) and is mostly are improved at the same time to capitalize on located in the transitional zone where a second this potential. A demand for crossbred heifers crop, such as maize, can be grown. The UST is is developing from individuals who have ade- used to an even lesser extent. Even though it quate fodder resources and access to a local does not require a specific crop for its produc- market to sell milk. A survey at the end of 1994 tion, its benefits are not so obvious to those showed that only 200 households in 16 village unaccustomed to the theory of nutrition; organizations owned crossbred animals. Al- hence, the resource costs (mainly labor) are though small, this number represents a likely considered too high for the apparent response to improved animal health, feeding, benefits. Unfortunately, these two measures and market conditions and should continue to TABLE 3.4: TECHNOLOGICAL INNOVATIONS To IMPROVE WINTER FEED UTILIZATION (number) 1989 Yearly additions 1994 cumulative 1990 1991 1992 1993 1994 cumulative Maize silage demonstrations - - (150)' 692 387 524 1,753 Urea-straw treatment demonstrations - - (150)' (150)' 679 424 1,403 Mangers built - 4,086 2,090 425 355 0 7,956 a. Estimrated. 67 be encouraged. For the majority, however, feed tecinology to local circumstances and includes supply and access to a high-value milk market all relevant AKRSP sections in both planning are likely to be more limiting factors for adop- and implementation. tion of cattle crossbreeding, and it should not, therefore, absorb an inordinate amount of pro- Although the original collective poultry gram resources. If feed supply can be signifi- schemes were unsuccessful, the home-based cantly improved, especially in winter months, poultry package (HBP1), providing ten to 15 there will be greater incentives for small hold- improved chickens and advice on manage- ers to select animals for genetic improvements ment, disease control, and supplementary in those production characteristics that they feeding, has yielded good results. As Table 3.5 value most (for example, milk, meat, or wool). shows, 80 percent of women's organizations Summer management of cows in common had adopted the package by end-1994. The grazing is likely to limit selective breeding in package has improved household nutrition most herds, but thorough understanding of and brought women small cash sums from the the livestock management-feeding-cropping sale of eggs. This program continues as more systems could identify opportunities for rele- women's organizations are activated. vant interventions. AKRSP has its own hatcheries and brooding Despite earlier setbacks, a further experiment in capacity, but in the 1990s emphasis has been breed improvement was begun with sheep in placed on developing the private sector's abil- late 1993 (Ali et al. 1995). The Kail breed of ity to sustain a viable local industry. The in- sheep from Kashmir was introduced to a select- volvement of poultry master trainers in brood- ed village in Gilgit. The first year's experience ing enterprises to supply local demand has highlighted problems created by overoptimism already been mentioned. Others in Gilgit sup- about performance and by poor planning, lack ply fertile eggs to AKRSP hatcheries. After of fodder, scarce marketing opportunities, un- testing semi-commercial egg production in foreseen losses, particularly from predation, 199 2, by end-1994 AKRSP had introduced 36 and a failure by villagers to fully honor the home-based poultry packages (HBP2), each agreement with AKRSP. These lessons led eval- usually with 60-200 hens, managed by master uators to conclude that farmers can play a sig- train ers and good poultry specialists. Here nificant role in technology development and again, the intention is to develop the expertise must be allowed to play that role. of these individuals as a permanent local source of technical know-how. Innovations should not be considered for their technical merit only. It is necessary to A 1994 review of the semi-commercial adopt an integrated approach that adapts schemes showed that most were profitable. TABLE 3.5: POULTRY IMPROVEMENT THROUGH WOMEN'S ORGANIZATIONS (number) Women in 1989 Yearly additions 1994 development cumulative 1990 1991 1992 1993 1994 cumulative Home-based poultry (WOs) 110 230 100 79 36 48 603 Semi-commercial poultry - - 15 15 68 Experience in Baltistan (Iqbal et al. 1995), how- percent of plantings were with improved mate- ever, was not uniformly successful in the semi- rials supplied through AKRSP. commercial package. The expansion of this program will require care, especially in the The newly independent forestry section began assessment of market potential as a key criteri- to train village forestry specialists in 1991; on in locating projects. Adequate technical as- courses in 1992 included one for the first ten sistance from start-up to commercial operation female specialists. However, it soon became over the first 18 months will also be critical. evident that many of the specialists were not AKRSP has constructed a feed plant in Gilgit functioning as intended. Although 626 had and is considering one for Chitral. These been trained and 328 of these had undertaken should supply feeds at a lower unit cost if refresher courses by end-1994, a significant plant management is good enough to achieve proportion were already inactive. the quality standards required. After 1992, the section also adopted the master Forestry trainer concept, and 24 women village forestry specialists had been upgraded to master trainer Forestry is an important farm activity. Table status by the end of 1994. The overall upgrad- 2.3 shows that forestry contributes about 10 ing program was delayed, however. Only in percent of gross farm income in Gilgit and 1995 was this training of selected specialists as Baltistan, and 20 percent in Chitral. "village foresters," the forestry equivalent of master trainer, intensified. Candidates for the According to Table 2.2, the number of forest first course in February 1995 were selected from trees grown on farms in Gilgit expanded by specialists who had performed well in different more than 300 percent between the Agricultur- valleys. Their roles as village foresters are to al Census of 1980 and the AKRSP benchmark assist VOs define their forestry needs, help pre- surveys in 1992. With forest trees, as with fruit pare village forestry plans, provide guidance to and vegetables, AKRSP has identified a growth the village forestry specialists in their area, and enterprise and reinforced it with program ac- monitor the work being carried out. tivities. This is confirmed by the data in Table 3.6, which show that during 1990-94, the plant- The packages. The program's forestry section, ing of AKRSP-supplied materials overtook the with support from the Norwegian Agency for planting of local materials. The overall level of International Development (NORAD), insti- planting has been maintained, and by 1994, 70 tuted a five-year Sustainable Forestry Devel- TABLE 3.6: AKRSP FORESTRY ACTIVITIES, 1989-94 1989 Yearly additions 1994 cumulative 1990 1991 1992 1993 1994 cumulative AKRSP-supplied forest trees ('000s) 182 217 444 338 1,233 1,870 4,284 VO-planted forest trees ('000s) 6,696 1,549 2,126 1,458 950 820 13,599 VO/WO nurseries (no.) - - - 41 28 138 205 AKRSP forestry refined package (ha) - 121 353 364 568 898 2,394 69 opment Program. In 1993, AKRSP also began program's common-good environmental bene- implementing a government-funded Social fits, which complemented longer-term individ- Forestry Program in cooperation with the ual household benefits. However, considerable forestry department in Gilgit and Baltistan. planting targets have been exceeded, suggest- Links between AKRSP and the forestry depart- ing that the level of subsidy may be excessive. ment have been successfully developed, with This should be of some concern considering the latter cooperating not only in the Social that households with more irrigated land re- Forestry Program but also in the supply of sources are taking greater advantage of this planting material and in staff training and re- subsidized program than those with less re- search. The Sustainable Forestry Development sources. Some evaluators have also commented Program has six components: negatively on AKRSP's payment of the forestry specialists, as this breaks from the principle of * afforestation through a "soft package" of the village and women's organizations paying promotion and extension, with VOs using for specialist services. However, as payment to their own traditional planting material; the forestry specialists by villagers for this type of advice and assistance would be highly un- * afforestation through a "refined package" likely, some payment can be justified. of forestry activities, with village and women's organizations using improved Initially AKRSP took direct responsibility for planting material and planting techniques package delivery, including the provision of as well as intercropping (this is the forestry planting material. More recently the program section's major thrust); has begun to reduce its own nursery areas frorm a high of 60.2 ha in 1993 (AKRSP 1993) to * nursery development to provide improved 45.2 ha (AKRSP 1994) and has encouraged the planting material; development of village and women's organiza- tion nurseries. The number of VO/WO nurs- * training in the same pattern as for other eries increased rapidly to 138 by end-1994. AKRSP village forestry specialists-ten-day Witlh the minimum individual nursery size of courses for men and women selected by the one Ikarnal, the total area of 12.0 ha planted re- relevant organizations; mains small. Demand for forest tree seedlings is sa:id to be very high, and in 1994 for the first * women's activities-WO forestry packages time the output of plants from the forestry de- for nurseries, woodlots, and beekeeping partment nurseries was fully taken up. introduced in 1993; and The 1991 institutional maturity survey showed * environmental education in schools. that 12 percent of households in Gilgit and 5 percent in Chitral were planting improved ma- The Social Forestry Program's components terial, with a much higher proportion planting also include nursery establishment and the local material. The benchmark surveys in 1992 refined package for afforestation. and 1993 (Bhatti and Khan 1992; Bhatti, Tetlay, and Khan 1993) recorded the proportion of Incentives include AKRSP providing up to 70 households receiving AKRSP assistance with percent of the planting material free and mak- forest trees as 28.5 percent in Gilgit, 36.4 per- ing small payments to the forestry specialists cent in Chitral, and 15 percent in Baltistan. for procuring supplies and supervising the AKRSP's acceleration of the forest develop- work. Subsidies were justified in view of the ment effort with NORAD and government 70 funds postdates both the IMI and the bench- The forestry program promises to yield signifi- mark surveys. The refined package program cant environmental and economic benefits will have substantially expanded the propor- (Nyborg and Hamidullah 1995). However, the tion of households planting new material, program has not been without problems, with 929 ha, 764 ha, and 701 ha being planted which appear to mostly relate to its rate of ex- under this program in Gilgit, Baltistan, and pansion. Staff have had to carry heavy work- Chitral, respectively. In addition, the 1994 ini- loads, which has sometimes affected the quali- tiative to introduce woodlots to women's or- ty of the dialogues with villagers in arriving at ganizations under the NORAD program development agreements, and also the quality prompted a massive response. Local women in of supervision. Some communities found the WOs established 691 woodlots with a total of program to be insufficiently flexible in adapt- 577,000 plants delivered through AKRSP. ing to their particular circumstances, and poor survival rates in seedlings have been reported The environmental education program under- in some cases (although the overall survival taken in the cooperation with the Aga Khan Ed- rate of about 70 percent is acceptable) (Azfar ucational Service and the World Conservation and Ali 1993, Regional Program Office, Gilgit Union, although modest, has been worthwhile 1995). The intercropping component has been and should be continued. Its focus on students less ambitious; only 17 percent of the Sustain- and school teachers is appropriate. Perhaps the able Forestry Development Program area is region's most immediate environmental con- being intercropped. cem would be the effects of deforestation under- taken to produce wood for consumption or sale. In the next phase of the forestry program, it The forestry program is addressing this directly will be necessary to ensure it does not assume through its planting programs. Although this is a supply-driven character that aspires to meet largely below-channel planting, its contribution targets at the expense of quality and cost-effec- will reduce the need for above-channel harvest- tiveness. The program should expand only at ing. An awareness of, and concem for, the wider a rate commensurate with the capacity of environment including preservation of biodi- trained staff to appropriately respond to com- versity and local flora and fauna are probably munity circumstances. As forestry is a major best cultivated in the younger generation; the activity, it will also be essential that coordina- current older generation is likely to be more tion with other AKRSP programs is at a high concerned with ensuring a livelihood. With re- level, and that social organizers are closely in- spect to management of high altitude summer volved in the dialogues with village organiza- pasture, there is little that can be offered without tions. Equity issues should also be taken into a thorough understanding of the pasture associ- account in both the program's location (for ations and the social and economic factors in- example, attention to more remote areas) and volved in their current use. Acquiring this subsidy levels. knowledge is a major undertaking and should probably only be done on a case-study basis Issues in technology development with expert assistance. Nor can it be guaranteed and delivery that such research will result in practical means to improve pasture productivity or sustainabili- AKRSP's broadbased approach has brought ty. However, natural resource management staff considerable development to agriculture in the need to be aware of the role played by summer program area. The irrigation-related physical pastures in the seasonal fodder supply of the infrastructure projects have expanded the land various farming systems. under command. New enterprises have 71 proved attractive, particularly vegetables and of standard packages; this, in turn, has limited poultry for women, but also potatoes for men. the effectiveness of dialogue on technical mat- Livestock treatments and improvements in ters. The standard package has become a reac- fruit and forestry have been widely taken up. tion from the technical sections to the articula- tion of a general problem. Little attempt is AKRSP has been less successful in raising pro- made to shape the solution to the circumstances ductivity in the major farm enterprises-wheat, of the communities and different groups of maize, and pasture. These enterprises, with bar- households in those communities. Even the re- ley substituting for maize in Baltistan, occupy cent exercise in Astore in improving the effec- more than 80 percent of the irrigated land in the tiveness of dialogue with communities did not program area. They absorb high levels of labor result in anything other than the standard pack- and available family cash and make major con- ages. This degrading of the dialogue has been tributions both to farm income and household taken a step further by sections setting annual security. In communities where irrigated land is targets for next season's interventions, then scarce, raising the productivity in these domi- seeking to motivate village organizations to nant crops-either to improve incomes directly achieve these targets. or to release land and labor to pursue new farm enterprises-is the only agricultural develop- Beyond this, the autonomous development ment option. It will become increasingly impor- efforts of the agriculture, livestock, and tant as population growth puts greater pressure forestry sections in some cases may have exac- on land and water resources. erbated the problem. A good example is fod- der improvement, with all three ALF sections Technology relevance and delivery issues. Farm- having a hand in its implementation with little ers' priorities have not been well reflected in positive impact. System interactions in irrigat- the selection of program content in these dom- ed wheat and maize for grain and fodder and inant crops. The process for identifying and in summer pasture utilization are largely ig- designing packages to raise productivity in the nored in planning interventions. The ongoing basic crops needs improvement. integration of the ALF sections into NRM will improve coherence only if the diversity of Many locally recruited AKRSP staff and all the local circumstances across the area, and the village organizations have a detailed knowl- way this influences farmers' activities and edge of the local farming systems, especially their capacity for change, are well understood those staff working in their home areas. Yet and uased as a basis for planning. there appears to have been little effort to fully capitalize on this knowledge. Similarly, there The program cannot afford to invest in the de- is good understanding among program staff of velopment and testing of technologies, and in the geographical diversity across the area, but the training of staff, master trainers, and village again this has not been effectively used in the specialists, only to have farmers reject the pack- planning process. This phenomenon was like- age. The probability of successful intervention ly reinforced by the organization of the natural needs to be improved. Technology identifica- resource management unit into three discipli- tion and development must ensure benefits for nary-based sections-agriculture, livestock, the village and program resources employed, and forestry (ALF). and credibility for program staff and the village specialist cadres. It is even possible that a sig- The lack of sufficient attention to real natural nificant portion of the high attrition in special- resource management needs has led to the use ists might be linked to inappropriate packages. 72 Improving the process will need careful con- the training and education of specialists sideration of the staffing position and staffing and a low service ratio of program staff to policy. In December 1994, there were 44 natur- inadequately prepared specialists. al resource management professionals, includ- ing 31 below the regional management level, AKRSP is aware of these problems, and the each overseeing an average 59 VOs or 2,429 progression to master trainers at the level of households. As the 1989 OED evaluation village clusters is undoubtedly in response to noted, these professional staffing ratios are it. However, even here, the emphasis on estab- modest compared with other World Bank lishing a commercial enterprise base to en- projects with similar rural development courage sustainability of the position will have objectives. to be complemented by a participatory two- way flow of knowledge in defining appropri- Staffing needs will also have to be balanced ate technology if the prospects for success are against what is realistically possible with the to be maximized. level of personnel that can be attracted and re- tained in the program. A persistent impediment Improvitig the process. Several past consultants- to improving NRM services has been difficul- Conway (1985) and Rhoades (1992)-and the ties in retaining good technical staff. Already 1989 OED evaluation report have also identi- the devolution of responsibilities to the field fied the need to improve the technology devel- management unit has raised questions concern- opment process. However, little headway has ing the ability to maintain the required compe- been made in responding to this problem. tency in NRM at this level and at the regional level where high-quality support will be essen- There is a great diversity in the circumstances tial. Attracting the required skills has been par- of individual households in the program area. ticularly difficult in Chitral. Is it feasible for AKRSP to establish a natural resource management framework that will The AKRSP technology transfer concept of edu- permit relevant responses to this diversity? No cating local village specialists in key areas of program can hope to develop answers for technological change has merit. However, it is every situation, and individual farmers must only likely to be effective if the training/educa- be expected to make their own choices and tion process builds on local experience to en- adjustments. However, AKRSP can aim to de- sure that any recommended technologies are, velop sets of technology that will be widely indeed, appropriate to local circumstances and applicable to the major types of production needs. It appears that much training of special- systems in the service area. ists has centered on implementing a technology rather than conducting a participatory analysis In essence, this involves categorizing house- of the implications and pros and cons of intro- holds and developing technology that re- ducing a technology The more a specialist acts sponds to the circumstances of households in as a deliverer of the program's message rather these categories. AKRSP has traditionally used than as an active player in the development of the broad climatic categories of single, transi- the message, the less likely is he/she to be well tional, and double cropping zones in dealing received by the farming community, and the with technological innovations. However, more intensive will be the need for continuous other important variables at the village level service by program staff. It appears that the fre- are likely to be accessibility and endowment in quent criticism of poor technical support may irrigated land. These impact on employment, be linked to the complementary deficiencies in marketing, and commercial opportunities and 73 on the longer-term potential contribution of provide an informed basis for developing strat- farming to the community's economy. egy that has particular development priorities or equity considerations. However, in the con- Within communities, there is always diversity text of natural resource management, catego- in resources and aptitude among households, rization provides the framework for more effi- which has to be taken into account. Chapter 2 cient and effective technology development. It discussed the issue of how some packages are permits the institutionalization of a farming more suited to resource-rich than to poorer (household) system perspective, which is nec- households. Limited access to resources also essary to enhance the technology development affects an individual's attitude to risk-taking process. This perspective accepts that labor and, consequently, the type of solution that is productivity and food security are the primary appropriate to overcome constraints. Within objectives of small farmers. households, there is the gender issue. This aspect of categorization has already been A niumber of key elements would be involved taken into account in AKRSP's strategy and in enhancing technology development. The form in programming. which these elements are implemented will make different demands on personnel and Categorization would not be used to determine funding resources. The most essential elements what would be done in a community or offered are understanding the characteristics of the to a household. Rather, it would provide a farming systems (resources, constraints, and basis for a more informed dialogue with com- potentials); determining aspects that have the munities and households and would provide a potential for improvement to meet priority framework to define technology requirements needs of households; involving farmers not and undertake technology development. Any only in the definition of system characteristics categorization would be flexible and iterative and priorities, but also in the process of devel- as more knowledge is accumulated. oping technological improvements to address priority needs; and drawing on all reliable AKRSP already has a wealth of information, sources of technological innovation to develop albeit underutilized, to enable it to construct or acquire relevant technology Annex 2 pro- the suggested framework-the intimate vides details of how an improved technology knowledge possessed by some individual local development program might be incorporated staff; the comprehensive 1992 household/base- in AKRSP. Chapter 7 stresses the importance of line surveys; the IMI data; and information improving this aspect of the program and sug- generated by numerous ad hoc studies, includ- gests that technology development may justify ing the more in-depth participatory dialogue a specifically funded project or, at least, special exercises initiated in Astore in 1994 and under- technical assistance. taken in each district in 1995. The information has to be organized in a framework that accepts the diversity among communities and Human resource development households and its impact on how opportuni- ties will be perceived and realized. One of the three principles underpinning the AKRSP philosophy is upgrading skills Apart from its contribution to a more rational at the village level. Acquiring skills is a need natural resource management program, cate- that is also strongly articulated by village gorization alone would generally assist the communities during the dialogue process. program in its operations. Specifically, it would Within AKRSP, training is the responsibility 74 of the human resource development division, ments in seven-day regular courses and are reconceived as the Human Resource Devel- brought back for three to four-day refresher opment Institute (HRDI) in 1990. Its primary courses to update skills as instruments evolve. focus has been on training village representa- By end-1994, more than 4,000 specialists had tives to manage village and women's organi- been trained in 491 regular courses and up- zation affairs, and to act as a disciplinary spe- graded in 495 refresher courses. Of these, 81 cialist in natural resource management. Apart percent were natural resource management from training VO members, the institute technical specialists and directly NRM-related, trains AKRSP staff, both down-country in including women specialists from the women's Pakistan and overseas, hires interns who organizations. Five percent were marketing work with the program for varying periods, specialists, and 14 percent were village accoun- and trains staff from other agencies seeking tants. These numbers are truly impressive and to replicate aspects of AKRSP's rural develop- speak well of the organizational abilities of ment strategy. AKRSP staff. The distinguishing feature of AKRSP's human In 1991, village specialist activities were moni- resource development strategy is that training tored by both the institutional maturity index is integrally linked with implementation. To and benchmark surveys. Questions were program staff, training is at least as important raised about the value of village specialists as their roles in implementing sectional pro- and the effectiveness of their training. Table grams. The institute itself has direct responsi- 3.7, extracted from the IMI survey, shows an bility for training needs assessment, curricu- average 45 percent of trained NRM specialists lum development, and the production of as active, with the livestock specialists having training material. Regular training activities by far the best performance. This attrition rate for village and women's organization special- of 55 percent is very high. As an indicator of ists are carried out by regional program offices perceived value, the IMI survey queried the at local training centers and in the field, with willingness of VO members to share the cost support from HRDI. An important feature of of specialist training. Very few (4 to 7 percent the institute has been its flexibility to evolve across the regions) reacted positively. The evi- with changing program needs. New courses dence on the value of specialists from the such as business enterprise development have benchmark surveys was more favorable. Table been incorporated as demand for this exper- 3.8 shows the level of farmer contacts across tise has increased. the regions. In addition, a high proportion of respondents who had not received services or Techniical specialists. Village technical specialists advice expressed a need for these. Of those receive practical training in specific instru- who had received services or advice, except in TABLE 3.7: NATURAL RESOURCE MANAGEMENT SPECIALISTS ACTIVE (percent) Region Livestock PP&Pa Marketintg Forestry Gilgit 73 38 32 55 Chitral 71 45 21 45 Baltistan 61 54 23 20 a. PP&P is an abbreviation for plant protection and production. 75 marketing, a large majority were satisfied with costly animal losses, is likely to have been a the help received. Less than 3 percent of factor in their popularity. Conversely, the ner- respondents saw no need for specialists (Bhat- vousness of some women-in-development ti, Tetlay, and Malik 1994). (WID) staff about new technologies perhaps arises from unhappy experience with "appro- The review of village forestry specialists by priate technology" packages and the resulting Azfar and Ali (1993) refers to their dilemma threat to WID credibility in the communities when the community reacts against the pack- concerned. age design. Inappropriate messages invari- ably reduce the credibility and standing of The agricultural section led the 1992 initiation the messenger, and in AKRSP, with the spe- of thie master trainer scheme. This program cialist working within his or her own com- was in part a response to the apparent prob- munity, this is pertinent. This critique is am- lems being incurred with the village specialists, plified in a case-study evaluation of vegetable and in part to a perceived need for a second production and protection specialists in level of local activists to establish a viable tech- Baltistan (Ahmad et al. 1993), which appeals nology transfer framework. It followed the in- for recognition of the value of existing veg- troduction of the idea of "clusters"-a number etable preservation and storage methods of VOs with circumstances in common-which rather than imposing new methods that upset could be grouped for certain purposes. It was traditional routines. felt that the single village organization was probably too small a market to provide a liveli- Overall, the evaluation evidence on village hood for specialist services and that in working technical specialists is mixed. For the future of over a wider area, master trainers could more the NRM program and HRDI's role in training effectively link with the private sector and be villagers to be active participants in the tech- more readily serviced by technical agencies, nology development and transfer process, it including the program's NRM sections. would be valuable to identify the reasons for the high attrition. It has been partly attributed Master trainers are selected from the pool of to a poor selection process. There have been village specialists based on their performance recommendations for upgrading AKRSP and support they get from their communities. staff's training methods (Ali 1992). It may also Training is done at the regional offices. be related to the relevance of the messages Although there is great hope for their role in specialists are asked to promote. The fact that the program, their involvement is poorly doc- the livestock specialists had treatments to umented. HRDI does not yet feature master offer, very transparently seeking to reduce trainers as a line item in its training reports, TABLE 3.8: FARMER CONTACTS BY VILLAGE SPECIALISTS (VS) (percent) Region Gilgit Chitral Baltistan Membership in contact with VS for advice 22 39 53 for services 29 37 65 VOs in which VS provides knowledge in VO meetings 52 51 82 76 and they get only sporadic mention in reports At the other extreme, an early evaluation by from other sections. The written commentaries Khan and Muneer (1993) makes painful read- available offer mixed impressions. ing. The authors interviewed the original nine agricultural master trainers 20 months after The livestock section's initiative to organize their training late in 1991. They found only six master trainers as retailers of veterinary sup- out of nine working as trainers and concluded plies and livestock inputs seems an excellent that three out of the six had good potential. way to create services, link with the private The authors were critical of the selection, sector, widen local job opportunities, and training, and support of the original members gradually devolve responsibility from AKRSP. of this new cadre. They were particularly criti- The records of livestock master trainer cal of how poorly prepared were AKRSP staff, incomes in recent annual reviews, summar- village organizations, and community at large ized in Table 3.9, show careful monitoring of to understand and accommodate the master the group and a good understanding of the trainer function. Some of these criticisms were possibilities for this type of service instrument. echoed in the 1994 report of a joint monitoring Out of the 1994 group shown in the table, ten mission (JMM 1994). The mission also noted master trainers from Baltistan averaged Rs. some confusion over master trainers in the 40,959 in income for the year. Poultry inputs course of their field visits, suggesting that in- were a major source of their income, averaging formation flows between management and Rs. 20,977 per trainer. This group of Baltistan field staff need to be improved. Management livestock master trainers has recently set up a should initiate such staff dialogues, but the formal partnership to handle their supply Human Resource Development Institute can business. be an active agent through its training program. The same principles have been applied in forestry. Master trainers are debited for the Village adtmniistration trainiing. The training of value of seedlings supplied by the program villagers in bookkeeping and account manage- (which may or may not include a markup) and ment has assumed increasing importance since sell at a price dictated by farmer demand. If the late 1980s (Annex Tables 1.10 and 1.11). trainers correctly estimate the local demand This has made a significant impact on the before entering into a contract with AKRSP, a quality of record keeping in village and significant profit can be made on the cash out- women's organizations, and without it the vil- lay needed to buy the input. The strategy is lage credit programs could not have been as extended when the trainer takes over the nurs- successful as they have been. However, as dis- ery and makes a greater margin if he/she is a cussed later in this chapter, about one-third of good nurseryman. This devolves a further women's and village organizations do not function from AKRSP. have access to the services of a village accoun- TABLE 3.9: AVERAGE EARNINGS OF LIVESTOCK MASTER TRAINERS (rupees) Number of Medicine Silage Year master trainers Services shop urea Other Total 1993 16 2,462 2,362 381 456 5,700 1994 24 4,355 7,123 475 9,585 21,539 77 tant. There is an immediate need to expand initiation, this program will absorb 35 trainees this training program. in 1995. It is more difficult to use this number productively, however, and there is the danger A training program for master managers has of their becoming a burden on staff. recently been introduced. This was on the un- derstanding that some individual VO managers Training for other agencies. Formal training of should assume wider responsibilities and take a stafF from other rural development agencies has leadership role in activities that necessarily in- been effectively carried out by HRDI, where volve a number of villages, and that these man- exposure to the local program permits more agers could also contribute to the practical train- effective education. This has been a worthwhile ing of other managers. Frequent meetings of contribution to development and poverty alle- local village organization managers are already viation in many other areas and should be con- organized at the district level to enhance on-the- tinued to the extent that resources allow. Most job interaction and leaming. With the increasing effort, however, should be given to the develop- role that VO/WOs are expected to take in part- ment of human resources in the communities nership with outside development and service and in AKRSP staff. An emerging priority is the agencies, it will be necessary to increase the neecd for HRDI to cooperate with MER and depth of administration/management training other program units in educating local govern- within village communities. This will not only ment personnel in effective communication enhance organization efficiency, but also reduce with local communities as part of the evolving the possibility of any individual capturing development partnership concept. undue privileges because of his/her manage- ment position. It is important to note that many of the roles of program staff are changing. Although there Professional training. The problem of retaining will be some further expansion in coverage of qualified and experienced staff in the program corrLmunities in Chitral, Baltistan, and Astore, area persists. The policy of paying well, the focus on creating village institutions will be recruiting locally, and upgrading staff through substantially less than that in earlier phases of in-service training has created a core of com- the program. Greater emphasis will now be mitted local professionals, but the program is placed on economic growth and developing in a perpetual "catch up" phase given its ex- maturity, and on these community institutions' pansion in area and activities. capacity for good governance. Both the balance in staffing resources and the balance of training The policy of further external training started in FIRDI need to reflect this watershed in pro- in 1985 and intensified from 1988. There are gram history. Similarly, the "numbers game" of currently 22 professionals training in universi- specialists trained at the village level has clear- ties and colleges in Pakistan; 11 are AKRSP ly been won, yet attrition rates suggest that staff and the other 11 are trainees who will join quality and relevance of training need AKRSP. There are also seven professional improvement. This goes beyond HRDI, as the AKRSP staff training outside Pakistan. The training content for village specialists depends external training program provides some of on the packages being promoted by the techni- the higher skills needed in professional staff cal sections. The recommendations made in and offers an incentive for staff to remain in Chapters 3 and 7 and in Annex 2 offer new di- the program. Interns organized by the Human recti.ons for the development and diffusion of Resource Development Institute also make a technology and also imply new needs in contribution to AKRSP. From six interns at its human resource development. 78 Marketing and enterprise BAMA and GAMA have not been without prob- development lems. Low margins, excessive reliance on a sin- gle purchaser, and competition from other play- The marketing program has evolved signifi- ers as the area opens up to more commerce have cantly over the last ten years. The original con- affected operations. This illustrates the need for cept was to assist village organizations in co- careful consideration of not only market poten- operative marketing. It soon became obvious tial, but also of the pitfalls and difficulties that that bulk marketing without consideration of can occur with medium-scale cooperative enter- uniformity and quality was of dubious value, prises. Participants are usually not well inform- and that cooperative marketing required ed about business practices, the role of financial sound management skills. This led to empha- reserves, and the requirements for, and costs of, sis on a restricted number of the more market- good management. In general, it would appear able products (especially higher-value fruit), that in the circumstances of the Northern Areas, and on training farmers in their production, it would be wise to promote the creation of co- grading, processing, and marketing. Coopera- operative medium-scale marketing organiza- tive marketing was still encouraged, but pri- tions only for those products where there is a vate entrepreneurs were also provided incen- very wide and unjustified margin being enjoyed tives to invest in marketing through assistance by private buyers. These circumstances would in training and finance (for example, the Cen- be very rare. The recent emphasis on doing tral Purchasing and Processing Unit in Gilgit studies to identify markets and assisting indi- in 1987). viduals to capitalize on these markets for their own benefit and the benefit of local communi- Advantage was also taken of work done under ties has been an appropriate use of the enter- a United Nations Development Program/FAO prise development division's resources. project that demonstrated the potential for dried apricot and seed potato marketing. In the 1990s, the marketing section has also These activities were promoted in Gilgit and progressively broadened its interest to cover Baltistan, and led to the creation of the Gilgit nonagricultural activities, including studies Apricot Marketing Association (GAMA) and and technical assistance for tourist facilities in the Baltistan Apricot Marketing Association the form of village guest houses. Correspond- (BAMA) in 1992 with AKRSP technical and ingly, in 1992 the section changed its name to financial support. Unlike GAMA, BAMA has the enterprise development division (EDD). Its not been involved in the seed potato business. role in enterprise development was further However, its marketing unit has assisted enhanced in 1993 when AKRSP initiated a spe- Baltistan growers by facilitating contacts with cial credit line for microenterprises to assist private seed potato buyers from the Punjab. individual entrepreneurs with working capi- This facilitation role has received increasing tal. Prior to that credit, support had been emphasis and has especially helped in the available only through short-term marketing marketing of fresh vegetables, in both Gilgit loans to village organizations. and Baltistan, by establishing contacts with commercial wholesalers. In Baltistan, the mar- More than 400 marketing specialists have been keting unit arranged exhibitions in which trained (Annex Table 1.10). This training has farmers were able to demonstrate their veg- evolved in response to the changing emphasis etable produce to wholesalers and retailers; of EDD. Surpluses that commonly enter the this has led to ten regular open markets in cash economy include livestock products (in- Skardu. cluding poultry), dried fruits and sometimes 79 fresh fruits, potatoes and seed potatoes, maize, the role of EDD vis-A-vis the proposed Enter- pulses, and firewood and dried fodder. Wool prise Support Company (ESC) will have to be processed into pati cloth is also commonly clearly defined. The proposed bank for the sold. In addition to coordinating product mar- Northern Areas (NRDB) would obviously take keting to medium-sized enterprises such as responsibility for the financing of marketing BAMA and GAMA, the specialists have often enterprises. It is intended that the ESC would worked with VO managers in marketing the have a division for assisting entrepreneurs to villagers' produce, for which they receive pay- develop markets as well as a division to assist ment for costs and services. This has mostly enterprises with management and training occurred in marketing dried fruit in the open (with 50 percent cost recovery). Decisions will market, but has also sometimes involved pota- have to be made on the extent to which enter- to and vegetable sales, often in association with prise development functions are absorbed by an AKRSP marketing loan to the village orga- the Enterprise Support Company. nization. However, with the change in empha- sis away from cooperative marketing, the gen- It could be argued that ESC should deal with eral training program for village marketing the study, promotion, financing, and facilitat- specialists has become less important. It has ing of specific enterprises, while EDD would now been dropped in favor of ad hoc support be concerned with general studies defining for individuals and groups, as required by cormparative advantage, identifying new mar- emerging enterprises of marketing initiatives. ket potential, and investigating regional mar- This has included study tours down-country to ket developments such as the recent market expose specialists to the wholesale and retail town review for the Ghizer district. However, parts of the marketing chain, and Baltistan has the sort of expertise required for this type of introduced enterprise development courses work is usually very marketable in the private that focus on general business management sector, so that qualified individuals are likely rather than on specific sectoral interests. to be scarce commodities in the north; this sug,gests that the limited expertise should be The statistics on "cooperative marketing by concentrated in one institution, which is likely VOs" are a relic of the earlier emphasis on co- to be the Enterprise Support Company. In this operative marketing and do not really repre- event, it would be necessary to ensure that sent the volume and value of cooperatively effective links are maintained with the rele- marketed goods. The figures include not only vant sections of AKRSP (especially natural the latter but also products marketed individ- rescurce management, human resource devel- ually by village organization members. How- opment, the WID coordinator, and what ever, if these figures are examined to reveal the might remain of EDD) so that maximum use value of actual sales from the village organiza- is made of available expertise and information tions surveyed in each year, then the trend is in contributing to local development. In addi- generally upwards. This finding confirms the tion, it will be important to ensure that communities' increasing participation in the AKRSP maintains a capacity to identify and market economy. promote the adoption of simple appropriate technology devices for women. The record The enterprise development division has been has not been especially favorable in this area without a section head since late 1993. Howev- in the past, but the enterprise development er, a number of initiatives undertaken by the division has contributed recently in identify- division indicate that it has some dedicated ing possible technologies (such as treatment and capable staff. In the program's next phase, of hides and skins). 80 Savings and credit 3,650 in Gilgit, Rs. 1,971 in Chitral, and Rs. 1,212 in Baltistan at end-1994. Average balances Due to the special interest in AKRSP's savings for WO members in the three districts were Rs. and credit operations, a comprehensive, sepa- 1,708, Rs. 880, and Rs. 204, respectively. These rate report was prepared on this aspect of the averages are influenced to some degree by the evaluation. The section in this study offers a length of time the program has been active in briefer description and analysis of the existing each area, but appear primarily to be related to situations and the proposals for new banking the economic opportunities in each district, institutions. and to the strength of AKRSP village and women's organization activity in each area. Development of savings and credit operations The AKRSP credit and savings management system at the village and women's organization Village and women's organization credit and sav- level uses nine types of manual records. The ingsfitnctions. Credit and savings constitute a village organization manager may maintain central part of AKRSP's activities, and these these records or may share this task with a services are operated by each village organiza- credit committee including a village accountant tion. Part of the contract between a community trained by AKRSP. Due to widespread illiteracy and the program is the formation of a village among women, men from the village organiza- or women's organization and the undertaking tion usually have to help women's organization by members to make a deposit at every meet- management in the savings/credit function. ing, which is usually semi-monthly. The sav- Village accountants usually cover more than a ings effort has produced impressive results, as single village and are paid by AKRSP accord- indicated in Table 3.10. ingly The manager is often remunerated for his services through a comnmission charged on Savings tend to be highly concentrated. loans, depending on the organization. Proce- Approximately 70 percent of total savings bal- dures are adopted to provide transparency and ances have been accumulated by 25 percent of to focus on members' performance in meeting the village and women's organizations. Sav- their obligations. Cash collected at village and ings vary greatly by program area. Average women's organization meetings is usually de- savings balances per group member were Rs. posited in a profit and loss sharing account (es- TABLE 3.10: SAVINGS BY MEMBERS OF VILLAGE AND WOMEN'S ORGANIZATIONS BY DISTRICT, 1983-94 (millions of rupees) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Village organizations Gilgit 0.67 5.15 8.11 10.59 20.57 28.81 36.31 42.28 49.29 55.99 77.00 100.51 Chitral 0.17 0.85 2.21 4.45 7.90 13.15 17.49 22.00 25.14 33.45 38.63 44.56 Baltistan 0.23 0.86 2.52 4.55 6.98 10.96 14.93 20.04 25.43 29.81 Astore 0.63 1.76 Subtotal 0.84 6.00 10.55 15.90 30.99 46.51 60.78 75.24 89.36 109.48 141.69 176.64 Women's organizations 0.30 0.56 1.32 1.97 3.35 4.84 7.65 10.36 13.60 17.69 23.06 34.16 Total 1.14 6.56 11.87 17.87 34.34 51.35 68.43 85.60 102.96 127.17 164.75 210.80 81 sentially a savings account) at a commercial AKRSP provides short-term, seasonal credit. bank, or in a post office, by the organization's Short-term credit has also supported marketing manager or other designated person. Account of farm produce, purchase of inputs, and other statements are to be prepared every six months, seasonal activities. Likewise, medium-term and books are audited at least once a year by an land development loans have been issued to AKRSP field accountant. help capitalize on the opportunities created by irrigation. Credit for these and other purposes Emphasis on savings reflects a central concern helps village organization members realize the of AKRSP, which is to mobilize funds locally benefits from the physical infrastructure project and to deploy them locally. Initially this con- and from social organization through their VO. cern reflected the objective of making the pro- ject area self-sufficient. This concept has been Short-term credit from the program to the vil- modified in response to the opportunities pro- lage organization for distribution to members vided by linking the area with the national was initially interest-free, in accordance with economy through the Karakoram Highway, government policy. This policy was abandoned and as a result of migration of able-bodied by the government in 1988, at which time males. Savings are now seen as a means of en- AKRSP instituted an 8 percent service charge. couraging employment locally, especially self- Data concerning short-term loans are given in employment by members of village and Table 3.11 and indicate the dominance of fertil- women's organizations. izer loans, followed by crop marketing loans to hold over production to gain higher prices. Specific purpose short- and medium-term loans. The economic impact of a productive physical infra- Medium-term loans have been issued since structure project often creates the opportunity 1985. Loan use, summarized in Table 3.12, in- for AKRSP to issue credit through the village dicates that land development was dominant. organization. For example, an irrigation chan- Village organizations were the borrowers. nel that increases arable land or a road that fa- cilitates access to a market creates a demand for However, medium-term loans have been virtu- modem inputs such as fertilizer, for which ally discontinued because of poor performance. TABLE 3.11: SHORT-TERM CREDIT DISBURSED BY LOAN PURPOSE AND GROUP MEMBERSHIP, 1983-94 (millions of rupees) 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Village organizations Fertilizer 0.98 2.47 3.78 5.79 7.67 14.01 11.00 8.82 7.70 8.06 8.28 7.45 Marketing 0.17 0.20 0.80 2.11 3.86 6.24 3.18 0.52 0.72 1.70 2.20 1.98 Other: livestock, plants, seeds, chemicals, and so on 0.02 0.01 0.06 0.10 0.38 0.72 2.06 0.27 0.20 0.23 0.04 0.04 Women's organizations 0.30 0.56 1.32 1.97 3.35 4.84 7.65 10.36 13.60 17.69 23.06 34.16 Total 1.14 6.56 11.87 17.87 34.34 51.35 68.43 85.60 102.96 127.17 164.75 210.80 82 Some of the tasks to which they were dedicated withdrawable, but the village and women's were too complex for VOs to handle effectively. organizations can borrow from AKRSP up to a Others funded applications of technology that limit equal to members' savings. Individual were inappropriate or that could not be man- members can borrow up to a limit equal to aged well collectively, such as tractors. Other their savings, or larger amounts with the ap- losses arose from the communal disturbances in proval of two guarantors who have not bor- 1988 that disrupted economic activity. rowed up to their limits. Loans are, therefore, fully secured. Village and women's organization credit programs. An innovation in savings and credit operations Saving was also made more attractive by in- began in 1989 with the introduction of the vil- creasing the returns to savers. AKRSP funds lage and women's organization credit pro- VO/WOCP loans; village and women's orga- grams, collectively referred to as VO/WOCP. nization savings are not directly tapped. The credit programs have virtually replaced AKRSP used to charge 7 percent on its funds, the short-term loans initially taken by village but in December 1994 raised the annual fee to and women's organization members, which is 10 percent for village and women's groups, reflected in the decline of short-term credit dis- using an initial rollover that would extend the bursements in Table 3.11. These loans from original maturity by two years. Banks clearly AKRSP can be rolled over for up to three years. would be unwilling to lend at this rate, which has little to do with AKRSP's costs of running Objectives of the credit programs are many. the credit programs or the risk of such lend- Principal goals are to decentralize and simpli- ing. At this subsidized rate, the village or fy credit operations, and to make savings women's organization is able to add 5 percent more accessible and hence more attractive. to cover its own administrative costs and a Decentralization is accomplished by placing further 12 percent as a reward to savers, typi- on village and women's organizations the re- cally charging 24 percent to member borrow- sponsibility for approving and issuing loans ers. In addition to the 12 percent return paid to their members. Savings were made more by borrowers to savers, the latter also benefit attractive by enabling members to borrow from the VO/WO investment of their funds. It against their balances. Prior to the introduc- has often been possible for women's and vil- tion of VO/WOCP, individuals did not have lage organizations to obtain 12 percent on access to their savings. Under the credit pro- three-year deposits. Hence, the return on sav- grams, savings remain generally non- ings can approximate 24 percent. TABLE 3.12: MEDIUM-TERM CREDIT DISBURSED, 1984-94 (millions of rupees) 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Land development 0.47 2.50 2.37 9.74 7.73 8.22 0.43 0.07 0.08 Agricultural machinery 1.24 1.88 3.25 3.35 3.47 1.02 1.06 1.61 1.12 Sulphur tents 0.44 0.77 1.10 0.01 Other: marketing, drills, sawmills, breeding, and so on 0.24 0.14 1.08 2.40 0.16 1.37 1.12 0.01 0.54 Total 0.47 3.74 4.49 13.57 12.93 15.19 1.62 2.50 2.81 1.13 0.54 83 TABLE 3.13: VO/WOCP LOAN DISBURSEMENT TO MEMBIERS, 1989-94 (millions of rupees) Region 1989 1990 1991 1992 1993 1994 Gilgit 2.86 12.41 9.30 15.86 27.31 57.13 Chitral 0.29 0.94 3.64 3.86 5.56 9.36 Baltistan 0.05 0.48 1.25 2.67 3.40 2.76 Astore 0.06 Total 3.20 13.83 14.19 22.39 36.27 69.31 As shown in Table 3.13, the credit programs' gran-t basis from the Netherlands under the lending volume has generally increased Microenterprise Project (Loan 3318-PAK) steadily in each district. Progress is most im- sponsored by the World Bank and the govern- pressive in Gilgit. AKRSP research has docu- ment of the Netherlands. mented that economic opportunities are great- est in Gilgit, and that village and women's Corporate or commercial credit. At the beginning organization performance tends to be more of 1995, AKRSP established a new credit pro- dynamic there as a result. gram designed to support enterprises linked directly with village and women's organiza- Microenterprise Credit Program (MECP). MECP tion. commercial interests. This program had was introduced in 1992 to build, through not yet become operational by the time of the investment that creates jobs for village and evaluation mission's visit to AKRSP in April women's organization members, a small busi- 1995, but several enterprises that had already ness base centered on local people. AKRSP received AKRSP credit will be moved into it. makes loans to individual members of the vil- These include GAMA and BAMA, the agricul- lage and women's organizations. Although the tural marketing associations for Gilgit and loan must have the consent of the member's Baltistan, and Tanzeem Corporation, which is VO/WO, lending is otherwise uncollateralized. a supply cooperative in Ghizar that deals in AKRSP provides support services and charges basic commodities such as soap, cement, cook- 18 percent per year, which it considers a market ing oil, tea, and flour. Ramoshay Tanzeem, a rate for this type of facility. Loan sizes range retailer of livestock inputs, is also a borrower. from Rs. 5,000 up to a Rs. 40,000 project ceiling. This is a partnership consisting of ten AKRSP MECP activity has been characterized by rapid animal health master trainers who each took increases in amounts disbursed, as summarized loans of Rs. 10,000, which they supplemented in Table 3.14. by an equal amount of their own funds. This forrn of enterprise is a means of commercializ- The strategy adopted for the Microenterprise ing AKRSP functions, and enabling people to Credit Program departs considerably from the become entrepreneurs based on their functions basis on which AKRSP has historically allocat- under the project. ed credit. Part of the cost of identifying good entrepreneurs is assumed to include bad debt Operating expenses. AKRSP's credit and savings losses, which are expected to occur primarily section estimates that its expenses equal about on the Rs. 5,000 starter loans. Nevertheless, the 6 percent of credit outstanding at year-end. credit program may involve substantial risks. When the resources spent on savings and AKRSP receives funds for this credit line on a credit by other AKRSP units are taken into ac- 84 TABLE 3.14: MICROENTERPRISE CREDIT PROGRAM DISBURSEMENTS, 1992-94 (millions of rutpees) Regioin 1992 1993 1994 Gilgit 0.56 1.16 3.60 Chitral 0.10 0.50 2.82 Baltistan - 0.22 4.43 Astore - - 0.55 Total 0.66 1.88 11.40 count (social organizers, MER, women-in-de- creased balances include the formation of velopment, and general administration), total more village and women's organizations and allocable overheads could reach about 20 per- economic conditions in the area. cent of the loans outstanding at year-end. These levels are not excessive for a nongovern- Slower loan repayments and risinig bad debts. Re- mental organization or a rural development payment performance has tended to deterio- project (Christen, Rhyne, and Vogel 1993). rate over time. An analysis of short-term loans shows that, as years pass, it takes progressive- Trends in portfolio performance ly longer to reach 100 percent recovery of prin- and possible causes cipal. The trend is most noticeable in the Gilgit portfolio. Savings patterns and performance. Savings activity tends to be most intense in the early The causes of generally declining performance stages of a VO/WO, when the physical infra- cannot be ascertained with certainty for structure project is underway and initial enthu- AKRSP. As evidenced by its policies and pro- siasm is high. Over time, a decline in addition- cedures, declining performance is not due to al amounts deposited appears to set in, both in AKRSP having low expectations of borrower regularity of deposits and as a reduction in the repayment. However, plausible reasons why amounts deposited by individual members. the repayment performance of borrowers who This is not surprising. Deposits have been gen- are VO/WO members has declined may be erally nonwithdrawable, which could be ex- summarized as follows: (a) decreasing intensi- pected to make the mobilization of additional ty of AKRSP activities in a village over time; savings more difficult. The purpose of saving (b) rational selection of lowest risk activities at was not really linked with loans until the intro- the outset and gravitation toward larger, riski- duction of the village and women's organiza- er ventures over time; (c) borrowers' probing tion credit programs, which established credit the effects of delays in repayment; coupled limits equal to savings balances. with (d) AKRSP's reluctance to move forceful- ly and its proclivity to try to reach a solution The boost in deposit balances that occurred through dialogue, which is possibly the only following the introduction of VO/WOCP in course when loans are unsecured; and (e) lack Gilgit is an indication of the attractiveness of of a plan devised to deal with loans affected greater flexibility in savings and credit, by catastrophic situations such as communal although it is not possible to isolate that por- strife. The single maturity for loans from the tion of total increases attributable directly to Microenterprise Credit Program, discussed the credit program. Other contributors to in- below, may lead to repayment problems be- 85 cause repayment terms are not consistent with tions. Village and women's organizations de- the cash flow of the activities being financed. velop at their own pace. Those in areas closer to major roads and markets have an opportu- MECP responds to village and women's orga- nity to develop commercially more rapidly nization members who have businesses of than those that are remote, as their transaction their own or who would like to start or and information costs are lower and their op- expand their activities. Accordingly, this pro- portunities are less limited. This is reflected in gram presents much more risk than AKRSP's Gilgit, where, as previously noted, organiza- traditional credit lines. Microenterprise credit tion members average much greater savings loans are likely to become riskier after the ini- balances and where lending activity is greater tial round of activity that consists of lending to than that found in Chitral and Baltistan. With- people who are already established. Borrowers in Gilgit, savings and loans are also concen- in new commerce or manufacturing ventures trated in the better village and women's may not fully understand the requirements of organizations. commercial success, and it may be difficult to judge the market for the new product or ser- A concern of AKRSP management and of some vice. Loans may also finance a high proportion observers is that different levels of activity in- of the microenterprise's cash costs, which here:ntly reflect inequity. In other words, dis- leads to a high debt-service burden, increasing parate results may reflect an underlying ten- the probability of default. The microentrepre- dency to favor some groups at the expense of neur may have few additional sources of others. No direct evidence of such a tendency funds and may also feel, because the loan is was discovered during the evaluation of sav- relatively so large, that AKRSP is a sort of ings and credit operations. Disparate results partner that should share in any loss. appear to be based on differing levels of vitality and intensity of different village and women's Bad debt losses take time to become apparent: organizations. These in turn appear to reflect all credit programs begin with none. By end- the skills and dedication of the activist who is 1994, arrears accounted for 27 percent of often the manager, the openness of the village amounts outstanding. Loans overdue for more to chLange, economic opportunities related to than six months accounted for only 3 percent access to markets and infrastructure, and prob- of amounts outstanding, but this proportion lems of trust across communal lines. It is possi- will probably rise. Detailed portfolio data indi- ble t]hat those village and women's organiza- cate that 41 percent of borrowers whose loans tions; that are doing well get more attention had fallen due were in arrears, and almost all than those that are doing poorly, although no were in arrears for the total amount of their direct evidence of this was discovered. If this be loan. A contributing factor is that Microenter- the case, it could represent efforts by AKRSP prise Credit Program loans have single matu- management to economize. It could also be rities. Installments may be more responsive to consistent with the AKRSP approach of helping the cash flow cycle of microentrepreneurs. villagers to help themselves: too much initiative by AKRSP that is not matched by local efforts is Strengths and weaknesses unlikely to produce lasting results. Flexibility and equity. AKRSP has been an ex- A related concern is that savings and credit may perimental project. This demands flexibility, reinforce or lead to inequity because different which has been a major strength in AKRSP's people will save and borrow different amounts. management of its savings and credit opera- AKR.SP's position on savings is that each vil- 86 lage and women's organization member should pute still festers, impeding the activity of save according to his or her capacity. Some or- these village organizations, and souring rela- ganizations, however, prescribe that each mem- tions between AKRSP and the community ber save an equal amount at each meeting. This concerned. may be a symbol of solidarity and equity, or it may be used to exclude those who are relative- A striking example of flexibility and respon- ly poor. Some village and women's organiza- siveness is the tolerance of initiatives in tions also want everyone to borrow, which in- VO/WOCP that are at variance with the stan- creases service charge income and hence the dard guidelines. These are numerous. Exam- return for distribution to savings. Some mem- ples include: bers, however, may not want to borrow for reli- gious reasons or because they can fund their * introduction of freely withdrawable expenditures from other sources. This is consis- deposits; tent with AKRSP's use of instruments to create equitable opportunities: credit is available to * borrowing and lending between VOs, and all, but the complementary resources needed to between village and women's organizations, utilize credit productively will be accessible to for purposes of liquidity management; varying degrees by different households. Con- sequently, different amounts of borrowing are * village and women's organization lending to be expected. They may exaggerate income to nonmembers at interest rates higher than disparities, while also providing the possibility those charged to members; and for those in lower-income categories to improve their situations by making use of the credit that * emerging use of VO/WOCP facilities as they can use productively and repay as sched- lines of credit for business purposes, with uled without embarrassment. frequent withdrawals and deposits. Flexibility and responsiveness. Flexibility has Most of these initiatives are innovative. They permitted responsiveness in AKRSP outreach lower members' costs or increase their returns; and design, as seen in the discontinuation of they increase the amounts that can be borrowed medium-term credit following bad experience or that are likely to be deposited; they facilitate with collective projects, and in the introduc- VO/WOCP management; or they contribute to tion of VO/WOCP. Introduction of the Micro- the community's welfare. The initiatives indi- enterprise Credit Program enabled AKRSP to cate the types of financial services that will be move rapidly in an area that has always been most valuable in the future, that is, those that central to its mission-encouraging local busi- are flexible and that permit the client to use nesses and creating local employment. (This funds freely. However, controls and finely program will have to be carefully monitored tuned, adequately staffed management infor- to ensure that it is sustainable.) AKRSP also mation systems are required to decrease the responded quickly in May 1988 to communal possibility of abuse, and to provide early warn- strife that resulted in damages to several vil- ing when expectations do not work out. lages. Loans were forgiven the following month for those most seriously affected, and Strategicfocuts. AKRSP's savings and credit op- new loans were issued to those less seriously erations have been dependent on the forma- hit. However, the less seriously affected vil- tion and functioning of village and women's lage organizations argue that they should also organizations. The organizations' energy and have received a repayment waiver. This dis- health appear to be major determinants of sav- 87 ings levels and credit use, and of the credit cessful only when repayment capacity is cou- portfolio's quality. At the same time, success- pled with incentives for good loan contracts. ful savings and credit operations reinforce the AKRSP has not yet experienced these problems strength and sustainability of the village insti- to a significant degree. However, it may be- tutions-a sound strategy. come more vulnerable over time if financial institutions-less closely linked with AKRSP A strategic element of AKRSP is the objective management and sufficiently prominent and of keeping money in the area for investment in independent to attract political attention-are local employment- and income-generating ac- established. tivities. The separation of savings from credit was an excellent policy, because it safeguarded A superior focus for AKRSP would be on cre- villagers' savings. In practice, the returns to ation of debt capacity, defined as the amount VO/WO members' savings have been not that an individual or entity can borrow on a only secure, but also quite high as a result of sustainable basis. This requires attention to the pooling of funds into high-yielding time risks facing borrower and lender. Attention to deposits in banks and the return from lending the ingredients of durable loan contracts leads subsidized AKRSP funds. However, use of to more responsive financial services, more AKRSP resources to fund loans has resulted in responsible financial behavior, and efforts to the movement of savings balances down- manage real (that is, nonfinancial) risks facing country by the banks or other institutions that borrowers, such as livestock mortality or dis- receive time deposits from VO/WOs. This has sension within a village or women's organiza- given rise to the proposal for a local financial tion. A revision in AKRSP's focus could pro- institution that can retain a higher proportion vide a more elevated view of clients, and a of its assets in the program area than can alter- clearer vision of the ingredients of sustainable native institutions already in place. It should of financial intermediation. In this regard, the be realized, however, that if the new institu- existing credit programs (and especially the tion were to install an aggressive savings mo- VO/WOCP) have produced much information bilization strategy through attractive savings in the form of savers' and borrowers' financial services and freely withdrawable deposits, flows, which has not been adequately utilized savings balances would probably increase by AKRSP. More focus of strategic attention on markedly to levels much higher than could be savings and credit patterns could be useful in prudently loaned in the project area. The inter- defining the role of the new bank that is likely mediary would have to move a substantial to take over AKRSP's savings and credit portion of its funds out of the area to earn a operations. satisfactory return. Subsidy dependence. Rural development pro- Another focus of AKRSP credit operations is to jects invariably include subsidized services. meet the "credit needs" of village and women's AKRSP's approach to credit is that subsidies organization members. In general, attention to can initiate certain activities that will eventu- credit needs has not provided sufficient vision ally be self-sustaining. However, it has con- to make donor-supported credit projects suc- sistently moved toward increasing cost recov- cessful in developing countries. The usual re- ery, toward higher rates of interest on credit, sult is declining performance, subsidy depen- and toward institutional evolution that is ex- dence, and lack of sustainability. Basically, pected to culminate in the establishment of a "needs" are infinite and expand as programs bank and enterprise support operation. An age or become politicized, while credit is suc- initial lending rate on short-term loans of 0 88 percent was raised to 8 percent when govern- Overall guidance and central records and sys- ment service charge policies were relaxed, tems are the responsibility of AKRSP core staff. and to 10 percent on VO/WOCP rollovers The program's credit and savings section is and 18 percent on MECP lending. Further in- further represented at the regional level and by creases would be required if subsidies were field accountants. In the communities, village reduced. accountants, who are usually local young peo- ple with ten years of schooling, are trained by AKRSP does not yet recover the costs of its AKRSP and are given a small incentive pay- credit operations. This can be demonstrated by ment to assist village and women's organiza- calculation of the subsidy dependence index, tion managers with record keeping. They typi- which indicates the lending rate required to cally cover more than their own village, but it enable a lender to achieve a return equal to the appears that about one-third of VO/WOs still opportunity cost of capital. Elimination of sub- lack village accountant assistance. Social orga- sidy would require an estimated increase in nizers monitor credit use, and the monitoring, AKRSP's service charge to 31 percent. If village evaluation, and research section has been ac- organization costs were added and allowances tive in credit impact studies. made for bad debts at the VO level, the rate would probably approach 40 percent. Although The initiation of the field management unit this rate appears to be very high to people from included field management accountants and developed countries who are used to thinking has the objective of making AKRSP's total in terms of annual rates, equivalent monthly services more responsive to local needs. One rates do not appear high to individuals from advantage of this has been to improve the ac- developing countries. Successful schemes are counting staff's mobility, which will enable operating in various countries with microentre- them to work more closely with village and preneurs paying up to 60 percent (or 4 percent women's organizations and with village ac- per month) for short-term credit in a low-infla- countants. However, accounting staff are still tion economy. Very poor women members of too few to implement accounting controls Grameen Bank in Bangladesh pay effective effectively. rates of more than 25 percent per annum on loans repayable in 52 weekly installments. The proposed bank and enterprise support operation AKRSP could have a credit operation without subsidy, but this would require significant The present formal financial infrastructure in changes in pricing that would greatly influ- AKRSP's service area has not exhibited the ence the behavior of savers and borrowers and level of dynamism needed to respond to de- result in major changes in credit lines and vol- velopment opportunities and encourage local ume. However, AKRSP has the advantage of entrepreneurship. One of the functions of grant equity that enables the proposed bank to banks is to move funds toward financial cen- cover some of its costs from investment ters where large-scale business opportunities income, cross-subsidizing service charges on exist; but in the Northern Areas this is reflect- loans to its clients. ed in extremely low loan-to-deposit ratios in the branches of commercial banks, usually Support, training, and oversight. AKRSP below 10 percent. Hence, while commercial provides support, training, and oversight of banks clearly provide a highly useful service the savings and credit activities conducted by to depositors, they invest few of these funds or through village and women's organizations. locally. 89 In the early 1990s, AKRSP began to explore the prises, social and physical infrastructure activ- scope for establishing a commercial bank or ities would be eligible for support. development finance institution that would be responsive to local market opportunities in the NRDB would have two divisions-one deal- Northern Areas. With the help of consultants, a ing with village and women's organizations number of options have been explored in sev- and another dealing with urban clients. Sub- eral comprehensive reviews and analyses. By branches would be established in each of the early 1995 AKRSP was close to a consensus on 14 subdivisions in AKRSP's service area, each establishing a retail commercial bank and an headed by a social organizer. AKRSP field ac- Enterprise Support Company that would pro- countants would likewise be part of the bank's mote and fund small businesses and social in- staff, and their number would be 28 so that frastructure projects and bear relatively high they could visit each village and women's or- risks. The most perplexing problem delaying ganization at least once every three months. realization of this objective has appeared to be requirements imposed by banking and cooper- The role of the enterprise support division or ative laws and regulations. However, it seemed company. The Enterprise Support Company in early 1995 that suitable arrangements could would promote new businesses through pro- be made with national banking authorities to vision of capital and critical business informa- exempt these special institutions from laws tion through training and guidance. ESC and regulations that are not appropriate to would have three divisions: one working with their operation. groups of entrepreneurs, providing services broadly to develop markets; another offering Theffunctions of the Northern Region Development management and marketing advice and train- Bank. Commercial banking functions of accept- ing to individuals; and a financing division to ing deposits, issuing and administering loans, provide funding through loans, partnerships, and making payments would be carried out leasing, and other vehicles that would help by a new institution: the Northern Region De- fledgling businesses facing risks greater than velopment Bank (NRDB). The bank's opera- those customarily suitable for commercial tions would be limited to the Northern Areas bank funding. and Chitral, and it would establish branches initially in Gilgit, Chitral, and Skardu. It Spin-off issues for NRDB. Issues highlighted by would be a for-profit institution that would the consultants include selection of manage- completely take over AKRSP's credit opera- ment with sufficient vision to manage these tions. NRDB would be funded by the transfer new organizations, rapidly moving AKRSP of donor funds committed to AKRSP (Rs. 230 savings and credit operations and appropriate- million), service charges earned by AKRSP ly qualified staff to NRDB, and a strategy that (Rs. 20 million), and Rs. 50 million in new would enable the new organizations to have money to be raised externally. The bank's appropriate legal form and capacity to operate mandate would be to provide credit through effectively. These issues are indeed important the village and women's organization system; and at the time of the evaluation mission's visit promote enterprise development at the village were receiving the considerable attention they level; improve credit appraisal procedures; require. Related concerns at that time focused eliminate subsidies in order to achieve sustain- on the governance structure that would link ability; reduce financial market distortions; the bank and the Enterprise Support Company. and be a stable and permanent source of fund- Several other strategic concerns need to be con- ing. In addition to funding commercial enter- side:red, as noted below. 90 NRDB's proposed financial structure is concessional rates of interest for investments unique, initially consisting entirely of grant that seem worthwhile socially and assumed funds. This provides a tremendous source of Rs. 50 million of grant funds would support subsidy, as no interest or dividends need be this. However, concessional rates should be paid, and a tremendous capacity to bear risk. treated with skepticism, especially in poor To ensure sustainability, lending rates are countries where the sources of subsidy are few gradually increased, so that the 19 percent ini- and uncertain in the long run. Outright grants tial rate for short-term commercial loans, for for part of the development costs of such in- example, rises after seven years to about 30.5 vestments, rather than concessional interest percent. The consultants' projections suggest rates, could assist transparency and not that NRDB would occupy a position of extra- impede the development of rational financial ordinary strength, with very high levels of markets. earnings, capital, and liquidity. A third means of taking advantage of NRDB's One way to take advantage of these favorable unique financial structure would be to mobi- ratios would be to engage in more and riskier lize deposits aggressively, which would in- lending. More lending could soak up liquidity crease costs and narrow margins. However, and earn a better interest return than invest- NRDB is so substantially funded that for ment in government bonds or on funds placed many years it will not have to be very depen- with other banks. Riskier lending could also dent on savings, and will not have a financial produce better interest yields if the bank were or commercial incentive to mobilize savings willing to charge differential rates that reflect aggressively. Indeed, the projections assume different levels of risk. However, this option that village and women's organizations would require careful management as it would continue to hold much of their funds would be successful only as long as increased in commercial banks and similar institutions operating expenses and bad debt losses did where they now have balances. There are a not consume the incremental revenue from number of reasons, however, why deposit lending. mobilization is a positive factor in developing banking institutions. Deposits give the com- It should be noted that the bad debt losses as- munity a stake in a bank. Institutions that are sumed by the consultants in the projects seem "lenders only" may be regarded as alien and far too low; they approximate commercial hence not highly valued; local values may banking norms in highly developed countries regard it as acceptable to default on a lender where legal recourse is a feasible option for that appears to have lots of money and that creditors, which it is not in small-scale lending offers a narrow range of services. Deposit in most developing countries. The projections flows or patterns are also a valuable source of deal with bad debt losses as a proportion of information about the local economy in gen- loan amounts falling due each year. A superior eral and individual depositors in particular. treatment would be to create a reserve, equal Consequently, NRDB might usefully cross- to the bad debt loss expectation, at the time a subsidize deposit services as a means of serv- loan is made. ing a wider clientele and encouraging thrift. A second possibility for the Northern Region NRDB's relationships with village and Development Bank would be to subsidize ser- women's organizations are not fully explored vices massively, reducing profits and hence the in the consultants' reports or strategy docu- bank's capital base. The consultants advocated ments. This is an extremely important issue 91 for several reasons. One is the amount of ef- Spin-off issuesfor the Enterprise Support Company. fort that AKRSP has devoted to building these The major issue arising from the ESC projec- organizations, which are really the centerpiece tions is its losses, which are expected to equal of the project. Another is the opportunities between 5 percent and 15 percent of funds at that are presented by the strength of the risk, depending on the type of borrower. These village and women's organization credit losses arise from risks created by innovative programs. Upgrading these programs into lending against borrowers' expected future intermediaries in their own right raises cer- cash flow and the general absence of meaning- tain legal issues, because village and women's ful collateral. Great analytical detail is required organizations have no legal form and are un- for cash flow lending because of the greater likely to obtain any soon because of political impact of risk on repayment capacity. Also, re- considerations and restrictions on the range of lationships with clients have to be deep and corporate forms permitted in Pakistan. How- broad to generate the flow of information that ever, they might be included in the organiza- creates confidence on the lender's part. The tional and governance structure of an NRDB Enterprise Support Company would have with decentralized village units. This could three sources of income: from large but infre- include committees for village credit, invest- quent enterprise infrastructure loans, from ment, and auditing, as well as sub-branch or "sub-bank loans" to clients, and from invest- agency management including accounting ment of its cash balances. ESC would earn an functions. operating loss in each of the 15 years covered by the consultants' projections. The company Linking local deposits to local lending could be would be supported by grants from the North- an excellent tool for maintaining credit disci- ern Region Development Bank's profits. pline, and village banks could be cheaper to run than a more centralized system. Local A 10 percent debt loss is built into the projec- lending need not be limited to the local deposit tions of enterprise infrastructure loans, and 15 base, but the link would be useful because it percent on other lending. The primary difficul- could ensure that the community shares part of ty with high loss expectations in development the risk of loss. However, the great variation lending is containment. As indicated earlier, that currently exists in the management capaci- recoveries tend to deteriorate, which can easily ty of village and women's organizations would nurtuare a default culture. Lending by ESC will mean that any implementation of this concept require a robust strategy and intense manage- would have to be done selectively and gradu- ment. One fundamental in packaging loans ally. More field accountants would be required would be to ensure that its borrowers stand to in any event. lose more than the Enterprise Support Compa- ny expects to lose in the case of default. This Certain types of lending, such as for urban ac- would deter some opportunistic applicants. It tivities where there is no village or women's cannot be claimed that AKRSP has found a organization, or for relatively large industrial solution to this problem with its own lending. purposes and for social infrastructure, might The Strategy Development Committee report- best be handled on a more centralized and pro- ed in September 1994 that delinquencies fessional basis beyond the VO/WOs. Where amounted to 11 percent of its active portfolio losses are expected to be great and the social and that their level was rising. benefits overwhelming, it could be unfair to expose village and women's organizations to From the perspective of containment, AKRSP these risks. should consider vesting in the Enterprise Sup- 92 port Company the social infrastructure loans larger borrowers, or borrowers for larger pro- that NRDB is expected to make. These are also jects, in the end do not. large loans that are expected to create losses of 10 percent of principal and interest. This redefi- Chapter 7 summarizes the issues to be address- nition of functions would help to erect some- ed to improve the environment for successfully thing of a wall between clients' expectations developing the new financial institutions. regarding the bank, which would operate on an entirely commercial basis, and ESC, which would suffer more setbacks in activities that Notes have a larger venture capital element. Howev- er, the Enterprise Support Company would be 1. The 1994 rural household numbers, estimated by AKRSP deln ihlre let,adtepolents from 1981 census data, can only be considered approximate. dealing with larger clients, and the poor clients 2. AKRSP requires a minimum participation of 70 percent of NRDB might begin to wonder why they are of village households when entering into a partnership with a supposed to repay in full and on time when village. 93 4. Women's participation in the Aga Khan Rural Support Program The social context Gilgit/Hunza are less restricted by behavioral norms than those in Baltistan and in many Women's participation in AKRSP-fostered ac- parts of Chitral. tivities in many ways parallels that of their male counterparts. They establish village- In recent years there has been a growth in sec- based organizations, engage in improvements tarian rivalry in many communities and a cor- in agriculture and livestock raising, save regu- responding growth in religious conservatism. larly, use credit, and develop entrepreneurial This has had direct repercussions on women's skills. However, the social context of the pro- behavior, which is often perceived as an indi- gram area has limited women's mobility and cation of a household's or community's reli- exposure to the world outside their village, giosity. Seclusion rules have been more strong- along with their access to markets, education, ly enforced in many areas. Generalizations are and many development activities. Consequent- difficult, however; for example, the recent re- ly, women's participation in the program mer- sponse of Sunni communities in Astore toward its separate review. AKRSP staff often apply wvomen's participation in the program has different implementation strategies to reach been very positive. AKRSP has had to be con- secluded women, and productive packages are stantly sensitive to variations in the local ori- tailor-made to meet women's needs and abili- entations toward women in its activities. Im- ties. This chapter focuses on these aspects. plementation of its strategy has proceeded vigorously, but with care. AKRSP, clearly an NGO leader in Pakistan, stresses the active involvement of rural Mus- lim women and fosters positive changes in Women's roles in the rural household their roles and status in both household and community. In this conservative social envi- Chapter 2 described women's role in the ronment, however, this is a difficult task. household and the program's impact on their status and welfare. Social rules and norms concerning female mo- bility and other behavior vary from region to * Women have traditionally had a heavy region, largely based on religious sect. In gener- workload, with farming, cooking, and child al, the degree of seclusion (parda or "curtain") is care being the dominant activities. In farm- greater among Sunni and Shia populations than ing, women are engaged in the more con- in the Ismaili community. As such, women of stant or frequent activities such as weeding 94 and care of livestock, while men have re- woman, and duration of the marriage. Table sponsibility for more intensive, short-term 4.1 contains some quantitative information on inputs such as plowing, shearing sheep, women's participation in household decision- and harvesting. making. The findings indicate that women have a major influence on children's education * With increased opportunities for off-farm and marriage decisions and on economic man- employment by males locally and outside agement (Bhatti and Tetlay 1994). Especially the area, women have often had to assume interesting is the high degree of women's influ- greater responsibilities and workloads ence on how the family budget is managed. In within the household. many cases, mature women are the "family bankers" who hold the keys to storage boxes in * The expanding interest in vegetables as a which the household cash is kept; husbands cash crop has particularly affected women's and children go through them to obtain money. workloads, as vegetable culture is tradition- Women's participation in the WO savings and ally the domain of women. credit activities also illustrates a degree of inde- pendence in economic affairs, although this * While the greater level of children's enroll- participation is not universally accepted. ment in school is viewed as a major benefit, this has meant that their labor contribution, The widespread wish of women to expand which has traditionally been especially im- their vegetable growing ventures, despite the portant in livestock herding, has decreased. additional workload involved, also shows that This has resulted in more animals being they recognize their own important role in the stall-fed, which increases women's respon- household economy. Women do have consid- sibilities in fodder collection for feeding erable freedom in managing the cash earned animals. from activities such as vegetable sales, but the money is seldom used for the direct benefit of This scenario does not mean that women are women themselves (Malik and Kalleder 1995). passive, disadvantaged members of the house- Rather, they usually choose to invest in means hold and have no say in decisionmaking. In- to assist their children or the household unit as deed, they are active in many decisions affect- a whole. ing the household. Women's roles vary greatly from household to household, largely depen- These generally positive readings, however, dent on husband-wife relations, age of the should not be allowed to mask the fact that TABLE 4.1: SUBJECTS IN WHICH WOMEN PARTICIPATED IN HOUSEHOLD DECISIONMAKING (percentage of male respondents answering positively) Gilgit Chitral Baltistan Education of girls 68 98.2 52.5 Education of boys 80 98.2 51.9 Marriage of daughters 61 97.7 41.9 Marriage of sons 62 98.6 43.1 Management of family budget 93 99.5 48.8 Freedom to utilize income eamed from vegetables 73 53.6 67.5 Soutrce: Bhatti and Tetlay 1994. 95 there is considerable variation in the status of politics. Whatever the cause, this phenomenon women across the various communities. needs to be investigated further so as to enable AKRSP to take initiatives to improve partici- pation rates within the communities that have Women's organizations women's organizations. Chapter 3 elaborated the key role that women's Even within women's organizations, as Chap- organizations play in AKRSP's strategy for ter 2 noted, there are some apparent inequities community development. Progress has been in members' receipt of particular benefits. A substantial. At end-1985, there were 108 limited number of individuals often assume women's organizations; at end-1989, 292 had leadership roles, undertake training, and capi- been formed; and at end-1994 there were 768 talize on anything offered through the pro- WOs with a membership of 26,089 women. gram. These "prime movers" are crucial to This reflects more than a doubling of member- the groups' success and sustainability, but ship since 1989. care must be taken to ensure that their active role is not at the expense of participation by Women's organization formation has not been the majority. evenly distributed throughout the regions, however. The program has been more inten- A recent development (since 1993) has been sive in Gilgit, which has had a longer period of the convening of women's organization con- exposure, but this is also a reflection of the dif- ferences at the regional level. Two meetings fering attitudes in communities toward Mus- have been held to date in each region, and this lim women's mobility and participation in larger forum has much potential for facilitat- group activities. As already mentioned, on the ing the exchange of information, promoting whole, Gilgit is more liberal than the other re- the discussion of common problems, and en- gions. However, lessons of experience learned hancing the identity of women and their WOs. by AKRSP have enabled good progress recent- ly in the Sunni communities in Astore. No productive physical infrastructure projects have been included to date in AKRSP's process The coverage of adult women through of forming women's organizations. However, women's organizations is much lower than recent funding from the Deutsche Geselleschaft village organizations' coverage of their male fur Technische Zusammenarbeit (GTZ) is to be counterparts. By end-1994 there were almost used to include physical infrastructure projects three times as many male beneficiary members for women's organizations in Astore. A study as female members in WOs. Considering the is now underway on the feasibility of PPIs in area's social context, this is not surprising. potable water systems, micro-hydels, vocation- However, the 1991 institutional maturity index al centers for women, and self-help school studies indicated that within communities that buildings. In these cases physical construction had a women's organization, there was often would be undertaken by the village organiza- relatively low participation in the WO-Gilgit tion members, but the women's organization 38 percent, Chitral 23 percent, and Baltistan 75 would assume ownership and responsibility percent. The evaluation mission ascertained for assuring maintenance and operation. Im- that it is often very poor households, which proved methods of participatory planning are frequently headed by females, that may be have also been used recently by AKRSP field excluded. This could be linked to an inability staff and village women (in Astore, with a sim- to meet savings requirements or to village ilar exercise in each district planned for 1995). 96 These methods provide new insights into accordingly. In 1988-89, emphasis shifted needs identification and indigenous planning from the promotion of labor-saving devices processes. (many of which were technologically unsound) to means by which women could Of particular concern is the low literacy rate of increase their productivity. In addition, rather adult women (approximately 4 percent). This than collective packages, which in earlier has implications for the degree of autonomy years had entailed the participation of many that a women's organization can achieve, as women's organization members (for example, group management and administration need collective orchards/vegetable plots) and ex- literacy skills. Some 61 percent of WOs in hibited the usual "free rider" problem, the Gilgit, 81 percent in Baltistan, and 28 percent approach shifted to a focus on activities for in Chitral (where many women managers are individual members. These trends are evident said to be "token" only) have male managers. in Annex Table 1.5, which details progressive However, this situation cannot be improved achievements within women's organizations. until more younger women who have had Annex Table 1.12 presents cumulative data to schooling are available. Younger literate 1994 on the adoption of AKRSP production women need not necessarily assume group packages for women. leadership positions, but their participation and administrative assistance will at least en- Appropriate techniology. Since the beginning of able greater autonomy within the women's women's involvement in AKRSP, efforts have groups. been made to introduce labor-saving technolo- gy into their busy lifestyles. These included The tendency for women's organizations to nut-cracking machines, butter churns, have between 30 and 35 members seems appro- improved stoves, and spinning wheels. priate. In the case of women, close geographic proximity is even more important than it is for Nut-cracking machines proved too cumber- men in village organizations. Not only does this some for effective use in the rural household, allow for closer social bonding and more fre- as did the spinning wheels, which also quent interaction than would be possible with produced a poor quality product of thin yarn. larger groups, but it also overcomes the restric- Technology engineers from the program's en- tions on women's movement that exist in gineering services department attempted to many communities. redesign the machines, but even the new ver- sions have not met with much acceptance. The packages also suffered in earlier years when Production packages their use was on a collective basis rather than by interested individuals. In general, it In introducing technology to women's organi- appears that training in operation of the new zations, AKRSP has used a generally applica- equipment was often insufficient, repairs de- ble package of relatively simple technologies, manded outside assistance, and monitoring and a graduated (semi-commercial) package and follow-up were lacking. that also involved management- and market- ing-skill development. Some hand-brush carders AKRSP obtained from England have been appreciated by a Through the years, AKRSP has learned from number of women's organization members, its experiences, listened to WO members' but they are in short supply. Wool carding ma- opinions, and altered many of its approaches chines that were introduced were cumbersome 97 for the women, and in some cases a village these needs; the testing of the technologies in male has taken over the machine and set up a different household environments; promotion business to which women bring their wool for of technologies only in circumstances in carding for a small fee. Similar takeovers by which they are particularly appropriate; and male villagers have also occurred with sulfur demonstration, training, follow-up, and mon- tents for drying apricots. itoring to avoid failures related to limited knowledge on the part of users. Some work has also been done with fuel-effi- cient stoves, especially in Chitral, with the The program's past reliance on its productive goal of not only instructing women in fuel infrastructure and engineering services section conservation but also alleviating the extremely to develop this type of technology may have smoke-filled atmosphere of the village home. contributed to earlier problems. In the future it Links were made with GTZ's fuel-efficient will be essential to involve all relevant sections cooking technologies project, which special- of A]KRSP in the identification, development, izes in this field and is based in Peshawar. testing, and promotion process-women's or- However, training was again insufficient and ganization/social organizers, enterprise devel- there was little follow-up. opment and natural resource management staff in the field management units, and engi- Despite this relatively unsuccessful record, neering services technicians. women's organization members have them- selves voiced their continuing interest in ap- Vegetable production packages. The successful propriate technology that fits their current introduction of vegetable growing and mar- lifestyles, saves time, and lessens their heavy keting by women has already been highlight- workloads. Specific types of machines most ed irn Chapter 2. The vegetable introduction frequently mentioned as needed include: card- package has been widely appreciated by ing machines or hand carders, spinning women, and the commercial vegetable pack- wheels, oil expellers, and juicers. Staff from ages have been introduced to 36 women's or- the program's enterprise development divi- ganizations. A vegetable seed production sion have identified skin/hide preservation package was also introduced to selected WOs technology and the development of simple in Gilgit and Baltistan; it has proved profitable agricultural tools for women-technologies and has potential for expansion if markets are that would not only facilitate women's work- adequately developed (Tajammal 1993). loads but also increase their productivity. On the negative side, marketing of produce is The potential to improve the situation of presenting problems for women in many women through improved techniques, tools, areas (Khan 1991). Also, implementation by and machines obviously remains. A review of AKRSP staff has frequently been rather me- how the earlier, less-successful interventions chanical in nature, and timely follow-up by were selected and promoted would be useful AKRSP staff has not always been present. The and would likely confirm that insufficient marketing issue needs major consideration attention was given to local knowledge and before women's organizations contemplate the constraints faced by women. Future pro- undertaking commercial vegetable packages. grams should entail identification of needs as expressed by women in their various types of Training of women has been an important ad- household environments; acquisition or de- junct to the vegetable packages. By end-1994 a velopment of technologies that should meet total of 1,436 female village specialists in veg- 98 etables had been trained by AKRSP staff in ceived, with nearly 80 percent of all WOs sowing, plant spacing, use of fertilizer, and adopting it by 1994, as reported in Chapter 3. disease identification/control throughout the One or two female poultry specialists have regions of Gilgit (570), Chitral (488), and been trained in each participating women's Baltistan (378) (Annex Table 1.12). This has group, and by 1994 a total of 1,446 poultry been very well received by women's groups. specialists existed (Gilgit 752, Chitral 430, and Collective vegetable demonstration plots did Baltistan 264). In 1993 nine poultry specialists not prove very successful, however, because participated in a master trainer course in many women had no time to devote to this Gilgit, while 13 took a similar course in group activity, and by 1994 they had decreased Baltistan. Other training activities included a substantially in number (Annex Table 1.5). livestock management course for couples (husbands and wives) in Gilgit. Selected Village vegetable specialists instruct other women specialists and master trainers are members of their women's organization. Bene- also active in establishing chicken brooding ficiaries' impressions were mixed of the train- centers to meet local demand; others in Gilgit ing they received from specialists through the are involved in breeding to supply eggs to vegetable introduction packages, although the the AKRSP hatcheries. majority found the instruction to be of value. According to an impact study of vegetable in- By end-1994, 36 interested and capable women troduction packages that was carried out in 42 poultry specialists were participating in the WOs throughout the program area, 70 percent semi-commercial poultry package. However, of the women found the training useful, while as indicated earlier, results have not been uni- 30 percent did not (Hussain 1993). Those who formly successful. Technical support needs to did not thought that the specialist was incom- be improved, and much depends on the avail- petent or that they themselves lacked interest ability of a market. Market potential will limit in learning new techniques. In 1993 a course the extent to which this package can be legiti- for master trainers in the vegetable package mately encouraged among interested women. was introduced with 11 participants, and se- Training in entrepreneurship (for example, lected women traveled down-country to ob- bookkeeping, management, and marketing) is serve commercial vegetable farms. also necessary. Apart from vegetable production, home-based Forestry packages. In 1993 forestry packages fruit orchards/nurseries have also been promot- for nurseries were introduced to women's ed in WOs. Training has been given to selected organizations, following the addition of the individuals, and courses in fruit processing first woman forester to the staff in 1992. Tra- have also been administered. These undertak- ditionally, women have not been extensively ings have not been as successful as the vegetable involved in this area, but as more men partic- package, however. In the case of fruit process- ipate in off-farm labor, women's roles in ing, quality control was lacking along with the forestry are expanding. Concerning firewood presence of suitable markets for the resulting collection, however, women's input has been jams and squashes. Women relate that they do and continues to be considerable (Clark prepare these for home consumption, however. 1995). Poultry packages. While earlier collective pack- Women have been heavily involved in the ages proved unsuccessful, the home-based NORAD-funded Women and Greenery Pro- poultry package 1 (HBP1) has been well re- gram for the development of private fruit and 99 forestry nurseries, and some 46 forestry spe- Annex Table 1.4 also shows similar regional cialists have been trained, including 24 master differences in the number of households tak- trainers (Table 4.2). Although nurseries have ing advantage of the Women's Organization been established in all regions, women have Credit Program, with the vast majority of had problems marketing the seedlings; also women credit users residing in Gilgit. The coordination between male and female staff in same regional differentiation applies to short- AKRSP's forestry section has often been inade- term and medium-term credit. quate. Due to the dispersed nature of the nurs- eries, monitoring and follow-up have also Regardless of amount, it is clear that WO mem- proved difficult (Clark 1995, Nyborg and bers take their AKRSP-related savings/credit Hamidullah 1995). undertakings seriously; there are very few other options available to them for such finan- As part of the forestry program, bookkeeping cial services. Many women usually know ap- and sericulture have also been initiated with proximately the amount they have saved, bor- women's organizations, but to date these have rowed, and repaid to date, regardless of literacy not been more than pilot activities. skills. Amounts saved vary greatly within women's organizations, however. Women sell surplus vegetables, eggs, fruits, nuts, and so on, Savings and credit to other villagers or to shopkeepers and save the cash obtained, which often is seen as an im- in general, women's organization financial portant source of security for the woman and activities are on a smaller scale than those of her household. village organizations. The average savings per village organization member is Rs. 2,386 com- Women's organization members use credit pared with an average of Rs. 1,264 per WO for a variety of reasons, with the loan often group member. In addition, big differences being used not by the woman herself but by exist between regions in the amount of savings husbands/sons or for household-related activ- per women's group, with the relative amounts ities. Indeed, it is often "the men" who decide being in the order of 9:4:1 for Gilgit, Chitral, how to use the loan, although this varies from and Baltistan respectively (Annex Table 1.4). household to household, and it is sometimes a These differences not only reflect the length of joint decision. There is also a belief among time the WOs have been involved in savings, some villagers-especially in Baltistan and but also differing levels of involvement in the Chitral-that to borrow money is "bad," and cash economy and opportunities for income this inhibits many females from seeking loans; generation, with Gilgit providing the most op- there is also fear of the "high service charge." portunities by far. These beliefs are changing, however. Some TABLE 4.2: WOMEN'S PROGRESS IN FORESTRY DEVELOPMENT, 1994 (number) Gilgit Chitral Baltistan Nurseries 45 22 43 Woodlots 400 198 93 Master trainers 6 8 10 Source: AKRSP 1994b. 100 common uses of women's organization loans, try. Unfortunately, too many women sell "by as indicated by field interviews, have been for: chance" and have no definite market for their produce, whether it be vegetables, eggs, hats, or * house construction/repair, boundary wall stockings. The enterprise development division construction; is presently stressing the formation of "family enterprises," which involve the participation of * fertilizer, seeds, and livestock purchase; husband, wife, and children. New undertak- ings being considered are apricot oil extraction, * home-based shop, sewing machine, wool wool improvement/home-based knitting in- purchase, and poultry purchase; and dustries, family enterprise nurseries, improved breeding and raising of sheep and cows at the * children's education (local or in Karachi), household level, butter production and packag- marriages of children, religious journey of ing, and cherry production and marketing. women to shrines in Iran, and jewelry (in- These enterprises are likely to increase vestment). women's involvement in earning cash income for the household and in credit activities. Loan repayment occurs yearly, and is often accomplished by a woman selling patti (woven woolen cloth) to a nearby shopkeeper for the AKRSP female staff and integration necessary cash. Table 4.3 summarizes the numbers and types The general problem of illiteracy among of female staff employed by AKRSP. Numbers women affects savings and credit as well as have been increasing yearly at the lower lev- overall WO administration. The number of els, and in 1994 females comprised approxi- literate women is growing year by year, how- mately 10 percent of the organization's 441 ever, and by 1994 there were even five female staff members. Senior professionals include village accountants in Gilgit and three in Chi- agriculturists, veterinarians, foresters, and tral. This is indeed an achievement, but falls WID monitors, while junior professionals are far short of requirements (Annex Table 1.13). social organizers and support staff are field coordinators. Experienced women staff mem- Women entrepreneurs who avail themselves bers have also been promoted to positions of of significant credit are few and far between. authority in recent years-one female now Most are located in Gilgit (where more mar- manages a field management unit and another kets and a tourist trade exist), with fewer fe- serves as director of the enterprise develop- male entrepreneurs found in Baltistan and ment division. even less in Chitral. This holds special implica- tions for women's participation in future di- Women professionals have benefited from rections of AKRSP and demands attention to AKRSP's Accelerated Professional Develop- the development of entrepreneurial skills ment Program, which sends promising local among promising women. female staff and trainees down-country and abroad for advanced study. Presently there are Many WO members are eager for additional 12 women studying such subjects as agricul- opportunities to make money, however, and ture, forestry, and business administration, even in distant villages of Baltistan enterprising some of whom are about to complete their women find ways to sell their produce to local courses of study. In 1995 eight additional city shopkeepers who sell to others down-coun- women from Baltistan and Chitral were sched- 101 TABLE 4.3: AKRSP FEMALE STAFF, 1989-94 (number) Level FY89 FY90 FY91 FY92 FY93 FY94 Management 1 2 2 1 1 1 Senior professional 1 4 6 5 6 6 Junior professional 2 11 10 11 13 17 Support staff 12 12 16 15 21 20 Total 16 29 34 32 41 44 Soturce: AKRSP personnel records 1995. uled to obtain scholarships. This program is then lie with all sections of AKRSP and all staff helping to alleviate the great need for female members, both male and female. professionals in the Northern Areas and Chi- tral and holds great potential for the future. In general, the integration process is a healthy one, and the evaluation team supports it. Since its inception, AKRSP has been intent on However, it is not without problems, and encouraging more participation by females- AKRSP must proceed carefully. The integra- in both AKRSP itself and in village communi- tion of WID activities and staff within the or- ties. Over the years it has experimented with ganization has occurred in conjunction with different ways to achieve this sometimes diffi- other structural changes in the process of cult goal. AKRSP decentralization. This has complicated matters and sometimes has led to confusion As the number of women's organizations among staff members about their roles and grew over the years, a special women-in-de- lines of authority within sections. Budgets for velopment section was established in 1985, professional staff who were previously in the which included all female staff regardless of WID section were not integrated into their re- their profession or level. As program needs spective professional sections until recently, grew, female technical specialists were hired, which created confusion about the funding of many from other regions of Pakistan. Howev- WO-related activities. Decentralization has er, it was felt that this led to the development mearnt more efficiency in vehicle use, but in of a parallel program that marginalized conservative rural areas, sometimes it is diffi- women's undertakings in both office and cult for men and women staff members to field. A slow process of integration has thus travel together in the field. In addition, staff occurred, beginning with the technical staff at morale has been low due to uncertainties end-1992. The women-in-development section about their positions in the future and, in this was abolished in 1994, with all female staff insecure context of change, gender-related being placed in their respective professional problems among staff have often been sections. A women-in-development program intensified. manager is based in the core office, with a WID monitor appointed in each region as part In con junction with the integration process, of the monitoring, evaluation, and research AKRSP recently initiated gender awareness staff. With the merging of staff, it was antici- workshops for its staff in all three regions pated that the responsibility for successfully (Malik and Ahmad 1994). Meetings were integrating women into the program would arranged by the WID/MER sections of the 102 core office. Although senior management Women's organization links strongly support women's participation with- with other agencies in the organization and in the field, some other staff members are often more reluctant to ac- Chapter 3 described village and women's orga- tively foster the process. Regional variations nization links with agencies other than AKRSP. are even reflected within the organization, Most of these linkages to date have been in the with Gilgit's more liberal attitude contrasting social service sectors of health, family planning, with those of the more conservative Chitral education, and nutrition. This has meant that and Baltistan. Discussions in these meetings women's organizations and women in VO com- were frank, and generally they were positively munities without women's organizations have received by the participants. These gender been able to actively participate in not only ex- awareness workshops should be continued. It pressing needs but also in actual execution of is recommended that outside consultants as- the programs sponsored by these agencies. sist in future meetings, which should mix dif- ferent sections, along with both men and It is important that the links have not only women, as participants. been with the NGO sector and international groups-UNICEF, Food and Agriculture Orga- There are also many general constraints in this nization, Family Planning Association of Pak- integration process, which originate from the istan, AKRSP, and Aga Khan Educational Ser- society itself. The social context of the program vice-but also with government line agencies area is one of gender segregation in the public through the Social Action Program. In general, sphere. Hence it is necessary for AKRSP to fos- these cooperative undertakings have yielded ter and support separate village and women's positive results, but there is still much room organizations, as integration at the public level for improvement in coordination of planning in the village is usually impossible. This com- and implementation, especially with the gov- plex situation demands sensitive coordination ernment agencies. between AKRSP male and female staff in their programming efforts, with the realization that segregated implementation is necessary. To Social change and the complicate things further, at the village house- empowerment of women hold level, an integrated system is at work, with husband and wife coordinating their ef- Through AKRSP's continuing efforts, the status forts to survive. of women in the Northern Areas and Chitral is undergoing change, both within AKRSP itself In conclusion, the gender-related integration and within the village WO membership. Tradi- efforts of AKRSP must be commended, and they tional gender boundaries are being altered, al- should be continued in the future. As the orga- though the process is slow and progress is con- nization assumes a new structure, many of the siderably uneven. problems associated with the integration will probably lessen. The overriding social context In recent years WO members have had the op- must be kept in mind, however, and in its "affir- portunity to participate in production pack- mative action" stance AKRSP must not attempt ages, receive training, save, and access credit. to go too far too soon. Management must also These options have had a direct impact on be clearly aware of staff sentiments, and their household economies and have increased attempts must be made to deal with any misun- their status within their households and com- derstandings and solve problems promptly munities (Kalleder 1994b, Malik and Kalleder 103 1995). There has been a definite increase in affecting themselves and their families, and their self-confidence, with a clear link between many seek additional means by which they commercial activities and empowerment. themselves can improve their own lifestyles, along with those of their households and com- Women in Gilgit, Chitral, and Baltistan contin- munities. AKRSP must continue to foster this ue to adjust their daily activities to accommo- change process and provide additional options date the many social and economic changes for women of the Northern Areas and Chitral. 104 5. The Aga Khan Rural Support Program as an organization Staffing issues AKRSP management in developing a future strategy were not very successful. Many con- Educated and qualified people from down- sidered that, in view of the acclaimed success country do not generally consider the North- of the program to date, the existing approach ern Areas and Chitral favorable areas in which to development was appropriate and should to work. A major achievement of the program be continued. This led to the board's appoint- has been its ability to attract and retain suffi- ment in May 1992 of a Strategic Development cient qualified and dedicated staff to maintain Committee "to make recommendations on the momentum of development over a 12-year how AKRSP should be structured to establish period, albeit not at a completely even pace. permanent and self-sustaining successor This achievement has been largely due to institutions for the long-term development of strong leadership, a clear purpose with which the NA [Northern Areas] and C [Chitral]." Al- staff can identify, maximization of local though AKRSP participated in the exercise, recruitment, tangible results in area develop- commitment and contribution were less than ment, effective communication within the or- complete. As a result, the first phase of the SDC ganization, and attractive salaries, especially exercise was commonly perceived by staff as for those who performed well in the organiza- an external imposition. This position was held tion. However, over the last few years a num- even by those who considered the program to ber of disturbing influences have negatively be in need of some revision. Various other fac- affected morale. This, in turn, must have af- tors interfered with staff contentment, but it is fected, and must be affecting, staff perfor- likely that most of these assumed elevated mance and output. importance because of the unstable working environment. One of the main factors contributing to the de- cline in morale has been uncertainty in the In July 1994, the board reappointed the Strate- minds of staff regarding the program's future gy Development Committee "to recommend strategy and direction and its likely impact on implementable actions" within the same basic staffing. In the early 1990s some observers, in- framework. In this second phase, AKRSP cluding the Aga Khan Foundation (Geneva), management and staff were more completely thought the program needed to be reviewed to involved in the process. This improved the identify an appropriate future direction that situation and many staff now appear to identi- built on the significant accomplishments fy with the emerging strategy. However, the already achieved. Initial attempts to involve strategy will involve staff reductions or, at 105 least, replacements. This prospect and the of the region's recent morale and staff-manage- realism of a voluntary separation package in ment problems. Currently, AKRSP is address- early 1995 have inhibited the restoration of the ing this issue through its sponsored training desirable, stable working environment that program. It also has an affirmative action pro- had traditionally characterized AKRSP. grarn for the recruitment of women, but it has to be expected that recruitment of nonlocal In the current, final phase of the SDC process, wornen professionals will have to continue for program management and staff have been some time. even more intimately involved. This should further enhance staff's identification with the strategy. Recent introduction of reforms in per- Integration and decentralization sonnel management policies and procedures- which provide complete transparency in the At the end of 1992, the WID program's techni- area of recruitment, job classification and grad- cal staff were incorporated into the mainstream ing, and promotion-are also positive develop- technical sections of agriculture, livestock, and ments. However, to capitalize on the inherent forestry. This was done to avoid marginaliza- potential of staff working in the program, the tion of the technical program in women's orga- introduction of changes that will occur as the nizations. Subsequently, the program's future strategy emerges and is implemented mainstream technical sections were amalga- will have to handled very skillfully. A critical mated into a natural resource management element will be the effectiveness of communi- section to give greater emphasis to the techni- cation in the immediate period of reorganiza- cal aspects of sustainable agricultural develop- tion and consolidation. Effective two-way merit. In 1994, social organizers from the communication and interaction between man- wornen's organizations joined the VO social agement and all levels of staff will be essential. organizers division to complete the WID pro- grarn's integration. Each of these organization- The AKRSP policy of maximizing the recruit- al changes had merit. However, as pointed out ment of local people to fill the staff complement in earlier sections of this report, integration on in each district has obviously been beneficial. its own will not be sufficient to address some The scarcity of candidates with required skills, of the deficiencies in the natural resource man- however, has created difficulties in implement- agement program. Similarly, the impact on ing the policy, especially in filling management women's organizations and women in house- positions and in recruiting women for both holds of moving WID staff into the mainstream management and operational posts. This has sections will have to be carefully monitored to meant that many of the management positions ensure that it has the intended outcome. in each region have had to be filled by persons from other areas in the north or from down- An organizational innovation in the transition country, and that nearly all of the limited num- leading to the program's next phase has been ber of women in management positions are decentralization. The intention is to minimize from down-country. However, while accepting the core staff at Gilgit by transferring staff to the need to follow this course, there could have the three regional offices (Gilgit, Chitral, and been more emphasis on developing locally re- Baltistan) and building up the self-sufficiency cruited staff for management positions through of these regional offices. Further, within each further training. This is particularly noticeable region the concept is to allocate most staff to for Baltistan, where attention to this matter in field management units in which all women's the late 1980s would likely have avoided some and village organization service divisions 106 would be represented. The scheme was initiat- team, while lauding the section's monitoring ed in Gilgit in January 1995 and in Baltistan in and reporting activities, was concerned that March 1995; the regional office in Chitral is insufficient attention was given to evaluating progressing more slowly and was still at the the performance of the various AKRSP pro- planning stage at the time of this evaluation. grams and their overall impact on household Again, these changes have organizational and village welfare. Emphasis was given to merit, but will require that: measuring the input side of programs rather than the output. Similarly, any cost-benefit * cognizance is taken of the difficulties in re- analysis was very narrow and did not provide taining highly skilled technical staff in more a basis for sound decisionmaking, which difficult living conditions (especially in the would require an understanding of an inter- case of Chitral, which suffers from a greater vention's impact on the total enterprise, degree of isolation than the other regional household, or village economy. Since 1989, a offices); and number of significant measures have been taken to address these issues. * in the case of the field management units, communication lines are clearly defined and In 1992, MER implemented extensive baseline designed to ensure that each staff member studies and household income and expendi- feels he/she is not only part of the local ture surveys. A number of household case unit, but also integrated into the AKRSP studies have also provided useful information program that concerns his/her special area on household resource use and interactions. of interest. While activity coordination and The institutional maturity index surveys pro- programming would be a local responsibili- vided a quantitative indicator of relative ty, the formulation of policies, recommenda- progress in the development of village institu- tions, and packages in the technical areas tions and led to further investigations by MER should be a function of the respective pro- on the reasons for some important variations. gram heads; the latter should, of course, be The core and the regional monitoring, evalua- heavily influenced by comprehensive feed- tion, and research units, often with the assis- back from field management staff. tance of interns, have undertaken a large number of qualitative evaluations of programs These considerations could require some mod- or aspects of programs. However, the initial ifications to the decentralization initiative. quantitative work now needs to be followed This will require open dialogue among staff with evaluation studies and robust analysis to and with management, and a responsive atti- progressively evaluate impact. While many of tude on the part of management to local cir- the qualitative studies are thorough and use- cumstances and practical constraints. ful, others do not add much to an understand- ing of how programs affect the target groups. Monitoring, evaluation, and research The household income and expenditure sur- vey work was to recommence in 1995 using a AKRSP continues to be a well-documented simpler format. To ensure that budgetary or program. The monitoring, evaluation, and re- staffing constraints do not inhibit implementa- search section has been able to respond to tion of this plan, it seems appropriate that one most of the numerous requests for data from region be done each year, so that each region is the program's owners, donors, board, and ex- covered every three or four years. Due to the ternal interested parties. The 1989 OED review scarcity of reliable basic information, the sur- 107 veys will apparently concentrate on expenses field management units and program and income associated with agricultural activi- managers) is appropriate. However, MER ties. While this may be inevitable for the com- should participate in training these field staff prehensive survey, it will not capture many of and their managers not only in the mechanics the potential changes in the household system of eff-ective monitoring, but also in how the that likely impact on resource use in agricul- collated information has to feed into program ture. In most cases, agriculture remains the decisionmaking. This will be necessary to en- most important source of household income, sure that those responsible will see the benefits and AKRSP has provided considerable assis- of efficient monitoring and, therefore, allocate tance to the sector in infrastructure and ser- the required resources to it. MER will also vices. But household off-farm income and the have an important role in bringing together dynamics of significant change in nonagricul- and analyzing monitoring data; in this way it tural commercial activities in parts of the area can ensure that important issues such as equi- are very important influences. This suggests ty receive adequate attention in the monitor- that more detailed and comprehensive house- ing process and provide an overall analysis for hold studies should be undertaken on a much use by AKRSP core and regional management smaller scale, and be structured to comple- teams. It can play a more significant role in the ment the wider survey work and contribute to "lesson learning" aspects of evaluation. the interpretation of the latter. The monitoring, evaluation, and research sec- Neither restricted nor complete household in- tion will, of course, maintain responsibility for come and expenditure data would provide the quarterly and annual reports. However, in basis for quantifying the economic return to view of AKRSP's increasing support as facili- the AKRSP investment. In this type of devel- tator rather than implementer, it would be de- opment where a number of agencies are in- sirable to expand this system to include in volved and where public infrastructure and a annual reporting any significant investments series of other exogenous factors influence and activities from non-AKRSP sources. outcome, it is extremely difficult to link specif- ic cause with a particular effect; the "with pro- MER already works with the human resource gram" outcome is not easily compared with development unit in training staff, and with the "without program" outcome. Neverthe- the technical sections through its joint evalua- less, the quantitative data should indicate the tion of particular activities. In both these func- degree to which the program achieved its ulti- tions, however, it can play an even greater role mate objective of improving rural family wel- in improving the standard of evaluation. As fare, show how equitably development previously indicated, many of the evaluations benefits are being distributed, and provide in- have been rather weak and not very useful. To formation that could lead to program adjust- enhance their usefulness, a number of criteria ments for the benefit of the majority. This is should be met before they are approved: (a) consistent with AKRSP's increasing role as a clearly defined objectives; (b) justification for facilitator and catalyst in development, build- the exercise and its priority over other activi- ing on the village and women's institutions it ties competing for resources; (c) detailed de- has fostered. sign, including resource costs and how data will be analyzed; and (d) how results will be The current policy of moving the responsibili- disseminated to potential end-users of the in- ty for monitoring specific programs to the formation. These requirements should apply units that implement them (ultimately the equally to studies/evaluations initiated by 108 MER, to collaborative studies, and to studies benefits in the household system. Ad hoc done by other AKRSP sections. household case studies and the comprehen- sive 1992 household income surveys, which Annual planning of the evaluation program can contribute to an improved understanding based on legitimate, objective criteria should of household economics, appear to have had also help avoid, or at least reduce, two unto- very little dissemination and use. MER can ward phenomena that have become common- provide a valuable service by introducing an place. The first is MER's undertaking studies awareness in other AKRSP sections of the in response to ad hoc requests by outside enti- need to consider their household clients as ties on topics that would not otherwise have dynamic enterprises in which any one inter- any priority. Obviously, circumstances can vention is likely to have implications for other change and an annual program must have the components in the system. Should future in- flexibility to respond to such changes, but a vestment in some infrastructure projects entail firm and justified program would provide a the VOs accepting development loans, it will basis for refusing requests that do not repre- be essential to have accurate cost-benefit and sent a legitimate use of resources. The study cash-flow analysis to clearly indicate the plan would also provide a basis for the selec- obligations of the VOs and their members; tion and use of summer interns. Interns would this will be required to confirm the project's fit the program, rather than vice versa, and financial feasibility. This type of analysis has their adequate supervision and guidance not been done in the past under the physical could be properly organized, with better re- infrastructure grant arrangements. sults for AKRSP and for interns. The problem of matching decentralization ob- MER has had an important role in developing jectives with the ability to retain suitably qual- links with other agencies. This role is likely to ified staff is likely to be more acute in MER expand. This report has already emphasized than in some other parts of the program. This the inherent difficulties in working with gov- unit has had high rates of staff turnover, with ernment departments that are not accustomed most staff coming from down-country because to the participatory approach the program of the scarcity of qualified locals, especially in uses with the village institutions. MER can as- Baltistan and Chitral. While initiatives to sup- sist by participating in training of AKRSP staff port locals in the required training should at core, regional, and field management levels have long-term benefits, this will do little to in the principles and practice of effective coop- address the immediate problem. It would not eration with outside entities. It should also be appear feasible to have highly qualified moni- usefully involved in courses for external toring, evaluation, and research staff located at agency staff to educate them in how to interact the field management level. While MER repre- effectively with village institutions; this has sentation at the regional level should be possi- already begun. ble, it will be essential to ensure that links with the core MER section are properly developed Cost-benefit analysis still is not a strong as- so that there is no chance of intellectual isola- pect of AKRSP's programming or evaluation tion. Similarly, the monitoring, evaluation, and activities. Partial budgeting of practices has research section should establish links and net- often been used, but there has been little at- work with other evaluation institutes down- tempt to examine the full implications of rec- country or outside Pakistan to provide the ommended and assisted interventions on intellectual stimulation and challenge required resource use, final benefits, and distribution of to keep up-to-date with this profession. 109 Management, the board, and donors dar year. It appears that some staff have given these missions more authority with respect to The program's new management has already program operations than should be legitimate- demonstrated a capacity to address manage- ly given to such a monitoring exercise. The ment, personnel, and operational issues and to most recent mission emphasized that it did not interact effectively with the board. To ensure have an authoritative or management role and efficient use of program resources to benefit insisted that its function was to report on communities in the north, it is therefore logical progress and interact with management in an that management be given responsibility to assistance role. This is an appropriate function exercise its role within the policies agreed by for the joint monitoring mission. After the new the board, and be held accountable for imple- direction of AKRSP is translated into opera- menting these policies; that is, management tions, it may be desirable for such missions to should be allowed to manage. take place at two-year intervals, provided AKRSP maintains a comprehensive and ade- The board of AKRSP, which is appointed by quate reporting system. The board should the company's owners (largely members of the strongly encourage donors to minimize sepa- Aga Khan Foundation network), has the nor- rate reporting requests, as they require AKRSP mal functions of a company board in deciding resources that could otherwise be used for di- policies and responding to issues raised by rectly productive monitoring and evaluation management for consideration and resolution. work. The board and management should also The Aga Khan Foundation (Pakistan), repre- take care in dealing with specific donor-fund- senting the Aga Khan Foundation network as ed programs to ensure that there is not only a majority shareholders, makes legitimate, pre- rational balance in the area's development ini- scribed reporting demands on AKRSP man- tiatives, but also that the resources and facili- agement. For the program to provide the ties given to staff associated with a particular maximum benefit to communities in the pro- program are not markedly different to those gram area, the functions of each part should allocated to other programs. The distribution be completely transparent and should follow of vehicles under the NORAD forestry project to the accepted norms of governance. caused some concerns in the latter aspect. Bilateral donors, who now provide most of the Transparency becomes even more important funds for AKRSP investments and operations in view of two current developments. The (Annex Table 1.14), obviously have the right to first is the use of links with governmental and negotiate with the board (and, through it, with other nongovernmental agencies to leverage management) on how their funds are to be the value of VOs as institutions, and of used. They also have the right to be satisfied AKRSP as a support organization, to capture that their funds are being used as agreed. and efficiently use additional development Donors in earlier years mounted separate resources in the north. The second is the cre- "monitoring" missions to determine how ation of new banking and investment institu- funds were being used. These separate mis- tions in the form of the proposed Northern sions proved costly in terms of manpower, not Region Development Bank and Enterprise only for the donor community as a group, but Support Company, which would have the also for AKRSP because of the demands power to control and direct considerable fi- placed on staff in servicing visiting missions. nancial resources in the program area. To Since 1991, donors have mounted joint moni- maximize the potential benefits from linkage toring missions toward the end of each calen- arrangements, it will be essential that AKRSP 110 continues to be scrupulously nonsectarian Operating costs currently make up about half and unbiased toward any particular group in of spending. These have increased from 27 its coverage and resource allocation. In the percent of total spending in 1984-87 to 53 per- case of the new institutions concerned with cent in 1991-94. A major factor in this change the mobilization and use of funds, it will be has been the relative decline in spending on even more necessary to not only have policies infrastructure projects, from 36 percent in the and procedures that dispel any suspicion of earlier period to 17 percent in the latter. This bias, but also to ensure that they are perceived has been associated with the decline in the as such; the unqualified support of govern- number of new villages entering the program ment, donors, and the public will demand as it attains a higher coverage in each district. this. Transparency in the composition of the respective boards and in their policies, and The most outstanding factor in Annex Table the intended heavy representation of compe- 1.14 (on the sources of program income) is the tent persons from the Northern Areas, should decline in the proportion of program funds pro- go a long way toward creating the appropri- vided by the Aga Khan Foundation network. ate environment for support. This has declined from 65 percent in the pro- gram's first year to 30 percent in the early 1984-87 period and to 7 percent in 1991-94. The Expenditure and funding listed donors have provided the funds to enable program expansion, while the foundation net- AKRSP's annual expenditures are presented in work's contribution has fluctuated between Rs. Annex Table 1.15. The program's substantial 7.0 million and Rs. 15.0 million in current terms. nature is indicated by the total expenditure of AKRSP's ability to attract external support in more than one billion rupees ($47.4 million) this manner is commendable. since start-up. The evaluation mission did not look at future The expenditure categories are not completely funding requirements or prospects. This is al- transparent. The salaries category includes con- ready a major area of consideration by AKRSP, sultants; research, survey, and demonstration in- the foundation, and donors and is linked to cludes the major forestry investments; and how the future strategy will evolve in the com- credit treats loans disbursements as an expendi- ing months. As already noted, however, the ture. The massive increase in salaries in 1994 is evaluation believes there is still a place for reportedly largely due to regularization of pro- some grant funding through AKRSP for addi- gram personnel (especially at the junior profes- tional infrastructure development, to comple- sional level and below) who had been on the ment VO and public sector investment. administration budget, and to additional staff recruitment. Regularization and minimal recruitment led to a 25 percent "increase" in Nongovernmental organizations staff numbers in 1994 (Annex Table 1.16). Also, the pay scales of middle-level professionals AKRSP is a nongovernmental organization. were raised to be comparable to those of coun- Consequently, it could be affected by the gen- terparts in other Pakistani nongovemmental eral attitude toward NGOs held by major ac- organizations. As reported earlier, staff reduc- tors in its working environment. This includes tions were being imposed at the time of this the government, which must carry the greatest study, and further adjustments are likely as the portion of the costs of "common good" devel- new program strategy evolves. opment investment in the north. - ~~~~~~~~~~~~~~~~~~111 There are an estimated 13,000 nongovernmen- retain these funds, which are used as an tal organizations in Pakistan, 40 percent of endowment to support operational costs. This which have been founded in the last five issue has apparently now been resolved and years. However, most of them are small, with the support program continues to operate. limited resources, are welfare-oriented, and are concentrated in urban areas. Those Currently, the government is considering uni- involved directly in economic development form legislation and regulations for nongovern- activities are rare; they usually are concerned mental organizations, which are at present with poverty alleviation and almost universal- subject to a number of different provincial and ly use some form of participatory interaction state requirements. Most of the proposals with the target group. AKRSP falls into the should have little effect on organizations of the latter category. scale of AKRSP. Probable requirements relating to annual reports and audits are already met In the last decade, the NGO movement in Pak- through the company structure. Nevertheless, istan has received increasing recognition as a there is the possibility that the government potential development partner with the gov- could insist on the right to intervene in the ap- ernment. This improved recognition, however, pointment of board members; this would be of is not universal, and some distrust persists, as concern to all nongovernmental organizations. does concern about reduced control of devel- Should this intrusion become more common- opment funds by government agencies. place, government intervention in board Government support for the National Rural appointments to AKRSP's institutions would Support Program at end-1992 held great appear unlikely, because of (a) the widely estab- promise. This nongovernmental organization, lished credibility of the Aga Khan Foundation which had expanded from a small beginning in and the rural support program, and (b) the 1991, received a commitment of Rs. 1.0 billion demonstrated development impact AKRSP has per year to meet its objective of establishing a already had in the Northern Areas and Chitral. countrywide network of village-based organi- Despite this, the possibility provides an addi- zations; the latter would enable local commu- tional incentive for AKRSP to be completely nities to participate in their own development. transparent in selecting board members and in However, due to changing attitudes at senior formnulating and executing the policies of each government levels, the National Rural Support inst:itution. This should demonstrate its sole Program has only received a single allocation interest in providing equitable opportunities for of Rs. 500 million, and in early 1995 there was development and enhanced welfare of the rural some doubt as to whether it would be able to population in the program area. 112 6. Replicability-transfer of experience One of AKRSP's initial objectives was to de- the fact that the program has been so success- velop, through experimentation with selected ful in overcoming the special problems and means and methods, a replicable approach to constraints encountered in the target area. rural development. Previous evaluations ex- These include the isolation of villages, at the amined this issue, pointing out the scope for, ends of long and tortuous mountain tracks and the limitations on, replication of the often impassable for half the year; extreme AKRSP model. This evaluation, however, at- poverty, characterized by a paucity of all forms tempts to go further and to establish whether of capital (natural, physical, financial, human, and where AKRSP experience is being applied. and institutional); the multiplicity of dialects; the fraught geopolitical situation; recurring Even now the scope for replication is debated. sectarian strife and destruction of property; the To some observers, AKRSP is a model program fragile natural resource base, with its thin soils, designed to meet the needs and constraints of a high erosion, and low rainfall; and the low unique region. Little scope is seen for replica- technical standard of agriculture. tion because the program is so situation-specif- ic and because its success has been dependent To others still, AKRSP has been a laboratory for on special circumstances: the opening of the experimentation and the development of Karakoram Highway; the "institutional vacu- techniques. Trying and evaluating different um" created by the abolition of the feudal lords approaches and methods has generated work- in 1972; the responsiveness of the Ismaili vil- ing principles and professional skills that can lages to the guidance of their spiritual leader, be transferred and applied in similar programs. the Aga Khan; the role of his Highness the Aga Several programs now exist in Pakistan and, Khan in ensuring government support without increasingly, in other parts of South Asia where interference; the charismatic leadership of the principles and methods tested by AKRSP are first general manager of AKRSP, Shoaib Sultan being adapted to suit local circumstances. Khan; the use of helicopters by program staff; and even the advent of favorable market prices In Pakistan, seven programs (including for farm produce. AKRSP) are now part of a rural support pro- gram network, through which program staff To others, AKRSP is a beacon heralding a rural share experiences and findings. These pro- development model that, when properly im- grams have several traits in common, including plemented, can be used to ameliorate rural the formation of village or community organi- poverty anywhere. Evidence for this is seen in zations, the use of infrastructure schemes or 113 other projects to offset perceived constraints, efforts to replicate AKRSP, corporation profes- the evolution from savings into credit, and sionals neglected AKRSP's dicta and turned training programs for village organization man- from its flexible program approach to a blue- agers and specialists (see Annex Table 1.17). In print approach. addition, they are all organized by nongovern- mental organizations even though there is often The National Rural Support Program started in some government funding. 1992 was the most ambitious effort toward ex- tension of AKRSP principles. By far the largest Two of these programs were started in the early of the seven Pakistani rural support schemes, it 1980s and were contemporaneous with AKRSP. is a national program with operations in each of These are the Balochistan Rural Support Pro- the provinces. Here again there has been a gram, formerly known as the Pak-German Self major effort to transfer and adapt AKRSP expe- Help Project, and the Pak-German Integrated rience, assisted by substantial staff exchanges Rural Development Project-Merdan. These and transfers. However, the national program programs were not based on the AKRSP model specifically eschewed the notion of adopting an and do not in any way depend on it. In both AKRSP model, noting that only principles and cases, however, there has been considerable some working methods can be transferred. A transfer of ideas and approaches between them notable characteristic of the national program is and AKRSP, especially when the Balochistan that it does not have sufficient resources to use program was being redesigned. the physical infrastructure grant concept to pro- vide the incentive for community organization. Another two of the programs are more recent, It does, however, access available government the Kalam Integrated Development Project in or nongovernment investment programs for the Northwest Frontier Province and the Swabi this purpose wherever possible. Its progress in Irrigated Agriculture Project. Both are support- promoting sustainable village organizations ed by the Swiss Development Corporation, but without this in-house facility should be careful- receive some government funds. Both of these ly nmonitored so that lessons can be learned. have made use of AKRSP principles and processes from the outset, albeit with consider- Several other Pakistan government projects, able modification to meet local conditions. funded by the World Bank, Asian Development Bank, and International Fund for Agricultural In contrast, the Sarhad Rural Support Corpo- Development, have borrowed principles or ration, initiated in 1990, was based directly on working methods of AKRSP-notably the initia- the AKRSP model. AKRSP assisted with staff tion of village organizations or their equivalent transfers and extensive management support. as the primary means of achieving participation In its early development, the corporation tend- of the target population. In many of these cases, ed to replicate the AKRSP program agenda services are largely provided by government and working method with little modification. departments with less reliance on self-help. This proved to be less than satisfactory. Early Nevertheless, even these partial approaches rep- difficulties led to substantial modification of resent improvements in the organization of vil- the program, which is now making better lagers and are manifestly a contribution of the progress. The lesson from this experience is AKRSP approach. However, experience has that the AKRSP methods of adaptation to local shown that it should not be taken for granted conditions and trial and error experimentation that line agency staff experienced in supply- are perhaps the most essential principles to be driven, top-down development will readily transferred. It is somewhat ironic that in their adapt to a participatory mode of operation. As- 114 sisting communities to organize and then In each of these countries, the United Nations attempting to respond to their articulated needs Development Program (UNDP) has begun a are very different from the traditional mode of pilot project under a program of "Institution- operation. The more recent of these projects al Development at the Grassroots for Poverty have accepted the advantages of having NGOs Alleviation." The pilot projects vary from one or specialized consultants to facilitate village country to another but they are all built organization. around the principles of community organi- zation, savings, and skill upgrading, albeit in Beyond Pakistan, the Aga Khan Foundation varying balance. The pilot program in Nepal supports programs similar in purpose to most resembles the AKRSP program in its AKRSP in India (Gujarat) and Bangladesh overall strategy and modius operandi. The (BRAC). These programs provide additional UNDP project is being promoted by Mr. places for experimentation and, since they are Shoaib Sultan Khan, formerly of AKRSP, with in close association with the Aga Khan Rural the assistance of other former AKRSP staff. In Support Program, for dissemination of AKRSP this way the transfer of AKRSP principles and experience, as well as their own. working methods to other programs in other countries is being actively pursued. In addition to these, there are major rural de- velopment initiatives in all South Asian coun- In summary, the replicability of AKRSP's expe- tries. Some of the best established are in Sri rience is proven by the fact that it is being ac- Lanka where more than a dozen rural develop- tively used in other programs in, and beyond, ment programs have endeavored to deliver Pakistan. The initiatives through which this is development benefits with varying degrees of being achieved-and the efforts of AKRSP participation. There is also a long tradition of staff, past and present, to assist in this learning savings and credit organizations. Similarly, process-can only be welcomed and applaud- Bangladesh has a large number of development ed. However, most studies undertaken by the organizations-governmental and nongovern- program's monitoring, evaluation, and mental, local and international-working on research unit in the past five years have been poverty alleviation programs. India has had instigated by donors, individually or collec- many such programs over the past 50 years, tively. Responding to such results-oriented and these are now getting a measure of govern- clients has led to a considerable body of per- ment support to help nongovernmental organi- formance and outcome information, which has zations provide services at the village level. facilitated the preparation of this report. This New government initiatives have recently been responsiveness has, unfortunately, contributed taken to promote development at the village to little reporting of a more general "lesson level throughout the islands of the Maldives. learning" nature within AKRSP; such report- And in Nepal, where over the years there have ing could influence the overall program and been many localized initiatives, there is now a be useful for other development schemes. In government move to promote decentralization the interests of the broader impact of AKRSP, and social mobilization. this should be corrected. 115 7. Future direction and outlook Since OED's 1989 evaluation, AKRSP's core port and below, however, there are some as- activities have continued while its program pects of the program that should respond fa- area has expanded. Some positive changes vorably to further adjustment. have occurred in the program, changes that address many of the issues raised in 1989. A favorable development has been a greater The strategy awareness within government of the validity and usefulness of village organizations as par- The program's primary objective-enhancing ticipants in development. However, in other the capacity of people in the Northern Areas areas, such as improving the effectiveness of and Chitral to improve their quality of life- the natural resource management program, has not changed. Nor has the focus shifted advances have been smaller. Moreover, it has frorn improving the size and productivity of only been in recent years that the suggested the agricultural resource base by working attention to developing a longer-term strategy through village organizations. However, the for AKRSP and the village organization instru- population is increasingly demanding social ment has been fully heeded. services and investment in health and educa- tion, and the strategy responds to this by facil- In the years immediately following the 1989 itating links between village organizations and evaluation, AKRSP appears to have been other providers. It also responds to the chang- somewhat reticent to undertake the critical ing socioeconomic environment. With some self-analysis required to redefine its role in the individual exceptions, the benefits accrued evolving local economic and social environ- through the increased agricultural resource ment. However, since 1992 a prolonged base and diversified land use have not been process of review and analysis has taken place sufficient to change the growing trend toward so that a strategy and program for the next off-farm income. This trend is associated with phase of AKRSP are emerging. This process rapid population growth and the limited size has not been without costs, especially in the of usable landholding. The off-farm contribu- form of uncertainty among staff concerning tion and the progressive opening of the com- their future in AKRSP. But it has led to propos- munication infrastructure with neighboring als that appear to respond to most of the con- areas have led to an expansion of AKRSP's cerns expressed by staff, consultants, and activities into promoting nonagricultural in- donor representatives in many recent, signifi- vestments to allow the local population to cant reviews. As pointed out earlier in this re- more fully participate in economic develop- 116 ment; this trend is consolidated in the new The diversity associated with climate has tradi- strategy. The need for further economic infra- tionally oriented AKRSP's agricultural pro- structural development is also catered for, and grams into single, transitional, and double crop an attempt to enhance the planning capacity zones. Other factors in locational diversity are for this development is included. accessibility to markets, resource endowments in irrigated land, and, to a lesser extent, utiliz- The strategy would result in some activities able grazing land per household. Good access being delegated to successor institutions such not only widens opportunities for input sup- as the Northem Region Development Bank and ply, product sales, and business opportunities, the Enterprise Support Company, which would but also for nonagricultural employment. maintain close links with AKRSP. The program Those communities with an abundance of us- itself would be consolidated into a support able land resources have a different set of op- function to provide services required to develop portunities from those subject to scarcity. local capabilities, and an implementation func- Rating communities on the extent to which so- tion in areas where AKRSP can offer significant cial and religious norms allow active involve- comparative advantage. In both its support and ment of women in nonhousehold activities implementation functions, the program would could also be a useful classification. use its established capacity to link village and women's organizations with other providers of Community development investments sup- services, investments, and funds. ported by AKRSP have been derived from a dialogue process that articulates, and is The evaluation supports this overall approach, responsive to, villagers' demands. This is legit- which is consistent with an acceptance that the imate, and has no doubt contributed signifi- government is likely to be the major funder of cantly to the program's success. However, the basic infrastructure and social service invest- knowledge that AKRSP can accumulate on ment in the Northern Region. External donors local and national demographic and economic and large nongovernmental organizations like trends and opportunities is an important asset, AKRSP can assist in financing development. which can contribute to its partnership with However, the most valuable contribution that village and women's organizations. The type AKRSP can make to sustainable development of categorization suggested above can identify is to ensure that there is a community-level the bounds and potential of different types of institutional and human resource capacity to sustainable development interventions for enable effective and equitable use of develop- various types of communities. It can offer ment funds from whatever source. guidance on priorities that should be consid- ered in dialogues with communities and in The Strategy Development Committee's report planning AKRSP's various implementation notes that an appropriate regional development and facilitative programs. This categorization, strategy must consider equity issues and the moreover, can provide a useful framework for sustainability of resource use, along with the staff orientation and training. It should be pos- encouragement of individual entrepreneurship. sible to categorize villages largely on the basis The evaluation mission believes that a more of data already available from existing bench- overt categorization of communities and house- mark surveys and institutional maturity index hold types to reflect the diversity existing with- studies. Existing information may have to be in the region could help to ensure that program supplemented, however, by data gathered interventions are responsive to these multiple through rapid survey techniques in areas of objectives. poor coverage. 117 Within communities, an appreciation of the tions. It would also be very desirable to in- resource and socioeconomic characteristics of crease the depth of management capability different types of households is especially im- within the organizations by having a program portant to guide the development and of courses for potential leaders (other than dissemination of relevant technology. This ap- existing managers) who are literate. preciation is also very important for the pro- gramming of service interventions to be both Even with adequately trained management, effective and equitable. The benchmark sur- as Chapter 3 pointed out, the village organiza- veys and the completed ad hoc household tions are only likely to persist if individual studies-complemented by the information households appreciate that there are signifi- generated by the pilot participatory planning cant advantages in their continued participa- and appraisal exercises undertaken in each of tion. Further investment through some form the regions in 1995-should provide sufficient of physical infrastructure project could pro- data to characterize the common types of vide a temporary stimulus, but more perma- household systems. This would assist in pro- nent benefits need to be developed to ensure gram planning and staff orientation and sustainability. would also serve as a framework for the train- ing of village specialists. Accessibility to credit and savings services can provide the incentive for continued participa- tion, but this is a relatively narrow area of inter- Village organizations est. The major opportunity lies in having members see their village organization as an The strategy has legitimately maintained its entity that can act on their behalf to access the objective of developing mature village organi- services and investments available through zations with capable managers who are govemmental and nongovernmental programs, responsive to the needs of all community and that will allow them to participate in their members. Continued training of selected own development. This supports the program's members in village management and book- emphasis on developing effective links between keeping/accounting will undoubtedly con- village organizations and outside entities. This tribute to a general improvement in the emphasis capitalizes on the current favorable capability of village organizations. It will en- perception of village organizations as represen- hance their ability to act effectively on behalf tatives of communities and as responsible coop- of members with outside entities as well as to erators in development. efficiently manage their own intemal affairs. However, AKRSP needs to keep in mind that Despite the obvious benefits in AKRSP's the organizations' maturity and management adopting a more active catalytic or facilitative capabilities vary widely. The plan to develop role, it should not be assumed that this will a master manager class, which would give evolve without difficulty. AKRSP will need to special training to more capable managers, is put considerable resources into interacting justified in order to demonstrate how these with external agencies and village organiza- organizations can effectively participate in tion management. This will be necessary to development planning, not only in their own ensure that model agreements clearly define community but in intervillage planning and the expected contributions of each party with- investment. This should not, however, be al- in specific periods, and the responsibilities for lowed to detract from efforts to improve the operation and maintenance of any facility cre- management capacity of all village organiza- ated by joint investment. Final ownership 118 should be indicated, and enforceable penalties It can be expected that many future infrastruc- for delinquency by any party should be con- tural projects, with or without government sidered. As initial ventures are likely to be funding, will require the cooperation of a of a pilot nature, these should be carefully number of villages, as will any programs in- monitored. volving action on common property resources above the irrigation channels. The "cluster" Joint operations of this nature, based on vil- concept has not proven easy to manage in the lage organizations' voluntary participation past, largely because individual communities with external agencies, can only expect to be thought they had lost control of decisionmak- successful if each cooperating party sees ad- ing. AKRSP will have to provide guidance in vantages in the arrangement. This will be par- the development of workable organizational ticularly so for government agencies and models. A promising model requires village elected officials. While a joint program must organization members to ratify any decisions have the support of very senior officials to be taken by their representatives in the VO clus- initiated, this may not guarantee a favorable ter organization created for the cooperative attitude among managers and staff at the op- endeavor. The creation of a semi-permanent, erational level. Government agencies usually formal organization with a legal structure for operate in a supply-driven program environ- governance-representing the village organi- ment, which does not involve significant con- zations in part of a valley or a watershed-will sultation with beneficiaries. AKRSP could likely be a later development as more organi- provide an extremely useful role not only in zations mature and have greater confidence in helping to design and monitor effective delegating their voting rights to selected com- processes, but also in educating the staff of munity representatives. Eventually, this type government agencies in the institutional as- of organizational development could lead to a pects of village organizations and in how to formal apex institution in each district or re- effectively interact with them. gion. However, it is likely in the foreseeable future that an established entity such as It is possible, and even likely, that more govern- AKRSP will be needed to maximize the credi- ment development funds will be channeled bility and recognition that should be given to through elected local officials. It will be impera- individual village organizations and clusters tive that village organizations not be perceived of VOs. as competition by these officials, but rather as instruments to increase the effectiveness and Similarly there is merit in the argument that leverage of their development budgets. village organizations be kept as informal or- Promoting the organizations as independent ganizations as long as possible; this enables institutions that solely represent the collective members to perceive themselves as fully par- views of their membership should assist in ticipating in and controlling their own organi- alleviating any unwarranted concerns. Despite zation. However, it will likely be necessary to this, AKRSP will be seen as the original spon- introduce a legal or quasi-legal structure of soring body for the village organizations. Con- some kind to enable the organizations to fully sequently, the more AKRSP can create the capitalize on potential development assistance image that it is a nonpolitical, nonsectarian and to maximize their benefits from the pro- support organization, the better for the role of posed credit system. AKRSP is networking village organizations as cooperators in with other nongovernmental organizations government-funded development. that are addressing this issue in Pakistan. 119 Infrastructural development payment for service contracts from other parties in design or supervision. There is a general awareness of the substantial unrealized potential for economic development Coverage of communities in the program area that can be attained through further investment is substantial, and inequity in distribution of in infrastructure-such as irrigation channels, physical infrastructure investments among link roads, bridges, or hydels-on a village or communities does not appear to be a signifi- multi-village scale. There is an especially big cant problem. There are still areas in Chitral potential to bring more land into irrigated agri- and Baltistan, however, that have not directly culture in Baltistan, where the average on-farm benefited from AKRSP activities, largely due and off-farm income per household is less than to extremely difficult access. In adherence to in other regions. In the formulation of future the principle of providing equitable opportu- strategy, emphasis has been on physical plan- nity, it would be worthwhile to review the cir- ning by AKRSP, and on its participation in de- cumstances of these isolated communities to velopment projects to at least ensure the ascertain if there are realistic economic devel- desirable engineering and organizational as- opment opportunities. The participation of the pects, but "without incurring all the (nonbenefi- program's engineering services section in such ciary) capital costs associated with the project." a review would meet the goal of involving the section more in the broader aspects of devel- This is a logical evolution of the development opment planning. process, which began with village organizations and physical infrastructure projects; infrastruc- ture would be looked at in its own right, rather Natural resource management than as an incentive to install a village organiza- tion. In some cases, such as in investment in hy- Available data indicate that AKRSP-through dels, it is likely that AKRSP intervention in its services and technology packages-has had planning, design, and engineering supervision a significant impact on the program area's will suffice, with investment funding being pro- vegetable, fruit, potato, forestry, and poultry vided by beneficiaries in cash, in kind, or as bor- production. This impact very likely extends to rowed funds. However, in more costly, slower animal health. However, many of these pro- returning investments, or in projects with a high grams still have deficiencies, which limit their "common good" element in which a specific impact. The programs dealing with cereals share is not easily attributed to each group of and animal nutrition/fodder have had poorer beneficiaries, it is likely that a grant element will results, despite the key roles these activities also be necessary to ensure viability. Govern- play in the typical household production ment development programs and nongovem- systems. mental or other donor-financed projects will hopefully provide a large part of these funds. Some ad hoc evaluators have specified lack of But in many instances, AKRSP's ability to pro- adequate follow-up and technical support and vide a grant as part of the funding package insufficient attention to marketing as explana- should be advantageous in two respects: by tions for adoption or performance limitations. being a participating partner, AKRSP should Others, however, have questioned the appro- improve implementation efficiency and would priateness of the technology package itself; the have the opportunity to encourage more equi- contention is that if a package is not relevant table development investment. Such participa- to the circumstances of the individual house- tion should not preclude AKRSP from receiving holds, it will not be adopted. This observation 120 is not new, and also was highlighted by the a identification of production aspects that can 1989 OED review. possibly be improved to better meet priori- ty needs of the household; As Chapter 3 pointed out, the evaluation team believes that the persistence of this problem is * accessing of all available sources of techno- linked to insufficient attention to developing a logical innovation to acquire relevant tech- thorough understanding of the various types nology; of household farming systems. This knowledge should not only guide the development or a evaluation of identified technologies to de- acquisition of technology and the formulation termine their apparent relevance to the of packages, but also influence the dialogues major categories of farming systems; with communities to arrive at appropriate interventions. * direct involvement of farmers in the process of identifying and adapting technological The physical integration of the program's tech- improvements they see as relevant to the nical sections into the natural resource man- particular circumstances of their local vil- agement section, and the attempt to promote lage and women's organizations; and more responsiveness to local needs through the field management concept, should encour- * assurance that identified and adapted tech- age a farming system perspective. However, nologies are effectively disseminated and on their own, these measures are unlikely to supported by the supply of inputs needed overcome excessive reliance on standard pack- to adopt and implement them. ages and target-driven programs to meet farm- ers' technological needs. It is important to The principle that pervades categorization of have satisfactory arrangements to ensure that women's and village organizations, and appropriate technology, once identified, is indeed all the above elements, is finding tech- transferred to target groups. The most essen- nology for small farmers through the use of a tial element, however, is to produce the rele- systems perspective. The approach also im- vant technology, and package and present it so plies a new attitude to experimentation, with that it can be easily seen as relevant. farmers having much greater responsibility for identifying and evaluating new technologies. An improved process for the development or Recent experience shows that farmers can acquisition of relevant technology will involve often select the characteristics most suited to a number of key elements. These are: their local conditions much more efficiently than scientists can (Sperling et al. 1993). * the mobilization of farmers' knowledge of their own circumstances, including current Research has not absorbed a large amount of technology and constraints on income; AKRSP resources in the past. While coopera- tion continues with the Pakistan Agricultural * staff who are able to recognize particular Research Council and the National Agricultural farming systems, and to understand how Research Center, these public sector institutions household priorities and farmer strategies still suffer from severe funding constraints and to achieve food security and income affect also from the lack of an effective interface with decisions, within the constraints of the small farmers. With limited support for the ex- household resource base and cultural and pansion of activities within AKRSP, it may be social obligations; difficult to command the resources needed to 121 modify the technology development process. an innovative and highly professional adaptive Nevertheless, the evaluation team believes that research project, the staffing problem may be the need is sufficient to warrant a concerted overcome. effort either to divert resources from current natural resource management activities or to mobilize support for a specially funded tech- Human resource development nology development program. This would re- quire a proposal that quantifies and justifies the The program's policies for developing staff resource use and includes strong links with the capabilities are generally appropriate. The national research institutes named above, and scholarship program to improve the qualifica- their local stations, to enhance the prospects for tions of locally recruited professionals should the technology development program's long- be continued so as to increase the number of term sustainability. There are intemational non- locals in management positions. governmental organizations specializing in this type of participatory research (for example, the The program is based on the principle of par- Information Center for Low-External-Input and ticipatory development, and staff are general- Sustainable Agriculture in the Netherlands) ly very conscious of this in their interaction that could be interested in cooperating in such a with communities. However, this report has proposal. The intemational agricultural noted that a tendency has developed to offer research centers with experience in research standard solutions to problems. This is evi- with small farmers would be an alternative dent in the relatively uniform outcome of the source. Existing or new donors to AKRSP may dialogues with villages with respect to pack- agree to provide funding for a specific scheme. ages and services offered, in the limited adop- tion of a number of improvement packages, Assuming that AKRSP's board and manage- and in the tendency toward a supply-driven ment consider improving the technology de- character in the forestry program. This sug- velopment process to be essential, Annex 2 gests that there is a need to renew the pro- outlines a scheme that should meet require- grarn commitment to not only interact with ments. The scheme makes maximum use of communities and households but also to be experienced farmers (as AKRSP has tradition- responsive to their particular needs. ally done in transferring technology through village specialists and master trainers). As out- The recent improved dialogue exercise in As- lined, though, the scheme would also require tore, which was being repeated in all districts in one senior and as many as nine junior profes- 1995, should have instilled a greater awareness sional staff members to be dedicated to in staff of the importance of understanding ben- research. This is recognized as ambitious, given eficiaries' needs. The dialogue, however, does the difficulties experienced to date in attracting not appear to have encouraged initiative in pro- and retaining suitable technical professionals viding responses to these needs. The program for natural resource management, especially in should be in a position to not only listen but Chitral and Baltistan. However, there is interest also constructively contribute to the dialogue. within the Pakistan Agricultural Research The limiting constraints for different groups of Council in developing a sound interface with households should not only be identified, but small farmers. This presents an opportunity for applicable solutions (where feasible) should be AKRSP to be a role model for Pakistan in adap- developed, with program staff contributing tive agricultural research as it has been in so- from an array of possible measures, each appro- cial organization. If the scheme has prestige as priate to particular circumstances. 122 In natural resource management, if the recom- terms as the professionalization of financial mended increased emphasis on developing a intermediation, which is made possible by the farming or production system perspective is experience and skills accumulated by the pro- carried through in staff training, this should gram and its beneficiaries since 1983. have positive effects in increasing the pro- gram's responsiveness. The same principle Professionalization is basically an exercise in needs to be instilled in all AKRSP units. increasing specialization. Areas where profes- sionalization could be most helpful include a The emphasis on training community mem- shift in strategic focus from meeting credit bers is especially commendable and has been needs to creating debt capacity; building responsive to evolving circumstances, especial- financial information systems and introducing ly in the area of marketing and enterprise de- other measures to control and manage risk; velopment. The move to give more emphasis improving operations support and training at to master trainers is appropriate as, among the village and women's organization level; other things, this will provide the opportunity and increasing controls and other internal pru- to give them a greater depth of training/educa- dential oversight. tion in their specializations. This should increase their ability to respond to the particu- Specific institutional issues are how the North- lar needs of their colleagues rather than offer- ern Region Development Bank would interact ing only standard treatments. The latter with the village and women's organizations, appears to have been a characteristic of the vil- which constitute the fundamental basis for its lage technical specialist program and has likely market niche, and how it can deploy its contributed to the variable results obtained. strength based on a unique financial structure. Nevertheless, it may be possible to improve the The major issue for the Enterprise Support training at the specialist level by introducing Company is how to manage and contain the simple case studies that demonstrate different risks that its founders expect it to embrace. responses for a limited number of different but commonly occurring circumstances. Strategicfocus In management and accounting, there is a need AKRSP, endowed with more than ten years of to increase the depth of management capacity development experience, is taking the leap to in communities by training potential leaders. form a new bank that will focus on sustainable The case for more village accountants is elabo- solutions to the area's development needs. A rated below in the discussion of requirements shift in strategic focus from meeting credit for the proposed banking system. Women in needs to creating debt capacity will assist the communities also have special training needs quest for sustainability. Debt capacity is the as noted below. amount of credit that a borrower can command on a sustainable basis. Savings and credit The relevant time horizon for determining sus- tainability of a credit relationship depends on AKRSP's history of relatively good perform- the nature of the borrower's activities. For an ance in savings and credit operations creates a industrial concern the period could be the sound platform for growth and innovation. It length of a business cycle. For a farm it could also can be improved. The future direction that be from planting to harvest or from bad year to is most useful can be described in general bad year, or from an excellent year to the next 123 excellent year. The key to ascertaining debt ca- available just after harvest and may be unavail- pacity is to estimate the borrower's repayment able at most other times. Single maturities keep capacity in a bad year or other adverse situa- transaction costs low, but may fail to capitalize tion, after allowing for "senior claims" that the on the periodic women's and village organiza- borrower regards as more important than pay- tion meetings as occasions for installment pay- ing the lender. These include continuation of a ments, or to recognize cash flow patterns in business, maintaining a certain standard of liv- many microenterprise activities. ing for a family, and socially important expen- ditures as determined by the local culture, for Attention to borrowers' cash flows, and to example. Loan size would then be a function of generation and application of the information this risk-adjusted repayment capacity, more required to lend realistically, can build strong specifically the amount of risk that the lender is relationships that are valuable to clients. Bor- willing to take in the adverse situation. This rowers are less likely to default when they risk can be measured by the cost of arrears on value their relationship with their creditor. The the lender's books and bad debt losses. debt capacity approach is based on measures Lenders willing to take larger risks will make to control and manage risk, beginning with larger loans, other things being equal, than simple farm, enterprise, or firm models using lenders with less interest in risk-bearing. adjustments for reasonably expected adversity. Experience with such models can provide in- Using realistic projections of cash flow to deter- sights into real risks, that is, the things that go mine loan size contrasts with the conventional wrong, their causes, and ways to minimize approach that relates loan size to the incremen- their adverse impact. Responses to risk could tal cost of an investment to be undertaken by a range from the promotion of savings accounts loan applicant. Many lenders arbitrarily make and savings plans as hedges or cushions the decision regarding the proportion of the against risk, to agricultural and business train- investment to be financed by debt, such as 80 ing to enable farmers and other entrepreneurs percent, 90 percent, or 100 percent. The con- to evaluate risks and respond to them effec- ventional approach often leads to high propor- tively, to other ways to increase incomes such tions of debt financing and correspondingly as has been done with apricot processing, for high debt service burdens. Relatively large example. debt service obligations can easily lead to delinquencies and bad debt losses when the Financial information systems borrower encounters adversity. This danger is most apparent in AKRSP's microenterprise Building financial information systems can loan portfolio. It is least apparent in its tradi- help to control risk. A simple collection perfor- tional fertilizer loans because the costs of fertil- mance measure, for example, would be to izer are small relative to the borrower's cash compare collections of debt service payments flow, and to the value of the harvest or the with amounts of principal and interest falling amount of the harvest that is sold. due. This organizes data in such a way that ear]Ly warnings are provided. These warnings Basing loan size on cash flow projections also are superior to those produced by current pro- assists in determining realistic repayment cedures, which record how long it takes to re- schedules. AKRSP has relied largely on single cover principal amounts of loans issued maturity instruments, with amounts falling due during a given period. The latter is a useful in a lump sum. These indeed have a logic in measure and should be retained, but it could agricultural lending because funds are clearly usefully be supplemented by collection ratios. 124 The evaluation team did not explore financial Transparency information systems in technical detail. The formation of a new bank from AKRSP savings Increasing the number of these professional and credit activities, however, provides a nat- staff will be important for the maintenance of ural opportunity to develop new systems, in- controls and for the more systematic establish- cluding those incorporated in hardware and ment of intemal regulation or prudential over- software packages available in the market. A sight. Transparency has always been a hallmark critical decision in the design of Northern Re- of AKRSP savings and credit operations. These gion Development Bank is the level at which operations should be further demystified for transactions of the village and women's orga- more people, however, so that the system gen- nization credit programs are analyzed, sum- erates increased confidence among clients and marized, and used for management decisions. potential clients and encourages disciplined These transactions are the primary source of repayment. AKRSP is also well placed to be at information about credit and savings behavior the forefront of financial disclosure by keeping that are currently available to AKRSP. They books that realistically reflect the actual condi- should be mined to ascertain patterns and to tion of the Northem Region Development Bank create individual credit and savings histories and its portfolio in a timely manner. It may be for village and women's organization mem- in a position to be a leader in this regard among bers. At the most elementary level, for exam- banks in Pakistan and also among donor-sup- ple, someone who deposits Rs. 20 regularly at ported lenders to the poor. A good starting twice-monthly village organization meetings point would be periodic calculations of break- can probably handle a loan that requires even interest rates equal to the opportunity cost twice-monthly repayments of Rs. 20 each. of capital, using the subsidy dependence index, and the creation of reserves equal to expected Operations support and training loss experience at the time loans are issued. Whatever division of labor is used between the The Northern Region Development Bank's unique Northem Region Development Bank and vil- financial structure gives it the financial strength lage and women's organizations, there are to explore several alternatives in its outreach many opportunities to improve operations sup- to clients. One of these is to undertake more port and training at the VO/WO level. Training lending than indicated by its projections. A would have to be more detailed, intense, and means of doing this would be to lend at longer widespread if the women's and village groups terms; a trend in this direction is found in the are to act as self-contained financial intermedi- projections. This would increase the risk in its aries under the bank's umbrella, largely respon- portfolio, because risk is created by longer- sible for their own credit decisions, funding, term commitments. The strategic basis for tak- and record keeping. Even if most of these func- ing greater risk is superior market information tions were assumed directly by the bank, there that permits the lender to build relationships would be a large requirement for more accoun- with clients, which clients value immensely tants and credit officers-probably far more, by and therefore want to protect by abiding by an order of several times-than projected in the loan contracts. Superior information systems bank's or AKRSP's staffing plans. If a decentral- would permit the bank to leverage profitably ized structure is established, the bank will have its financial strength into risk. a huge prudential oversight responsibility in its dealings with village and women's A second possibility would be to subsidize organizations. lending rates beyond projected levels, which 125 are based primarily on the low cost of the because others in the area also save, a subsidy Northern Region Development Bank's fund- for savings would benefit the greatest possible ing. This type of strategy, even when limited number of people. to subsidizing social infrastructure lending, can create expectations that are hard to contain Accumulation of savings, continued attention while creating incentives to deal with losses in to village and women's organizations as cen- a nontransparent manner. Subsidized lending terpieces of financial intermediation and com- rates can set an organizational tone that works munity development, and a certain amount of against the important core values required for decentralization of savings and of credit deci- commercially successful banking. It can also sions could facilitate local infrastructure invest- promote the trend toward deteriorating collec- ment directly by the organizations or their tion performance that appears to characterize members. This initiative could to some degree so many development finance activities. substitute for subsidized lending for social in- frastructure, which appears to be the most Subsidized funding easily attracts "rent seek- problematic activity envisaged for the North- ing" by individuals or organizations that want ern Region Development Bank. cheap money, and that have the political or organizational leverage to get concessional Venture capital risks and their funds. These are usually not the most deserv- management ing or those for whom the subsidies were orig- inally intended. Cheap funds create a false The Enterprise Support Company has the usual demand for loans, which can greatly exceed feature of donor-supported term lenders, which the true demand consisting of bankable pro- is inability to lend profitably for activities that jects backed by credible sponsors. For social are assumed to have tremendous social and cat- infrastructure projects with a large "common alytic benefits. However, the company is un- good" element, the inclusion of a transparent usual in that its business projections clearly grant element in the investment package to show that it is unlikely to be profitable, a tribute complement and enable a loan on regular to AKRSP's dedication to transparency. It also terms may be more appropriate than use of a has a number of other features that could per- special subsidized rate. mit it to interact effectively with local markets and entrepreneurs. These include market devel- Finally, the Northern Region Development opment, research, and training, all of which can Bank could choose to subsidize savings be exceedingly challenging if the objective is to through attractive interest rates and the staff create commercially viable activities. costs required to operate an aggressive savings program in a relatively remote geographical If for any reason failure to repay is material, area. The village and women's organization widely witnessed, and not effectively dealt credit programs appear to have captured rela- with, some of those who are in a position to tively little of members' savings. A relatively repay may decide to attempt to evade repay- small subsidy may be required to support ag- merit. In this way default culture spreads, gressive savings mobilization because the vol- often beyond the institution primarily respon- ume of savings, to judge from development sible for its creation. One way of avoiding the finance experiences elsewhere, is probably formation of this culture is to ensure that bor- larger than the amount that can be prudently rowers lose more than lenders when loans are loaned in the program area. Since all village not repaid. Another means of reducing the and women's organization members save, and risks of the company being regarded as a soft 126 lender would be for it to act as a broker or syn- AKRSP's activities over the years in the area of dicate leader for infrastructure finance raised appropriate technology should be carefully from multiple sources. These sources would reviewed. The introduction of viable labor- include citizens, who would fund directly, and saving technology that is accepted by the local women's and village organizations with funds populace is crucial-especially for women- to invest in instruments similar to the munici- but has not been very successful to date. Sys- pal bonds so widely used in the United States. tems of local knowledge in each specific technology type should be examined, along Because of these containment problems, lend- with previous failures in AKRSP's activities. ing for social infrastructure might usefully be New pilots that entail careful training, moni- transferred from the Northern Region Devel- toring, and follow-up should be fostered. opment Bank to the Enterprise Support Com- pany. The expected loan purposes and loss With AKRSP's plans for future program activi- rates on the bank's social infrastructure lend- ties of a more sophisticated financial nature, it ing more closely resemble the support compa- will be important that women are not left out of ny's portfolio than they do the bank's other the process. This calls for intensive training of activities, although their target clientele is selected promising women in additional entre- more similar to the bank's customer base than preneurial skills. Training in planning, manage- to the Enterprise Support Company's. This ment, and marketing is sorely lacking in many transfer would enable the development bank women's organizations. Should the emerging to be entirely commercial, slowing or revers- credit institutional arrangements mean that ing any tendencies for villagers and others to women entrepreneurs are disadvantaged be- project the support company's tolerance of cause of their inherent cultural and educational losses onto the bank. constraints, a targeted credit line could be insti- tuted to facilitate their business activities. The gender issue At the other end of the continuum of women's organization membership are the vulnerable The women's organization has proved to be an women of poor households, which may often accepted and viable forum for village women's be female-headed. These women, who are participation in the development process in the most in need of assistance, are often left out of Northem Region. It should be strengthened in women's organization activities. Special sub- the next phase of AKRSP's work. While requests projects should be developed for these indi- from new communities should be met, AKRSP viduals. The social organizer must come to should now focus on quality of interaction with understand their needs and aspirations, along the existing women's organizations, along with with identifying and encouraging the partici- encouraging more household coverage in each pation of other poor women in the community community. who may not even be members of the women's organization. Improved staff monitoring and follow-up of the women's groups is called for, and more Self-sufficiency of women's organizations must flexible implementation of various packages is continue to be fostered. Although change is also necessary. This entails more contact time occurring, at present most depend heavily on with the specific villages, and more in-depth AKRSP staff and local village organizations. understanding of community and household The low female literacy rate is indeed a draw- dynamics. back. As more literate women join women's 127 organizations, the situation will improve. oprnent monitors in each region will be espe- However, in the interim, an emphasis on train- cially important in monitoring the effects of ing and the development of entrepreneurial the integration process. Additional gender- skills among women will improve self-suffi- related workshops should be organized to en- ciency. The successful linking of women's courage open discussion of difficulties that groups with other agencies providing social will inevitably occur. sector investments and services will also en- courage self-confidence. Management, organization, The training of female accountants and man- and governance agers is a positive development and should be encouraged. Training of production package AKRSP's new management has already specialists and master trainers should also be demonstrated a capacity to address manage- intensified and improved. More monitoring ment, personnel, and operational issues effec- and follow-up of these individuals is also nec- tively. However, recent instability in the essary in order to improve their performance. organization, and expectations of staff reduc- tions and changes as the emerging strategy is With the need to improve the frequency and implemented, have led to low staff morale, quality of AKRSP staff contact with existing which must be affecting performance. The tran- women's organizations, care should be taken sition into the next phase of the program will that the WO social organizers and other field require very careful personnel management. staff are not assigned an overwhelming num- Intensive communication between personnel at ber of tasks. Decentralization of AKRSP work all levels in the institution will be essential if the should provide the opportunity for staff to program is to return to its former levels of effi- reach communities more frequently and in a ciency and productivity. In particular, effects of more coordinated manner. the decentralization process (field management units) will have to be carefully monitored, and In future research of the monitoring, evalua- may require significant adjustments to respond tion, and research unit, the following topics to evolving circumstances. pertaining to women's lifestyles and participa- tion should also be explored to enable respon- As the Northern Region Development Bank is sive programming: put into place, an important decision will have to be made on the role of social organizers. * women's utilization of credit; This particularly concerns the extent to which AKRSP social organizer staff can be expected * functioning of female-headed households; to undertake credit activities at the village level, where they would fit in the institutional * household energy strategies; and arrangements, and how the noncredit functions of social organizers would be ade- * impact of hydels on women's workloads. quately catered for. Similarly, the relationship between the enterprise development division The process of integrating gender-related staff and the proposed Enterprise Support Compa- and activities into the mainstream program ny will need definition. should be continued, but not without careful planning and constant evaluation of this com- AKRSP has adopted an appropriate strategy: it plex process. The role of the women-in-devel- is attempting to expand development and so- 128 cial service investments in the Northern Re- stances of different types of households gion by facilitating between governmental and throughout various parts of the program area. nongovernmental organizations and women's This understanding is needed to develop a and village organizations. To do this effective- total household perspective when considering ly, it will have to maintain a reputation as an project interventions. Categorization and de- unbiased, nonsectarian, development support scription of the population should feed into institution. A completely transparent structure most types of training, and into the formula- and relationship among its owners, board, and tion of AKRSP's longer-term and annual management will support its position. The programs. emergence of the two new institutions, the Northern Region Development Bank and En- The anticipated increased role for the moni- terprise Support Company, make this trans- toring, evaluation, and research section in parency even more essential, as these will training programs and interactions with other involve control over considerable financial re- program sections will make more demands on sources in the region. its resources. It would appear appropriate that MER should develop and adhere to an MER has accumulated extensive evaluation annual plan of activities based on defined pri- data, especially over the last five years, which orities. This would provide a basis for refusal enables management to make more informed to respond to the many ad hoc requests it re- decisions on program strategy and content. ceives for data collation and analysis, should However, this wealth of information is not the latter not represent a legitimate use of being properly utilized. Of particular impor- scarce resources. Within its evaluation func- tance is the household income and village and tion, there is a need for MER to extract broad- women's organization performance data. This er "lessons learned," which will be of can make a very useful contribution to devel- assistance to AKRSP's management, board, oping a greater understanding of the circum- and other rural development schemes. 129 Annexes 131 Annex 1 Table 1.1 Achievements in program areas, December 1982-December 1994 Table 1.2 Program area social data: Astore, Baltistan, Chitral, and Gilgit regions, end-1994 Table 1.3 Cumulative growth of village organizations, 1983-94 Table 1.4 Social organization, membership, and bank deposits Table 1.5 Summary indicators of progress in institution building and technology transfer for women's programs in Chitral, Baltistan, Astore, and Gilgit Table 1.6 Productive physical infrastructure projects, by district and type Table 1.7 Productive infrastructure projects, costs, and construction progress, by type of project, as of December 1994 Table 1.8 Summary data of productive physical infrastructure projects by district, December 1994 Table 1.9 Productive physical infrastructure Table 1.10 The training program: number of trainees Table 1.11 The training program: number of courses Table 1.12 AKRSP production packages for women's organizations, by district Table 1.13 Girls' and boys' schools in the Northern Areas and Chitral, 1994 Table 1.14 AKRSP sources of income, by donor Table 1.15 AKRSP annual expenditure since start-up Table 1.16 AKRSP staff strength, 1987-94 Table 1.17 Consolidated picture of rural support programs, as of December 1994 133 ANNEX TABLE 1.1: ACHIEVEMENTS IN PROGRAM AREAS, ]DECEMBER 1982-DECEMBER 1994 (number, uinless otherwise noted) Program area Gilgit' Chitral Baltistan Total number Social organization Total number of organizations 1,055 775 772 2,602 Village organizations 623 581 630 1,834 Women's organizations 432 194 142 768 Total number of members 43,634 28,742 28,928 101,304 Village organizations 28,018 22,601 24,596 75,215 Women's organizations 15,616 6,141 4,332 26,089 Total savings (rs. millions) 128.95 49.96 30.69 209.60 Village organizations 102.28 44.56 29.80 176.64 Women organizations 26.67 5.40 0.89 32.96 Women in development Credit disbursedb (rs. millions) 25.02 1.75 0.06 26.83 Group loans 528 48 3 579 Beneficiary households 21,199 1,505 89 22,793 WO specialists 1,680 1,163 650 3,493 Participants in demonstrations 4,796 745 1,686 7,227 Produtctive infrastructutre and engineering services PPIs initiated 402 560 539 1,501 Beneficiary households 35,429 25,754 24,006 85,189 Cost of initiated PPIs (rs. millions) 80.58 126.89 77.53 285.00 PPIs completed 331 449 424 1,204 Physical progress (percentage completed) 82 80 79 79 Agricuilture Improved seeds (kgs) 146,227 76,915 120,831 343,973 Total fruit trees (millions) 1.54 0.44 0.45 2.43 VO/WO agriculture specialists 1,596 1,278 1,061 3,935 a. Includes Astore. b. Includes short-term, medium-term, and women's organization credit, Source: AKRSP 1994b. 134 ANNEX TABLE 1.2: PROGRAM AREA SOCIAL DATA-ASTORE, BALTISTAN, CHITRAL, AND GILGIT REGIONS, END-1994 Gilgit Chitral Baltistan Astore Total Area (square km) 28,500 14,850 25,850 5,000 74,200 Population (1994 est.) 343,400 314,800 336,900 70,800 1,065,900 Urban 73,300 39,400 47,800 0 160,500 Rural 270,100 275,400 289,100 70,800 905,400 Average household size 8 8 8 8 8 No. of rural households 33,763 34,425 36,138 8,850 113,175 No. of villages (approx.) 306 500 244 99 1,149 Potential VOs (no.) 655 750 665 127 2,197 Average population/VO 524 420 507 557 485 Average number of households/VO 52 46 54 70 52 Source: AKRSP's monitoring, evaluation, and research section. Population, household, and village data based on Northern Areas Census, 1981; data on VOs from AKRSP 1994b. 135 ANNEX TABLE 1.3: CUMULATIVE GROWTH OF VILLAGE ORGANIZATIONS, 1983-94 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Gilgit Number of VOs established 129 286 312 345 371 409 446 470 494 501 539 559 Membership (households) 12,050 23,120 24,950 26,412 26,500 26,500 26,500 26,500 26,500 26,500 26,500 24,793 Percentage of total rural households (33,762) in VOs in 1994 73 Chitral Number of VOs established 49 115 149 168 224 323 370 436 480 522 559 581 Membership (households) 3,399 7,492 9,615 10,667 12,383 15,236 16,655 18,574 19,856 21,124 21,742 22,601 Percentage of total rural households (34,419) in VOs in 1994 66 Baltistan Number of VOs established - 22 53 159 247 342 446 514 565 597 630 Membership (households) - - 1,204 2,882 6,145 9,089 12,162 17,286 20,084 22,126 23,416 24,596 Percentage of total rural households (36,134) in VOs in 1994 68 Astore Number of VOs established - - - - - - 33 64 Membership (households) - - - - - 1,642 3,225 Percentage of total rural households (8,848) in VOs in 1994 36 Total Number of VOs established 178 401 483 566 754 979 1,158 1,352 1,488 1,588 1,728 1,834 Membership (households) 15,449 30,612 35,769 39,961 45,028 50,825 55,317 62,360 66,440 69,750 73,300 75,215 Percentage of total rural households (113,163) in VOs in 1994 67 Soutrce: AKRSP 1994b. ANNEX TABLE 1.4: SOCIAL ORGANIZATION, MEMBERSHIP, AND BANK DEPOSITS (yearly additions) Organizations Membership Bank deposits Year (no.) (no.) (rs. millions) Village organizations 1983 178 15,449 0.84 1984 223 15,163 5.16 1985 82 5,157 4.55 1986 83 4,192 5.35 1987 188 5,067 15.09 1988 225 5,797 15.52 1989 179 4,492 14.27 1990 194 7,043 14.46 1991 136 4,080 14.12 1992 100 3,310 20.12 1993 140 3,550 32.21 1994 106 1,947 34.95 Total 1,834 75,247 176.64 Women's organizations 1984 76 3,701 0.53 1985 27 1,183 0.76 1986 21 614 0.65 1987 37 1,446 1.38 1988 69 1,913 1.49 1989 57 1,851 2.81 1993 106 3,484 2.71 1990 89 2,527 3.24 1992 84 2,538 4.09 1993 103 3,451 5.30 1994 94 3,079 9.96 Total 763 25,787 32.92 Source: AKRSP 1994b. 137 ANNEX TABLE 1.5: SUMMARY INDICATORS OF PROGRESS IN INSTIIUTION BUILDING AND TECHNOLOGY TRANSFER FOR WOMEN'S PROGRAMS IN CHITRAL, BALTISTAN, ASTORE, AND GILGIT Chitral Itndicator 1987 1988 1989 1990 1991 1992 1993 1994 Organization Number of women's organizations 20 49 64 104 136 161 178 194 Savings (cumuilative) Total (rs. millions) 0.17 0.42 0.92 1.82 2.37 3.31 3.96 5.40 Per group (rs.) 8,500 8,571 14,375 17,500 17,426 20,559 22,247 27,835 Credit Short term (rs. millions) 0 0 0 0 0 0.003 0.35 0.087 Number of organizations 0 0 0 0 0 1 2 4 Medium term (rs. millions) 0 0 0 0 0 0.1 0.1 0.1 Number of organizations 0 0 0 0 0 1 1 1 WOCPa (rs. millions) - - - - - 0.184 0.54 1.564 Number of organizations - 5 13 43 Production packages and training (nutmber of grouips participating) Vegetable demonstration Plots/year 4 8 48 0 50 6 10 3 Nurseries/year 4 9 3 3 4 0 0 0 Home-based poultry/year 2 0 7 64 117 0 0 0 Total production packages/year 10 17 58 67 171 6 10 3 Labor-saving packages (nuimber of groups participating) Nut-cracking machines/year 10 0 10 0 0 0 0 0 Butter chumers/year 0 10 0 0 0 0 0 0 Improved stoves/year 214 0 0 0 0 0 0 0 Spinning wheels/year 10 11 27 8 8 0 0 0 Total labor-saving packages/year 234 21 37 8 8 0 0 0 138 (Annex Table 1.5 continuied) Baltistani Astore Indicator 1987 1988 1989 1990 1991 1992 1993 1994 1993 1994 Organization Number of women's organizations - - 13 49 81 104 124 142 23 60 Savings (cutmutlative) - - Total (rs. millions) - - 0.02 0.08 0.18 0.45 0.6 0.88 0.25 0.32 Per group (rs.) - - 1,538 1,633 2,222 4,327 4,839 6,197 10,852 5,333 Credit Short term (rs. millions) 0 0 0 0 0 0.005 0.005 0.005 na na Number of organizations 0 0 0 0 0 2 2 2 na na Medium term (rs. millions) 0 0 0 0 0 0 0 0 na na Number of organizations 0 0 0 0 0 0 0 0 na na WOCPa (rs. millions) - - - - - - - 0.05 Number of organizations - - - - - - - 1 Prodiuction packages and training (niumber of grouips participating) Vegetable demonstration Plots/year 4 12 0 35 32 9 0 10 - Nurseries/year 0 0 0 0 1 1 0 38 - 5 Home-based poultry/year 12 13 41 90 29 51 0 11 - - Total production packages/year 16 25 41 125 62 61 0 59 - 5 Labor-saving packages (number of groutps participating) Nut-cracking machines/year 21 16 44 3 8 6 6 0 na na Butter chumers/year 0 10 15 8 3 3 3 0 na na Improved stoves/year 0 0 0 0 0 0 0 0 na na Spinning wheels/year 1 2 0 3 0 0 0 0 na na Total labor-saving packages/year 22 28 59 14 11 9 9 0 0 0 139 (Annex Table 1.5 continued) Gilgit Up to Indicator 1986 1987 1988 1989 1990 1991 1992 1993 1994 Organization Number of women's organizations 129 146 186 215 245 270 306 349 372 Savings (cuimlilative) Total (rs. millions) 1.97 3.18 4.42 6.71 8.46 11.05 13.93 18.18 26.11 Per group (rs.) 15,271 21,781 23,763 31,209 34,531 40,926 45,523 52,092 70,188 Credit Short term (rs. millions) 0.01 0.49 2.06 2.9 3.07 3.4 3.73 3.93 4.15 Number of organizations 10 62 185 226 238 267 283 302 313 Medium term (rs. millions) 0 0.2 0.62 1.00 0.97 1.09 1.27 1.27 1.27 Number of organizations 0 5 12 23 23 25 26 26 26 WOCPa (rs. millions) - - - 0.6 2.04 1.55 5.504 10.399 19.601 Number of organizations - - 2 25 44 72 118 189 Production packages and training (nimber of grouips participating) Vegetable demonstration Plots/year 0 23 32 41 0 12 46 1 2 Nurseries/year 6 0 1 12 6 0 10 0 41 Home-based poultry/year 0 0 3 59 9 21 28 36 37 Total production packages/year 6 23 36 112 15 33 84 37 80 Labor-saving packages (nuimber of groups participating) Nut-cracking machines/year 37 52 2 53 0 0 0 0 0 Butter churners/year 0 0 47 46 0 0 0 0 0 Improved stoves/year 0 30 0 0 0 0 0 0 0 Spinning wheels/year 0 0 12 0 0 0 0 0 0 Total labor-saving packages/year 37 82 61 99 0 0 0 0 0 a. WOCP is an abbreviation for Women's Organization Credit Program. Soiurce: AKRSP's monitoring, evaluation, and research section. 140 ANNEx TABLE 1.6: PRODUCTIVE PHYSICAL INFRASTRUCTURE PROJECTS, BY DISTRICT AND TYPE (cutmulative) Completed Region/type of project Initiated (no.) Number Percentage Gilgit Irrigation 244 217 89 Feeder channels/pipe irrigation 205 182 89 Lift irrigation 7 6 86 Storage reservoir 27 24 89 Syphon irrigation 2 2 100 Sedimentation tank 3 3 100 Channelization of rivers 0 0 0 Transport 74 71 96 Link roads 62 59 95 Bridge/link road 9 9 100 Pony tracks 3 3 100 Foot bridges 0 0 0 Other 42 40 95 Protective works 30 30 100 Boundary walls 2 2 100 Nursery 5 5 100 Hydel scheme 2 1 50 Flour mill 0 0 0 Mud-flow control 2 1 50 Super passage 1 1 100 Total 360 328 91 Chitral Irrigation 280 216 77 Feeder channels/pipe irrigation 246 191 78 Lift irrigation 2 2 100 Storage reservoir 19 16 84 Syphon irrigation 9 7 78 Sedimentation tank 1 0 0 Channelization of rivers 3 0 0 Transport 188 158 84 Link roads 164 140 85 Bridge/link road 21 16 76 Pony tracks 2 2 100 Foot bridges 1 0 0 Other 92 75 82 Protective works 60 58 97 Flour mill 0 0 0 Boundary walls 0 0 0 Nursery 31 16 52 Hydel scheme 1 1 100 Mud-flow control 0 0 0 Super passage 0 0 0 Total 560 449 80 141 (Annex Table 1.6 continued) Completed Region/type of project Initiated (no.) Number Percentage Baltistan Irrigation 311 228 73 Feeder channels/pipe irrigation 273 196 72 Lift irrigation 12 10 83 Storage reservoir 24 22 92 Syphon irrigation 2 0 0 Sedimentation tank 0 0 0 Channelization of rivers 0 0 0 Transport 87 77 89 Link roads 44 37 84 Bridges/link road 0 0 0 Pony tracks 36 34 94 Foot bridges 7 6 86 Other 141 119 84 Protective works 69 65 94 Flour mill 71 53 75 Boundary walls 0 0 0 Nursery 1 1 100 Hydel scheme 0 0 0 Mud-flow control 0 0 0 Super passage 0 0 0 Total 539 424 79 Astore Irrigation 27 1 4 Feeder channels/pipe irrigation 26 1 4 Lift irrigation 0 0 0 Storage reservoir 1 0 0 Syphon irrigation 0 0 0 Sedimentation tank 0 0 0 Channelization of rivers 0 0 0 Transport 10 2 20 Link roads 7 1 14 Bridges/link road 3 1 33 Pony tracks 0 0 0 Foot bridges 0 0 0 Other 5 0 0 Protective works 3 0 0 Flour mill 0 0 0 Boundary walls 0 0 0 Nursery 2 0 0 Hydel scheme 0 0 0 Mud-flow control 0 0 0 Super passage 0 0 0 Total 42 3 7 142 (Annex Table 1.6 continued) Completed Region/type of project Initiated (no.) Number Percentage Four districts Irrigation 862 662 77 Feeder channels/pipe irrigation 750 570 76 Lift irrigation 21 18 86 Storage reservoir 71 62 87 Syphon irrigation 13 9 69 Sedimentation tank 4 3 75 Channelization of rivers 3 0 0 Transport 359 308 86 Link roads 277 237 86 Bridges/link road 33 26 79 Pony tracks 41 39 95 Foot bridges 8 6 75 Other 280 234 84 Protective works 162 153 94 Flour mill 73 55 75 Boundary walls 5 5 100 Nursery 36 18 50 Hydel scheme 1 1 100 Mud-flow control 2 1 50 Super passage 1 1 100 Total 1,501 1,204 80 Source: AKRSP's monitoring, evaluation, and research section. 143 ANNEX TABLE 1.7: PRODUCTIVE INFRASTRUCTURE PROJECTS, COSTS, AND CONSTRUCTION PROGRESS, BY TYPE OF PROJECT, AS OF DECEMBER 1994 (cumulative) AKRSP Disbursement Corn pletion" No. of grant Region/type of project projects (rs. '000) Rs. '000 Percent Number Percent Gilgit Irrigation 245 45,590 41,086 90 218 89 Feeder channels 198 35,007 30,653 88 177 89 Pipe/syphon irrigation 9 2,399 2,419 101 7 78 Lift irrigation 7 2,700 2,580 96 6 86 Storage reservoirs 27 4,745 4,765 100 24 89 Sedimentation tank 3 550 480 87 3 100 Tunnel 1 189 189 100 1 100 Channelization of rivers - - - - - - Transport 74 13,727 12,984 95 71 96 Link roads 62 11,476 10,797 94 59 95 Bridge/link road 9 1,741 1,697 97 9 100 Pony tracks 3 510 490 96 3 100 Foot bridges - - - - - - Other 42 7,397 6,757 91 40 95 Protective works 30 5,663 5,273 93 30 100 Flour mill - - - - - - Boundary walls 2 190 180 95 2 100 Nursery 5 490 450 92 5 100 Hydel scheme 2 644 504 78 1 50 Mud-flow control 2 220 190 86 1 50 Super passage 1 190 160 84 1 100 Total 361 66,714 60,827 91 329 91 Chitral Irrigation 280 63,180 58,240 92 216 77 Feeder channels 241 52,600 48,460 92 186 77 Pipe/syphon irrigation 14 4,910 4,790 98 12 86 Lift irrigation 2 350 320 91 2 100 Storage reservoirs 19 4,110 3,980 97 16 84 Sedimentation tank 1 290 290 100 - - Tunnel - - - - Channelization of rivers 3 920 400 43 - - Transport 188 42,010 38,990 93 158 84 Link roads 164 35,870 33,750 94 140 85 Bridge/link road 21 5,400 4,640 86 16 76 Pony tracks 2 440 350 80 2 100 Foot bridges 1 300 250 83 - - 144 (Annex Table 1.7 continued) AKRSP Disbursement Completiona No. of grant Region/type of project projects (rs. '000) Rs. '000 Percent Number Percent Chitral (continued) Other 92 21,690 19,680 91 75 82 Protective works 60 13,010 12,730 98 58 97 Flour mill 1 140 140 100 1 100 Boundary walls - - - - - Nursery - - - - - - Hydel scheme 31 8,540 6,810 80 16 52 Mud-flow control - - - - - - Super passage - - - - - - Total 560 126,880 116,910 92 449 80 Baltistan Irrigation 311 46,160 38,970 84 228 73 Feeder channels 238 34,350 27,620 80 162 68 Pipe/syphon irrigation 37 6,310 6,070 96 34 92 Lift irrigation 12 2,910 2,810 97 10 83 Storage reservoirs 24 2,590 2,470 95 22 92 Sedimentation tank - - - - - - Tunnel Channelization of rivers - - - - - - Transport 87 11,020 9,910 90 77 89 Link roads 44 5,690 4,890 86 37 84 Bridges/link road - - - - - - Pony tracks 36 4,120 3,900 95 34 94 Foot bridges 7 1,210 1,120 93 6 86 Other 141 20,360 18,470 91 119 84 Protective works 69 11,760 11,240 96 65 94 Flour mill - - - - - - Boundary walls 71 8,240 6,890 84 53 75 Nursery - - - - - - Hydel scheme 1 360 340 94 1 100 Mud-flow control - - - - - - Super passage - - - - - - Total 539 77,540 67,350 87 424 79 Astore Irrigation 27 9,509 3,143 33 1 4 Feeder channels 22 7,853 2,157 27 - - Pipe /syphon irrigation 4 1,491 931 62 1 25 Lift irrigation - - - Storage reservoirs 1 165 55 33 Sedimentation tank - - - - Tunnel Channelization of rivers 145 (Annex Table 1.7 continued) AKRSP Disbursement Completion a No. of grant Region/type of project projects (rs. '000) Rs. '000 Percent Number Percent Astore (continued) Transport 10 2,533 956 38 2 20 Link roads 7 1,604 603 38 1 14 Bridges/link road 3 929 353 - 1 - Pony tracks - - - - - Foot bridges - - - - - - Other 5 2,023 1,103 55 - - Protective works 3 1,137 517 45 - - Flour mill - - - - - - Boundary walls - - Nursery - - - - - - Hydel scheme 2 886 586 66 - Mud-flow control - - - - - - Super passage - - - - - - Total 42 14,065 5,202 37 3 7 Four districts Irrigation 863 164,439 141,439 86 663 77 Feeder channels 699 129,810 108,890 84 525 75 Pipe/syphon irrigation 64 15,110 14,210 94 54 84 Lift irrigation 21 5,960 5,710 96 18 86 Storage reservoirs 71 11,610 11,270 97 62 87 Sedimentation tank 4 840 770 92 3 75 Tunnel 1 189 189 100 1 100 Channelization of rivers 3 920 400 43 - - Transport 359 69,290 62,840 91 308 86 Link roads 277 54,640 50,040 92 237 86 Bridges/link road 33 8,070 6,690 83 26 79 Pony tracks 41 5,070 4,740 93 39 95 Foot bridges 8 1,510 1,370 91 6 75 Other 280 51,470 46,010 89 234 84 Protective works 162 31,570 29,760 94 153 94 Flour mill 1 140 140 100 1 100 Boundary walls 73 8,430 7,070 84 55 75 Nursery 5 490 450 92 5 100 Hydel scheme 36 10,430 8,240 79 18 50 Mud-flow control 2 220 190 86 1 50 Super passage 1 190 160 84 1 100 Total 1,502 285,199 250,289 88 1,205 80 a. Refers to projects on which construction has started. Souirce: AKRSP's monitoring, evaluation, and research section. 146 ANNEX TABLE 1.8: SUMMARY DATA OF PRODUCTIVE PHYSICAL INFRASTRUCTURE PROJECTS BY DISTRICT, DECEMBER 1994 Gilgit Chitral Baltistan Astore Total Number of projects initiated 360 560 539 42 1,501 Cost of projects initiation (rs. millions) 67 127 78 14 285 Number of beneficiary households 32,575 25,754 24,006 2,854 85,189 Physical progress of projects 82 80 79 29 80 Number of projects completed 328 449 424 3 1,201 Soturce: AKRSP 1994b. ANNEX TABLE 1.9: PRODUCTIVE PHYSICAL INFRASTRUCTURE (yearly additions) PPIs Cost Completed PPIs Year initiated (no.) (rs. millions) per year (no.) 1983 104 15.30 23 1984 112 17.50 91 1985 103 21.90 81 1986 93 17.50 62 1987 159 24.60 116 1988 186 32.30 139 1989 144 25.49 118 1990 166 35.10 133 1991 137 26.71 119 1992 111 23.04 113 1993 110 26.07 128 1994 76 19.49 81 Total 1,501 285.00 1,204 Souirce: AKRSP 1994b. 147 ANNEX TABLE 1.10: THIE TRAINING PROGRAM-NUMBER OF TRAINEES Appropriate Farm Cluster All Year Agriculture Forestry Livestock Poultry Marketing Accounts technology machinery hatchery subjects Regular courses 1983 46 0 45 0 0 0 0 0 0 91 1984 45 0 61 69 0 0 0 0 0 175 1985 67 0 85 72 38 0 0 0 0 262 1986 136 0 89 58 49 0 0 0 0 332 1987 143 0 124 58 49 16 0 0 0 390 1988 207 0 200 217 48 33 28 0 0 733 1989 331 50 124 139 47 60 74 0 0 825 1990 481 48 158 290 47 153 37 0 0 1,214 1991 339 138 111 156 21 300 222 31 0 1,318 1992 254 196 91 162 18 274 0 0 4 999 1993 245 104 124 96 9 216 32 0 8 834 1994 205 90 81 184 64 90 59 0 8 781 Total 2,499 626 1,293 1,501 390 1,142 452 31 20 7,954 Refresher and other courses 1984 89 0 60 0 0 0 0 0 0 149 1985 27 0 68 14 0 0 0 0 0 109 1986 97 0 151 18 32 0 0 0 0 298 1987 119 0 141 25 24 0 0 0 0 309 1988 129 0 76 15 15 22 0 0 0 257 1989 70 0 195 12 23 0 0 0 0 300 1990 369 25 475 89 21 0 0 0 0 979 1991 390 43 536 60 20 0 37 0 0 1,086 1992 440 68 635 178 23 115 0 0 0 1,459 1993 1,069 68 798 325 25 188 0 0 0 2,473 1994 988 124 876 400 161 339 6 0 0 2,894 Total 3,787 328 4,011 1,136 344 664 43 0 0 10,313 Sou1rce: AKRSP 1994b. ANNEX TABLE 1.11: THE TRAINING PROGRAM-NUMBER OF COURSES Appropriate Farm Cluster All Year Agriculture Forestry Livestock Poultry Marketing Accounts technology machinery hatchery subjects Regular courses 1983 2 0 2 0 0 0 0 0 0 4 1984 2 0 3 3 0 0 0 0 0 8 1985 5 0 4 3 2 0 0 0 0 14 1986 8 0 5 1 2 0 0 0 0 16 1987 9 0 5 4 4 1 0 0 0 23 1988 12 0 9 10 4 2 2 0 0 39 1989 8 2 6 10 4 3 5 0 0 38 1990 25 3 7 15 4 12 5 0 0 71 1991 21 7 6 13 2 24 21 1 0 95 1992 15 10 5 15 2 21 0 0 1 69 1993 18 7 7 8 1 14 3 0 1 59 1994 16 5 5 14 5 5 4 0 1 55 Total 141 34 64 96 30 82 40 1 3 491 Refresher and other courses 1984 2 0 3 0 0 0 0 0 0 5 1985 3 0 5 1 0 0 0 0 0 9 1986 6 0 6 1 2 0 0 0 0 15 1987 7 0 3 2 2 0 0 0 0 14 1988 4 0 3 1 2 1 0 0 0 11 1989 3 0 5 1 2 0 0 0 0 11 1990 19 2 20 6 2 0 0 0 0 49 1991 22 3 32 5 3 0 10 0 0 75 1992 23 4 26 8 2 8 0 0 0 71 1993 39 4 33 15 2 8 0 0 0 101 1994 36 9 33 29 8 18 1 0 0 134 Total 164 22 169 69 25 35 11 0 0 495 Soiurce: AKRSP 1994b. ANNEX TABLE 1.12: AKRSP PRODUCTION PACKAGES FOR WOMEN'S ORGANIZATIONS, BY DISTRICT (cumutlative to 1994; nuimber, utnless otherwise noted) GilgitV Chitral Baltistan Total Appropriate technology (items) Grant 292 658 436 1,386 Loan 1,659 253 1,102 3,014 Nursery development project 76 23 40 139 Orchard development project 115 18 18 151 Vegetable demo plot 157 129 122 408 Home-based poultry (no. VOs/WOs) 193 188 222 603 Goat/sheep 127 - - 127 Commercial vegetable villages 36 - - 36 Commercial vegetable plots 24 - 12 36 Cluster hatchery 8 3 5 16 Semi-commercial poultry Number of WOs 22 - 14 36 Number of participants 104 - 17 121 Credit disbursement Short-term Group loans 313 4 2 319 Amount (rs. millions) 4 0 0 4 Beneficiary households 11,037 61 51 11,149 Medium-term Group loans 26 1 - 27 Amount (rs. millions) 1 0 - 1 Beneficiary households 1,199 60 - 1,259 WO credit Group loans 189 43 1 233 Amount (rs. millions) 20 2 0 21 Beneficiary households 8,963 -1,384 38 10,385 Village specialists 1,680 ]L,163 650 3,493 Agricultureb 570 488 378 1,436 Livestockc 149 - - 149 Poultryd 752 430 264 1,446 Forest nursery 46 - - 46 Appropriate technologye 139 222 - 361 Cluster hatcheries 8 4 8 20 Accounts 16 19 - 35 Participants in demos 4,796 745 1,686 7,227 Agriculturef 518 160 710 1,388 Livestock (silage) 54 - - 54 Appropriate technology 4,214 562 938 5,714 Forestry 10 23 38 71 a. Includes Astore. b. Agricultural nursery, plant production and protection, and vegetable growing. c. Disease control and goat management. d. Disease control and management. e. Spinning wheel, butter chum, nut cracker. f. Vegetable cultivation. Source: AKRSP monitoring, evaluation, and research section. 150 ANNEX TABLE 1.13: GIRLS' AND BOYS' SCHOOLS IN THE NORTHERN AREAS AND CHITRAL, 1994 Gilgit' Chitral Baltistanb Government AKESC Government AKES government Total Percent of School level Male Female Male Female Male Female Male Female Male Female Male Female girls' schools Primary 243 54 - 74 250 98 - 35 216 45 709 306 30 Middle 65 16 - 44 30 13 - 15 43 8 138 96 22 Secondary 47 10 - 8 39 3 - 1 30 4 116 26 18 Total 355 80 - 126 319 114 - 51 289 57 963 428 30 a. Encludes Diamer and Ghize. b. Includes Skardu and Ghanche/Khaplu. c. AKES is an abbreviation for the Aga Khan Educational Service. Source: Northern Areas Secretariat. 01 t'J ANNEX TABLE 1.14: AKRSP SOURCES OF INCOME, BY DONOR (rmpees 'OOs) Donor 1982-83 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Total Percentage Aga Khan Foundation (AKF) Network 14,852 10,048 12,819 17,411 14,200 8,346 9,253 8,262 18,481 8,422 7,079 15,339 144,512 12 AKF Pakistan 10,960 7,160 5,901 7,663 7,778 5,251 7,819 6,959 17,078 7,101 5,086 12,676 AKF Canada 1,420 2,357 1,398 1,199 2,013 1,107 720 1,303 1,403 1,321 1,993 2,663 AKF USA 1,329 3,193 4,430 3,992 AKF UK 1,143 531 2,327 4,119 417 1,988 714 Canadian Intemational Development Agency 5,439 9,245 11,240 14,778 18,595 27,533 38,093 15,062 20,635 46,044 37,401 77,063 321,128 28 Alberta Aid 236 2,192 3,486 4,062 467 545 10,988 1 US Agency for Intemational Development 1,426 4,097 5,820 5,950 17,293 1 Ford Foundation 1,325 496 1,821 0 Heifer Intemational 1,518 40 139 1,697 0 Overseas Development Agency 327 913 2,092 3,471 181 33,809 21,946 22,013 65,900 17,977 34,582 19,316 222,527 19 OXFAM 603 552 544 1,447 1,701 283 530 822 857 7,339 1 Common European Community 2,391 2,428 3,481 9,069 4,618 16,046 13,726 51,759 4 Eastern Electricity 176 88 249 513 0 The Netherlands Government 4,109 7,669 20,584 30,899 37,662 15,386 26,660 37,340 31,177 41,324 252,810 22 Konrad Adenauer Foundation 1,299 1,814 3,387 10,731 4,595 4,0)26 10,525 36,377 3 World Conservation Union 1,198 1,701 2,899 0 Norwegian Agency for International Development 14,034 13,498 15,392 22,586 65,510 6 Deutsche Gesellschaft fur Technische Zusammenarbeit/BMZ 8,897 4,906 13,8(03 1 The World Bank 860 2,611) 3,470 0 Local Bodies and Rural Development Department 89 89 30 208 0 Northern Areas Council 884 195 1,079 0 Govemment of Pakistan 3,048 334 3,382 () JICA 1,309 Total 22,782 23,039 36,301 51,305 70,777 110,587 109,771 69,256 168,033 133,527 156,093 208,953 1,159,115 100 US$'000 equivalent 1,739 1,572 2,279 3,081 4,068 6,144 5,344 3,192 7,060 5,324 5,555 6,835 52,193 Souirce: AKRSP monitoring, evaluation, and research section. ANNEX TABLE 1.15: AKRSP ANNUAL EXPENDITURE SINCE START-UP (rmpees 'OOOs) Percent- Expenditure 1982-83 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 Total age Capital expenditure 1,931 1,992 2,673 3,715 3,367 7,191 3,203 5,002 11,315 8,715 15,797 2,237 67,138 6 Salaries 1,798 2,577 3,893 6,305 9,812 18,907 20,961 25,557 31,831 34,774 36,774 60,151 253,340 24 Travel 485 471 742 1,161 1,420 4,251 4,130 5,620 7,022 6,726 7,425 7,404 46,857 4 Administration 36 131 141 239 196 5,059 4,636 5,545 3,421 6,516 9,249 5,222 40,391 4 Office maintenance 370 576 1,076 1,828 2,279 1,671 2,311 2,907 6,753 4,772 5,307 4,446 34,296 3 Vehicle operation 264 341 577 515 527 2,750 3,537 4,688 7,098 7,333 9,592 10,382 47,604 5 Total operating cost 4,884 6,088 9,102 13,763 17,601 39,829 38,778 49,319 67,440 68,836 84,144 89,842 489,626 46 Training 296 913 2,752 4,575 6,839 4,794 8,960 8,944 8,895 10,122 11,197 11,221 79,508 8 Research, survey, and demonstration 1,726 3,289 4,492 3,802 9,414 3,054 3,916 9,663 11,688 13,248 16,859 22,595 103,746 10 Infrastructure projects 7,204 12,083 13,665 15,490 20,519 26,397 27,046 35,928 27,411 24,575 26,879 19,326 256,523 24 Credit program (net) 517 153 5,745 6,727 15,065 13,796 8,874 2,290 707 12,874 29,584 31,643 127,975 12 Total 14,627 22,526 35,756 44,357 69,438 87,870 87,574 106,144 116,141 129,655 168,663 174,627 1,057,378 100 US$'000 equivalent 1,116 1,603 2,244 2,664 3,990 4,881 4,263 4,891 4,882 5,169 6,002 5,713 47,418 Soturce: AKRSP monitoring, evaluation, and research section. Ul cx ANNEX TABLE 1.16: AKRSP STAFF STRENGTH, 1987-94 Distribution Category 1987 1988 1989 1990 1991 1992 1993 1994 (%) Management group 9 10 10 13 153 13 12 13 3 Senior professionals 21 16 25 50 49 52 55 53 12 Junior professionals 61 62 78 100 112 105 104 126 29 Support staff 53 49 55 59 51 57 56 77 17 Drivers/auxiliaries 89 100 102 95 100 116 127 172 39 Total 233 237 270 317 327 343 354 441 100 Percent increase 2 14 17 3 5 3 25 SoLurce: AKRSP monitoring, evaluahon, and research section. 154 ANNEX TABLE 1.17: CONSOLIDATED PICTURE OF RURAL SUPPORT PROGRAMS, AS OF DECEMBER 1994 (nuimber, uinless otherwise noted) AKRSP BRSPb IRDPC KIDPd NRSpe SIAPf SRSO (1983)a (1991) (1990) (1987) (1992) (1990) (1990) Total Districts 6 12 1 1 8 1 4 33 Village, community, and women's organizations 1,834 299 100 132 555 46 225 3,191 Women's organizations 768 124 46 7 232 - 98 1,273 Total organizations 2,602 423 146 139 787 46 321 4,464 Membership male 76,084 6,267 4,186 7,351 13,746 536 7,150 115,002 Membership female 26,089 1,744 1,780 215 6,237 - 2,769 38,834 Total membership 102,653 8,011 5,966 7,566 19,905 536 9,919 154,634 Average membership of village organizations and community organizations (COs)h 42 21 42 58 25 12 32 36 Average membership of women's organizations 34 14 39 31 27 - 29 31 VO/CO/WO savings (rs. millions) 170.64 7.20 1.71 0.50 52.77 0.07 3.75 194.70 WO savings (rs. millions) 32.96 0.66 - - 0.94 - 0.73 35.29 Total savings (rs. millions) 211.80 7.92 1.71 0.50 3.71 0.07 4.48 229.99 Infrastructure schemes 1,501 343 161 124 90 - 150 2,389 Infrastructure investment (rs. millions committed) 285.00 57.40 47.41 10.00 6.64 0.73 30.00 437.18 Cumulative credit disbursed (rs. millions) 349.53 19.79 - 0.18 8.30 - 7.82 385.81 Total investment (rs. millions) 634.53 77.19 47.41 10.18 14.94 0.73 37.82 822.79 VO/CO/WO office-bearers trained 5,212 422 279 1,574 2,093 9,580 Village specialists trained 7,954 94 541 23 1,649 685 10,945 General training 1,454 103 471 1,600 325 3,953 Total village cadre trained 13,166 1,970 923 494 1 3,103 24,479 (continued) U1 Ul (Annex Table 1.17 continued) AKRSP BRSPb IRDPC KIDPd NRSPe SIAPfJ SRsC (1983)a (1991) (1990) (1987) (1992) (1990) (1990) Total Management staff 13 5 4 9 9 40 Professional staff 179 84 6 58 92 419 Support staff 249 66 59 108 74 556 Total staff strength 441 155 69 175 175 1,015 Expenditure to date (rs. millions) 1,197.29 279.55 145.60 95.24 1,717.68 Estimated direct beneficiaries 655,555 43,860 42,000 55,000 181,864 4,288 84,000 1,066,567 a. Dates in parentheses under program name indicate year of program inception. b. The Balochistan Rural Support Program (BRSP) is the successor institution of the Pak German Help Project implemented by the German Agency for Technical Cooperation and the Local Bodies and Rural Development Department. It was established as an NGO in 1991. Since the program inherited the Pak German Help Project's assets and organization achievements, BRSP data include Rs. 95 million expended during the PGI-ISP phase. c. The Integrated Rural Development Program (IRDP) data are from April 1, 1995; IRDP does not disburse loan-s but supports internal lending from savings within village organizations. d. Kalam Irrigation Development Project. e. National Rural Support Program. f. Swabi Irrigated Agricultural Project. g. Sarhad Rural Support Corporation. h. Mixed community organizations (with male and female members) formed by the National Rural Support Program have been included under the CO category. Souirce: Rural Support Program Network, Islamabad. Annex 2: The technology development process Chapter 3 emphasized the need for a more ef- The masterfarmer. Representatives from a clus- fective technology development process. The ter of village organizations would be partners existing arrangements have not been adequate- in the process. They would be chosen by their ly responsive to the real needs of the various communities for their expertise and innova- production systems, especially with respect to tiveness in local farming (Ashby et al. 1995). traditional cereal crops and animal nutrition. Perhaps called master farmers, they would be The evaluation believes that categorization of at the same level as the master trainer cadre. the production/farming systems would pro- Two master farmers could be chosen for each vide a basis for managing the diversity in agri- cluster. The wealthier and poorer categories of culture across the program area. It would households in the cluster each would have encourage the development of technology rele- their representative. Master farmers would vant to the different systems and permit a need to be paid for the time involved in their more informed dialogue with communities. participation. The mission returned to this theme in Chapter 7 where it set out the principles that could Groups of master farmers would meet with the drive an improved process for technology ac- AKRSP junior professional staff in charge of quisition, generation, and adaptation. This research sites, which would be the locational annex outlines one scheme that AKRSP might interface for technology development. Prefer- consider. ably, nine sites close to field management units would be selected to cover the three broad types of farming determined by the ecological The scheme zone in each region. Technically, only one site for each of the ecological zones would be suffi- In keeping with the emphasis on beneficiary cient, and the initial establishment could be on participation, the description of the scheme this basis. However, the need for frequent in- starts at the level of the farmer participant. teraction between AKRSP junior professionals Limitations on resources dictate that the oper- and master farmers at these sites and the pro- ational level for technology development gram area's access difficulties suggest that hav- would be a cluster of villages rather than the ing each zone represented in each of the three single village. The partnership between farm- regions is more realistic. The experience gained ers and the research program would be at the in managing early sites would influence this cluster level. decision. Moving master farmer groups by 157 helicopter would perhaps reduce the number At least one site in each region would have of sites required, but would introduce an ele- researcher-managed experiments under con- ment of heavy dependence on the availability trolled conditions, and all three sites in a re- of this resource. gion would have experiments on farmers' fields for adapting technologies and widening Under such an arrangement, assuming eight their exposure to farmers. Dialogues with to ten VOs in a cluster, each with an average of master farmers would be the foundation for two master farmers, the program area would planning both types of investigation, and have 400 such farmers in 200 clusters (that is, groups of masterfarmers would review both 40-50 per research site). Arranging for groups researcher-managed and on-farm experiments. of 20 master farmers to visit research sites, on- farm trials, and innovative local farmers and, AKRSP staff AKRSP would be represented in assuming three visits a year for each farmer, the partnership by junior professionals who would require each junior professional in would be in charge of the research sites and in- charge of a site to organize six to eight group teract with master farmer groups. A major task visits a year. for such professionals would be understanding master farmer perspectives and using these in Further synergies could be created by bringing the design and evaluation of experiments. The master farmers together in research fora for three site professionals in each region would be the single, transitional, and double crop zones. under the day-to-day supervision of the region- These would widen the dialogue both among al natural resource management manager and master farmers and with AKRSP staff. From would involve the regional technical specialists these fora, representative master farmers in the planning and evaluation of experiments could be appointed to cross-regional commit- together with the master farmer groups. Overall tees concerned with farming systems in a par- coordination of research would be by a senior ticular zone. Visits could be arranged for these professional on the core staff in Gilgit. This indi- committees to research sites and local farmers vid[ual would be responsible for establishing who had new practices to demonstrate. and overseeing the links with local public and private research institutions. He/she would Work at each research site would cater to the need to understand the needs of the categories other dimensions of diversity important in the of farming systems and look worldwide to iden- farming of the program area: tify candidate technologies for local evaluation. As indicated at the outset, with nine sites this * crop, livestock, and forest interventions research hierarchy would absorb one senior and under a natural resource management sys- nine junior professionals. tems umbrella; Expertise. This scheme would have to go * subsistence and market production oppor- through a pilot phase to establish operational tunities; procedures and to train staff, especially the junior professional cadre, in their roles. Its in- * village land and water endowment differ- troduction would require the purchase of spe- ences; and cialized expertise. On the other hand, as suggested earlier, a cooperative agreement * interhousehold differences, and women's with an institution that already has such ex- programs. pertise may be feasible. 158 Apart from retraining AKRSP professionals in training for AKRSP staff and for the initial the systems perspective, specific training for master farmer recruits. master farmers would also be necessary. Im- portantly, the concept would have to be * Develop a categorization of all village and explained and promoted through village orga- women's organizations in the program nization manager conferences and through area. A task force under the leadership of master trainers and village specialists, so that the research manager could develop a the communities identify with the process and framework of categories and an analysis of take ownership of it through their selected the main characteristics of the major farm- master farmers. ing systems. This would maximize the use of available information, but would be Technology diffision. The village specialists and complemented as necessary with rapid master trainers would continue to play the key rural surveys to fill obvious gaps in knowl- role in diffusion of relevant technology to ben- edge and understanding. eficiary households through the village organi- zation. The field management unit could * Establish early and close links with the Pak- coordinate interactions and the flow of infor- istan Agricultural Research Council and the mation between master farmers, research sites, National Agricultural Research Center. The and master trainers, bridging the generation goal would be to collaborate in testing a and diffusion of technologies. The field man- farm-based interface between small farmers agement unit would also provide the training and researchers, with the ultimate aim of associated with new packages and monitor influencing research programming at their implementation through the appropriate Jaglotte, Chitral, and Skardu. It would be master trainers and village specialists. part of the research manager's responsibility to look both locally and abroad to identify Scheme implementation. One sequence for imple- candidate technologies for local conditions. menting the scheme might be the following: E Identify sites for researcher-managed trials. * Appoint a single research manager at the These could initially be limited to one per core, who would have the regional program agroecological zone, but with two addition- managers for natural resource management al junior researchers in each region mandat- as his/her representatives at the regional ed to do on-farm trials for the other two level, where there would eventually be nine zones. junior professionals dedicated virtually full-time to the scheme. * Pursue the possibility of contracting specif- ic areas of applied and adaptive research to * Identify and engage a source of technical cooperating institutions such as the Tuti- assistance with experience in farmers work- Fruiti private company for fruit and veg- ing with researchers and in on-farm experi- etable technology in Chitral, particularly mentation. The technical assistance would where there is a strong link with market help initiate the process and would provide access. 159 References Adams, R. H. Jr. (1994). "Non-Farm Income AKRSP. (1995). "Future Vision." Draft. Gilgit, and Inequality in Rural Pakistan: A Decom- Northern Areas, Pakistan: AKRSP. position Analysis," The Journal of Develop- ment Studies, Vol. 31, No. 1. Ali, F., P. Ahmed, M. Ali, and K. A. Tetlay. (1995). "Participatory Action Research in Ahmad, R., T. Raza, and R. Muzaffar (1993). Northern Pakistan: A Preliminary Report The Role of Agricultural Extension in Income on the Minapin Sheep Project." Draft. Generating Projects for Women: The Case of Gilgit, Northern Areas, Pakistan: AKRSP. AKRSP Commercial Vegetable Package. Gilgit, Northern Areas, Pakistan: Aga Khan Rural Ali, T. (1992). Evaluation of a Training Course o07 Support Program (AKRSP). Village Forestry. Gilgit, Northern Areas, Pak- istan: AKRSP. AKRSP (1983). "Evaluation Notes: Agriculture No. 1." Gilgit, Northern Areas, Pakistan: Asad, A. and A. Anwar. (1993). An Evaluation AKRSP. of the Village Forest Specialist Program. Gilgit, Northern Areas, Pakistan: AKRSP. (1990). "Evaluation Notes: Agriculture No. 6." Gilgit, Northern Areas, Pakistan: Ashby, J., A. T. Garcia, M. P. Guerrero, C. A. AKRSP. Quiros, R. I. Roa, and J. A. Beltran (1995). Institutionalizing Farmer Participation in (1992). AKRSP Tenth Annual Review. Adaptive Technology Testing with the "CIAL." Gilgit, Northern Areas, Pakistan: AKRSP. Colombia: Centro Internacional de Agricul- tura Tropical. (1993). AKRSP Eleventh Annual Review. Gilgit, Northern Areas, Pakistan: AKRSP. Azfar, A. and A. Ali (1993). An Evaluation of the Village Forestry Specialist Program. Gilgit, (1994a). AKRSP in the Mainstream: Orga- Northern Areas, Pakistan: AKRSP Monitor- nizational Strategyfor the 1990's and Beyond. ing, Evaluation, and Research. Gilgit, Northem Areas, Pakistan: AKRSP. Bhatti, M. H. and M. J. Khan (1992). Benchmark (1994b). AKRSP Twelfth Annual Review: Survey and Impact Evaluation of AKRSP in Incorporating the Forty-Eighth Progress Report. Gilgit Region. Gilgit, Northern Areas, Pak- Gilgit, Northern Areas, Pakistan: AKRSP. istan: AKRSP. 161 Bhatti, M. H. and K. A. Tetlay (1994). An Inter- --. (1991). Impact of the Poultry Package on im Evaluation of the AKRSP. Gilgit, Northern Baltistan: An In-House Assessment. WID Sec- Areas, Pakistan: AKRSP. tion. Baltistan, Northern Areas, Pakistan: .AKRSP. Bhatti, M. H. and K. A. Tetlay (1995). Socio- economic Survey of Astore Valley. A Bench- -- and Aasia Naz (1993). Gulabpure: Where mark Survey. Gilgit, Northern Areas, to From Subsistence Poultry Production? Pakistan: AKRSP. Baltistan, Northern Areas, Pakistan: AKRSP. Bhatti, M. H., K. A. Tetlay, and M. J. Khan Ghani, N. and T. Raza (1994). An Evaluation (1993). Benchmark Survey and Impact Evalua- Report on Plastic Tunnels in Baltistan: Five tion of AKRSP in Baltistan. Gilgit, Northern Cases. Baltistan, Northern Areas, Pakistan: Areas, Pakistan: AKRSP. AKRSP. Bhatti, M. H., K. A. Tetlay, and M. J. Khan Government of Pakistan (1981). Agricultural (1994). Benchmark Survey and Impact Evalua- Census of Pakistan. Islamabad: Government tion of AKRSP in Chitral Region. Gilgit, of Pakistan. Northern Areas, Pakistan: AKRSP. -. (1994). Statistical Yearbook. Islamabad: Bhatti, M. H., K. A. Tetlay, and D. Malik (1994). Government of Pakistan. Farming in Northern Pakistan-Resultsfor 1991 & An Interim Evaluation of AKRSP. Hai, Akhtar A. (1995). Factors Affecting the Perfor- Gilgit, Northern Areas, Pakistan: AKRSP. mance of AKRSP Irrigation Schemes in Northern Areas of Pakistan. Karachi: Applied Economics Byerlee, D. and T. Husain (1992). Farming Sys- Research Centre, University of Karachi. tems of Pakistan. Lahore, Pakistan: Vanguard Books Pvt. Ltd. --. (1989). Impact of Rural Roads on Rural Households. 1981 Census. Gilgit, Northern Christen, Robert P., Elizabeth Rhyne, and Areas, Pakistan: AKRSP Monitoring, Evalu- Robert C. Vogel (1993). "Maximizing the ation, and Research. Outreach of Microenterprise Finance: the Emerging Lessons of Successful Programs." Hafeez, W. (1994). Assessment of Fruit Develop- Arlington, VA: IMCC. ment Package. Gilgit, Northern Areas, Pakistan: AKRSP Natural Resource Clark, Jane (1995). Women in Forestry: A Con- Management. ceptfor the Future. Gland, Switzerland: World Conservation Union. Heisey, P. W., M. Ahmad, E. J. Stevens, and K. Khan (1992). "Crop Intensification in Maize Conway, G. D. (1985). An Evaluation Report on Based Mountain Agriculture: The Swat Plastic Tunnels in Baltistan: Five Cases. Mountains." In Byerlee and Husain, Farm- Baltistan, Northern Areas, Pakistan: AKRSP. ing Systems of Pakistan. Durrani, Sunniya (1993). The Home-Based 2 Husain, T. (1992). "Resource Interactions and Poultry Package: An Assessment of the Contri- Innovation in the Wheat-Livestock Systems bution to Family Labor. Baltistan, Northern of Gilgit." In Byerlee and Husain, Farming Areas, Pakistan: AKRSP. Systems of Pakistan. 162 Hussain, Humera (1993). An Impact Case Study AKRSP Management and Staff in Gender Aware- on7 Vegetable Introduction Package in Three Re- ness. Gilgit, Northern Areas, Pakistan: AKRSP. gions of the Program Area. Gilgit, Northern Areas, Pakistan: AKRSP Agriculture and Malik, A. and Sandra Kalleder (1995). "Gather- Women in Development. ing the Second Harvest: A Case Study From Northern Pakistan." Draft. Gilgit, Northern Hussain, I. and R. Grzywinski (1994). AnZ Inte- Areas, Pakistan: AKRSP. grated Approach to Development Finance. Chicago, IL: Shorebank Corp., Strategic De- Nyborg, Ingrid and K. Hamidullah (1995). Re- velopment Committee, and Aga Khan view of AKRSP Sustainable Forestry Develop- Foundation. ment Program (1991-1995). Gilgit, Northern Areas, Pakistan: AKRSP. Iqbal, M., T. Roochi, and A. Gloekler (1995). Situation Analysis of the Poultry Enterprise in Operations Evaluation Department (1990). The Baltistan. Gilgit, Northern Areas, Pakistan: Aga Khan Rural Support Program in Pakistan: AKRSP. Second Interim Evaluation. Washington, DC: World Bank. Joint Monitoring Mission (1994). Report of the Joint Monitoring Mission. Gilgit, Northern Rasmussen, Stephen, Zeba Rasmussen, and Areas, Pakistan: AKRSP. Zohran Shah (1992). Better Health in the Karakorums of Northern Pakistan. Gilgit, Kalleder, Sandra (1994a). Study on Intra-Houtse- Northern Areas, Pakistan: Aga Khan Health hold Decision Making Processes on Income Ex- Service. penditure and Family Planning. Baltistan, Northern Areas, Pakistan: AKRSP. Rhoades, R. E. (1992). An Integrated Systems Approach to Sustainable Agricultutre in (1994b). WID Monitor Report on Possible AKRSP's Program Area. Gilgit, Northern Interrelations Between Economic and Social De- Areas, Pakistan: AKRSP. velopmentfor Women in Baltistan. Baltistan, Northern Areas, Pakistan: AKRSP. Regional Program Office, Gilgit (1995). Annual Plan 1995. Gilgit, Northern Areas, Pakistan: Khan, M. H. (1989). Impact of AKRSP in Gilgit AKRSP. District. Gilgit, Northern Areas, Pakistan: AKRSP. Saunders, F. (1983). Kakoram Villages. Rome: Food and Agriculture Organization (FAO). Khan, N. and A. Muneer (1993). A Viewfrom the Field: Village Based Master Trainers in Ac- Strategy Development Committee (1994). "Re- tion. Gilgit, Northern Areas, Pakistan: port of the Strategy Development Commit- AKRSP Human Resource Development. tee." Draft. Gilgit, Northern Areas, Pakistan: AKRSP. Khan, Shandana (1991). Vegepack: An Evalua- tion of the Vegetable Package. Gilgit, Northern Sperling, L., M. Loevinsohn, and B. Ntabomvura Areas, Pakistan: AKRSP. (1993). "Rethinking the Farmer's Role in Plant Breeding: Local Bean Experts and On Station Malik, A. and Raza Ahmad (1994). Addressing Selection in Rwanda," Experimental Agricul- Gender Relations in Ruiral Development: Training ture, Vol. 30, No. 3. C.UP. 163 Streefland, P. H., S. H. Khan, and 0. van - . I. Hussain, M. Ali, A. Ali, and F. Ali Lieshout (1995). AKRSP Contextual Study of (1991). Techno-economic interventions for Live- the Northern Areas and Chitral. Gilgit, North- stock Development: A Preliminary Evaluation ern Areas, Pakistan: AKRSP. of the Feed Improvement Program in Gilgit. Gilgit, Northern Areas, Pakistan: AKRSP. Tajammal, M. A. (1993). Review of Vegetable Seed Production Package. Gilgit, Northern Areas, Tetlay, K. A. and S. Khan (1993). Statistical Pre- Pakistan: AKRSP Agriculture. sentation of IMI Results of Women's Organiza- tions in Northern Pakistan. Gilgit, Northern Tetlay, K. A. (1993). Analyzing Village Organiza- Areas, Pakistan: AKRSP Monitoring, Evalu- tion Development: Institutional Maturity ation, and Research. Index, Results from Northern Pakistan. Gilgit, Northern Areas, Pakistan: AKRSP Monitor- Whiteman, P. T. S. (1985). Mountain Oases. ing, Evaluation, and Research. Rome: FAO. 164 Distributors of CZECH REPUBLIC R.O.Y. Intemational Oxford University Press Mundi-Prensa Barcelona World Bank National Information Center PO Box 13056 5 Bangalore Town Consell de Cent, 391 Publications prodejna, Konviktska 5 Tel Aviv 61130 Sharae Faisal 08009 Barcelona Prices and credit terms CS - 113 57 Prague 1 PO Box 13033 vary,from country to DENMARK Palestinian Authority/Middle Karachi-75350 SRI LANKA country. ConsuMt your SamfundsLitteratur East THE MALDIVES local distrrbutor before Rosenoerns AIll 11 Index Information Services PERU Lake House Bookshop placinig an order. DK-1970 Frederiksberg C RO.B. 19502 Jerusalem Editorial Desarrollo SA PO. Box 244 Apartado 3824 100, Sir Chittampalam A. ALBANIA EGYPT, ARAB REPUBLIC ITALY Lima 1 Gardiner Mawatha Adnion Ltd. OF Licosa Commissionaria Colombo 2 Pedat Rexhepi Str. Al Ahram, Al Galaa Street, Sansoni SPA PHILIPPINES Pall. 9, Shk. 1, Ap. 4 Cairo Via Duca Di Calabria, 1/1 Intemational Booksource SWEDEN Tirana Casella Postale 552 Center Inc. Fritzes Customer Service The Middle East Observer 50125 Firenze Suite 720, Cityland 10 Regeringsgaton 12 ARGENTINA 41, Sherif Street, Cairo Condominium Tower 2 S-106 47 Oficina del Libro Internacional JAMAICA H.V dela Costa, comer Stockholm Av. Cordoba 1877 FINLAND Ian Randle Publishers Ltd. Valero St., Makati, Metro 1120 Buenos Aires Akateeminen Kirjakauppa 206 Old Hope Road, Manila Wennergren-Williams AB P.O. Box 23 Kingston 6 P. 0. Box 1305 AUSTRALIA, FIJI, PAPUA FIN-00371 Helsinki POLAND S-171 25 NEW GUINEA, SOLOMON JAPAN International Publishing Solna ISLANDS, VANUATU, AND FRANCE Eastern Book Service Service WESTERN SAMOA Word Bank Publications Hongo 3-Chome, Ul. Piekna 31/37 SWITZERLAND D.A. Information Services 66. avenue dp16na Bunkyo-ku 113, Tokyo 00-577 Warzawa Librairie Payot 646 Whitehorse Road 75116 Paris Service Institutionnel Mitcham 3132 KENYA PORTUGAL Cotes-de-Montbenon 30 Victoria GERMANY Africa Book Service (EAU Livrana Portugal 1002 Lausanne UNO-Verlag Ltd. Rua Do Carmo 70-74 AUSTRIA PoppelsdorferAllee 55 Quaran House, Mfangano 1200 Lisbon Van Diermen Editions Gerold and Co. 53115 Bonn Street Vaniques Graben 31 PO. Box 45245, Nairobi TeChniques A-1011 Wien GREECE ROMANIA Ch. de Lacuez 41 Papasotriou S.A. KOREA, REPUBLIC OF Compani De Librari CHi1607 Blonay BANGLADESH 35, Stoumnara Str., 1 06 82 Daejon Trading Co. Ltd. BScreListai nA.26setr3 TNAI Micro Industres Development Athens RO. Box 34, Yeoeida Str. Lipacani no. 26, sector 3 A nN Press Assistance Society (MIDAS) SeoulBchrsOxodUieitPes House 5, Road 16 HONG KONG, MACAO Maktaba Street Dhanmondi R/Area ~Asia 2000 Ltd. MAASARUSSIAN FEDERATION PO Box 5299 Dhanmondi R/Area Asa20 t.MALAYSIA Isdatelstvo Dar es Salaam Dhaka 1209 Sales & Circulation University of Malaya 9a, Kolpachniy Pereulok Department CooperativeBookshop, Moscow 101831 THAILAND BELGIUM Seabird House, unit 1101-02 Limited, P.O. Box 1127 Centra Books D Jean De Lannoy 22-28 Wyndham Street, Jalan Pantai Baru CenSral Books Distribution Av. du Roi 202, 1060 Central, Hong Kong 59700 Kuala Lumpur SAUDIARABIA, QATAR 306Silom Road Brussels Jar Book Store Bangkok HUNGARY MEXICO PO. Box 3196, Riyadh 11471 BRAZIL Foundation for Market INFOTEC TRINIDAD & TOBAGO, Publicacbes Tecnicas Economy Apartado Postal 22-860 SINGAPORE, TAIWAN, JAMAICA Intemacionais Ltda. Dombovari Ut 17-19 14060 Tlalpan Mexico D.F MYANMAR, BRUNEI Systematics Studies Unit Rua Peixoto Gomide, 209 H-1117 Budapest Asahgate Publishing Asia #9 Watts Street 01409 Sao Paulo, SR NETHERLANDS Pacific Pte. Ltd. Curepe INDIA Os LindeboonvInOr- 41 Kallang Pudding Road Trinidad CANADA Allied Publishers Ltd. Publikaties #04-03 West Indies Renouf Publishing Co. Ltd, 751 Mount R RO Box 202 Golden Wheel Building 1294 Algoma Road Madras - 600 002 7480 AE Haaksbergen Singapore 349316 UGANDA Ottawa Gustro Ltd. Ontario Kl B 3W8 INDONESIA NEW ZEALAND SLOVAK REPUBLIC Madhvani Building Pt. Indira Limited EBSCO NZ Ltd Slovart G.T.G. Ltd. PO Box 9997 CHINA Jalan Borobudur 20 EBvatN Lid Krupinska 4 Plot 16/4 Jinja Rd. China Financial & Economic PO. Box 181 New Market PO Box 152 Kampala Publishing House Jakarta 10320 Auckland 852 99 Bratislava 5 8, Da Fo Si Dong Jie UNITED KINGDOM Beijing IRAN SOUTH AFRICA, Microinfo Ltd. Kowkab Publishers NIGERIA BOTSWANA RO. Box 3 COLOMBIA P0O. Box 1 9575-511, Tehran University Press Limited For single tifles: Alton, Infoenlace Ltda. re Crho Oxford University Press Hampshire GU34 2PG Apartado Aereo 34270 Ketab Sara Co. Publishers erivcho Southem Africa England Bogota D.E. Khaled Eslamboli Ave.,6th St. Pi.vate al ag 5 RO. Box 1141 Kusheh Delafrooz No. 8 lbadan Cape Town 8000 ZAMBIA COTE D'IVOIRE Tehran NORWAY University Bookshop Centre d'Edibon el de I Naesen Info tion Cet For subscription orders: Great East Road Campus Diffusion Africaines (CEDA) IRELAND B k mma Center International Subscription RO. Box 32379 04 12p 541 Government Supplies Agency Book Department Svc Lusaka Abidjan 04 Plateau Oitig an tSolathair PO. Box 6125 Etterstad P.O. Box 41095 4-5 Harcourt Road N-0602 Oslo 6 Craighall ZIMBABWE CYPRUS Dublin 2 PAKISTAN Johannesburg 2024 Longman Zimbabwe Center of Applied Research PARSTA Ja sr0(Pte.) Ltd. Cyprus College ISRAEL Mirza Book Agency SPAIN Tourle Road, Ardbennie 6, Diogenes Street, Engomi Yozmot Literature Ltd. 65, Shahrah-e-Quaid-e-Azam Mundi-Prensa Libros, S.A. P0O. Box ST125 RO. Box 2006 P0. Box 56055 P0. Box No. 729 Castello 37 Southerton Nicosia Tel Aviv 61560 Lahore 54000 28001 Madrid - - THE WORLD BANK A partner in strengthening economies and expanding markets to improve the quality of life for people everywhere, especially the poorest The World Bank Headquarters 1818 H Street, N.W Washington, D.C. 20433, U.S.A. Telephone: (202) 477-1234 Facsimile: (202) 477-6391 Telex: MCI 64145 WORLDBANK MCI 248423 WORLDBANK Cable Address: INTBAFRAD WASHINGTONDC World Wide Web: http://www.worldbank.org E-mail: books@worldbank.org European Office 66, avenue d'Iena 75116 Paris, France Telephone: (1) 40.69.30.00 Facsimile: (1) 40.69.30.66 Telex: 640651 Tokyo Office Kokusai Building 1-1, Marunouchi 3-chome Chiyoda-ku, Tokyo 100, Japan Telephone: (3) 3214-5001 Facsimile: (3) 3214-3657 Telex: 26838 ISBN 0-8213-3664-9 J 1361 Cover design by Joyce C. Petruzzelli 9 780821 336649