GOOD PRACTICE NOTE JSDF evelopment Fund Japan Social D Issue 5 November 2010 INDIA 58066 Building Local Capacity for Pro-poor Development in Tamil Nadu I ndia amended its constitution in the early 1990s to strengthen decentralization and local governance, and all Indian states, including Tamil Nadu, have subsequently reinforced their commitment to decentralization through State Panchayat (village community governance) Acts. However, much remains to be done to build the capacity of Panchayats -- which are by- passed by most government programs. The Government of Tamil Nadu state has Implementation "...when they see implemented a series A consultation process involving local of reforms to develop us driving they stronger and more governments, civil society, and the private sector was used to design a project that look surprised inclusive Panchayats. The integrates three key elements. - that we have JSDF project supported this effort by piloting become equal a new way to deliver 1. Livelihoods Focus to them. We are basic services to the · Village communities were introduced to new income generating opportunities, respected now." rural poor by shifting provided substantial technical and Vallinayagi from the traditional use financial assistance to improve the of government agencies productivity of existing skills, assets and Femaie Mini-van driver or NGOs to one where businesses and reduce vulnerability. Ma. Kalakkudi Panchayat the Panchayats are · Partnerships and tie-ups with private in the driver's seat. sector, research institutions and other The project drew on agencies were also established to experience elsewhere in provide technical know-how, product India and abroad, which demonstrated that development and market linkages. decentralized systems could provide better · Access to savings, credit and insurance and more rapid benefits to the poor and services was strengthened to help build most vulnerable. financial assets and mitigate risks. About the Project 2. Incentives for Pro-poor Governance Panchayats were provided incentives to: The objectives of the pilot project were · improve their governance by becoming to develop a better understanding of the transparent and accountable to their capacity of Village Panchayats in planning, community members; financial management, community-based · respond to the needs of the poor by targeting, budgeting, public administration effective identification of the poor and and to assess the role that self-help groups vulnerable; and and other community groups could play in · provide support to the Village Poverty making these processes more equitable. Reduction Committees (VPRC) to implement the VPRC Fund efficiently The Japan Social Development Fund (JSDF) was established in June 2000 by the Government of Japan and the World Bank as a united mechanism for providing direct assistance to the poorest and most vulnerable groups in eligible World Bank group member countries. and adopt an enabling style so as to ensure self help and transfer of control to the community. The project was to have faith in the capacity of the poor to undertake, control and decide on all the activities of the project. · Transparency and Accountability ­ All activities in the project were to ensure transparency and downward accountability. The program piloted decentralized service delivery in ten panchayats--six testing the use of a VPRC with representatives from the community at the Panchayat level managing development activities, and four working directly with the Gram Panchayat (GP) which would receive a resource envelope, in addition to the largely tied resources from the Information detailing project activities is displayed on notice state and central levels, to co-finance the village's boards to ensure accountability and transparency development plans and build the GP capacity in key areas. and in accordance with the agreed rules and procedures. The JSDF pilot was implemented in parallel with a related Bank project, allowing the rapid transfer of Community Driven Development Approach (CDD): The project followed the CDD approach where Box 1 - How it Works - Communities Organize for Results village communities identify their own needs, design and plan the interventions, The Project follows the community driven development approach where the target poor are identified using a participatory implement the plans and monitor them. methodology. The target list is then approved by the Grama The key non- Sabha (Village Council). negotiable principles were Every Panchayat forms a Village Poverty Reduction Committee · Inclusion of the very poor and (VPRC) and a Social Audit Committee (SAC). All project funds are disadvantaged sections of the given to the VPRC and the community identifies its own needs, community (differently-abled, plans interventions and implements them. The VPRC displays widows, destitute and other all information related to project activities on notice boards to vulnerable people). In all, 90 percent ensure accountability and transparency (see image, top right), of the project benefits were to flow The SAC, which is the guardian of the project monitors the to the poor and the disadvantaged activities of the VPRC and ensures that benefits reach the target sections of the community. About 60 poor. percent of the village funds were to flow to the very poor. One of the important activities of the VPRC is the formation of · Equity ­ The project was to focus self-help groups. Self-helf groups already functioning in the village on women and they were to play a and those specifically set up under the project are given support. determining role in all community The VPRC monitors the groups and links them to banks and other organizations promoted and in financial institutions. decision-making process related to the project activities. All groups in a village Panchayat federate to form the Panchayat Level Federation which operates a fund available to group · Participation ­ The project was to members for livelihood activities. The members of these ensure the participation of all the organizations are trained on their roles, governance aspects and primary stakeholders, adequately book-keeping which enhances their leadership capacities. represented by target poor, differently-abled and most vulnerable The project has evolved an innovative way to use Community and youth in all project activities. All Professionals to build the capacity of the Community activities and programmatic decisions Development Officers. The professional and other trainers are of the project at the village were to selected from among those have successfully implemented be based on participatory processes projects in their villages. involving at least 60 percent or 1/3 of The project has also given seed the target population. capital to set up Community Professional Learning and · Facilitating Style ­ The project Training Centers (CPLTCs) at functionaries, representatives, district level. These are owned resource organizations and support and managed by the community staff were to maintain the true spirit and facilitate community of community driven development learning in a systematic manner. across all the activities, processes 2 http://www.worlbank.org/jsdf lessons emerging from the pilot into the larger Tamil programs, like the Old Age Pension Scheme, Nadu Empowerment and Poverty Reduction Project now recognize the village PIP lists as better (Vazhndhu Kaattuvom Project, VKP). This resulted targeting tools than their own BPL lists. in a number of improvements in project design and operation. · Disabilityandpovertyarecloselylinked. The PIP process highlighted that households with disabled people were among the poorest in Results and Outcomes any village. The disabled in rural areas have few if any services and awareness of services The pilot has produced key lessons for the VKP, and that are available is also very low. In response, other livelihoods projects, and continues to do so VKP developed an entire initiative targeting up to the present day. A few of these lessons are the disabled and linking them to government outlined below. and NGO services (see Box 3). The VPRCs have hosted "fairs" where villagers can have their · Communicationsiscriticaltothesuccessful hearing and eyesight checked, linked crippled implementionofaparticipatoryproject. In VKP, villagers to programs to get wheelchairs, and every VPRC receives intensive training on the identified school programs for the intellectually project and its core principles, and the members challenged. Moreover, VPRCs have helped then create materials to inform the rest of the the disabled form their village about the own self-help groups project as well as Project Data to begin savings and any decisions that Implementing Agency: Tamil Nadu Corporation thrift activities, and the VPRC makes on have given priority specific development for Development of Women and Disadvantaged to helping disabled interventions. These Grant (TF052880) Amount: US$595,140 villagers establish income materials are posted Implementation Period: 3/11/2004 to 10/31/2009 generating activities that on walls throughout are within their ability to the village, and manage and that give posters, and placards them not only income, but improved status in were used to explain the projects principals, the village. the beneficiaries, and other information about project rules and processes. In addition, · Youthareimportanttargetsfordevelopment decisions made by the VPRC are shared in the programs. The JSDF pilot villages saw Gram Sabha, so that all villagers are aware of increased involvement of both women (a the project activities. This community based planned target group) and youth (an unplanned communication has contributed greatly to the target group) in project activities. In fact, youth atmosphere of transparency and ownership that have emerged as an important interest group in surrounds the program. village development. VKP has now developed a youth strategy that includes having a youth · Identifyingthepoorisnotastraightforward representatives on the VPRC, and enhancing the activity. Development projects in India have skills development and employment program of long used the "Below Poverty Line" (or BPL) the project. list to target their interventions to the poor. However, close collaboration with villages in · Livelihoodsopportunitiesfortheruralpoor the JSDF pilot showed that poverty is a more mustextendbeyondagriculture. The VKP skills nuanced condition and that BPL lists alone do development program has been very successful not necessarily identify those most in need. at identifying jobs and training opportunities The pilot used a method called participatory outside the farm sector for villagers, especially identification of the poor (PIP) to enhance youth, who are unemployed or underemployed. the targeting of benefits. In the PIP process, trained facilitators work with the entire village in a public meeting to physically map out the The Skills Development Program village with the villagers determining who are the poorest among them--e.g., those with no The VPRC collects information and prepares a land, no house, family members with disabilities, database on rural youth (between 18-35 year of widows, etc. The village households are ranked age) in the village. Based on this information the in this public meeting using the villagers own VPRC shortlists training institutions and companies criteria. This information is then posted publicly and sends the youth for training. Examples include for a number of days to give villagers time commercial vehicles driver training carried out at to respond to the findings. Finally, the list is the MRF Institute of Driver Development in Chennai presented and voted on the in the Gram Sabha. and the Construction Skills Training Institute This transparent mechanism helps reduce where youth are trained in masonry, bar bending, disputes over the assignment of project benefits carpentry and land survey for three months after and further reinforces everyone's understanding which they are commonly given placements in the of the programs rules and goals. The PIP same companies. has been so effective that other government 3 The youth are also regularly mobilized at the district level to participate Box3-IncludingtheExcluded in job fairs where many reputable companies participate and recruit In the VKP, a "Differently-abled Person" (DAP) is included as a candidates. Nokia, for example, has member of the VPRC to voice the concerns and rights of this often engaged over 500 people through marginalized group. This member plays a key role in extending this program. services to the disabled community by representing their cases in the VPRC meeting and providing them with assistance targeted to So far, over 26,000 youth have their specific needs. received training, with many being placed in good paying jobs in Differently-abled Persons who are in special groups are unable to construction, garment manufacturing, save money due to unemployment light and heavy vehicle operation, and poverty. To make the auto maintenance and computer special group credit worthy the manufacture. The opportunities project provides seed money created through this program will of RS$10,000 for each group. have long-term effects on a family's Individual assistance for the DAPs income prospects. are given and funds to start small individual or group livelihood The program is also opening doors activities. This initiative has helped for women, with trainees either them to become financially being offered employment by independent and allowed them to manufacturing companies or setting live a life of dignity. up their own businesses - even those once only undertaken by men, such as A project video details the example of Laksmi, a disabled bus driving. In addition, by removing woman who has identified an opportunity - to open a village the middlemen that typically shop. She discusses this initiate such ventures the returns with the visiting VPRC reaching the workers are potentially representative and significantly increased. discusses her capital needs (R$15,000) and her ability to repay the loan. Delivering Results The VPRC met to discuss A recent Project Completion Report the request, noting that (May 2010) provided an evaluation of they had received some 18 the success of the JSDF Program. It requests from disabled persons. Based on this the VPRC agreed to notes that: provide Laksmi with R$10,000. · As many as 96% of those surveyed in VPRC villages were member of one or more self-help VKP is now being implemented in 2509 villages in groups (90% in GP villages) 70 blocks within 15 districts of Tamil Nadu, and is · 90% of VPRC respondents had been actively changing perceptions of development programs involved in the selection of beneficiaries among the rural poor and Panchayat officials alike. · 94.9% had borrowed money from the SHGs in Tthe JSDF pilot contributed sugnificantly to the the last 3 years (GP 98%) with 89.1% repaying project's success. As a pilot operating concurrently (GP 85.4%) with the project preparation and implementation, · Only 2% of the target population (VPRC) the JSDF pilot served as an "innovation laboratory" now use money lenders when compared to a for VKP, testing approaches, learning lessons, baseline of 44% and transferring successful practices to the larger · In selecting economic activities, 47.8% (VPRC) project for scaling up. were influenced by JSDF supported training (GP 25.2%) · In terms of income improvement (corrected for Key Resources inflation), 62% reported an increase in the last three years (GP 59%). http://vazhndhukaattuvom.org/ The Japan Social Development Fund -- JSDF Good Practice Notes seek to share achievements, knowledge and lessons learned from the implementation of JSDF projects over the past decade. The JSDF is a partnership between the Government of Japan and the World Bank to support innovative social programs that directly meet the needs of the poorest and most vulnerable groups in developing countries. JSDF projects meet four basic requirements: Innovative, introducing new approaches to development; Responsive to the needy, by directly meeting the needs of vulnerable, marginalized, and disadvantaged groups; Rapid response activities that deliver short-term results and benefits to targeted beneficiaries; and Community capacity building activities that empower local governments, NGOs, and disenfranchised groups, while promoting stakeholders participation and ownership.