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A Project Work on Passage to Rural Development Cooperative & Its Effectiveness in Poverty Alleviation

(With reference to Peoples Awareness and Women Development Multi-purpose Cooperative, Kaskikot VDC)

Submitted to Faculty of Humanities and Social Sciences Central Department of Rural Development T.U. Kirtipur, Kathmandu Nepal Submitted by Resham Timilsina Masters Degree in Rural Development T.U. Kirtipur, Kathmandu Nepal 2004

A Project Work on Passage to Rural Development Cooperative & Its Effectiveness in Poverty Alleviation
(With reference to Peoples Awareness and Women Development Multi-purpose Cooperative, Kaskikot VDC)

Submitted to Faculty of Humanities and Social Sciences Central Department of Rural Development T.U. Kirtipur, Kathmandu Nepal Submitted by Resham Timilsina Masters Degree in Rural Development T.U. Kirtipur, Kathmandu Nepal 2004


This project work entitled A Passage to Rural Development Cooperatives & Its Effectiveness in Poverty Alleviation (With reference to Peoples Awareness and Women Development Multi-purpose Cooperative, Kaskikot VDC) has been prepared by Mr. Resham Timilsina under my guidance and supervision. I hereby recommend it for acceptance.

Dr. Chandra Lal Shrestha Associate professor Central Department of Rural Development T.U. Kirtipur



This project work entitled A Passage to Rural Development Cooperatives & Its Effectiveness in Poverty Alleviation (With reference to Peoples Awareness and Women Development Multi-purpose Cooperative, Kaskikot VDC) prepared by Mr. Resham Timilsina in the partial fulfillment of the requirements for the Degree of Master of Arts in Rural Development has been accepted.

Dissertation Committee


Chairman: External Examiner: Research Advisor:

.. ....




It is dedicated to my lovely late mother Mrs. Gauri Timilsina.


A ck n ow le d g e m e n t
This study is masters degree Project Work submitted to the central Department of Rural Development, T.U. Kirtipur at present Nepal is confronted with severe poverty .so it is an attempt mainly focused on the poverty alleviation. Cooperative movement is hypothesized as a passage to solve this problem. Men and women are the two sides of a coin. But it is said to be found that women occupy only a minute access in each and every sector of development affair. So it is mainly focused on the role of women in development and paradigm of PAWDMC is presented as a context. It did not come to this form without the mutual and regular help of related expert. In this light I would like to express my sincere gratitude to my humbly respected sir, Dr Chandra Lal Shrestha (Executive Director, Centre for International Relations T.U.) for his valuable inspiration and proper guidance. I am also grateful to Prof. Dr. Pradip Kumar Khadka (the Head of Department, central Department of R.D., T.U.) for his ingenious encouragement and academic support. In course of preparing this project work I received regular help and suggestions from various scholars and institutions. So I am equally grateful to all of them. In this connection I express my gratitude to Dr. Gangadhar Lamsal and training officers of cooperative Board. Like wise I would like to express my thanks to Mr. Gumanath Lamichhane for data collecting and analyzing period.

Finally, I express my sincere thanks to my sibling son Prakash Timilsina for their help in typing and printing this Project Work.

Resham Timilsina Central Department of Rural development T.U., Kirtipur

August, 2004


A b b r ev i at io n
ADB CBS DDC GDP GNP HDR IFAD INGO MLD MPCW NBL NGO NPC PAWDMC Agricultural Development Bank Central Bureau of Statistics District Development Committee Gross Domestic Product Gross National Product Human Development Report International Fund for Agricultural Development International Non-governmental Organization Ministry of Local Development Micro credit Project for Women Nepal Bank Limited Non-governmental Organization National Planning Commission Peoples Awareness and Women Development Multipurpose Cooperative PCI PCRW PDDP RBB SHG USA UK Per Capita Income Production Credit for Rural Women Participatory District Development Program. Rastriya Banijya Bank Self Help Group United States of America United Kingdom



United Nations Development Program United Nations International Cultural And Educational Fund United Nations Organization Village Development Committee Women Development Society


List of Tables
Table no. 4.1 : Ward wise loan distribution of PAWDMC ... 29 Table no. 4.2 : Amount of loan received by sample borrowers . 31 Table no 4.3 (a) : Occupation of borrowers before project implementation.. 33 Table no 4.3(b): Occupation and loan amount of the borrowers after project . 34 Table no 4: Income of the borrowers after borrowing the loan from PAWDMC .............. 35 Table no 4.5 (a): Consumption Food Pattern of Correspondents .. 37 Table no 5(b): Clothing pattern of the respondents .. 38 Table no 4.6: Change of housing pattern before and after project intervention 39 Table no 4.7: Change in women status after borrowing loan 41 Table no. 4.8: Employed women in business before and after the establishment of cooperative .......... 44


Table of Contents

LETTER OF RECOMMENDATION...........................................................i APPROVAL LETTER................................................................................iii DEDICATION............................................................................................iv Acknowledgement........................................................................................v Abbreviation...............................................................................................vii Introduction..................................................................................................1 1.1 General Background...........................................................................2 1.2 Cooperative Movement in the World................................................4 1.3 Principles of Cooperative..................................................................4 1.4 Cooperative Movement in Nepal ......................................................5 1.5 A Brief Introduction about the PAWDMC.......................................5 1.6 Statement of Problem.........................................................................6 1.7 Objectives of Study..........................................................................7 1.8 Study Area ........................................................................................7 Map of Kaskikot VDC..............................................................................8 1.9 Poverty in Kaskikot VDC...................................................................9 1.10 Limitation of the Study...................................................................9 Review of Literature ..................................................................................11 2.1 Production Credit for Rural Women...............................................18 2.2 Overview of Poverty Alleviation Program.......................................18 2.3 Role of Cooperatives in Poverty Alleviation:..................................19 2.4 Some Paradigms...............................................................................22 Methodology ..........................................................................................26 3.1 Sources of Data ................................................................................26


3.2 Sample Size .....................................................................................26 3.3 Data Presentation & Analysis...........................................................26 Analysis of Data.........................................................................................27 4.1 Introduction to PAWDMC...............................................................27 4.2 Functions..........................................................................................27 4.3 Foundation of the PAWDMC...........................................................29 4.4 Rural Self-reliance Fund...................................................................30 4.5 Loan Amount....................................................................................30 4.6 Loan Distribution by Purpose...........................................................31 4.7 Income Level....................................................................................35 4.8 Living Standard ...............................................................................36 4.9 Change of Housing Pattern before and after Before and after Intervention...................................................................................38 4.10 Status of Women............................................................................39 4.11 Education of Women......................................................................41 4.12 Control Over Decision Making......................................................41 Summary Conclusion & Recommendation................................................46 5.1 Summary...........................................................................................46 5.2 Conclusion........................................................................................47 5.3 Recommendation ............................................................................48 INDIVIDUAL QUESTINNAIRE..............................................................50 Bibliography...............................................................................................54


Chapter - 1 Introduction Nepal is fundamentally an agricultural, landlocked and mountainous country. It is located between two largest countries like south, west, east to India and north to China. In spite of unique geographical features Nepal has been suffering from one invisible infection i.e. poverty. Due to this invisible infection Nepal is categorized in The Third World (NFD) Nepal occupies 147181 sq. kilometers area, which is the 0.03percent of the world and 0.3percent of the Asia. The total population is 23151423. There are 58 municipalities and 3913 VDCs (CBS 2002). More than 86 percent of the people still live in villages. Nepal is surrounded by villages. Their only occupation is farming by nature. People who live in villages or mountain are poor so, poverty and village are synonymous (Todaro)1. So people who live in village or mountains are more than 60percent GDP where total PCI is 220 dollar. Therefore, rural people are to be considered as the back bone of national economy. Various changes are taking place; wants of people are also getting changed. So, human life is being complicated day by day. The only way to get salvation from this complexity is only possible through mutual understanding of common problem and solution. Man is a social animal A man cant stay or survive without society. Man burns free but everywhere he is in chain. So, men began to have mutual cooperation. No doubt, mutual cooperation amongst the people is as old as human civilization. Cooperation is like vehicle of moving human civilization from

Todaro, MP, Economic Development in the 3rd World.

hunting to this computer age we see today. So, mutual cooperation seems as the vehicle of development. 1.1 General Background So far as the matter of Nepal concerns we can find different kinds of early paradigms of cooperation foundation. Among them Parma (labour substitution); Dharma Bhakari (based o n religion belief) and Dhikuri (financial institution) are found to be famous in different geographical location and culture. In ancient period grains and goods were the only medium of barter system. But nowadays money is used as the key factor of barter system. Nepalese people were compelled to get money from local Sahu or Mahajan in a largest interest rate called Dhane Byaj. So there was corruption and inequality. In 1844, Rochedole labour group started the movement against corruption and established cooperative. By then Nepal also realized the necessity of institutional financial support and it was introduced in 2010 BS known as Rapty valley in Chitwan. An upsurge of development takes place only after the political change of 2007BS. After then different development approaches are found to be launched. In this light, planning system begins from 2013BS.In the end of first five year plan there only 17cooperative institutions were established but in the end of ninth five year plan there are more than 20 thousand cooperatives. Now we are facing different types of solemn problems due the cause of poverty so it is possible only through the medium of realistic economic philosophy to accelerate the rate of economic development and to alleviate poverty.

Different scholars have defined cooperatives in their own way, some of them are briefly touched on below for the sake of general understanding:Cooperatives have an important contribution in rural development. Low income earner neighbors may be benefited through the medium of cooperative organization buying essential goods, selling agricultural production and take credit and do saving. Specially, these paradigms of cooperative can be found in Israel, likewise in Germany.2 Cooperation is the soul of rural community development.3 In this light an agricultural movement in India confessed cooperative as the principle in these finitely varying forms is capable of adoption for finding a solution to all problem of rural life. Like wise according to Marxist Leninist economic theory Cooperative is realized as the economic and social organization of working people serving not only for the interest of members of cooperatives but also over all social welfare. Some thinkers have been realized it as an economic freedom such as:Mr. Walt kin says cooperative is the System of social organization based on the principle of unity, economy, democracy, equality and liberty. Another thinker Saul Estrine says In cooperative decision making is based on democratic principle

2 3

Kunwar, Krishna Bahadur Poverty and Rural Development in Nepal. V.T., Krishnahari, Cooperatives.

Likewise our Department of cooperative of HMG accepts Cooperative as one of the systems to make life of people better by themselves achieving the economic and social problem. 4 For access of banking facility toward rural areas so as to facilitate them in easy manner micro credit will be provided through agricultural bank and rural cooperatives. A special priority will be given to promote local level cooperatives to alleviate the poverty of rural area. 1.2 Cooperative Movement in the World

Great Britain is considered as the homeland of cooperative. The seed of cooperative was germinated in Great Britain in the later half of the 18th century in the economic and social system under the impact of industrial revolution. Then, it started in Germany in the middle of the 19th century after the destruction of 2nd world war. After then, cooperative movement started in Denmark, Ireland, Japan, U.S.A. Canada, Israel, Sweden, Italy, India and France. 1.3 Principles of Cooperative

As redefined by Manchester convention the principles of cooperatives are as follows: 1) Voluntary and open membership. 2) Democratic member control. 3) Member economic participation. 4) Autonomy and independence. 5) Education training and information. 6) Cooperative among Cooperatives. 7) Concerned for community.

Department of Cooperative (Nepal).


Cooperative Movement in Nepal

Cooperative is not a new system in Nepalese society. It has been practicing since the initiation of the human civilization. Nepal is known as an agricultural country. So, there were so many agricultural cooperatives forms (Parma, Guthi Dhikudi & Dharma Bhakari). The modern history of cooperative development began in Nepal after the establishment of development of cooperative in 2010 B.S. the first cooperative started in Nepal was Rapti Valley Development Project which was started in 2011 B.S. the cooperative movement is found to be started only after the arrival of democracy. The movement of Nepalese cooperative is as follows:1) 2010, Establishment of cooperative department. 2) 2013, Beginning of planning system. 3) 2016, Cooperative Act. 4) 2017, Cooperative Development Fund. 5) 2018, Formation of Policy and Establishment of Cooperative. 6) 2019, Cooperative Training Center. 7) 2020, Stablishment of Cooperative Bank. 8) 2024, Saving Organization in ADB. 9) 2033, Beginning of Sajha programs in 27 districts. 10) 11) 12) 1.5 2041, Sajha Sanstha Act. 2048, Cooperative Act and abolishment of Sajha Sanstha. 2049, Publication of Cooperative Procedure and Act.5

A Brief Introduction about the PAWDMC

The name of this cooperative is Peoples awareness and women development multipurpose cooperative limited. Its short name is

National Planning Commission, (Adhar Patra).

PAWDMC. It is located in Kaskikot VDC-8. It was established in 2056 under cooperative Act 2048. It has been co-coordinated by Mahila Bikash Shakha Kaski Child Development Programme Nepal Rastra Bank. There is the advisory board of 11 members. It works in all wards of VDC. It not only collects deposit but also provides micro-credit for the rural women forming groups. There are different such groups in every ward of the VDC. The general objectives of PAWDMC are as follows: a) To raise the living standard of rural women. b) To provide training for skill development. c) To alleviate poverty providing micro-credit through formation of groups. d) To analyze the socio-economic status of rural women after the establishment of PAWDMC. 1.6 Statement of Problem

Nepal is an agricultural country. More than 86 percent of the people live in villages and do farming. Rural people are the backbone of National Economy. Their contribution in GDP is more than 42percent. A farmer needs to have seed, fertilizer, pesticide and other necessary things for farming. For this agriculture credit is necessary. Bu it is the matter of sorrow that there are no any adequate government financial institution to facilitate farmers except local money lender and profit seeking private finance companies. In one hand and in the other hand established institutions are being collapsed due to corruption, increasing terrorism and insecurity. So, only way to provide credit for woman seems possible only through community based cooperatives. It seems very necessary to create mutual cooperation between sparsed rural people through the medium of

cooperative to bring them in the main stream of development. It seems most serious and challenging passage to alleviate poverty. 1.7 Objectives of Study On the basis of above mentioned problems this study undertakes following objectives:a) To evaluate the socio-economic upliftment of rural woman after the establishment of PAWDMC. b) c) To study peoples participation in rural development. To find out the change in living standard after and before establishment of PAWDMC. 1.8 Study Area

Kaskikot VDC is located in the North West part of the Pokhara valley .It is a hilly region. There are 950 household .It has 6540 population with 52.24percentt female and 47.67percent male. 61.6percent female and 41.0percent male are has occupied by area. The population consists of different caste /ethnic group such as Brahman, chhetry, dalit and magar etc. transportation facilities are available in almost all the study area People who live in this area are involved in small business, tourism and agriculture .the income sources are cash crops, animal husbandry and beekeeping etc. most of the people of this area are very poor. In 2057BS many women are .found to be involved in coop for their development of economic activities Thus, they have established PAWDMC in Kaskikot VDC. It has more than 450 members .They have done income generating activities. Many women are getting successful in changing their life standard after involvement in the PAWDMC.

Map of Kaskikot VDC


Poverty in Kaskikot VDC

The population of Kaskikot VDC is 5565. There are 2923 males and 2642 females. There are 43 VDCs in Kaski district. As mentioned in poverty mapping report of PDDP, Kaski it is ranked in 37th position. There are 956 households. Different parameters are applied to measure the poverty of Kaskikot VDC. They are as follows: a) Food sufficiency:- there are 31.49 percent of people above poverty line and 66.53 are below poverty line. b) Income (NPC cutoff value):- Above thirty thousand income earners are categorized above poverty line and below thirty thousand are categorized under below poverty line. To consider these there are only 26 households (2.72 percent) are above poverty line and 930(97.28 percent) are below poverty line. c) Income (World Bank Cutoff Value):- According to World banks cutoff value, those households who earn more than 50 thousand are categorized under above poverty line and who earn less than 50 thousand are categorized under below poverty line. To consider this cutoff value there are only three households (0.3 percent) above poverty line and remaining others households 953(99.69) are below the poverty line. It also shows that there are the most of females illiterate and their income is very low. 1.10 Limitation of the Study There are more than 7000 cooperative s in Nepal. Out of them 26 cooperatives are in Kaski district. Among them the cooperative named PAWDMC is selected as the study area. This cooperative is located in

Kaskikot VDC-8 Baspani. This cooperative is functioning in the field of poverty alleviation. So it is selected as the survey area. The following limitations are taken into consideration. a) The effect and impact of the line agencies and other projects are not involved b) Social impacts are studied in general but economic impacts are mainly focused in the study. Thus it is studied in depth.


Chapter- II

Rev ie w o f L it e r at u r e
Men and women are the two parts of a same coin. Without the mutual cooperation of these two nothing is to be generated at all. No doubt, even creation also takes failure. So, here cooperation of women shares the same part as men have to be shared. Women represent almost half of the world population but they have received only one percent of the worlds property by the end of 19706. Women were ascribed a low status as compared to man in both developing and under developing countries like Nepal. In the past few decades the number of women living in poverty has increased unfortunately to the number of man living in poverty. Even though, the economic and social status of women has drastically changed during few decades. The economic status has largely determined by their possession in term of income generation and property. Under our prevailing traditional condition, women share limited control over property and poor excess to institutional credit services and facilities restricting then in their capacity or skill to generate income and improve their socio-economic upliftment. Education is said to be found as the key factor of all development infrastructure but it does lack in Nepal because most of the women are deprived from the education in comparison to man in third world countries like Nepal. The culture, society and economy are the backbone of development of every spare of country and they are run through the help of both men as well as women. Foremost in women role as mother and upholder as well as agent of corporate stone of knowledge that has kept the process of tradition

CWD, 1989.


going as unknown creature of things of measurable value both of material goods and immaterial matters.7 Thus, they have played an important role in the process of civilization. Despite this fact, women have often been assigned secondary role to those of men. Women in developing countries like Nepal are found to be discriminated in all spare of life levels. The economic problem they are facing leads other discriminations and low status. In some degree of statistical invisibility women in the economy are the worldwide historical traditional and cultural reasons. Women also are creative; they do have also creativity which can be applied for productivity. So far, family is the first school then women play crucial role in maintaining the household affair. Within the household affair, South Asian men ruled and women are compelled to obey law and order made by man. Statistic shows that majority of economically active women work in formal sectors self employed or other self employed or worker women are exploited and in the formal sector women are concentrated in the lower levels with little job security and few benefits. In other words women often work in the informal sector for little or low wage and are restricted to activities associated with their reproductive role. The indivisibility of womens work in economic accounting system is due to a flaw of economic activity.8 Nepalese women who constitute more than 50percen out of total population9 are lacking behind man in many aspect of life. They are under privileged and disadvantaged in term of their socio-economic status as
7 8 9

Ojha, E, R and K.E Weber 1992. Mehbub UI Hog, Women and Economy, Human Development in South Asia. 2000. CBS, 2001.


compared to their males. In every stage of life, there is sudden discrimination between men and women. So far men and women are the two wheels of a same cart they are to be encouraged and empowered. Our matter of concern of burning issue is the wide spread poverty characterized in many areas of rural Nepal. In Nepal poverty affects women rather than men according to the National Planning Commission (NPC/UNDP:HDR). In 2001, there are 38percen of the people living below the poverty line. Rural women are found mostly engaged in collecting fuel wood and fodder, caring child, livestock and cleaning. They have lower status in the family, community and usually work for low or little wage. They are largely excluded from economic decision making such as producing selling and collecting capital transactions for their farm expenditure. The economic situation of rural women is found to be determined by ethnicity, caste, class, age and geographical location as well, most women are still employed in traditional agriculture sector and less productive sector of economy. While literacy and education is considered as avenue to employment, urbanization is causing of women withdraw from labor force so there may be inverse relationship between education and employment at certain intervals of development scale. Women of Nepal in the middleincome strata have longer working hours and education has significant positive effect on fertility reduction.10 Some important findings of author are:

The absolute majority of men and women are married by the time they attain 24 years of age. The mean age of the marriage

Acharya, Dr. Mina (1994) The Statistical Profile on Fertility".


however has been increasing both for men as well as women. It has gone up from 19.5 years in 1961 to 21.4 years for men and from 15.4 to18 years for women in the same period. Nepalese women are devoting more time to conventional economic activities in1993 than in 1978. Though government has launched different types of credit program but they have reached to only small proportion of rural women. Most of the individual women have gained self-confidence and improved other family income source. There is an increasing trend in census reported female economic activities rates between censuses, while male economic activities rates demonstrate a declining trend. That may be attributed to definitional problem or the withdrawal of male population from economic activities. Despite the inaccuracy of census reported activity rate such as female economic activities are nevertheless useful in analyzing trend in the organized sector of the national economy. The role of non-agricultural sector as a source of employment is increasing at a faster rate for women than for men. However, the proportion of women in agricultural labor force has also been increased that could be better statistical reporting. In the industrial sector women learn less than men because of the system of job classification, mode of employment and exploitation by the factory owners.


In a discussion paper, there was strong argument that empowerment cannot be limited to any one sector hence the proposal that micro enterprises by itself are not sufficient: it could be necessary condition, but it is not a suffi8cient condition for empowerment.11 In another publication published by out come of the agenda identification enabling state program / UK. Department for International Development (2000) gives the valuable suggestion for impact of MPCW to increase economic and social status of Nepalese women and describes the considerable facts as: Micro credit program have raised rural womens confidence to take activities to increase their living conditions. Micro credit program have proved that even poor women can save and improve their own lives. Gender equality and skill development program backed by access to credit have brought about some change in women's position in the society and the family. Increased access to education, health, drinking water, credit and training exposed many women to the outside world and has changed their life style. Education has provided opportunities for better paid employment, increase social status and better health. Micro credit program were introduced to bring Nepalese women into the main stream of Nepalese economy but the effectiveness of micro credit critically depends upon the extent and quality of available social and technical support. There is growing censuses that credit alone cannot reduce poverty. Poverty

Srivardana, Mr. Susil The Role 0f Micro credit in poverty reduction and promoting gender equity.


alleviation program was backed up by awareness and empowerment progammes, support services such as the promotion of appropriate technologies, the timely supply of extension and inputs and the development of effective marketing mechanisms and net working are as important as credit provision. The world Micro Credit movement launched in February 1997 seeks to deal with poverty and dignity through micro credit. Its goal is to reach 100 million people in poverty, especially women by 2005. The following experiences described in this document, could contribute to this efforts:12 Self help Groups (SHG) can effectively cater to credit needs of women living in poverty, especially in emergency condition. If SHGs are owned and controlled and managed by women members, then their Micro Credit activities can economically empower them. Successful Micro Banking within SHG usually leads to greater credibility and access to larger funds from banks and other financial institutions. It is possible to educate illiterate rural women to manage the complex financial aspect of SHG. Micro Credit and income empowerment of women open the doors to socio-political consciousness and the broader empowerment of women.


Swiss Agency for Development and Cooperation.(SADC) 2000.


In most cases success of a community Micro credit program depends upon vital role of facilitating NGOs, which believe in capabilities of people and work with a clear phase out plan.








sustainability and reliability are important precondition for program to be taken upon a large scale. Strong community based groups with common issues and problems tackled effectively are major factors contributing to the success of micro-credit. Through economic empowerment and systematic

demonstrations of strength on social issues women can make men and their communities recognize their rights. Cooperative and non-governmental Organizations: The Nepal Rashtriya Bank has adopted a policy to cooperative and non-governmental organization for conducting limited banking transaction. In this context, Cooperative Act (1992/93) has provided the provision of financial and banking transaction to these organizations. There are 19 Cooperatives limited and 24 non-governmental organizations under this act. Such types of organizations are conducting in rural areas to provide self-employment and income generating activities to deprived rural people. After the restoration of democracy and financial liberalization has come to this country, there has been increasing number of nongovernmental organizations. Nearly 18000 NGOs are conducting poverty focused programs. There are also two Grameen replicating NGOs namely Nirdhan and center for self help development.



Production Credit for Rural Women

The Production Credit for Rural Women (PCRW) program was developed in 1982 with funding technical assistance from UNICEF. The Ministry of local Development (MLD) currently implements it through the Womens Development Division (WDD) in association with NBL, RBB and ADB/N. fund is provided by the commercial banks under the intensive banking program (as a means to ensuring that some of the IBP funds to Women) and international Fund for Agricultural Development(IFAD) The main objectives of PCRW are to improve the social and economic position of women through the provision of credit, extension services, drinking water, health facilities and various time and labor saving technologies and skill. Credit is provided through groups of four to ten members, which are formed by staffs of the WDD. Maximum loan size is Rs. 30,000 and is provided by the commercial banks at an interest rating between 13percen to 14percen. Subsides are provided on loans less than Rs. 15,000. Co operative is being blessing rural women a seminar paper entitled Contribution of Womens cooperative in poverty alleviation. Participatory cooperative.13 Cooperatives in every village and employment in every home14 2.2 Overview of Poverty Alleviation Program seminar in Kavres Women awareness loan

Expanding the coverage of institutional credit has been the central theme of poverty alleviation strategy adopted by the government in the past.
13 14

Gorkhapatra 2061, Shrawan 15 pp7 Budget Speech 2061. Finance Minister of Nepal.


Efforts to improve access to institutional sources of credit began in the early 1950s with the organization of credit cooperatives in Chitwan. Enactment of the cooperative act in 1959 and establishment of cooperative bank in 1963 to finance the cooperatives were further steps towards institutionalizing the role of cooperatives in rural development, and hence, in the reduction of poverty. The cooperative bank was redesigned as the Agricultural Development Bank of Nepal (ADBN) in 1968, with a broader mandate to provide credit to individuals along with cooperatives. Together with SFDP a number of different poverty-focused credit programs have been implemented in the country over the years. The small sector credit program, now called the priority sector credit program was initiated by NRB in 1975 to extend the rural credit system by involving the commercial banks. To strengthen this program IBP was initiated in 1981 which introduced the concept of group based lending by the CBs. Also in 1981 PCRW was initiated by MLD as the first women focused program in the country. To expand the CBs credit to the hard poor cord, the deprived credit sector program was initiated in 1990; it was also the part of private sector credit program. PCRW is working as MCPW since 1994. It was the first NGO in organizing women groups and mobilizing rural groups saving. As a major effort towards financing the small credit needs of the poor rural women, the government established to regional RDBs. Today, there are five GBRs in the country. A few financial NGOs are also functioning in rural areas. 2.3 Role of Cooperatives in Poverty Alleviation:

The poor results achieved by the various poverty alleviation programs of the government have raised doubts as to the appropriateness of the design and seriousness in the implementation of these programs. A careful view


clearly points to the fact that these programs have missed out some important links. In almost all of these programs, there appeared to be no clear links between the goal and design, between design and implementation, between the lessons learned from previous and those applied new programs and between the knowledge and practice of the implementing agency officials. In more operational terms some of the common features of these programs include the following: Partial approach with singular focus on credit supply. Mistargeting of the poor; Lack of participation and ownership of the poor and Non-responsive to the needs of poor.

The above features coupled with the inherent institutional deficiencies of the implementing institutions rendered most of the programs ineffective. The programs proved costly and unsustainable at the local level and the implementation process appeared largely external and supply-driven. Accumulated experience and informed knowledge suggest that poverty alleviation is an internal a human process that cant be achieved without ample participation and ownership of the rural poor. This typically involves a framework that draws on local potential and priorities for development and places people rather than programs in the central stage. Such a framework will require service delivery through institutions that are initiated and managed by rural poor people themselves at the grass root level. Thus, undoubtedly cooperatives only provide a promising institutional alternative for this. It is understood that Nepal doesnt have a successful history of cooperative movement in the past. The cooperative movement began in


1950s that got rapid momentum in the 1960s and 70s failed. The cooperative that emerged in the process did not provide the above type of institutional framework for rural development. Following the democratization and economic liberalization a new development paradigm has emerged in the country. The paradigm consists of significant shift from the centralized, top down approach to a more participatory and bottom of approach to rural; development. Attempts have been made to create environment through new policies for the people to plan and manage themselves. Thus it came to give birth to the community based organizations including cooperatives managed by the rural poor mainly in the saving and credit sector. To consider the examples of cooperative past few years experience suggests that cooperatives can be a passage to carry integrated development services to the rural poor. Indeed, a careful review of development programs and prospects of the country would suggest that cooperatives are only the institutional mechanism for poverty alleviation. Since the vast majority of people including poor depend on agriculture for their livelihood. Here, a high and sustainable growth is the key sector for both economic growth and poverty alleviation in Nepal. The growth of agriculture has been confronted by several infections like: socioeconomic, institutional, legislative, responsible, transparent, corrupt less and political. Among these, the following factors have appeared to be particularly limiting with respect to commercialization and high growth of agriculture in Nepal. Farmers lack organized forum to initiate collective efforts

to establish effective linkages with external agencies.



The technical and financial cost is very high in the rural

Farmers lack adequate cash flows to finance investment in agricultural production. Production is traditional and subsistence oriented. Markets for the product are at far distance. Rural poor people alack adequate capacity and skill to demand for better service delivery. The above factors indicate to the need for organizing the farmers

in a manner that enables them to achieve economies of skill in production, access in distant market and receive development services and inputs more efficiently. Thus, here the significant of cooperative is very high because so-called other development banks are being collapsed due to corruption and problem of insecurity. Only cooperative institutional mechanism solves the problems of rural poor and raises the income of rural poor. 2.4 Some Paradigms

The history of cooperatives is full of evidence of their ability to increase their members income, decrease the risk they run and enable to become full participation in civil society. This has proved that they are potential to alleviate the level of poverty. UN recognizes the contribution of cooperatives to alleviate poverty. In connection to this, UN General Assembly, Economic and Social Council, the Department for policy coordination and specialized agencies like: ILO and FAO are working closely since 1994. Now the upsurge of globalization also realizes the signification of cooperatives for sustainable economic growth to alleviate poverty. Being Nepalese economy agricultural and traditional non


mechanized, poverty has emerged as one of the most threatening challenges. Slow industrial growth has resulted unemployment and disguised unemployment, which have further accelerated the level of poverty. To address such adverse circumstances the cooperative approach has been acknowledged as a suitable instrument for achieving the socioeconomic transformation of rural areas giving emphasis on improving poverty level. Cooperative can involve rural poor people in different income generating activities. Cooperative can provide knowledge of market and power of negotiation for the farmers. Cooperatives can bring improvement in agricultural production, better market access and create employment for the rural poor people that can reduce poverty. Cooperatives are people centric organizations and they play vital role to mobilize local resources and promote entrepreneurship incorporating the rural poor in many income generating activities to alleviate poverty. a)Centre for environmental and agriculture policy research extension and development (CEAPRED):- It is a Nepali NGO. It has been working for 10 years. It was started in 1992 in Dhankuta which is also known as Dhankuta Modal. It has been actively engaged in poverty alleviation through income generation by promoting the production and marketing of high-value agriculture particularly off season vegetables in various parts of rural Nepal. The result of some of the income generating programs launched by this NGO in different parts of country proved that the quantity of vegetables produced, consumed and sold; and the amount of cash incomes generated in short time are truly remarkable. In slightly more than two years the total income generated by the participating farmers under an ongoing off season vegetable production in Kavre has


reached nearly rupees 73 million which is more than rupees 33000 on per household basis. This NGO was spread in every nooks and corners of the country it was conducted in Dhankuta during 1992-94. This is also known as Dhankuta model. It mobilized more than 1300 small and marginal households within the distance of 2-3 hours. Their most of the women were participating in 85 production groups. During these 2 years project period, they conducted regular savings and marketed over 5000 metric tons of different vegetables worth Rs25.7 million. These vegetables were exported towards Uttar Pradesh of India and west Bengal. By the end of 2nd year 8 farmer cooperatives were registered from production group. There was a sharp improvement in the income, consumption and food security of the participating households before and after the implementation of the project. There was positive impact in the sense that average household income increased from Rs. 2480 to Rs.12850 and further Rs. 19150 at the end of last year. This project was phased out in 1994. Since then, cooperatives have been managing the production and marketing responsibility. From the study of Sindhuwa cooperative that the market of vegetables is increased from 20 ton in 1994 to 60-80 tons now. Likewise, the level of income is not only increased in a sustained manner but also scaled up. b) The Small Farmer Development Program (SFDP) was launched by ADBN in 1975 as a targeted poverty alleviation program of the Government. SFDP was designed to provide credit to small and marginal farmers; and to landless poor under a group-guarantee system; requiring no collateral. Thus, through this program the poor people who had inadequate or no collateral to offer, also could gain access to institutional credit. Since


then, SFDP has been viewed as a major poverty alleviation program of the governments in Nepal.


Chapter - III

M e t h o d o lo g y
3.1 Sources of Data a) Primary Data: - This study is based on the primary source which is collected from the field survey by using individual questionnaire among the participants in the cooperative. The field observation project area which is invested by cooperative. b) Secondary data: - The secondary data are obtained through the publication of NGOs, INGOs, Internet, Journals, DDC report, VDC report and library consult are not ignored. 3.2 Sample Size

There are 450 total members involved in cooperative but among them 10 percent (45) are selected as the sample. The VDC is divided in 9 wards except ward no. 5. Through data are collected with the medium of individual questionnaire both in social as well as economic sector in different levels of life pattern like food and clothing. From all wards the data are collected as random sampling. 3.3 Data Presentation & Analysis

Data collected during the field survey are analyzed using descriptive method in various diagrams as possible.


Chapter - IV

A n a l y s i s o f D at a
4.1 Introduction to PAWDMC

The name of the cooperative is Peoples Awareness Women Development Multipurpose Cooperative Limited. It is located in Kaskikot VDC ward no-8. Now, the functions are limited only in the periphery of its located VDC. It was established according to the National Cooperative Act-2049. It was established in 2057 BS. As mentioned in its preamble. Its main function is to provide Micro-loan for the solution of economic calamities of local people involving the loan for the social and economic welfare of the people. The main objectives of the cooperative as mentioned in it by law are:a) To develop the habit of the local people to establish the self reliance and cordial assistance. b) Provision of micro-loan in the completive interest rate. c) Provision of micro-loan for the members in the production, productive, skillful sectors. d) Conduction of income generating project for the institutional and industrial development. e) To asset the economically and socially weak group of the people. f) To motivate the people towards self-reliance & self-conscious. 4.2 Functions

As mentioned in sixth chapter of bylaw there are following functions so as to achieve above objectives:-


1) Agricultural production. a) Provision of loan for advanced farming. b) Distribution of advanced seed, chemical fertilizer, improved instrument, pesticides. c) Provision of irrigation facility. d) To assist to prepare Agricultural Development. 2) Management of market for the agricultural production. 3) Pasteurization of agricultural production. 4) Surplus mobilization. 5) Distribution of profit. a) Share of bonus profit to all the share-holders. b) Withdrawal fund of security capital. c) Employees bonus fund. 6) Loan policy. The collected revenues will be given to the member for the development of socio-economic status. The loan will be provided only to the involved members on the basis of deposit as deposited by the members. 7) Purpose of loan:- to conduct the profession cooperative will provide the following items of loan: a) For agricultural and marketing. b) Small and cottage industries. c) Small trades(tea stall, sewing machine, bee keeping, animal husbandry, poultry farming) 8) Protection of loan. 9) Provision of insurance.



Foundation of the PAWDMC

Initially, it lurks to move ahead taking share from 139 members collecting the share with the rate of Rs. 100 per share that amounts Rs, 13900 and all the members were compelled to deposit 20 percent as the compulsory saving that amounts Rs. 2780. Thus combined amount of collection amounts Rs.16680. Likewise, WSTLP had provided 150000 as the subsidy. After that, UNICEF had provided Rs. 2,00,000 for child development activities. Nepal Rastra Bank had provided the loan Rs. 2,50,000 in the rule of installment payment. Now the institution has deposited Rs. 15,04,769. In the institution there were 139 shareholders but now there are 450 shareholders and amount of per share also doubles (Rs.200). The recent period, the institution has distributed loan amount of Rs.1504769 in the ward wise distribution of the VDC.

Table no. 4.1 Ward wise loan distribution of PAWDMC Ward no. 1 2 3 4 5 6 7 8 9 Rural selfreliance Total 226 100 1504769 100 No. of borrowers 39 6 39 29 13 8 45 34 13 Percentage 17.3 2.7 17.3 12.8 5.7 3.5 19.9 15.0 5.7 Loan distribution (in Rs.) 255580 17250 223117 177903 80834 49250 262915 155770 282150 Percentage 17 1.1 14.8 11.8 5.4 3.3 17.4 10.3 18.7


Source: - PAWDMC official report, 2004

The above table shows that ward no.1 having involved 17.3percent members and they have taken 17percent of total revenue. Ward no.2 has 2.7percent borrowers and taken 1.1percent loan. In ward no 4 there are 12.8percent borrowers and they have taken 11.8percent loan but ward no.5 is nil. There are 19.9percent borrowers in ward no. 8 and they have taken 17.4percent loan. Likewise in wardno.9 there are 15percent borrowers and they have taken 1o.3percent loan. Then there are 5.7percent and 3.5percent borrowers and taken 5.4percent and 3.3percent loan amount in Ward no. 6 and 7 respectively. 4.4 Rural Self-reliance Fund

This fund is known as movable fund for all the wards. It has mobilized 18.7percent of amount of Rs. 5.7percent borrowers. The main component of the RCDC is to provide loan to woman for income generating activities. The present study is based on loan disbursement and its impact on income and loan repayment. The part of data analysis is related to loan amount and its impact upon earning and standards of beneficiaries. 4.5 Loan Amount

There are 45 women respondent of 10 borrowers group in the RCDC. Majority of them are illiterate and engaged in subsistence farming for there make shift livelihood. Table no. 4.2 Amount of loan received by sample borrowers Loan amount (in Rs.) <2000 No. of borrowers 5 Percentage 11.1


2000-4000 4000-6000 60000-8000 8000-10000 10000-12000 12000-14000 14000-16000 16000-18000 18000-20000 Total
Source: Field survey, 2004.

13 5 3 5 5 2 4 2 1 45

28.8 11.1 6.6 11.1 11.1 4.4 8.8 4.4 2.2 100

Table no.2 shows the total loan amount in percentage of total borrowers. Out of 45 borrowers 28.8percent have taken of Rs. 2000-4000 loan. The people that have taken loan amount less than Rs. 2000, 4000-6000, 800012000 are 11.1percent respectively. 8.8percent of people have taken the loan amount have taken Rs.14000-16000. The people that have taken loan amount loan amount of Rs. 18000-20000 are 2.2percent. The people that have taken loan amount of Rs. 12000-14000, 16000-18000 are 4.4 percent. 4.6 Loan Distribution by Purpose

Loan is necessary for things for creating unemployment and generating income among the poor. It is very effective targeting and supervision over proper use of loan it helps to increase income and erases the assets of poor household. Loan can play significant role in increasing access to basic social service and enhancing the well being of very poor people. Woman who is able to access loan can also get increased access to primary health care, safe water and sanitation for her family.


Household income and production also contribute more time then man use their income to meet core basic requirement of their family like education, health and sanitation. Occupation denotes employment of the people in different sectors is involved in different sectors for earning purpose. It is found that women are basically involved in different occupations such as small trade, tea stall, restaurants; curry farming, animal husbandry and so on. Most of the women are limited only in household affairs it is the cause of poverty. They are to be aware through the medium educational and financial skill. Undoubtedly, they can play positive role in the upliftment of socio-economic status because man and woman are like two wheels of the same cart.


Table no 4.3 (a) Occupation of borrowers before project implementation S. No. 1 2 3 4 5 6 Occupation Food grain production (paddy,maize,millet,wheat etc) Unskilled labor(Farm labor) Animal husbandry Skill Development Cash crops(vegetable, fruits, bee-keeping etc) Business Activities(Small grocery, tea stall etc) Total 15 6 2 2 3 45 33.3 13.3 4.4 4.4 6.6 100 No. of borrowers 17 Percentage 37.7

Source: Field Survey, 2004.

The above mentioned table shows that the institution members were engaged in many economic and social activities prior to launch projects as food grain, unskilled labor, and animal husbandry and so on. Traditional food grain production occupation was engaged 37percent borrowers. 33percent borrowers were involved in traditional farming labor. 13.3percent were engaged in traditional animal husbandry. 4.4percent borrowers were involved in skill development professions. 4.4percent borrowers were involved in cash crop farming and 6.6percent borrowers were involved in complementary, business and economic activities.


Table no 4.3(b): Occupation and loan amount of the borrowers after project S. N. 1 2 Animal Husbandry (Buff, goat, pig) Skill development (employment and 3 4 training) Cash croups Shops(tea stall, grocery, medical etc) Total
Source: Field survey, 2004.


No. of Percent borrow ers 19 5 age 42.2 11.2

Loan amoun t (Rs) 103300 29000

Perce ntage 40. 8 11. 5

14 7

31.17 15.5

69000 51342

27. 3 20. 3





The above mentioned table shows that the total loan amount Rs. 252642 is provided among the 45 borrowers. Out of the borrowed total loan 40.8 percent is seems to be invested in animal husbandry. 11.5 percent loan is invested in the skill development programs likewise 27.3 percent loan is invested towards cash crop farming and 20.3 percent loan is allocated for different commercial activities. 11.2 percent borrowers are found to be involved in skill development programs. 42 percent borrowers are found to be engaged in improved animal husbandry. 31.1 percent of the borrowers are involved in cash crop farming (vegetables, fruits, bee keeping etc.) and the project 15.5 percent are involved in commercial phenomenon after the implementation of project.



Income Level

Income has played significant role for social and gender impact. It has serious limitation but is presentation in aggregate forms. Income should be seen as the only measure of poverty alleviation. Income has often been confused with cash flow and income generating activities may produce more cash but associate cost also may be high. Income denotes the earning of the borrowers of the project through any income generating activities. The income may be in the form of money different kinds of consumption goods (basket system). For convenience the self consumption by borrowers is included in income. More than 80 percent of women borrowers were engaged in different traditional activities (food grain, unskilled labor, animal husbandry etc.) before borrowing the loan from PAWDMC. Table No 4 Income of the borrowers after borrowing the loan from PAWDMC Income Range 500-1000 1000-1500 1500-2000 2000-2500 2500-3000 3000-3500 3500-4000 Before borrowing 8 1 16 9 5 4 1 45 After

S.No. 1 2 3 4 5 6 7 Total

Percentage 17.7 2.2 35.5 20 11.1 8.8 2.2 100

Percentage borrowing 1 2.2 5 11.1 12 26.6 10 22.2 8 17.7 6 13.3 3 6.6 45 100

Source: Field survey, 2004.

Borrowers hand earns money at there minimum subsistence level before joining this cooperative. Before borrowing, 35 percent had income between Rs. 1500-2000. 20 percent borrowers had earned between 25 the


range of 2000-2500. 17 percent borrowers were earned between the ranges of Rs. 500-1000. 11.1 percent borrowers were earned between the ranges of Rs. 2500-3000. 2.2 -3000. 2.2 percent borrowers were earned the range of Rs. 1000-1500. And remaining 2.2 percent were in the range of Rs. 3500-4000 per month. Although the range of income ranges effect after the project implementation is positive on the borrowers of the project in PAWDMC. The table shows before borrowing and after borrowing the project implementation 26.6 percent borrowers have earned between in the range of Rs. 2000-2500 per month. Likewise 17.7 percent borrowers are found to be earned in the range of Rs.2500-3000. 13.3 percent of people earn in the range of Rs. 3000-3500 per month. So, it concludes that the income range is found to be positive incensement after borrowing loan from PAWDMC. 4.8 Living Standard

Living standard of the respondent before and after is an indicator of socioeconomic development. It is measured in terms of consumption pattern (food, cloth, health, education etc) the living standard of the respondent is often analyzed in terms of consumption pattern. Descriptive methods are applied to see whether the living standard has changed. The following table gives the consumption food pattern:


Table No 4.5 (a) Consumption Food Pattern of Correspondents S.N. 1 Food Traditional foods. (Rice, bread, dal & 2 vegetable) Food.(adding meat, egg, milk, fruits etc) Total
Source: Field survey, 2004.

Before borrowing After Borrowing No. of Percent No. of Percent respondent 21 46.67 respondent 7 15.5

24 45

53.33 100

38 45

84.4 100

Above mentioned table shows that before borrowing 46.6 percent of borrowers had taken traditional food like rice, pulse, bread and local vegetables but after the establishment of PAWDMC has reduced 15.5 percent such borrowers. The data shows that the living standard is increased after the establishment of PAWDMC. Likewise 53.3 percent of borrowers have taken food adding meat, egg, milk, fruit etc but after the involvement of borrowers in PAWDMC has increased. After the establishment of PAWDMC 34.4 percent respondents are found to be consumed hygienic food after the involvement in PAWDMC.


Table no 5(b) Clothing pattern of the respondents S. N. 1 Cloth Description Traditional clothes of cotton, terry cotton & simple 2 quality) Modern clothes of clean cloth of silk, polyester & seasonal woolen quality cloth Total
Source: Field survey, 2004.

Before borrowing No. of % Respondents 31 60

After borrowing No. of Percentage Respondents 11 24.4









The above table shows that before borrowing 60 percent of borrowers used to take traditional clothes of cotton, terry cotton and simple quality. But after the establishment of PAWDMC has reduced 24.4 percent, 40 percent borrowers used modern clothes of silk, polyester and seasonal woolen quality clothes before the PAWDMC and 75.5 percent members have consumed modern clothes after the involvement in PAWDMC. 4.9 Change of Housing Pattern before and after Before and after Intervention

Housing pattern reflects economic status of the people. It is measured in terms of construction of housing pattern; the living standard of the respondent is often analyzed in terms of housing pattern. The following table gives the housing pattern before and after project implementation.


Table no 4.6 Change of housing pattern before and after project intervention
Before the S.N. House type implementation of the project 1 2 Kuchha (mud+stone+thatched) Pakka (mud+stone+cement+tin roof+attached toilet and biogas+Rcc)
Source: Field Survey, 2004

After the % implementa tion of the project 22 29 48.9 64.4 % Total

23 16

51.1 35.5

100 100

Above mentioned table shows that before loan borrowing 51.1 percent of the borrowers were settled in traditional Kuchha types houses like thatched sheet, mud and stone. But after the establishment of the PAWDMC, it started to reduce at 48.9 percent in aggregate. The data also shows that the living standard of people is increased after the establishment of PAWDMC. Likewise, 35.5 percent of borrowers have constructed Kuchha types house before borrowing. 64.4 percent houses are constructed Pakka types after the borrowing. Thus, Pakka types houses are found to be increased after the involvement in PAWDMC.

4.10 Status of Women There are more than 50 percent women in Nepal out of total population but the matter of sorrow is that they do have very low status in the society. To bring them in the main stream of overall development, their status is to be


raised. The status of women refers to the extent to which they have control over individual freedom. They have political power, self confidence, self reliance, decision making, social prestige, integrity and socio-economic upliftment. There are various types of status of women which can reflect all its dimensions. The report to analyze the status of women it has been defined as follows:a) Education of women. b) Their ability to control over decision making in their own household and even in society. c) Self reliance to run their life. d) Social prestige and integrity. Nepalese women have lower economic and social status. Lack of education, skill, decision making power and empowerment are provided by rules and regulations and society as well. The relative well being of men and women depends on their relative bargaining power and entrepreneur talency. The institutional credit program helps in income earning activities for women. The credit program strengthens womens freedom and education which are clearly shown in the following table.


Table no 4.7: Change in women status after borrowing loan.

Increase S.N. 1 2 Indicators Education Decision making 3 power Self confidence to 4 5 live their life Social prestige Women autonomy
Source: Field survey, 2004.

than before 35 27

% 77.7 60

As it is 10 14

% 22 31.1

Unknown 4

% 8.8

Total percent 100 100







24 25

53.3 55.5

14 16

31.1 35.5

7 4

15.5 8.8

100 100

4.11 Education of Women Education is the key factor of human of human life. It brings various changes in the society. Most of the participants in the society are illiterate. They didnt get formal education from school. Educated and well trained women are accepting challenging jobs to face socio-economic problem. Along with other programs literacy program has been conducted since the operation of PAWDMC. They are getting knowledge through training, seminar, group meeting and visiting programs. The above mentioned table reflects that 77.7 percent women have increased their education after joining PAWDMC. They got opportunity to learn banking system (loan, saving interest rate, repayment). 4.12 Control Over Decision Making Control over decision making was figured out by the questionnaire regarding their household matters for e.g. Control over borrowed fund,


control over income generating activities, control over spending and earning. If women have controlled over their household affairs, they can save the time and substitute that in income generating activities. Decision making power of women depends on their education, want, skill, and endeavour. Above mentioned table shows that 60 percent of women have increased in their decision making power after joining the PAWDMC. They can decide by themselves in every spheres of social and economic sector. They have to have their own decision to earn money and to invest it in income generating activities. They dont want any interfere by male. 31.1 percent of the participants couldnt decide by themselves abut such household activities before and after the program. They seek help of their husband or relative member of vicinity to decide about household matters. Still now remaining 8.8 percent of participants are not able to make decision. They are entirely depending on their husband, family member, relative and man of vicinity. 4.13 Social Prestige and Integrity The main objective of PAWDMC is to aware rural women and put them out outside of barriers of their household and makes them skilled, through the medium of empowerment and power sharing. There seems an improvement in the access of position of power after involving in PAWDMC since, autonomy and two sides of a same coin. Some few indicators are used to check the condition of womens autonomy and social prestige. Some programs are seemed to be failed at meeting the core access of position of women. Awareness and willing are to be fought against the biasness of generation. Their voices are to be raised through every nook and corner of the rural area. The flame against the gender biasness is to be raised through the medium of. The above mentioned table shows that 55.5


women have increased their autonomy after joining PAWDMC. Similarly, 53.3 percent of women have raised their social prestige after joining PAWDMC. Thus we can predict that, undoubtedly, that PAWDMC has helped women to raise their social prestige and maintain their integrity about their right. 4.14 Role of NGOs Only government cant do everything in the country. So the role of NGO is also very important and essential to help government. This PAWDMC is also playing an important role as the NGO. Even in this cooperative, there is a significant role of UNICEF, women Development Society & Child Development Program is vital regarding the provision of subsidy in increasing income, raise the flame of awareness, gender issue in alleviating poverty. 4.15 Women and Employment From the time immemorial women are trapped only in kitchen as their employment. Even today women are mostly pre-occupied with fetching water, collecting firewood cutting grass and sweeping the house. The have low status in family and community. They have been ever working for low wage or uncountable. They are largely excluded from economic decision making such as production and major capital transactions. Their economic role is limited to domestic work and family expenditure. Most women are still employed in the traditional agricultural sector and their involvement in the productive sector of the economy is low. Their low level of education and social sanitation prevent many women from working outside their homes. Following table is represented at


employed women in business activities before and after the operation of cooperative. Table no. 4.8: Employed women in business before and after the establishment of cooperative No. of S.N. Types of employment Full time engage in their 2 business Part time engage in their 3 business Totally unemployed Total
Source: Field survey, 2004.

No. of percentage borrowers before borrowing Percentage

borrowers after borrowing






19 45

42.22 100



The above table shows that after borrowing loan from the cooperative 88.8 percent of involvement of women fairly engaged in their income generating activities. They are involved in business activities in their shops more than 10 hours per day. Only 11.1 percent women are found to be engaged in household affairs. 57.7 percent of women were involved in formal sector income earning activities before borrowing only. 42.22 percent of women were entirely unemployed before borrowing loan from


cooperative but after borrowing the percentage of income is nil. Thus it shows that many women are involved in income earning activities.


Chapter - V

S u mma r y Co n clu s io n & Re c o m m e n d at io n

This chapter summarizes the analysis presented in the preceding chapter, the conclusion and recommendation to improve some of the existing and upcoming problems. 5.1 Summary The cooperative named PAWDMC is one of the many saving and credit institutions. It is conducted in Kaskikot VDC (Kaski) under the cooperative act 2049 B.S. it was established to uplift the socio-economic status of rural women through income generating and awareness programs to alleviate poverty. In the beginning there were only 139 members but now there are more than 450 members involved. There are 11 members in management committee and more than five members are found to be employed. The above mentioned data proves that it has been one of the successful cooperative in Kaskikot VDC. In the initiation, it was started with Rs.16680 but now there is Rs.1504769 in the fund until the fiscal year 2060/2061. This cooperative provides credit in a minimum interest rate to run their income generating activities. The above mentioned data has come to prove that the range of loan distribution is Rs 1500 to 20,000. It has been starting awareness as well as income generating programs since its establishment. It gives loan to conduct the various activities like tea stall, restaurant, animal husbandry, bee-keeping, poultry


farming, cash crops, educational programs, health care programs and biogas plant as well. So, undoubtedly, we can say that it has brought many changes in the socio-economic status of rural economy of rural poor women like clothing, housing, sanitary, environmental as well as in food pattern. So, PAWDMC seems very successful cooperative institution in the realm of poverty alleviating procedure. 5.2 Conclusion The following conclusions are derived from the above study:
1) Democratic and smooth conduction:

PAWDMC is established under the cooperative principle and cooperative act 2049 B.S. So, it is running in the smooth and democratic manner.
2) Investment:

The investment of PAWDMC is increasing year by year. It has been investing in agriculture, tea stalls, restaurants, small trade, handicraft, health care and social sector in a minimum interest rate and flexible way.
3) Loan Recovery:

Loan recovery is very satisfactory.

4) External cooperation:

In the beginning, it was started with Rs.16, 680. But now, there are 1504769 in the fund. It has been helped by NRB, WDS & CDP to conduct different awareness and income generating programs as subsidy.




Rural developments are to be established in every nook and corner of the country as soon as possible. Already conducted so called development Banks are collapsed already due to the cause of corruption unskilled manpower and security. So, in this condition cooperatives are to be established. This PAWDMC can be presented as an example of very successful cooperative. The socio-economic activities conducted by the cooperative are really appreciable. Still some short comings are found to be seen in any successful organization. Here, some recommendations are made in order to make more effective, efficient and successful. 1) Still some of the members of PAWDMC are illiterate although they are laborious and honest. So, it seems very urgent to conduct the literary programs. 2) The staffs of the cooperative are very fearful. They hesitate to provide the documents for the survey. So, they are to be convinced and empowered. 3) Most of the respondents blindly believe in the decision of chairman. So, the responsibility and member education is to be needed. 4) PAWDMC should be provided monitoring and evaluation power to all of members. 5) Locally available natural resources should properly be utilized for further development. 6) Cooperative campaign is considered the best tool for agricultural and rural development. So, PAWDMC should be able to conduct other effective and phenomenal programs.


7) Chairman is the pivot of PAWDMC. Time is being changed. So, he/she should be trained in the proper manner according to the need of time. 8) The above mentioned data shows that their respondent in ward no.5 seems nil. This ward is the settlement of Dalit or untouchable caste. They are landless but can do other professions like sewing, carpentry and others. So, they are to be involved in the stream of cooperative as soon as possible. 9) The rural professions like dairy, organic fertilizer are to be started. So, some people may get employment. 10)Most of the rural women are limited only in the boundary of kitchen. So, they are to be involved in tour, idea exchanging programs or training classes. 11)At the last it is also recommended that PAWDMC should make arrangement to provide reasonable amount of loan in a flexible way so as to increase the number of members and shareholders in every nook and corner of the rural area.


IN D I V ID UA L Q U E S T IN N A IR E 1) General Information
1.1) Name of the respondent: - Sex: Illiterate Nuclear Male Literate Joint Extended Female 1.2) Address: .District.VDC.Ward. No. 1.3) Age: 1.4) Education: 1.5) Types of family: 1.7) Family Number:-

1.6) Family Head:-.

2) Introduction
1) What do you mean by co-operative? a) Common institution of all. b) An institution that helps to rural development. c) An institution that helps to alleviate poverty. d) All of above. 2) What do you mean by poverty? a) A family that has very small scale of land. b) A family that has no any professor employment. c) Illiterate, big family d) All of above. 3) What sort of role is played by co-operative in improving the fair sex? a) Providing required knowledge and skill for cottage industries. b) Managing the market for all productive goods. c) Creating the compulsory saving through co-operative. d) All of above. 4) When RCDC was established in your village? Ans:-.

3) Economic Status
1) What sorts of functions have you done by Co-op.? a) Bee-keeping.


b) Fruit and curry, milk production, goat husbandry. c) Small traits. d) All of above. 2) What sorts of co-operatives are there in your village? a) Milk collection co-operative. b) Agriculture co-operative. c) Women empowerment co-operative. 3) Have you taken loan from co-operative? If you may have in which sector have you invested? a) Cash crop. b) Cottage and small scale industries. c) Adult education. d) Skill development programs. 4) In which of the sectors of following are effected by PAWDMC? a) Towards small family. b) Towards quality education. c) Proper usage of contraceptic goods. d) Compulsory saving. e) All of above. 5) When PAWDMC was established in your village? Ans:-. 6) How much you have been saving in PAWDMC? Ans:-. 7) How much loan have you taken from PAWDMC and what is the interest rate? Ans:-. 8) Where do you expense that deposited income? Ans:-. 9) Is there increasement in your income? Yes 10) If Yes, how much? Ans:- Monthly Rs Yearly Rs 11) Where do you invest it? No.



4) Social Status
1) How did you get the concept of co-operative? a) Through Medias. b) Taking part in conference and training. c) Provision of easiness in doing work through community. d) All of above. 2) What are the positive activities of the establishment of PAWDMC? a)Development of communal concept. b) Development of responsibility/ duty and own rights. c) Development of decision making capacity. d) All of above. 3) What sort of activities is done in the field of health and environment? a) Environmental Sanitary. (Toilet and its proper uses.) b) Bio-gas and its features. c) Drinking clean water, knowledge about nutrition. d) All of above. 4) Just now you did talk about the bio-gas plants. What types of did you see over there? a) Neat and clean kitchen room. b) makes easy to wash. (Because of moisture less) c) Lessens some infections of kitchen like cough and respiratory problems. d) All of above. 5) What types of improvements are brought by PAWDMC? a) Solution of mental as well as physical problems through community. b) Awareness about own right, function and responsibility. c) Some basic way to increase income for the need of family. d) All of above. 6) What are the causes that women have less access in society? a) Lack of education and superiority of male. b) Unequal property right. c) Conservative and discriminative concept over women. d) All of above.


7) What sorts of benefits have you taken from PAWDMC? Ans:-. 8) What is the loan providing procedure of PAWDMC? Ans:-. . 9) How many offspring do you have & where do they study? Ans:-.


B i b l io g r a p h y
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Utpadan Ra Sharmic Sahakari ko Bhumika. Bajracharya, Bhuwan (1993), A review of cooperative in Nepal,

Kathmandu, Nepal. Nepal. CBS (2002), Statistical pocket book, Central Department of Budget Speech- Ministry of Finance 2004/5. MOF, Kathmandu,

statistics. 2002. Emmanuel, D. Silva. Poverty through Agricultural project. A

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