Poverty Alleviation Fund

A flagship programme of Govt.

of Nepal

PAF Nepal

June 6, 2016

INTRODUCTION

Initially established by an Ordinance in 2004, governed by PAF

Act, 2006

Special & Targeted Program to bring the excluded population

into the Mainstream of Development

The program improves access to income-generation

opportunities and community infrastructures.

PAF Objectives and Goal

Objectives

To improve the living conditions and livelihoods of the poor, and

empower them

To provide access to basic social and economic services and

infrastructure providing opportunities for income generation and
human development to the poor

To support Government to meet poverty reduction goals and targets

through targeted program

The Goal of PAF is to help the poor find their way on a

sustained path out of poverty
PAF Nepal

PAF
Principl
es &
Approac
h

PAF Guiding Principles

Targeted to Poor
Social Inclusion
Demand Driven
Direct Funding
Community Institutions
Transparency
PAF Nepal

Targeting The poor

Participatory Approach
Social Mapping and
Assessment
Wellbeing Ranking
Community
Organization of Poor

PAF Nepal

Participatory Wellbeing
Ranking
Categorization of Households at Settlement level

(based on Well-being Ranking)

Hardcore Poor Ka:

(food for less than 3 months);

Medium Poor Kha:

(food for 3 to 6 months);

Poor Ga:
(food for 6 to 12 months);

Non-poor Gha:
(food for more than a year);

(Community Mapping-Social Assessment-Well-being Ranking)

7

PAF Nepal

Organizing Poor
PAFs Social Inclusion Strategy

Poor Households Organized into Community

Organization (CO)

At least 50 % of CO members are Women

The office bearers are 60% (Chairperson,

Secretary and Treasurer) of COs are from among
the targeted socially excluded beneficiaries (dalit,
janajati, women)
8

PAF Nepal

Community Institution Development and

Exit Strategy

Develop community organizations as autonomous, sustainable, strong

and viable self reliant institutions

Co-operatives

CO Networks

Link with
Market

Linking with
Financial
Institutions

Community
Revolving Fund
Management
9

HOLISM

Third felt needs

Second felt
needs
Entry Point
MIND

PAF Nepal

INSTITUTION BUILDING
AND PARTNERSHIPS

3rd Mobilization
2nd Mobilization
1st Mobilization
MATERIAL

NPC

Chairperson: The Prime Minister

Vice Chairperson
NWC
ADDCN
BOARD
NGO
NAVIN
PRIVATE SECTOR -5

Implemetation/
Management

NDC

(12 members with at least one woman)

Vice-Chairperson
EXECUTIVE DIRECTOR
ADVISORS

DED

SOCIAL INCLUSION EXPERT

FINANCIAL ANALYST

Technical Appraisal
Committee
(Board Secretariat)

M & E EXPERT
COMMUNITY INFRASTRUCTURE EXPERT

HRD EXPERT
MANAGEMENT INFORMATION SYSTEM

PROCESS LEADERS
PORTFOLIO MANAGERS
PARTNER ORGANIZATIONS
COMMUNITY
ORGANIZATIONS

5 DIVISIONS

66 Professional Staff and 33 Support Staff

recruited on competitive basis
on contract extendable based on performance
SERVICE AGENCIES

PAF target
Location of PAF COs at the VDC
28,287 COs
level

200 cooperatives, 1633 federation of COs,

1084 Informal Networks at VDC level

41.7 % of total VDCs and

73.8% of program district
VDCs covered ( i.e. 1,980
11
VDCs )

Status as of May, 2016

Nos. of Cos = 28,288

Nos of CO members = 789,000
Working Districts= 55 regular +
3 innovative
VDCs covered = 1980 [IG]
Revolving Fund ~12.3 Arab

SOCIAL INCLUSION
CASTE AND ETHNICITY

CO Members Beneficiaries

78% WOMEN

26% DALITS

25% JANAJATI

DEMAND DRIVEN SUB-PROJECTS

IG CO (US$ 105 M)
CO INFRASTRUCTURE (US$ 42M)

IG SUB-PROJECTS

CO-ORDINATION LINKAGES

Local government organizations

International organizations

MoU between PAF and MLD (DDC/VDC linkages)

Interest of other donor and development partners to work

together with PAF realizing with different MoU for
concerted effort (SAF, ROTARY, WINROCK, ICIMOD,
WFP, GIZ, Helvetas, EIG-USAID, Heifer Int., Practical
Action, FNCCI)

Government organizations

(AEPC, DNPWC, LFLP, Other line agencies)

Quality Control, Monitoring and

Evaluation

Appraisal of CO and CO sub-projects

Sample Monitoring
Hoarding Board/ Social Audit/ Public Hearing
Periodic Beneficiary Assessment - RF status and Social Reassessment for IG beneficiaries
DDC Level : Local political parties, line agencies, DDC/VDC and
journalists monitoring with district review
Periodic Performance Audit from Office of Auditor General (2008,
2012)
Technical Audit and Sustainability Study
Periodic Impact Study- TU, CEDA, World Bank, other institutions
Citizen Charter
Grievance Handling Mechanism
We MIS

TOWARDS STRATEGIC DIRECTION

Based on Lessons Learnt

Show visible and sustainable impacts(Pocket Area

Development and Special Focus to Marginalized
Community)
Community Legal Institution Development
(Networks, Co-operative, Cottage Industry)
Coordinated effort and collaboration for visible impact
and sustainability of efforts (MoUs)
CO Graduation and Exit
PO reduction strategy
Implementation of Response Program for Earth Quake
Affected Community
19

THE RESULTS AND IMPACTS-MAKING

VISIBLE

Develop production Pocket Area for Market Linkages and

Economic growth

Special program for marginalized community to link with

value chain

Improve Nutrition with diversification of product for

consumption

Enhance Infrastructure support linking with above

strategies

Knowledge Management

Grievance Handling

COMMUNITY INSTITUTION
DEVELOPMENT

Strengthen Revolving Fund Management System

and Linkages with Financial Institutions

Revolving Fund Management Manual Developed

Dialogue with Micro-Finance Institutions and Banks for possible

linkages

Legal cover for community groups (all COs, not just

PAF supported)-Draft Act prepared

Emergence of federated legal institutions such as

co-operatives

COORDINATED EFFORT IN
TARGETING, EFFECTIVENESS AND
SUSTAINABILITY

District based Poverty Alleviation Coordinating

Committee(DPAC)

Legal Registration of Community Groups or

Community Organizations and CO network

avoid duplications Encourage a concerted efforts - Sustainability

of community driven efforts

Community Planning Linked with Ward Citizen Forum

and DDC planning

MoUs with Development Partners

CO Graduation Strategy

Level the COs

CO capable to hire services (CO without PO)
CO capable on their own (No PAF support needed)
Improve effectiveness of Capacity Building towards
making COs independent including Institutional
Development
The PO performance will be tied to successful CO
graduation.
Evaluation of PO performance by COs - Enhance POs
accountability towards COs

CO maturity assessment guidelines and PO evaluation Manuals

Linkages with other Innovative

Initiatives

JSDF - Link Artisan Community with

Market
CCF Link with Nutrition Strategy
Development
Peri Urban Poverty Rural Urban
Linkages
On-Track Connecting Peoples
Concerns

OUTCOME & RESULTS

Significant reduction in Poverty

head Count (who received
money for IG)
Poverty rate reduced by
17.4% points ( In 200750.5% points, In 2014- 33.1%
points)

Working approach
FRAMEWORK FOR REACHING THE TARGETED POOR

Revolving Fund (RF)

OBJECTIVE S OF RF:
To

allow tap economic opportunities and

promote entrepreneurial activities amongst
co members;
To provide financial source, enabling CO
members to access to credit to finance
their income generating activities;
To meet their specific credit demands with
the appropriate terms and conditions set by
themselves, making loan accessible and
affordable and ensuring effective RF
management;
To facilitate in financial linkage of cos/
members with appropriate FIs;

Knowledge Management
Progress
KM strategy development - Consultant working
Capacity Building -Advanced excel trainings to assistants, officers and division chiefs
Learning Routes -Under discussion with consulting firm PROCUSER
Awareness Creation -Innovation award for 3 COs and 2 CO members in each district,
best cases and innovation award at local level
Publications and newsletters -Newsletters sampled, Programs at FM Radio started
from Chaitra 2072 in 15 districts, 55 districts in this FY
Weekly Radio Program from Radio Nepal at 7:45 Saturday
Weekly Program from NTV, negotiation ongoing
1 Documentary produced
Piloting ICT based MIS -Development ongoing
Hiring - KM assistant hired, KM/M&E officer in process
Documenting EQ response in PAF Communities A Case study [completed]
Learning from Livestock Investment in PAF Communities - A Case Study [completed]
Learning from CO development in PAF Communities A Case Study [ongoing]

FUTURE STRATEGY

COs

Strengthened RF
management

+
Pocket Area
Development

+
Higher Level
Institutions
(HLIs)Cooperatives,
Producers
Group, Network,
Social
Enterprises etc.

Financial Linkages
Market Linkages

Coordination/collaboratio
n/partnership with line
Agencies and Local
Government

+
Development of Local
Resource Person

Diverse financial services to

meet CO members needs
+
Market Linkages of produces
by COs/HLIs

Improvement in livelihoods of
the poor

FUTURE CHALLENGES

Nation wide Coverage and Deepening of efforts

Sustainability of Community Driven Efforts by the
Poor and Exit
Linkages and Co-ordination with Government,
Development Partner and Private Sector Institutions
for discernible impact
Knowledge management for replicating the best
practices and advocacy
Bring in Multiple Donor for Sustainable Funding
sources
Enhance GoN ownership with regular funding for
Program

Any Queries?

???

THANK YOU