Introduction

Sustainable Exit Strategies

sustainability strategy or exit strategy

 The objective is to ensure that the beneficial

impact of the project continues after the
project has finished
 The idea of sustainable impact has at least
become generally recognized and accepted
by all parties in the development process

for shiree both the DFID and the GoB MTRs

placed emphasis on sustainability

We have at least moved beyond the “it was

working when I left” approach
Funding agencies typically require a statement about
exit or sustainability strategy in project proposals

 For Infrastructure projects: a mechanism that will ensure

the continued operation and maintenance of the facilities –
eg toll fees, community engagement, transfer of ownership
and responsibility to government or the private sector

 For Technical assistance/capacity building projects :

embedding skills in sustainably funded local institutions,
permanent changes to systems, procedures or laws,
establishing accountability mechanisms

 For private sector market development projects- viable

independent businesses established
For Livelihood projects focused on the
extreme poor??

 Beneficiaries have been lifted off the bottom

through the project intervention – how to
ensure that they will not just sink back down
once the project is ended?

- protecting the gains, continuing the direction

of travel
Given the impossibility of holding the implementing agency to account for the
success of the exit strategy during the project period. These strategies often lack
realism – exercises in wishful thinking or box ticking

“The responsibility will be handed over to local government” – but with little or
no contact with local government
“The project will be absorbed into the government budget” – but no one asked
the Ministry of Finance!
“ The business will be sustainable through profits” – but failing to recognize that
during the project the business relied on subsidy
“The community or group will manage the activity” – but ignoring how much
the group was dependent on the NGO field staff
“Dependent individuals will transfer to government safety nets” – but no
change in the mechanism through which these are allocated
“beneficiaries will transition into mainstream services” – but are the service
providers for this segment available?
“local elites will continue to provide support” – is there any incentive or
mechanism in place?
“assets have been transferred” – they can easily be lost
 Exit or sustainability strategies often fail to
address the underlying factors causing or
tending to sustain extreme poverty – and
hence have a low probability of success
Poverty Drivers : shocks, health, family
fragmentation, lost assets/savings

Poverty maintainers: low wages, no access to

social protection, low social capital, debt, no
regular work
The scale of the problem - rural
70 thresholds 35.2
%
UPL 61
60 21.1 2012
%
LPL 2012
52
50
Income PCPD

40
34 Threshold 2012

30 28.2 March 2012 mean

22
Exclusion threshold
2017
March
3-5%
2010
10 mean
0
 For Scale Fund (Round One, Phase One):
between March 2010 and March 2012
beneficiaries showed a 66% increase in
average income (rural) and 90% (urban)
(before inflation)

CMS3 data
 But 76% (rural) and 31% urban BHH remain in
extreme poverty on the basis on the HIES
Lower Poverty 2010 line adjusted for inflation

 Between March 2011 and March 2012 there

was a “plateauing effect” in the rate of
improvement across several indicators
The challenge

 How to keep people moving in an upward

trajectory beyond the period of direct asset
and cash transfer?- or at least to ensue that
they don’t slip back down

 How to ensure that beneficiaries can become

engaged with other income and wealth
generating processes?
To conclude:

 There is no magic formula that will ensure

sustainability

 Government agencies (national/local), NGOs,

communities and community organisations
and the private sector are all likely to be part
of a realistic and achievable strategy to
sustain the positive impact of project
interventions