microfinance: interest to action part 2 of 5
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Challenging the Frontiers of Poverty Reduction
Targeting the ultra poor
A Special Investment program
to combat ultra poverty
Rabeya Yasmin
Director , BRAC
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Global Poverty
• 1.5 billion of world population in ultra poverty
• Poverty rates across the globe are falling, but there are populations not affected by these trends
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Bangladesh Poverty Record
Head Count poverty declined from 70% in 1973-74 to 32% in 2010
Still we have – 17% population in lower poverty line
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Still we have ultra poor –
94 % landless
32% of household cannot afford two meals a day
1.3% can consume egg 3 times/week
17% can consume small fish 3 times a week
58% HHs do not use sanitary latrine
7% HHs head has primary education
(Source: A joint study by the London School of Economics and Research and Evaluation Division of BRAC , 2007)
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About BRAC
• Founded in Bangladesh in 1972, BRAC is considered “by most measures the largest, fastest-growing non-governmental organization in the world.” (Source: Economist, 2010)
• BRAC has been at the forefront of poverty alleviation in 10 counties reaching 100 million population
• BRAC creates opportunities for the poor
• BRAC believes and acts on holistic approach
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BRAC’s quest for a meaningful investment in to the lives of the poorest
Insights from BRAC’s deep and extensive presence at the grassroot
Conventional Microcredit was not the best solution for the ultra poor
The challenge is to design a sustainable market based livelihood program for the poorest
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New Innovation
- In 2002 BRAC launched a special program called :
“Challenging the Frontiers of Poverty Reduction –Targeting the Ultra Poor”
- Objective Achieve sustainable economic and social changes in the lives ultra poor by creating assets, skills, hope and aspiration at household level
Assist the ultra poor in getting access to the mainstream development programs
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Targeting the Ultra Poor
Program Strategy
program works in two approaches :
1. Full Grant based Special Investment program for the poorest among the lower poverty line
2. Credit plus grant investment for the ultra poor who are marginally less deprived
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Targeting
Indentify program location
Locations with very high and high poverty incidence selected using Govt. poverty map
Identify poorest households
• Participatory Wealth ranking exercise
• Door to door survey y front line supervisors
• Verification by mid level managers
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Program Supports
Full grant Special Investment Program
Credit plus grant approach
1. Asset transfer; weekly stipend.Build economic asset base, ensure regular cash flow, improve livelihoods.
1. Soft Loan replaces Asset Transfer for this category.
Loan terms : flexible loan size, flexible savings, six-montly loan
2. All other supports remain the same.Enterprise development, life skill training, tailored made health care,Community mobilization works.
2. Enterprise development and life skill training To ensure good return from assets transferred, awareness of rights and justice
3.Tailor made health intervention.Improve health seeking behavior, reduce income erosion in health
4. Engaging with the community.To create supportive/ enabling environment at village level,ensure long term sustainability of improved livelihood of the ultra poor members.
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Participatory Wealth Ranking Exercise
Targeting
Community participates in a spatial
mapping and wealth ranking exercise to
identify community members in the
most need
Community participates in a
spatial mapping and wealth
ranking exercise to identify
community members in the
most need
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Goat rearer
Cow rearer
Duck rearer
Vegetable growerASSET
TRANSFER
We offer 12 options of enterprise
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STIPEND
To allow the client breathing room, and
time to start earning income from her
assets, the client receives a cash transfer
or stipend, and in some cases a food to
supplement their diet.
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Training / handholding
Client receives weekly home visits and
training on how to use their asset, on
health and hygiene matters, basic skills
and literacy, and general support and
counseling
Program participants receiving
class room training at BRAC
office
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Tailored Health Intervention
Panel doctor give
prescription to Program
participant
BRAC Health staff
visiting a TUP
member
Tube well installed for
safe drinking water at a
TUP household
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Mobilizing community Support
Free Coaching for poorest children
Village committee Meeting
Donating Warm Cloths
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Graduation out of ultra poverty
Coverage
2002- 2013 , 1.4 million poorest families covered by BRAC in Bangladesh
Concept of Graduation
Graduating into a better life from the most deprived condition
Participation in mainstream market based economic activities
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Impact
Longitudinal Impact Study over 8 year Randomized Control Trial applied
Results so far highly impressive :
95 % graduated from extreme poverty trap by obtaining :
Significant Increase in Income Significant shift in Occupational choiceFood SecuritySocial Inclusion
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Insights ?
•Poorest should not be seen as permanent charity cases
•Comprehensive Targeted Programs needed
•Exit plan
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Join us in the movement to end ultra-poverty. Contact us to learn more
BRAC Centre75 MohakhaliDhaka 1212Bangladesh
BRAC USA110 William Street, 29th FloorNew York, NY 10038USA
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Thank You !