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8/4/2019 A Passage to Rural Development
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A Project Workon
Passage to Rural DevelopmentCooperative & Its Effectiveness in
Poverty Alleviation
(With reference to People’s Awareness and Women DevelopmentMulti-purpose Cooperative, Kaskikot VDC)
Submitted toFaculty of Humanities and Social SciencesCentral Department of Rural Development
T.U. Kirtipur, Kathmandu
Nepal
Submitted by Resham Timilsina
Masters Degree in Rural DevelopmentT.U. Kirtipur, Kathmandu
Nepal2004
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A Project Workon
Passage to Rural DevelopmentCooperative & Its Effectiveness in
Poverty Alleviation
(With reference to People’s Awareness and WomenDevelopment
Multi-purpose Cooperative, Kaskikot VDC)
Submitted toFaculty of Humanities and Social SciencesCentral Department of Rural Development
T.U. Kirtipur, KathmanduNepal
Submitted by Resham Timilsina
Masters Degree in Rural DevelopmentT.U. Kirtipur, Kathmandu
Nepal2004
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LETTER OF RECOMMENDATION
This project work entitled “A Passage to Rural Development Co-
operatives & Its Effectiveness in Poverty Alleviation (With reference to
People’s 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
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APPROVAL LETTER
This project work entitled “A Passage to Rural Development
Cooperatives & Its Effectiveness in Poverty Alleviation (With
reference to People’s 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 Signature
Chairman: ……………………..
External Examiner: .……………………...
Research Advisor: ………………………
Date:……………………………..
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DEDICATION
It is dedicated to my lovely late mother Mrs.
Gauri Timilsina.
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Acknowledgement
This study is master’s 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 andsuggestions 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.
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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
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Abbreviation
ADB Agricultural Development Bank
CBS Central Bureau of Statistics
DDC District Development Committee
GDP Gross Domestic Product
GNP Gross National Product
HDR Human Development Report
IFAD International Fund for Agricultural Development
INGO International Non-governmental Organization
MLD Ministry of Local Development
MPCW Micro credit Project for Women
NBL Nepal Bank Limited
NGO Non-governmental Organization
NPC National Planning Commission
PAWDMC People’s Awareness and Women Development Multipurpose
Cooperative
PCI Per Capita Income
PCRW Production Credit for Rural Women
PDDP Participatory District Development Program.
RBB Rastriya Banijya Bank
SHG Self Help Group
USA United States of America
UK United Kingdom
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UNDP United Nations Development Program
UNICEF United Nations International Cultural And Educational Fund
UNO United Nations Organization
VDC Village Development Committee
WDS Women Development Society
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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
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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 ..................................................................................112.1 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
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3.2 Sample Size .....................................................................................26
3.3 Data Presentation & Analysis...........................................................26
Analysis of Data.........................................................................................274.1 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
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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 can’t 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
1 Todaro, MP, Economic Development in the 3rd World.
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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.
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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 andliberty.”
Another thinker Saul Estrine says “In cooperative decision making
is based on democratic principle”
2 Kunwar, Krishna Bahadur Poverty and Rural Development in Nepal.
3 V.T., Krishnahari, Cooperatives.
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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 18 th
century in the economic and social system under the impact of industrial
revolution. Then, it started in Germany in the middle of the 19 th 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.
4 Department of Cooperative (Nepal).
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1.4 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 anagricultural 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) 2041, Sajha Sanstha Act.
11) 2048, Cooperative Act and abolishment of Sajha Sanstha.
12) 2049, Publication of Cooperative Procedure and Act.5
1.5 A Brief Introduction about the PAWDMC
The name of this cooperative is People’s awareness and women
development multipurpose cooperative limited. It’s short name is
5 National Planning Commission, (Adhar Patra).
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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 isthe 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 tofacilitate 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
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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) To study people’s participation in rural development.
c) 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 illiterate.it has occupied by 26.43sq.km 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 member’s .They have done income generating
activities. Many women are getting successful in changing their life
standard after involvement in the PAWDMC.
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Map of Kaskikot VDC
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1.9 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 bank’s
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
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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.
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Chapter- II
Review of Literature
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 world’s 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
6 CWD, 1989.
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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 beenassigned 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 havealso 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
women’s 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 Ojha, E, R and K.E Weber 1992.
8 Mehbub UI Hog, “Women and Economy”, Human Development in South Asia. 2000.
9 CBS, 2001.
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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 middle-
income 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
10 5 Acharya, Dr. Mina (1994) “The Statistical Profile on Fertility".
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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.
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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, butit 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 women’s 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
11 Srivardana, Mr. Susil “The Role 0f Micro credit in poverty reduction and promoting
gender equity.”
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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. Thefollowing 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.
12 Swiss Agency for Development and Cooperation.(SADC) 2000.
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● 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.
● Long term perspectives on operational and financial
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 non-
governmental organizations. Nearly 18000 NGOs are conducting poverty
focused programs. There are also two Grameen replicating NGOs namely
Nirdhan and center for self help development.
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2.1 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 Women’s
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 thanRs. 15,000.
“Co operative is being blessing rural women” a seminar paper
entitled Contribution of Women’s cooperative in poverty alleviation.
Participatory seminar in Kavre’s Women awareness loan
cooperative.13
“Cooperatives in every village and employment in every home”14
2.2 Overview of Poverty Alleviation Program
Expanding the coverage of institutional credit has been the central theme
of poverty alleviation strategy adopted by the government in the past.
13 Gorkhapatra 2061, Shrawan 15 pp7
14 Budget Speech 2061. Finance Minister of Nepal.
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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 inthe 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 group’s
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
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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 andimplementation, 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 can’t 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 doesn’t have a successful history of
cooperative movement in the past. The cooperative movement began in
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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 thedemocratization 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 thatcooperatives 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: socio-
economic, institutional, legislative, responsible, transparent, corrupt lessand 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.
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• The technical and financial cost is very high in the rural
level.
• 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 co-
ordination 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
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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 socio-
economic 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 researchextension 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
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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 wereexported 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 theend 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
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then, SFDP has been viewed as a major poverty alleviation program of the
governments in Nepal.
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Chapter - III
Methodology
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.
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Chapter - IV
Analysis of Data
4.1 Introduction to PAWDMC
The name of the cooperative is People’s 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:-
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1) Agricultural production.
a) Provision of loan for advanced farming.
b) Distribution of advanced seed, chemical fertilizer, improvedinstrument, 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.
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4.3 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 allthe 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.No. of
borrowersPercentage
Loan distribution
(in Rs.)Percentage
1 39 17.3 255580 17
2 6 2.7 17250 1.1
3 39 17.3 223117 14.8
4 29 12.8 177903 11.8
5 - - - -
6 13 5.7 80834 5.4
7 8 3.5 49250 3.3
8 45 19.9 262915 17.4
9 34 15.0 155770 10.3
Rural self-
reliance
13 5.7 282150 18.7
Total 226 100 1504769 100
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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.)No. of borrowers Percentage
<2000 5 11.1
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2000-4000 13 28.8
4000-6000 5 11.1
60000-8000 3 6.6
8000-10000 5 11.1
10000-12000 5 11.1
12000-14000 2 4.4
14000-16000 4 8.8
16000-18000 2 4.4
18000-20000 1 2.2Total 45 100
Source: Field survey, 2004.
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, 8000-
12000 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.
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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.
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Table no 4.3 (a) Occupation of borrowers before project
implementation
S.No.
Occupation No. of borrowers
Percentage
1
Food grain production
(paddy,maize,millet,wheat
etc)
17 37.7
2 Unskilled labor(Farm labor) 15 33.3
3 Animal husbandry 6 13.3
4 Skill Development 2 4.4
5Cash crops(vegetable, fruits,
bee-keeping etc)
2 4.4
6Business Activities(Small
grocery, tea stall etc)
3 6.6
Total 45 100Source: Field Survey, 2004.
The above mentioned table shows that the institution members wereengaged 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.
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Table no 4.3(b): Occupation and loan amount of the borrowers after
project
S.N.
Occupations No. of borrow
ers
Percentage
Loanamoun
t (Rs)
Percen-
tage1 Animal Husbandry
(Buff, goat, pig)
19 42.2 103300 40.
8
2 Skill development
(employment and
training)
5 11.2 29000 11.
5
3 Cash croups 14 31.17 69000 27.
3
4 Shops(tea stall,
grocery, medical
etc)
7 15.5 51342 20.
3
Total 45 100 252642 100Source: Field survey, 2004.
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.
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4.7 Income Level
Income has played significant role for social and gender impact. It has
serious limitation but is presentation in aggregate forms. Income should beseen 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
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
S.No.Income
Range
Before
borrowingPercentage
After
borrowingPercentage
1 500-1000 8 17.7 1 2.2
2 1000-1500 1 2.2 5 11.1
3 1500-2000 16 35.5 12 26.6
4 2000-2500 9 20 10 22.2
5 2500-3000 5 11.1 8 17.7
6 3000-3500 4 8.8 6 13.3
7 3500-4000 1 2.2 3 6.6Total 45 100 45 100
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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 rangeof 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 socio-
economic 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:
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Table No 4.5 (a) Consumption Food Pattern of Correspondents
Before borrowing After Borrowing
S.N. Food No. of
respondent
Percent No. of
respondent
Percent
1 Traditional foods.
(Rice, bread, dal &
vegetable)
21 46.67 7 15.5
2 Food.(adding meat,
egg, milk, fruits etc)
24 53.33 38 84.4
Total 45 100 45 100
Source: Field survey, 2004.
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.
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Table no 5(b) Clothing pattern of the respondents
Before borrowing After borrowing
S. N. Cloth Description No. of
Respondents
% No. of
Respondents
Percentage
1 Traditional clothes
of cotton, terry
cotton & simple
quality)
31 60 11 24.4
2 Modern clothes of
clean cloth of silk, polyester &
seasonal woolen
quality cloth
14 40 34 75.5
Total 45 100 45 100Source: Field survey, 2004.
The above table shows that before borrowing 60 percent of borrowers usedto 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 andafter 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.
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Table no 4.6 Change of housing pattern before and after project
intervention
S.N. House type
Before the
implementation
of the project
%
After theimplementa
tion of the
project
%Total
1 Kuchha
(mud+stone+thatched)
23 51.1 22 48.9 100
2 Pakka
(mud+stone+cement+tin
roof+attached toilet and
biogas+Rcc)
16 35.5 29 64.4 100
Source: Field Survey, 2004
Above mentioned table shows that before loan borrowing 51.1 percent of
the borrowers were settled in traditional Kuchha type’s houses like
thatched sheet, mud and stone. But after the establishment of thePAWDMC, 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 type’s house before borrowing. 64.4 percent houses
are constructed Pakka types after the borrowing. Thus, Pakka type’s
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
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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-economicupliftment. 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 women’s freedom and
education which are clearly shown in the following table.
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Table no 4.7: Change in women status after borrowing loan.
S.N. Indicators
Increase
than
before
%As it
is% Unknown %
Total
percent
1 Education 35 77.7 10 22 - - 100
2 Decision
making
power
27 60 14 31.1 4 8.8 100
3 Self
confidence to
live their life
31 68.8 12 26.6 2 4.4 100
4 Social
prestige
24 53.3 14 31.1 7 15.5 100
5 Women
autonomy
25 55.5 16 35.5 4 8.8 100
Source: Field survey, 2004.
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 didn’t 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 tablereflects 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,
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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. Decisionmaking 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 don’t want any interfere by male.
31.1 percent of the participants couldn’t 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 women’s 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
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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 can’t do everything in the country. So the role of NGO is
also very important and essential to help government. This PAWDMC isalso 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
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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
S.N.Types of
employment
No. of
borrowers
after
borrowing
percentage
No. of
borrowers
before
borrowing
Percentage
1 Full time
engage in
their
business
26 57.7 40 88.8
2 Part time
engage in
their
business
- - 5 11.1
3 Totally
unemployed19 42.22 - -
Total 45 100 45 100 Source: Field survey, 2004.
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
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cooperative but after borrowing the percentage of income is nil. Thus it
shows that many women are involved in income earning activities.
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Chapter - V
Summary Conclusion & Recommendation
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
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farming, cash crops, educational programs, health care programs and bio-
gas 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.
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5.3 Recommendation
Rural developments are to be established in every nook and corner of the
country as soon as possible. Already conducted so called developmentBanks 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 convincedand 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.
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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.
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INDIVIDUAL QUESTINNAIRE
1) General Information
1.1) Name of the respondent: - ………………………………………
1.2) Address: …………….District……….VDC……….Ward. No.
1.3) Age: - Sex: - Male Female
1.4) Education: - Illiterate Literate
1.5) Types of family: - Nuclear Joint □ Extended
1.6) Family Head:-……………………………………….
1.7) Family Number:-
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.
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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 No.
10) If Yes, how much?
Ans:- Monthly Rs………… Yearly Rs………………
11) Where do you invest it?
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Ans:-………………………………………………………….
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.
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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:-………………………………………………………….
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