Self Employment Strategies for the Ultra Poor Livelihoods Asia - - PowerPoint PPT Presentation

Self Employment Strategies for the Ultra Poor

Livelihoods Asia Summit

BRAC is a development success story spreading anti-poverty solutions across Asia, Africa and the Caribbean. Begun as a limited relief effort for refugees displaced after the 1972 Bangladesh liberation war, BRAC led by founder Sir Fazle Hasan Abed, developed a metrics-based approach to pilot and perfect programs before scaling them to reach millions.

What is BRAC?

Countries where we work: Bangladesh, Philippines, Myanmar, Nepal, Afghanistan, Pakistan, South Sudan, Uganda, Tanzania, Sierra Leone, Liberia, and Haiti.

What is the Graduation Program?

In 2002, BRAC pioneered the TUP program in Bangladesh to improve the resilience of the ultra poor and effectively address the worst forms of poverty. Since then, enrolling 100,000 new participants each year, BRAC has scaled the Graduation approach, as it is now known, graduating 1.7 million households (6.8 million people) with a projected reach of 2 million households by 2020. BRAC TUP pilots have been conducted in Afghanistan, Pakistan, Sri Lanka, and South Sudan, and will expand to Uganda and Tanzania.

Chronically food insecure, eating less than 1,800 calories where the minimum is 2,000-2,500 based on gender, despite spending 80% or more income on food Disconnected from mainstream government services– such as school feeding and public works programs Most vulnerable to health shocks and natural disasters Chronically food insecure, eating less than 1,800 calories where the minimum is 2,000-2,500 based on gender, despite spending 80% or more income on food Disconnected from mainstream government services– such as school feeding and public works programs Most vulnerable to health shocks and natural disasters MULTI-DIMENSIONAL CONSTRAINTS FACING THE ULTRA POOR The World Bank estimates 902 million people live in extreme poverty (2015). The ultra poor are the poorest subset

• f the extreme poor, living on

significantly less than $1.90/day. $1.90/day

Who are the Ultra Poor?

Live in geographically isolated, hard- to-reach areas Underserved by markets and unaffected by economic policies Lack community acceptance, confidence, support systems Predominantly a female-headed household in community with restrictive social norms Live in geographically isolated, hard- to-reach areas Underserved by markets and unaffected by economic policies Lack community acceptance, confidence, support systems Predominantly a female-headed household in community with restrictive social norms

Graduation Components

Step 01

Targeting

BRAC relies on a triangulated targeting approach, including a participatory wealth ranking exercise, poverty mapping, and household surveys.

STEP 02

Asset Transfer for Income Generation & Livelihoods

Following an in depth market analysis, participants work with their coach to select an enterprise for which they receive a package of assets such as cows, goats, chickens, etc.

STEP 03

Consumption Stipend

To allow the client breathing room and time to start earning income from her assets, she receives a consumption stipend and in some cases a food item to supplement her diet.

STEP 04

Savings

As food consumption stabilizes, clients are encouraged to begin saving, even if only in small increments, either semi-formally through self-help groups or formally with a financial institution.

Upon selecting her enterprise, each client receives technical training in how to care for her asset and generate income from running her business.

Technical Skills Training

STEP 05

STEP 06

Life-Skills Coaching

Regular visits from a coach provide clients with ongoing training, consistent progress monitoring and support, as well as vital self-confidence to succeed.

STEP 07

Healthcare

Coaches act as the first line of defense in identifying potential health needs and connecting clients to available resources.

STEP 08

Clients increase their social standing and receive guidance on integrating better with their community. Here, a village poverty reduction committee, organized by BRAC, conducts a regular monthly meeting, after clients have graduated, to help clients address various issues they face.

Social Integration

Graduation occurs when households achieve economic and social advancement over the course of 24 months.

 At least 3 sources of income;  Asset value doubled since initial transfer;  Household consumes nutritional meals at least twice/day with protein (meat/fish/egg) at least once/week;  Participant engaged in household decision-making (e.g. asset purchase);  Improvement in home condition (e.g. corrugated roofs );  Attends social or community events; and  Access to sanitary latrine and clean drinking water

Where applicable:

 School aged children attend school;  No under-age marriages; and  Use of family planning.

Graduation Criteria

In Bangladesh, roughly 95% of participants achieve graduation at the end of the two year period with the majority maintaining those improved conditions 7+ years later.

1.7 MILLION HOUSEHOLDS

AS OF 2016

International pilots by CGAP and the Ford Foundation demonstrate similarly high graduation rates for participants meeting country specific criteria.

7 years later, ultra poor continue to escape poverty at a steady rate.

 Significant increases in work productivity and household assets. 37% increase in annual earning.

361% increase in hours devoted to more stable, productive work

 Access to more stable and secure employment leading to positive expansion of occupation choice  Reduction in economic inequality vis à vis the non poor  Builds resilience and enables faster recovery from shocks  Promotes social cohesion and gender empowerment  For the bottom-most on the economic spectrum, a ‘big push’ intervention is required. This needs to be a high value kick and over a long enough term to generate sustainable change

Key Research Conclusions and Implications

When viewed from a long-term perspective, costs are not necessarily prohibitive if impacts grow and are sustainable.

Impact on Self-Employment

Visit www.ultrapoorgraduation.com. Contact ultrapoorgraduation@bracusa.org

BRAC USA

110 William Street, 29th Floor New York, NY 10038 USA

Join us in the movement to end ultra poverty.