Community Based Economic Development (CBED)

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Implementation Strategy:

CBED managed and generated economic activities within communities and provided support for the organization and development of viable Community Based Organizations (CBOs) in agriculture (Farmers Associations), rural finance (Saving and Credit Organizations) and forestry (Forest Users' Groups). These components were selected in light of the facts that eighty percent of Nepal's people depend on agriculture for their basic livelihood, forestry is an abundant local resource which must be well-managed, and the increase of income security through rural finance plays an important role in enabling farmers and other entrepreneurs to undertake the risks associated with new income-generating activities.

CBED was implemented by CECI with the help of the Center for Environment and Agricultural Policy Research, Extension and Development (CEAPRED) in Baitadi, the Center for Self-Help Development (CSD) in Jumla, and the Development Project Service Center (DEPROSC) in Dadeldhura. A project office was established in each District headquarter and small sub-offices in selected Village District Committees of the project area.

Qualitative results:

  • Increased awareness and confidence of the population in addressing development issue
  • Economically viable and sustainable CBOs such as Farmer's Associations, Savings & Credit
    Cooperatives and Forest Users' Groups are managed by their own members.
  • Partnership for local development planning between these CBOs and the locally elected VDC's and DDC's is established
  • Lessons learned from the project districts are disseminated at CIDA, HMG/N's central policy making level and within the international development community in Nepal through innovative policy feedback mechanisms

Quantitative Results:

More than 525 economic Community Based Organizations (CBOs) provided services to members and established linkages with local government bodies, as well as their own district and national level apex organizations.

  • 339 Producers' Groups (PGs) with 7,341 cash crop growers (36% women) were established
  • Three registered farmers' cooperatives provided competitive services of input supply, quality control, production planning and marketing management to their members
  • Production and sales of fresh vegetables, fruits, and seeds reached 5,060 MT in 2000- 2001, an increase of 56% over the previous years
  • Total sales volume of cash crops in 2000-2001 was CDN$ 910,000 with off-season vegetables being the lead commodity (74%), an increase of 85% over previous years.
  • A total of 111 micro-irrigation schemes were built during the project term and are currently in use.
  • 106 Saving & Credit Organizations, 58 registered (as cooperatives), were formed with 14,437 active members
  • 50% of general members and 47% of Board members were women
  • 16% of general members and 12% of board members were from lower caste families
  • SCOs have accumulated NRs. 18,480,000 (CDN$401,700) in capital from member savings, shares, and other sources of income
  • Since the formation of CBED, SCOs have cumulatively provided 11,981 loans totaling NRs. 41,204,000 (CDN$895,700), 40% to women
  • The average loan size was NRs. 3,439 (CDN$75).
  • 78 Community Forest User's Groups (CFUGs) have now been legally registered
  • 82% of CFUGs started collection of non-timber forest products (NTFP), developed domestic cultivation and generated income of CDN$ 23,000 from sales of forest products and collection of royalties.

Policy Feedback and Lessons Learned:

  • A program for central policy-making bodies was established.
  • Mass media program for project 'lessons learned' dissemination to interested agencies and groups was also implemented.
  • In addition to the Project Advisory Committee field visits and meetings, two policy feedback mechanisms were successfully developed and tested.
  • 'Lessons learned' seminars and workshops and support to the government for policy formulation.
  • Two studies were prepared by the project: CBED Impact on Women's Socio-Economic Status and Gender Relations in the Family Socio-Economic Impact of the Community - Based Economic Development (CBED) Project: A Study on Spill-Over, Spread, and Migration

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