1. Engagement with Ultra Poverty Swayam Krishi Sangam Ultra Poor Graduation Pilot www.sksngo.org 1

2. Swayam Krishi Sangam NGO established with a vision to “Eradicate Poverty in India”. Registered as Public Society in 1997 – started operations from 1998. Ultra Poor Mission To work alongside ultra poor to restore hope and dignity and deepen their opportunities in livelihoods. 2

3. The Team Chief Executive Officer Vice President programs Lead Manager Sr. Manager Admin & Finance Executive - program/ documentation Executive - Admin & Finance State Field Operations Manager Branch Organizer Assistant Branch Organizer Health Field Organizer Field Organizer Health Field Organizer Field Organizer Health Field Organizer 3

4. SKS TEAM 23 members Annual Turnover INR 10 Million/ 200,000USD SKS TEAM 23 members Annual Turnover INR 10 Million/ 200,000USD 4

5. Andhra Pradesh: 426 Households in Medak Dt INDIA ANDHRA PRADESH MEDAK Why MEDAK? Most backward area in Telangana Region, high poverty indicators, drought prone, low literacy amongst women, stress migration,SC/ST Population, SKS MFI Presence Why MEDAK? Most backward area in Telangana Region, high poverty indicators, drought prone, low literacy amongst women, stress migration,SC/ST Population, SKS MFI Presence Medak District HDI 13; Human Poverty Index 16; Gender Empowerment Measurement Index 6 out of 23 Districts in AP 5

6. Andhra Pradesh "AP - richly endowed with natural & human resources. 4th largest State in India. Population of 8.27 Crores (March, 2007) 7.4% of country's population - the 5th most populous State." 8.9% Projected growth - per capita annual GDP - Rs.10 900. Estimated 1.87 crore people below the poverty line. High degree of regional disparities - tribals, scheduled castes and other socially disadvantaged sections living in extreme poverty conditions. Andhra Pradesh "AP - richly endowed with natural & human resources. 4th largest State in India. Population of 8.27 Crores (March, 2007) 7.4% of country's population - the 5th most populous State." 8.9% Projected growth - per capita annual GDP - Rs.10 900. Estimated 1.87 crore people below the poverty line. High degree of regional disparities - tribals, scheduled castes and other socially disadvantaged sections living in extreme poverty conditions. AP is a state of contrasts. It has the richest temple- Tirupati in the world with 5 million USD collections yearly but still 18.7 Million live below poverty line! 6

7. About Graduation Pilot: SKS Ultra Poor Program modeled after highly successful BRAC program. Graduation Pilot started in October 2007 - scheduled to conclude in March 2010. Rationale: Showcase effective poverty alleviation program which does better on several parameters in comparison to traditional poverty alleviation programs of the Government. Outcome SKS has graduated 369 members so far and other 45 households will graduate in January making 97% success rate. 12 members wont be able to graduate. Partners Ford Foundation, SDC, NMBT are the key funding partners apart from US based philanthropic individuals. About Graduation Pilot: SKS Ultra Poor Program modeled after highly successful BRAC program. Graduation Pilot started in October 2007 - scheduled to conclude in March 2010. Rationale: Showcase effective poverty alleviation program which does better on several parameters in comparison to traditional poverty alleviation programs of the Government. Outcome SKS has graduated 369 members so far and other 45 households will graduate in January making 97% success rate. 12 members wont be able to graduate. Partners Ford Foundation, SDC, NMBT are the key funding partners apart from US based philanthropic individuals. 7

8. Investment Per Member Livelihoods Asset INR 5670 US $ 126 Capacity Building 152534 Implementation cost HO 5322118 Implementation cost FO363281 Targeting Costs 1784 Stipend (working capital allowance) 59013 Total 16917365 INR 46.2=1 US$ 8

9. Methodology: Targeting: Rigorous identification process with village survey, PRA and individual household level interviews Methodology: Targeting: Rigorous identification process with village survey, PRA and individual household level interviews Participatory Rural Appraisals use village mapping & wealth ranking techniques Housing Survey Further Calibrates Poverty Status of Prospective Candidates Field Assistant Interviews Candidates & Prepares Preliminary List Village Surveys Identify Villages with Greater Number of Destitute Branch Manager & Field Assistant Perform Final Interviews and Prepare Final List Targeting is extremely rigorous… Selection of only 5 – 10 Ultra Members in each village Targeting is extremely rigorous… Selection of only 5 – 10 Ultra Members in each village Criterion of Ultra poor targeting: Land less or <1 acre land; No male wage earner in the household ; women are Daily wage earner or beggar; Children do not go to school; Non MFI borrower, No productive asset Criterion of Ultra poor targeting: Land less or <1 acre land; No male wage earner in the household ; women are Daily wage earner or beggar; Children do not go to school; Non MFI borrower, No productive asset 9

10. Program Interventions: 18 month intensive interface and engagement facilitates better awareness levels about government resources, social issues and health care combined with stable livelihoods. Program Target: To attack Poverty in its three manifestations-Economic, Social and Health AIM To graduate the ultra poor clients to a point beyond which their growth is self sustainable. Program Interventions: 18 month intensive interface and engagement facilitates better awareness levels about government resources, social issues and health care combined with stable livelihoods. Program Target: To attack Poverty in its three manifestations-Economic, Social and Health AIM To graduate the ultra poor clients to a point beyond which their growth is self sustainable. 426 Livelihoods Assets, including 233 buffalos, 146 goats and 47 small business establishments and petty trades 10

11. Graduation Criterion: Buoyed awareness levels about health and hygiene Better awareness levels about government sponsored schemes and social issues. Better access to state sponsored schemes. Cumulative savings of Rs.1000 Asset diversification with at least one productive asset apart from wage labor resulting in incremental regular income. Adequate food, shelter, clothing and housing for quality life Graduation Criterion: Buoyed awareness levels about health and hygiene Better awareness levels about government sponsored schemes and social issues. Better access to state sponsored schemes. Cumulative savings of Rs.1000 Asset diversification with at least one productive asset apart from wage labor resulting in incremental regular income. Adequate food, shelter, clothing and housing for quality life 11

12. Tracking the Transition Fast Climbers- Increase in Incremental Income 10%; Solid climbers- 5%; Slow climbers -2% Fast Climbers- Increase in Incremental Income 10%; Solid climbers- 5%; Slow climbers -2% Impact in accessing State Resources 12

13. Risks and Challenges: Pilot could not cover very old and male ultra poor members. Accessing government linkages posed a big challenge. While common ailments can be addressed with our interventions, chronic health problems ruin the ultra poor families due to heavy health expenditure / reduced productive days. Cost optimization and funding ultra poverty programs across India - a big challenge. Naxal menace, drought, state apathy and discriminatory attitude towards the poor posed serious challenge Risks and Challenges: Pilot could not cover very old and male ultra poor members. Accessing government linkages posed a big challenge. While common ailments can be addressed with our interventions, chronic health problems ruin the ultra poor families due to heavy health expenditure / reduced productive days. Cost optimization and funding ultra poverty programs across India - a big challenge. Naxal menace, drought, state apathy and discriminatory attitude towards the poor posed serious challenge 13

14. Key lessons learned Ultra Poverty is both structural and rotational based on particular household character. Livelihoods of ultra poor are built over many cycles of livelihood operations. Our intervention can address only first cycle of livelihoods. Stipend (Livelihoods working capital grant) provided to members should be flexible based on livelihoods action plans rather than regimental. Family members support and health influence’s member’s potential to graduate to considerable extent Stratification of ultra poor members into fast, solid and slow climbers based on the pace of their graduation helps to customize interventions. Key lessons learned Ultra Poverty is both structural and rotational based on particular household character. Livelihoods of ultra poor are built over many cycles of livelihood operations. Our intervention can address only first cycle of livelihoods. Stipend (Livelihoods working capital grant) provided to members should be flexible based on livelihoods action plans rather than regimental. Family members support and health influence’s member’s potential to graduate to considerable extent Stratification of ultra poor members into fast, solid and slow climbers based on the pace of their graduation helps to customize interventions. 14

15. State is the biggest resource and needs to be tapped for its many schemes. A demanding community can access government resources however badly governed it may be. Ultra poverty is mosaic of all castes and religions. But interventions in ultra poverty proofing should be designed to suit ethnic and social characteristics of the community. Old age should not be disqualification for inclusion as aged ultra poor members can be helped by conceiving management of collective assets. Health is the single most important reason for ultra poverty as bad health creates income shocks. State is the biggest resource and needs to be tapped for its many schemes. A demanding community can access government resources however badly governed it may be. Ultra poverty is mosaic of all castes and religions. But interventions in ultra poverty proofing should be designed to suit ethnic and social characteristics of the community. Old age should not be disqualification for inclusion as aged ultra poor members can be helped by conceiving management of collective assets. Health is the single most important reason for ultra poverty as bad health creates income shocks. 15

16. 16 Replicability: Targeting of States, Districts and geographical specific locations have been institutionalized with scientific scoping studies and analysis. Recommendations: Targeting needs to encompass other ultra poor categories like old and men with a customized approach to address their livelihoods and incomes Optimal period of intervention can be 24 months for stabilizing incomes and social practices Local community barefoot workers can be effectively utilized to optimize costs and closer interaction Innovative practices like rice line and health fund can bring high impact Replicability: Targeting of States, Districts and geographical specific locations have been institutionalized with scientific scoping studies and analysis. Recommendations: Targeting needs to encompass other ultra poor categories like old and men with a customized approach to address their livelihoods and incomes Optimal period of intervention can be 24 months for stabilizing incomes and social practices Local community barefoot workers can be effectively utilized to optimize costs and closer interaction Innovative practices like rice line and health fund can bring high impact

17. Veera Mani-Ultra Poor member 35 year old widow with a mother and son to look after. Livelihood was goats, within 12 months sold them and started a coin box operated telephone booth Also volunteers in ASA HIV program and as Anganwadi member (play school + crèche) Wants to open a provision store in the future Is now a member of SKS MFI 17