Targeting the rural poor. The Participatory Wealth Ranking System

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1 Targeting the rural poor The Participatory Wealth Ranking System IFAD Cambodia Country Programme: Lessons Learned and Emerging Best Practices Year 2010

2 Targeting the rural poor IFAD in Cambodia Since 1996, IFAD has invested US$61.7 million in six projects in Cambodia, which have mobilized overall investments for a total of US$155.9 million. Sustainable improvement of the livelihoods of the rural poor men and women in the project areas is the objective of the organization s efforts in the Country. In order to achieve this objective, IFAD loans support community empowerment, productivity improvement and improved access to assets, productive resources, rural services, rural infrastructure and markets. IFAD-funded activities target the provinces with the highest rates of poverty and, within those provinces, the poorest people and communities. The poorest groups include: Poor rural households with access to only small areas of land and no other productive assets who are likely to be food insecure and in debt, with little if any access to off-farm employment opportunities. Landless rural people who are willing to learn skills for livestock raising, off-farm income-generating activities or wage employment. Women and households headed by women with a large number of dependents. Other poor rural households such as those in indigenous ethnic minority communities. The participatory approach toward community development is at the core of IFAD-financed initiatives. It has the aim of building the capacity of grass-roots institutions and fostering direct ownership of investment programs by the people who benefit from them. 1

3 The Participatory Wealth Ranking System The IFAD supported groups IFAD assistance and development programs are delivered through the establishment of groups, which are given ownership of the entire process. They participate in the definition of their group unique direction at all stages and develop through the group the capacity of planning their own development together with local institutions while simultaneously improving their livelihoods and farming system. The two groups that IFAD operates through are: Livelihood Improvement Groups (LIGs): Composed of 25 of the poorest families of the target villages, with very few resources and knowledge. The group members receive training and production inputs in cash and in kind (rice seed, fertilizer, vegetable seed, fruit trees, pigs, chickens, compost). Most of the cost of the input is paid back at the end of the production period to a Group Revolving Fund that is managed and grown by the group for future investments. Moreover the group establishes a rice bank to improve food security and receives an additional group fund after few years, when it achieves maturity. Farming System Improvement Groups (FSIs): Composed of 25 poor families from the target villages, with some resources but lacking knowledge and technology. The group members receive training in order to improve their farming system. In order to do so, the group elects 3-6 farmers to undertake on-farm demonstrations for rice, vegetable, pig, chicken, fish pond, and integrated farming which are determined by the AEA process. Demonstrations are used as learning site through farmer field school for 20 weeks (one day per week) and farmer field day at the last session, open to villagers who are not beneficiaries. 2

4 Targeting the rural poor Targeting the rural poor: the participatory wealth ranking system Selecting LIGs and FSIs group members is a delicate and most important step of the project implementation, since the success of project implementation depends largely on an appropriate targeting. In order for the groups to be successful it is fundamental that the beneficiaries: Are the poorest and the poor sector of the population. Meet the requirements to implement project activities. Are owners of their own development process from the beginning and have the awareness and motivation to contribute to group and collective improvement and growth. In order to achieve these results the IFAD supported projects carry out the targeting through a participatory process, called the Wealth Ranking system. Preliminary steps: selection of the target area The selection of the target area- provinces, communes and villages- is conducted jointly with all the major stakeholders and local authorities and guided by criteria designed to capture: Poverty level and the presence of vulnerable families and ethnic minorities. Potential for agricultural development and geographical suitability for project implementation. Willingness of the residents to join the project and previous experiences in development projects. 3

5 The Participatory Wealth Ranking System Area Provinces Communes Villages Actors involved Royal Government of Cambodia, through MEF, MAFF, and sub-national authorities IFAD Identification and Socio-economic Survey Mission PRDC EXCOM Provincial Department of Agriculture District Agriculture Office Other relevant provincial and district authorities and stakeholders District authorities Province and District Support Teams Commune councilors Village chiefs Criteria Provincial poverty ranking established by MOP, based on commune database Communal poverty ranking, based on commune database Field identification Adherence with the project criteria Potential for agriculture diversity Village poverty ranking, based on commune database and Vulnerable Analysis Map Data Agro-ecosystem analysis data Field visits Adherence to the project criteria Selection of the beneficiaries Following the preliminary stage, the households who will become beneficiaries of the project are selected with the villagers participation during several village meetings. These meetings are carefully planned in advance by the Commune Extension Workers (CEWs) and the local authorities. The process is then developed in 4 steps: Step 1: first village meeting After a review of the project, the villagers, with the facilitation of the CEW, run a debate in order to assess for themselves the poverty of their community through the wealth ranking. step 2: second village meeting With the participation of few of the influential and appreciated residents as elders, teachers and clergy men the provisory list of beneficiaries is drafted, based on the wealth ranking results and the project criteria. step 3: households interviews The CEWs verify the correctness of the provisory list and the volunteer will of the selected beneficiaries by running individual houseshold interviews. step 4: third village meeting The final list of the beneficiaries is announced to the villagers and discussed for the last time. 4

6 Targeting the rural poor The wealth ranking: The first step of the WR consists of running a debate where villagers define the levels of living standard into which the residents can be divided and the criteria that specifically suit their community in order to identify each level. This discussion leads the CEW to draw a table containing the indicators and the criteria that the residents think are best in order to identify poverty in their village and that will be different for each area. For example: Houses Plots of Land Indicator Very Poor Poor Medium Rich Thatch-roofed houses, with thatch-or straw-insulated wall s hectares Thatch- or zinc-roofed houses, with bamboo- or wood-insulated walls hectares Tile-roofed houses, with wood-insulated walls hectares Tile-roofed houses, with concrete-insulated walls (from 3 or more than 3 wings ) 1.5 or more than 1.5 hectares Animals No cows or buffalos 1-2 cows 2-4 cattle more than 4 cattle Transport No bicycles or motorbikes 1-2 bicycles bicycles and motorbikes modern bicycles and motorbikes Agricultural Equipments Ploughs, rakes or ox carts. Ploughs, rakes or other small tools 1 plowing motor vehicle or tractor and other domestically used tools Plowing motor vehicles or tractors for domestic use or hire During the second step, the villagers classify each household into the defined livelihoods levels, based on the proven criteria. In order to visualize the living standards and the classification, the CEWs draws the circles shown below where the family identification numbers are written. In the intersection of the circles lie the families whose position is uncertain. Circle 1: very poor Circle 2: Poor Circle 3: Medium 5

7 The Participatory Wealth Ranking System The project criteria for group members selection As we saw, drafting the list of beneficiaries, consists of firstly identifying the poorest and poor residents of the target village and, second, in screening these groups through the project criteria. Aside of the wealth criteria the project sets other indicators to identify households that: Are honest, in compliance with the law and able to hold responsibility. Are industrious and participate voluntarily in implementing other activities or programs. Have permanent residence in the village. Have at least some cultivating land (for LIG) and have proper cultivating land (for FSI). Priority is given to households whose members are widowed, handicapped, elderly or members of an ethnic minority. Step 1: Performing the Wealth Ranking. 6

8 Targeting the rural poor Benefits of WR Wealth Raking is considered by the stakeholders as a participative, transparent and fair method to select the beneficiaries of the project. It: Allows for villagers to express their opinion and feel actively part of the project from the beginning. This is a strong motivational factor to then implement project activities and contributes to the strength and cohesion of groups. Bases the selection on the knowledge of the farmers, who know best about each household of the village. Allows for this knowledge to be efficiently channeled through the use of the criteria, that simplify the debates and give a neat sense of transparency. Gives legitimacy to the selection into different groups. Is cost effective and user friendly, since the local staff quickly understand and are able to apply the used methodology. In order to maximize these benefits: The largest participation possible is encouraged for the village meetings, to avoid future jealousies. The Commune Extension Workers and District Technical Support Team are carefully trained in advance and equipped with visual material, to allow them to facilitate the debates successfully. The project relies on the assistance of the local authorities, Village Chiefs and Commune Councilors, so as to include them in the project from its early steps, assure the villagers participation and guarantee that the meetings run smoothly. 7

9 The Participatory Wealth Ranking System Going forward The problems that usually arise in targeting the rural poor for IFAD supported groups are related to the tendency towards exclusion and self exclusion of the poorest people. This happens because: Of the participatory and volunteer nature of the targeting and of the project itself, that implies that the beneficiaries exposes themselves and assume a certain risk. However, the poorest are often very risk adverse and lack self-confidence in reimbursing the inputs-interest and capital to the group. This restrains them from participating in the group discussions and activities. Of the projects agricultural design that requires at least a small amount of land possession and permanent residency. This is often not the case for the poorest layer of the population, who are often landless and frequently forced to migrate in search of labor markets..including the most vulnerable families One attempt to solve these problems has been the piloting of a 3rd group, the MVFs, that better addresses the most vulnerable by: Reducing the necessary requirements and therefore allowing the poorest to be eligible. Appling a more gradual method to the provision of input, that reduces risk perception. If, on one side, sticking to the agriculture component of the project, on the other, allowing for a more flexible implementation of the activities by the farmers. This is achieved by supplying the beneficiaries mostly with cash input and, therefore, allowing them to spend it according to their necessities and to invest it in their Income Generating Activities, even if they are off farm. 8

10 IFAD is dedicated to eradicating rural poverty in developing countries by helping poor people to improve agricultural productivity. Please contact MAFF PSU for further information at: Ministry of Agriculture, Forestry and Fisheries #200, Preah Norodom Blvd., Phnom Penh, Cambodia Tel/Fax:

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