EXPERIENCES WITH SUSTAINABLE CORPORATE PRACTICES. Population and Community Development Association Bangkok June 2006

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1 EXPERIENCES WITH SUSTAINABLE CORPORATE PRACTICES Population and Community Development Association Bangkok June 2006

2 POPULATION AND COMMUNITY DEVELOPMENT ASSOCIATION Population and Community Development Association [PDA] Established : 1974 Chairman : Mr. Mechai Viravaidya Branches/Centers : 17 Staff : > 800 Website : pda@pda.or.th

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4 PDA Activities Family planning, health, AIDS Rural development/income generation Environmental conservation Water resources development & sanitation Promotion of democracy, women & youth Post-Tsunami Recovery of Livelihoods in Southern Thailand CESR - Thai Business Initiative in Rural Development (TBIRD)

5 COOPERATION WITH PRIVATE COMPANIES AND GOVERNMENT The Thai Business Initiative in Rural Development (TBIRD) is a successful CESR model By bringing company resources (human, financial) to rural areas TBIRD has created employment and improved living conditions Companies have supported hundreds of industrial projects (i.e. footwear, garments) and support projects (i.e. environment, education, income-generation)

6 RURAL INDUSTRIES

7 REVOLVING FUNDS/ WOMEN DEVELOPMENT

8 NIKE VILLAGE DEVELOPMENT PROJECT: A QUADRI-PARTITE PARTNERSHIP NIKE/UF Management, marketing, finance, technology NGO PDA Building, facilitation, social and institutional links, assist recruitment various Permits, utilities, credit, training Corporation Government Community 6 villages Labour, entrepreneurship, implementation, feedback

9 Investment in Industrial Project and Benefit to Rural People in 5 years ( ) ( Million EURO) 36.5 ca.365 Villagers employed > Total Wage Multiplier Income Investment from Company Budget from PDA Budget from Ministry of Industry

10 TWO EXAMPLES OF SUSTAINABLE CESR ACTIVITIES Linkage of environmental protection and income generation tree banks Water for health and wealth village piped water systems and vegetable banks

11 TREE PLANTING AND CAPITAL FORMATION PURPOSE: Induce villagers to rehabilitate forests on public lands and in degraded areas Generate funds for income generation IMPLEMENTATION Create environmental awareness of villagers through radio, leaflets, meetings Training on the process and techniques of reforestation and of establishing revolving funds Setting up of a village committee and revolving village fund

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13 TREE PLANTING AND CAPITAL FORMATION REVOLVING FUND OPERATION Villagers are paid a certain sum (Baht 10) for each tree planted in first year Villagers as individuals or groups are eligible to borrow from this fund for income generation and other purposes The fund is managed by a village tree fund committee consisting of 6 villagers, half of them women From interest paid half goes to the fund and the other half is used to pay management by the village tree fund committee

14 Aufforstung & Küstenmagement

15 LINKAGE OF TREE PLANTING AND CAPITAL FORMATION VILLAGERS - TBC Labour, Implementation N G O - P D A Training, Education, Supervision PLANTING TREES -fast-growing (leucaena, acacia) - fruit trees (mango, lemon) - hardwood and native - other GOVERNMENT-RFD Seedlings, Advice COMPANY-UNOCAL Finance, Assistance RVF - credit for IGA (crops, non-agric.) - loan servicing (principle & interest) - investment (new projects) INCOME -10 Baht per tree year 1 - bonus (healthy) & malus (dead tree) year 2+ other uses

16 WATER FOR HEALTH AND WEALTH CHARACTERISTICS OF PDA WATER RESOURCES SYSTEMS (WRS) Enable villagers to make, operate and maintain WRS Provide skills on management and incomegeneration Advise on construction and installation of jars, wells, tanks, village pipe water systems (VPWS) Involve communities to a maximum in management and operation of WRS

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18 SKY IRRIGATION (VEGETABLE BANKS) Characteristics: All year round water supply through irrigation Good supplementary income from vegetables Steps: Provide land Organize villagers in vegetable bank groups Plan and install irrigation system Prepare plots, organize vegetable growing, harvesting Plan marketing and distribution of vegetables

19 STAEKHOLDERS AND FUNCTIONS OF A TYPICAL VEGETABLE BANK PROJECT EXXON Loan guarantee, guidance on management NGO PDA Systems design, training, technical assistance Corporation Government Community BAAC, SRT Member of VB Credit, land Labour (construction, growing, marketing)

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21 WATER FOR HEALTH AND WEALTH IMPACTS: Better water supply Increased income generation through water-linked activities such as vegetable growing Better health and quality of life Rational use of water Substantial savings for government

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23 STAKEHOLDERS AND FUNCTIONS OF VPWS N G O P D A VILLAGERS V W M C Training Education Supervision V P W S WATER SUPPLY - households - high-value crops - other Finance Advice Support GOVERNMENT and/or COMPANY USES OF FUNDS - administration (O&M, improvement) - loan servicing (principle & interest) - investment (new projects) SOURCES OF FUNDS - water tariff. connection charges - surplus from crops, other uses

24 WATER FOR HEALTH AND WEALTH In a recent World Bank supported study the PDA approach has been called: A sustainable, demand-driven, socially responsible, public-private-partnership model for water supply creation in rural Thailand

25 Thank you