New Initiative for Economic Empowerment of Rural Population

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New Initiative for Economic Empowerment of Rural
Population

• Presentation by
• Ms. Hina Rabbani Khar
• Minister of State for Economic Affairs and
  Statistics

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New Initiative for Economic Empowerment of Rural
Population

• Increase Non-Farm Rural Income
• To Harness local opportunities that exist- (
  Increase ROI)
• Maximize Output Out of Existing Resources-
  PPAF/Khushali Bank

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PPAF at a glance (Cumulative as of December 31,
2004)
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Credit Enterprise Development
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Community Physical Infrastructure
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• 130 service outlets
• 64 districts of the country
• 400,000 loans
• Rs. 4.0 billion predominantly Rural portfolio
• 33 women clients

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• Future Plans
• 75 Districts
• Annual Disbursement Rs 3.0 billion
• Strategic Focus on Rural Area

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Vocational TrainingConcept

• There are 315 training institutes under the NTB
  across Pakistan, which also includes all TEVTA
  institutions in Punjab
• Offering vocational courses in 80 trades
• Net output capacity of these Institutes is
  150,000 / year
• By clustering and increasing their capacity to
  provide specialized training each institution- by
  starting evening classes with a market based
  curriculum- can train upto 300,000 unemployed men
  and women in a year

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Why ? Rationale

• These institutions only cater to the training
  needs of youth of urban areas, need for creating
  a mechanism for training unemployed youth of
  rural areas missing
• The PMs Programme aims to train 600,000
  unemployed youth in rural areas in 62 vocational
  skills over a period of 3 years through
• Public-Private partnership with NTB, ILO and
  Private sector
• RSPs value addition
• Pre-training assessments
• Transport
• Boarding, lodging Stipends
• Post-training support Micro finance

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How?

• Training institutions to provide market based
  training
• RSPs to provide initial screening and selection,
  boarding and lodging and post training support
  with financial services based on the field tested
  ILO TREE methodology
• Instead of traditional approach of placing funds
  at the disposal of each institution, a
  competitive process of outsourcing in which each
  institution including private sector
  organizations will compete to access resources
  for training
• This will not in any way effect the existing
  training programme of the institutions

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Implementation Process

• Hub Structure

• Each Hub will have a cluster of NTB / Private
  vocational training centers (VTC)
• All VTC will be classified as specialized VTC in
  a specific trade.
• there will be a total of seven Hub
• Approximately 16000 women and men would be
  trained across the country per month
• Training would be offered in 80 trades, (Plus
  some need based new innovations)

Cooks
Heavy Machinery
Powder coating
Electronics
Call Center
Dress Designing
Mobile Phone repair
Auto mechanic
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Three pronged Strategy

• First
• Capacity building of existing Vocational
  Training Centers (VTCs)
• TOT of Instructors based on identification of
  specialized trades
• Bringing these VTC at par with market based
  skills
• Individual contract with each VTC, both Govt. and
  private

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Three pronged Strategy

• Second
• Information, Education and Communication
  Campaign through media in the targeted UC to
  inform and invite eligible women and men
• Assessment / selection according to ILO-TREE
  methodology
• Electronic registration and HRIS Data management
• Formation of batches as per roll out plan
• Sending of each batch to the designated VTC

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Three pronged Strategy

• Third
• RSP Arrange Logistics (including B/L and
  Transport)
• RSP provides Post Training Support with
  Financial Services based on the ILO TREE
  Methodology
• Linking up with the Private Sector Industry
  for On-Job-Training (OJT)
• Post Training Assessment/Tests would be
  carried out to Assess the Learning and Training.

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Province Wise Participation in Training
A total of 300,000 persons would be trained
according to following regional/ provincial
participation
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Role Out Plan (Training)
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Expected Out Come based upon NRSPs 7 years
previous experience, Following out come are
expected
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Live Stock Development Initiative

• Rural poverty alleviation through exploitation of
  livestock resources / potentials
• Increasing returns to owners of Live Stock in
  Rural Areas

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The Concept

• Place one Veterinary Doctor (DVM) in every RSP
  Field Unit
• 2 DVMs in Livestock intensive areas
• Thardeeps 31 Field Units
• Recruit 250 DVMs for 203 Field Units
• 6,200 Village based Community Livestock Extension
  Workers (CLEWs) to be trained
• Programme to invest in training only
• CLEWs to be non salary based but under
  supervision of the DVMs
• Micro Credit Potential
• From current 45,000 loans to 800,000 loans
• From current Rs. 0.8 Billion to Rs. 8 billion in
  5 years

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Role of Livestock in the Economy 2003-04
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Management

• All DVMs to be part of the social mobilization
  team
• Will visit COs along with RSP social organizers
• All DVMs to be given motor cycles on hire
  purchase basis
• Contracts to be given by individual RSPs and
  placement to be done by them
• DVMs to be supervised by an RSP District
  Livestock Officer
• Vet. Clinics to be set up by RSPs at Field Unit
  level
• Each clinic to be provided with a revolving fund
  of Rs. 400,000 for purchase of medicines and
  laboratory supplies

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Job description of DVMs

• Vaccinations
• Curative and preventive treatment
• Farmers advice for fattening of animals and
  increasing milk production
• Advice on improved farm management practices
• Breed improvement
• Providing Vet cover to micro credit financed
  livestock

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OutcomesFor a 5 year programme

• Livestock extension and medicines provided where
  none exist now
• Increased animal head count
• Improved breed
• Livestock productivity increase
• Easier to link with the private sector for
  Marketing
• Direct Poverty Alleviation Intervention
• Self employed jobs of most needy, i.e. landless
• 6,800 village based self employed livestock
  specialists will be created
• Asset creation
• Each micro finance client will end up with an
  asset
• Cost (5 years)
• Salaries operational Cost Rs. 670 m
• Cost per client Rs. 168 per year

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One Village One Product (OVOP)

• Aims
• Create jobs and increase non-farm rural income
• Promote human resource development and capacity
  at the local level
• Eventual aim small and micro enterprise- engine
  of growth for rural economy

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OVOP Impact

• Social Aspect
• People of rural areas see the benefit of a
  growing economy
• Economic Aspect
• More income and well-being for local community
• Development Aspect
• Integrative working approach, multilateral
  cooperation and coordinated efforts among public
  sector, private sector and people to develop

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How?

• Set up a Rural Enterprise Management Company
  Rural Venture Capital Fund
• Develop subsidiary small scale business units
  (BUs) by transferring modern technology, design,
  marketing ideas, business support services
• Hub Corporation participates via equity shares in
  independent BUs

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REMCs Role

• Build design standard
• Build quality standard in order to add final
  market value
• Screen modern technologies for transfer to BUs.
• REMC brand name that signifies quality synonymous
  with Region specific products
• REMC establish linkages with design institutes,
  colleges, Intl and national marketing outlets

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REMC- to develop a series of successful
models of rural business

• Registered and Operate as a commercial company
• BODs to include min Gop representatives and
  professionals
• MD, other corporate officers to be professionals-
  private sector

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OVOP Key Stakeholders
Local Community Initiate, innovate and develop
products
Government Agencies Provide supports
on Production, Development, and marketing
Private Sector Participate in Local development
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BODs to include Representatives from Key Govt
Agencies, local Industry, professionals
Establish schemes for Production, standard, and
quality improvement in BUs
Develop Marketing promotion plan to access the
prospect market
Develop well organized management systems and
accounting across BUs
Build on community network, credit support to
reinforce local community outreach
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Thank You