Livelihood Pathways: Sequencing for Sustainable Market Integration of the Poorest

Blog posts have come to be recognized as a form of professional writing that can be consumed in real time and en masse by fellow practitioners.  They, like articles, can be digested quickly and provide a forum for a rapid exchange of ideas, debate, and clarification.  While I’ve written and shared quite a few through various sites, including my own,  I’ve been busy these last two years researching, documenting, and writing more formal technical pieces that I’m thrilled to report are under review for publishing.  On the first day of this new year, a case study on the ‘Livelihood Pathways for the Poorest’ project in Bihar, India was published by USAID's Microenterprise Development Office as part of a series under the Advanced Microenterprise Advancement Program (AMAP).  The publication, titled, 'Livelihood Pathways: Sequencing for Sustainable Market Integration of the Poorest,' details the flow of the integrated livelihoods model and how our interventions, products, and services are strategically sequenced to support the poorest's elevation out of poverty.  Please click here to access the full study.

Where the 'Integrated Livelihoods Model for the Poorest' (ILM) Stands Today

The Value of Group Savings and Lending to the Poorest People

Happy new year to my readers! I've lagged yet again on keeping the blog updated on recent travels from India to Qatar to Montreal and Quebec City that concluded 2011- a tremendously active year on the travel and professional front. I hope to eventually write 'catch up' posts over the coming weeks. In the meantime, I'd like to share a very touching story from the field in Bihar, written by one of our field executives (equivalent to an officer), Sudarshan Behera, which was posted on the Grameen Foundation blog, 'Creating a World Without Poverty' in December 2011. In this post, copied below, Sudarshan shares how nominal savings has proven to be a tremendous resource for our clients in Bihar:

Sugia Devi was a changed woman on November 7, 2011. She had just left the free cataract clinic in Bodhgaya in India’s northern state of Bihar and was grateful for her improved eyesight. She couldn’t wait to thank the people who had made it possible: the members of her adapted self-help group (ASHG), Durga.

The group is part of Livelihood Pathways for the Poorest, a joint project of Grameen Foundation’s Solutions for the Poorest group and BASIX/The Livelihood School that is designed to enhance the skills of the ultra poor, link them to income-generating activities, and build their savings habits.

Sugia lives in Khaneta village with her husband and her son, and his family. When she first heard about the ASHG in August, her husband did not want her to join the program because of mistrust and a lack of understanding on the benefits of participation. She persisted and began attending meetings and saving a small amount each week. Starting with an initial deposit of Rs. 10 (US 2 cents), by November, she had saved Rs. 130 (roughly US$2.40). But it still wasn’t enough to pay her fare to get to the free clinic in Bodhgaya some 30 kilometres (19 miles) away.

That’s when Sugia turned to the members of her ASHG. In addition to providing a safe place to save, the groups also provide its members with quick access to short-term loans. Sugia’s group members approved her loan of Rs. 100 (US$2), enabling her to cover her transportation costs for her operation.

Today, Sugia’s husband has a better appreciation for the value of the self-help groups, and she knows that her family can rely on the group when they need help. As her husband noted, before the ASHG, the family would have had to borrow from moneylenders who typically don’t lend less than Rs. 500 (US$9) and at very high rates.

Sugia has recovered from her operation and now Friday – the day her ASHG meets – has a special importance in her life.