Cooperative: emerging tool for linking conservation and livelihood
Ek Raj Sigdel
Western Terai Landscape Complex Project (WTLCP) has been in implementation in the Far and Mid Western Terai of Nepal since January 2006. It aims at conservation and sustainable use of globally significant biodiversity of these regions. The project was a joint undertaking of the government of Nepal, UNDP, GEF, SNV, Bioversity International, NARC and LIBIRD. To achieve the goal, the project has adopted two pronged strategies, I) increase productivity of the natural resources base, including maintenance of biodiversity resources and ii) ward off the pressure of local communities on the nearby forest resources for their subsistence need.
Pressure of the locals could be diverted only when they were provided with a viable source of alternative income and employment generation opportunities. Realizing the fact, WTLCP has been supporting the forest dependent community with the scheme of soft loan as seed money to undertake various income and employment generation activities through local forest user group and committees. As these community forests based organizations had experiences mainly in conserving forest resources, their engagement in alternative income generation activities was not found satisfactory at par the expected level. Therefore, a separate community based institutions that facilitate distributing and recycling of the soft loan on the one hand and on the other help to garner community support in conservation through raising their income was felt necessary. With this, WTLCP has initiated establishing and strengthening at least one cooperative in its each working Village Development Committee (VDC).
So far, a total of two cooperative have been established in the WTLCP productive landscape. Initiation of establishing cooperative was taken from Baisebichuwa VDC of Kanchanpur district. In this regard, at the outset, a gathering of villagers was organized and sensitized them on the objectives of a cooperative. Then, after a long deliberation, all the people were reached in a consensus of establishing a cooperative in their VDC. Also, they were agreed upon encompassing the representatives of local forest user groups and committees in the cooperative. Moreover, they were convinced on distributing WTLCP supported money solely to the poorest of the poor community as soft loan. With this objective, a cooperative was established at ward number 8 of Baisebichuwa, Kanchanpur and registered in the Kanchanpur District Cooperative Office in April 2007.
Within a span of six months, the number of shareholders reached over 700 households. The women lead cooperative executive committee members comprises of 11 people, representing 5 women and 6 men. It also includes 6 indigenous communities and 1 dalit in the executive committee. Before and immediately after formation of the cooperative, the executive committee members underwent training on cooperative management. A study tour was also organized for them to Dodhara and Chadani VDCs of Kanchanpur where a successfully managed cooperative was in operation. In addition, a micro fund mobilization guideline was prepared and handed over them for facilitating their daily saving and credit work.
To ensure the access of WTLCP benefits to the poorest of the poor communities, WTLCP has been adopting a positive discrimination approach from the very beginning of its implementation stage. In this front, poorest of the poor communities were identified by adopting a participatory well being ranking exercise. After identification of the target groups, 9-day training on entrepreneurship development was conducted for the poorest of the poor communities. Then as per the requirement, the trainees were provided with seed money to carry out various incomes generation activities through the cooperative.
To ensure access of the loan for the WTLCP's target communities, the cooperative has made a provision of 8% interest rate for WTLCP trained communities as against the others who receive the loan on 12% interest rate. In addition, those who are entitled to receive seed money from WTLCP can pay back the loan within 24 months while others had to pay the loan within a six months period. So far, 65 households have received the loan from WTLCP through the cooperative in Baisebichuwa. The loan has been utilized in various income generation activities, including goat farming, buffalo farming, pig farming, poultry farming, vegetable farming, establishing retail shops, purchasing sewing machines, investing in lather shoe making, running vegetable and hair cutting business, among others.
According to Ms. Prem Lata Gautam, chairperson of the Cooperative, the community based organization is running very successfully thus far. It has a very good linkage with district cooperative office and receiving technical support from all the quarters. She added that the organization has been evolved as a mile stone institution for reducing poverty as well as contributing to biodiversity conservation in Baisebichuwa VDC. She informed that large pie of money which was floated in different local organizations is also gradually streamlined in the cooperative. It has evolved as a platform where people gather regularly and discuss on the wide range of issues, including conservation and development work in the village, she added.
Mr. Chnadra Bahadur Bhandari, a local man, recently received a loan of Rs. 2500 to upscale his mobile pushcart shop. He has successfully run the business in Baisebichuwa and has been able to reap a net benefit of Rs. 7000 - 8000 per month and has been able to continue schooling for his three daughters. He is confident with his business and says, "I don’t need to go to the jungle for firewood now". But, except a few, other trainees were not confident to run their business citing to the problem of lacking adequate skills and money to become a shareholder of the cooperative.
In conclusion, the cooperative has been emerged as an effective tool for linking biodiversity conservation criteria with livelihood opportunities in WTLCP intervention areas. As it warrants frequent meetings of its shareholders, institutionalization of saving and credit mechanisms, it could be a strong social mobilization tool, which is necessary for integrated conservation and development work in the WTLCP working areas. As a follow up, to ensure the participation of the poorest of the poor communities in conservation work, the interested trainee should undergo a follow up skill enhancement training and find out the mechanism to ensure their participation in the cooperative as a shareholder.
Western Terai Landscape Complex Project (WTLCP) has been in implementation in the Far and Mid Western Terai of Nepal since January 2006. It aims at conservation and sustainable use of globally significant biodiversity of these regions. The project was a joint undertaking of the government of Nepal, UNDP, GEF, SNV, Bioversity International, NARC and LIBIRD. To achieve the goal, the project has adopted two pronged strategies, I) increase productivity of the natural resources base, including maintenance of biodiversity resources and ii) ward off the pressure of local communities on the nearby forest resources for their subsistence need.
Pressure of the locals could be diverted only when they were provided with a viable source of alternative income and employment generation opportunities. Realizing the fact, WTLCP has been supporting the forest dependent community with the scheme of soft loan as seed money to undertake various income and employment generation activities through local forest user group and committees. As these community forests based organizations had experiences mainly in conserving forest resources, their engagement in alternative income generation activities was not found satisfactory at par the expected level. Therefore, a separate community based institutions that facilitate distributing and recycling of the soft loan on the one hand and on the other help to garner community support in conservation through raising their income was felt necessary. With this, WTLCP has initiated establishing and strengthening at least one cooperative in its each working Village Development Committee (VDC).
So far, a total of two cooperative have been established in the WTLCP productive landscape. Initiation of establishing cooperative was taken from Baisebichuwa VDC of Kanchanpur district. In this regard, at the outset, a gathering of villagers was organized and sensitized them on the objectives of a cooperative. Then, after a long deliberation, all the people were reached in a consensus of establishing a cooperative in their VDC. Also, they were agreed upon encompassing the representatives of local forest user groups and committees in the cooperative. Moreover, they were convinced on distributing WTLCP supported money solely to the poorest of the poor community as soft loan. With this objective, a cooperative was established at ward number 8 of Baisebichuwa, Kanchanpur and registered in the Kanchanpur District Cooperative Office in April 2007.
Within a span of six months, the number of shareholders reached over 700 households. The women lead cooperative executive committee members comprises of 11 people, representing 5 women and 6 men. It also includes 6 indigenous communities and 1 dalit in the executive committee. Before and immediately after formation of the cooperative, the executive committee members underwent training on cooperative management. A study tour was also organized for them to Dodhara and Chadani VDCs of Kanchanpur where a successfully managed cooperative was in operation. In addition, a micro fund mobilization guideline was prepared and handed over them for facilitating their daily saving and credit work.
To ensure the access of WTLCP benefits to the poorest of the poor communities, WTLCP has been adopting a positive discrimination approach from the very beginning of its implementation stage. In this front, poorest of the poor communities were identified by adopting a participatory well being ranking exercise. After identification of the target groups, 9-day training on entrepreneurship development was conducted for the poorest of the poor communities. Then as per the requirement, the trainees were provided with seed money to carry out various incomes generation activities through the cooperative.
To ensure access of the loan for the WTLCP's target communities, the cooperative has made a provision of 8% interest rate for WTLCP trained communities as against the others who receive the loan on 12% interest rate. In addition, those who are entitled to receive seed money from WTLCP can pay back the loan within 24 months while others had to pay the loan within a six months period. So far, 65 households have received the loan from WTLCP through the cooperative in Baisebichuwa. The loan has been utilized in various income generation activities, including goat farming, buffalo farming, pig farming, poultry farming, vegetable farming, establishing retail shops, purchasing sewing machines, investing in lather shoe making, running vegetable and hair cutting business, among others.
According to Ms. Prem Lata Gautam, chairperson of the Cooperative, the community based organization is running very successfully thus far. It has a very good linkage with district cooperative office and receiving technical support from all the quarters. She added that the organization has been evolved as a mile stone institution for reducing poverty as well as contributing to biodiversity conservation in Baisebichuwa VDC. She informed that large pie of money which was floated in different local organizations is also gradually streamlined in the cooperative. It has evolved as a platform where people gather regularly and discuss on the wide range of issues, including conservation and development work in the village, she added.
Mr. Chnadra Bahadur Bhandari, a local man, recently received a loan of Rs. 2500 to upscale his mobile pushcart shop. He has successfully run the business in Baisebichuwa and has been able to reap a net benefit of Rs. 7000 - 8000 per month and has been able to continue schooling for his three daughters. He is confident with his business and says, "I don’t need to go to the jungle for firewood now". But, except a few, other trainees were not confident to run their business citing to the problem of lacking adequate skills and money to become a shareholder of the cooperative.
In conclusion, the cooperative has been emerged as an effective tool for linking biodiversity conservation criteria with livelihood opportunities in WTLCP intervention areas. As it warrants frequent meetings of its shareholders, institutionalization of saving and credit mechanisms, it could be a strong social mobilization tool, which is necessary for integrated conservation and development work in the WTLCP working areas. As a follow up, to ensure the participation of the poorest of the poor communities in conservation work, the interested trainee should undergo a follow up skill enhancement training and find out the mechanism to ensure their participation in the cooperative as a shareholder.
posted by Ek Raj Sigdel at
January 06, 2009
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