A Passage to Rural Development

8/4/2019 A Passage to Rural Development

http://slidepdf.com/reader/full/a-passage-to-rural-development 1/70

A Project Workon

Passage to Rural DevelopmentCooperative & Its Effectiveness in

Poverty Alleviation

(With reference to People’s Awareness and Women DevelopmentMulti-purpose Cooperative, Kaskikot VDC)

Submitted toFaculty of Humanities and Social SciencesCentral Department of Rural Development

T.U. Kirtipur, Kathmandu

Nepal

Submitted by Resham Timilsina

Masters Degree in Rural DevelopmentT.U. Kirtipur, Kathmandu

Nepal2004



A Project Workon

Passage to Rural DevelopmentCooperative & Its Effectiveness in

Poverty Alleviation

(With reference to People’s Awareness and WomenDevelopment

Multi-purpose Cooperative, Kaskikot VDC)

Submitted toFaculty of Humanities and Social SciencesCentral Department of Rural Development

T.U. Kirtipur, KathmanduNepal

Submitted by Resham Timilsina

Masters Degree in Rural DevelopmentT.U. Kirtipur, Kathmandu

Nepal2004



LETTER OF RECOMMENDATION

This project work entitled “A Passage to Rural Development Co-

operatives & Its Effectiveness in Poverty Alleviation (With reference to

People’s Awareness and Women Development Multi-purpose

Cooperative, Kaskikot VDC) has been prepared by Mr. Resham

Timilsina under my guidance and supervision. I hereby recommend it for

acceptance.

……………………………………

Dr. Chandra Lal Shrestha

Associate professor

Central Department of Rural Development

T.U. Kirtipur

i



ii



APPROVAL LETTER

This project work entitled “A Passage to Rural Development

Cooperatives & Its Effectiveness in Poverty Alleviation (With

reference to People’s Awareness and Women Development Multi-purpose

Cooperative, Kaskikot VDC)” prepared by Mr. Resham Timilsina in the partial fulfillment of the requirements for the Degree of Master of Arts in

Rural Development has been accepted.

Dissertation Committee Signature

Chairman: ……………………..

External Examiner: .……………………...

Research Advisor: ………………………

Date:……………………………..

iii



DEDICATION

It is dedicated to my lovely late mother Mrs.

Gauri Timilsina.

iv



Acknowledgement

This study is master’s degree “Project Work” submitted to the central

Department of Rural Development, T.U. Kirtipur at present Nepal is

confronted with severe poverty .so it is an attempt mainly focused on the

poverty alleviation. Cooperative movement is hypothesized as a passage to

solve this problem. Men and women are the two sides of a coin. But it is

said to be found that women occupy only a minute access in each and

every sector of development affair. So it is mainly focused on the role of

women in development and paradigm of PAWDMC is presented as a

context.

It did not come to this form without the mutual and regular help of

related expert. In this light I would like to express my sincere gratitude to

my humbly respected sir, Dr Chandra Lal Shrestha (Executive Director,

Centre for International Relations T.U.) for his valuable inspiration and

proper guidance.

I am also grateful to Prof. Dr. Pradip Kumar Khadka (the Head of

Department, central Department of R.D., T.U.) for his ingenious

encouragement and academic support.

In course of preparing this project work I received regular help andsuggestions from various scholars and institutions. So I am equally grateful

to all of them. In this connection I express my gratitude to Dr. Gangadhar

Lamsal and training officers of cooperative Board. Like wise I would like

to express my thanks to Mr. Gumanath Lamichhane for data collecting and

analyzing period.

v



Finally, I express my sincere thanks to my sibling son Prakash

Timilsina for their help in typing and printing this Project Work.

Resham Timilsina

Central Department of

Rural development

T.U., Kirtipur

August, 2004

vi



Abbreviation

ADB Agricultural Development Bank

CBS Central Bureau of Statistics

DDC District Development Committee

GDP Gross Domestic Product

GNP Gross National Product

HDR Human Development Report

IFAD International Fund for Agricultural Development

INGO International Non-governmental Organization

MLD Ministry of Local Development

MPCW Micro credit Project for Women

NBL Nepal Bank Limited

NGO Non-governmental Organization

NPC National Planning Commission

PAWDMC People’s Awareness and Women Development Multipurpose

Cooperative

PCI Per Capita Income

PCRW Production Credit for Rural Women

PDDP Participatory District Development Program.

RBB Rastriya Banijya Bank

SHG Self Help Group

USA United States of America

UK United Kingdom

vii



UNDP United Nations Development Program

UNICEF United Nations International Cultural And Educational Fund

UNO United Nations Organization

VDC Village Development Committee

WDS Women Development Society

viii



List of Tables

Table no. 4.1 : Ward wise loan distribution of PAWDMC ………………...

29

Table no. 4.2 : Amount of loan received by sample borrowers …………….

31

Table no 4.3 (a) : Occupation of borrowers before project implementation..

33

Table no 4.3(b): Occupation and loan amount of the borrowers

after project …………………………………………………….

34

Table no 4: Income of the borrowers after borrowing the loan from

PAWDMC ……………………………………………..............

35

Table no 4.5 (a): Consumption Food Pattern of Correspondents …………..

37

Table no 5(b): Clothing pattern of the respondents ………………………..

38

Table no 4.6: Change of housing pattern before and after project

intervention ……………………………………………………

39

Table no 4.7: Change in women status after borrowing loan ………………

41

Table no. 4.8: Employed women in business before and after the

establishment of cooperative ……………………………..........

44

ix



x



Table of Contents

LETTER OF RECOMMENDATION...........................................................i

APPROVAL LETTER................................................................................iii

DEDICATION............................................................................................iv

Acknowledgement........................................................................................v

Abbreviation...............................................................................................vii

Introduction..................................................................................................1

1.1 General Background...........................................................................2

1.2 Cooperative Movement in the World................................................4

1.3 Principles of Cooperative..................................................................4

1.4 Cooperative Movement in Nepal ......................................................5

1.5 A Brief Introduction about the PAWDMC.......................................5

1.6 Statement of Problem.........................................................................6

1.7 Objectives of Study..........................................................................7

1.8 Study Area ........................................................................................7

Map of Kaskikot VDC..............................................................................8

1.9 Poverty in Kaskikot VDC...................................................................9

1.10 Limitation of the Study...................................................................9

Review of Literature ..................................................................................112.1 Production Credit for Rural Women...............................................18

2.2 Overview of Poverty Alleviation Program.......................................18

2.3 Role of Cooperatives in Poverty Alleviation:..................................19

2.4 Some Paradigms...............................................................................22

Methodology ..........................................................................................26

3.1 Sources of Data ................................................................................26

xi



3.2 Sample Size .....................................................................................26

3.3 Data Presentation & Analysis...........................................................26

Analysis of Data.........................................................................................274.1 Introduction to PAWDMC...............................................................27

4.2 Functions..........................................................................................27

4.3 Foundation of the PAWDMC...........................................................29

4.4 Rural Self-reliance Fund...................................................................30

4.5 Loan Amount....................................................................................30

4.6 Loan Distribution by Purpose...........................................................31

4.7 Income Level....................................................................................35

4.8 Living Standard ...............................................................................36

4.9 Change of Housing Pattern before and after Before and after

Intervention...................................................................................38

4.10 Status of Women............................................................................39

4.11 Education of Women......................................................................41

4.12 Control Over Decision Making......................................................41

Summary Conclusion & Recommendation................................................46

5.1 Summary...........................................................................................46

5.2 Conclusion........................................................................................47

5.3 Recommendation ............................................................................48

INDIVIDUAL QUESTINNAIRE..............................................................50

Bibliography...............................................................................................54

xii



Chapter - 1

Introduction

Nepal is fundamentally an agricultural, landlocked and mountainous

country. It is located between two largest countries like south, west, east to

India and north to China. In spite of unique geographical features Nepal

has been suffering from one invisible infection i.e. poverty. Due to this

invisible infection Nepal is categorized in “The Third World” (NFD)

Nepal occupies 147181 sq. kilometers area, which is the 0.03percent of the

world and 0.3percent of the Asia. The total population is 23151423. There

are 58 municipalities and 3913 VDCs (CBS 2002). More than 86 percent

of the people still live in villages. Nepal is surrounded by villages. Their

only occupation is farming by nature. People who live in villages or

mountain are poor so, poverty and village are synonymous (Todaro)1. So

people who live in village or mountains are more than 60percent GDP

where total PCI is 220 dollar. Therefore, rural people are to be considered

as the back bone of national economy.

Various changes are taking place; wants of people are also getting

changed. So, human life is being complicated day by day. The only way to

get salvation from this complexity is only possible through mutual

understanding of common problem and solution. “Man is a social animal”

A man can’t stay or survive without society. “Man burns free but

everywhere he is in chain.” So, men began to have mutual cooperation. No

doubt, mutual cooperation amongst the people is as old as human

civilization. Cooperation is like vehicle of moving human civilization from

1 Todaro, MP, Economic Development in the 3rd World.

1



hunting to this computer age we see today. So, mutual cooperation seems

as the vehicle of development.

1.1 General Background

So far as the matter of Nepal concerns we can find different kinds of early

paradigms of cooperation foundation. Among them “Parma” (labour

substitution); “Dharma Bhakari” (based o n religion belief) and “Dhikuri”

(financial institution) are found to be famous in different geographical

location and culture. In ancient period grains and goods were the only

medium of barter system. But nowadays money is used as the key factor of

barter system. Nepalese people were compelled to get money from local

Sahu or Mahajan in a largest interest rate called “Dhane Byaj”. So there

was corruption and inequality. In 1844, Rochedole labour group started the

movement against corruption and established cooperative. By then Nepal

also realized the necessity of institutional financial support and it was

introduced in 2010 BS known as Rapty valley in Chitwan.

An upsurge of development takes place only after the political

change of 2007BS. After then different development approaches are found

to be launched. In this light, planning system begins from 2013BS.In the

end of first five year plan there only 17cooperative institutions were

established but in the end of ninth five year plan there are more than 20

thousand cooperatives.

Now we are facing different types of solemn problems due the

cause of poverty so it is possible only through the medium of realistic

economic philosophy to accelerate the rate of economic development and

to alleviate poverty.

2



Different scholars have defined cooperatives in their own way, some

of them are briefly touched on below for the sake of general

understanding:-

Cooperatives have an important contribution in rural development.

Low income earner neighbors may be benefited through the medium of

cooperative organization buying essential goods, selling agricultural

production and take credit and do saving. Specially, these paradigms of

cooperative can be found in Israel, likewise in Germany.2

Cooperation is the soul of rural community development.3

In this light an agricultural movement in India confessed cooperative

as the principle in these finitely varying forms is capable of adoption for

finding a solution to all problem of rural life.

Like wise according to Marxist Leninist economic theory

Cooperative is realized as the economic and social organization of working

people serving not only for the interest of members of cooperatives but

also over all social welfare.

Some thinkers have been realized it as an economic freedom such

as:-

Mr. Walt kin says cooperative is the “System of social organization

based on the principle of unity, economy, democracy, equality andliberty.”

Another thinker Saul Estrine says “In cooperative decision making

is based on democratic principle”

2 Kunwar, Krishna Bahadur Poverty and Rural Development in Nepal.

3 V.T., Krishnahari, Cooperatives.

3



Likewise our Department of cooperative of HMG accepts

“Cooperative as one of the systems to make life of people better by

themselves achieving the economic and social problem.”

4

For access of banking facility toward rural areas so as to facilitate

them in easy manner micro credit will be provided through agricultural

bank and rural cooperatives. A special priority will be given to promote

local level cooperatives to alleviate the poverty of rural area.

1.2 Cooperative Movement in the World

Great Britain is considered as the homeland of cooperative. The seed of

cooperative was germinated in Great Britain in the later half of the 18 th

century in the economic and social system under the impact of industrial

revolution. Then, it started in Germany in the middle of the 19 th century

after the destruction of 2nd world war. After then, cooperative movement

started in Denmark, Ireland, Japan, U.S.A. Canada, Israel, Sweden, Italy,

India and France.

1.3 Principles of Cooperative

As redefined by Manchester convention the principles of cooperatives are

as follows:

1) Voluntary and open membership.

2) Democratic member control.

3) Member economic participation.

4) Autonomy and independence.

5) Education training and information.

6) Cooperative among Cooperatives.

7) Concerned for community.

4 Department of Cooperative (Nepal).

4



1.4 Cooperative Movement in Nepal

Cooperative is not a new system in Nepalese society. It has been practicing

since the initiation of the human civilization. Nepal is known as anagricultural country. So, there were so many agricultural cooperatives

forms (Parma, Guthi Dhikudi & Dharma Bhakari). The modern history of

cooperative development began in Nepal after the establishment of

development of cooperative in 2010 B.S. the first cooperative started in

Nepal was Rapti Valley Development Project which was started in 2011

B.S. the cooperative movement is found to be started only after the arrival

of democracy. The movement of Nepalese cooperative is as follows:-

1) 2010, Establishment of cooperative department.

2) 2013, Beginning of planning system.

3) 2016, Cooperative Act.

4) 2017, Cooperative Development Fund.

5) 2018, Formation of Policy and Establishment of Cooperative.

6) 2019, Cooperative Training Center.

7) 2020, Stablishment of Cooperative Bank.

8) 2024, Saving Organization in ADB.

9) 2033, Beginning of Sajha programs in 27 districts.

10) 2041, Sajha Sanstha Act.

11) 2048, Cooperative Act and abolishment of Sajha Sanstha.

12) 2049, Publication of Cooperative Procedure and Act.5

1.5 A Brief Introduction about the PAWDMC

The name of this cooperative is People’s awareness and women

development multipurpose cooperative limited. It’s short name is

5 National Planning Commission, (Adhar Patra).

5



PAWDMC. It is located in Kaskikot VDC-8. It was established in 2056

under cooperative Act 2048. It has been co-coordinated by Mahila Bikash

Shakha Kaski Child Development Programme Nepal Rastra Bank. There isthe advisory board of 11 members. It works in all wards of VDC. It not

only collects deposit but also provides micro-credit for the rural women

forming groups. There are different such groups in every ward of the VDC.

The general objectives of PAWDMC are as follows:

a) To raise the living standard of rural women.

b) To provide training for skill development.

c) To alleviate poverty providing micro-credit through formation of

groups.

d) To analyze the socio-economic status of rural women after the

establishment of PAWDMC.

1.6 Statement of Problem Nepal is an agricultural country. More than 86 percent of the people live

in villages and do farming. Rural people are the backbone of National

Economy. Their contribution in GDP is more than 42percent. A farmer

needs to have seed, fertilizer, pesticide and other necessary things for

farming. For this agriculture credit is necessary. Bu it is the matter of

sorrow that there are no any adequate government financial institution tofacilitate farmers except local money lender and profit seeking private

finance companies. In one hand and in the other hand established

institutions are being collapsed due to corruption, increasing terrorism and

insecurity. So, only way to provide credit for woman seems possible only

through community based cooperatives. It seems very necessary to create

mutual cooperation between sparsed rural people through the medium of

6



cooperative to bring them in the main stream of development. It seems

most serious and challenging passage to alleviate poverty.

1.7 Objectives of Study

On the basis of above mentioned problems this study undertakes

following objectives:-

a) To evaluate the socio-economic upliftment of rural woman after

the establishment of PAWDMC.

b) To study people’s participation in rural development.

c) To find out the change in living standard after and before

establishment of PAWDMC.

1.8 Study Area

Kaskikot VDC is located in the North West part of the Pokhara valley .It is

a hilly region. There are 950 household .It has 6540 population with

52.24percentt female and 47.67percent male. 61.6percent female and

41.0percent male are illiterate.it has occupied by 26.43sq.km area. The

population consists of different caste /ethnic group such as Brahman,

chhetry, dalit and magar etc. transportation facilities are available in almost

all the study area

People who live in this area are involved in small business, tourism and

agriculture .the income sources are cash crops, animal husbandry and

beekeeping etc. most of the people of this area are very poor. In 2057BS

many women are .found to be involved in coop for their development of

economic activities Thus, they have established PAWDMC in Kaskikot

VDC. It has more than 450 member’s .They have done income generating

activities. Many women are getting successful in changing their life

standard after involvement in the PAWDMC.

7



Map of Kaskikot VDC

8



1.9 Poverty in Kaskikot VDC

The population of Kaskikot VDC is 5565. There are 2923 males and 2642

females. There are 43 VDCs in Kaski district. As mentioned in poverty

mapping report of PDDP, Kaski it is ranked in 37th position. There are 956

households. Different parameters are applied to measure the poverty of

Kaskikot VDC. They are as follows:

a) Food sufficiency:- there are 31.49 percent of people above

poverty line and 66.53 are below poverty line.

b) Income (NPC cutoff value):- Above thirty thousand income

earners are categorized above poverty line and below thirty

thousand are categorized under below poverty line. To consider

these there are only 26 households (2.72 percent) are above

poverty line and 930(97.28 percent) are below poverty line.

c) Income (World Bank Cutoff Value):- According to World bank’s

cutoff value, those households who earn more than 50 thousand

are categorized under above poverty line and who earn less than

50 thousand are categorized under below poverty line. To

consider this cutoff value there are only three households (0.3

percent) above poverty line and remaining others households

953(99.69) are below the poverty line. It also shows that there are

the most of females illiterate and their income is very low.

1.10 Limitation of the Study

There are more than 7000 cooperative s in Nepal. Out of them 26

cooperatives are in Kaski district. Among them the cooperative named

PAWDMC is selected as the study area. This cooperative is located in

9



Kaskikot VDC-8 Baspani. This cooperative is functioning in the field of

poverty alleviation. So it is selected as the survey area. The following

limitations are taken into consideration.

a) The effect and impact of the line agencies and other projects are

not involved

b) Social impacts are studied in general but economic impacts are

mainly focused in the study. Thus it is studied in depth.

10



Chapter- II

Review of Literature

Men and women are the two parts of a same coin. Without the mutual

cooperation of these two nothing is to be generated at all. No doubt, even

creation also takes failure. So, here cooperation of women shares the same

part as men have to be shared. Women represent almost half of the world

population but they have received only one percent of the world’s property

by the end of 19706. Women were ascribed a low status as compared to

man in both developing and under developing countries like Nepal. In the

past few decades the number of women living in poverty has increased

unfortunately to the number of man living in poverty. Even though, the

economic and social status of women has drastically changed during few

decades. The economic status has largely determined by their possession in

term of income generation and property. Under our prevailing traditional

condition, women share limited control over property and poor excess to

institutional credit services and facilities restricting then in their capacity

or skill to generate income and improve their socio-economic upliftment.

Education is said to be found as the key factor of all development

infrastructure but it does lack in Nepal because most of the women are

deprived from the education in comparison to man in third world countries

like Nepal.

The culture, society and economy are the backbone of development

of every spare of country and they are run through the help of both men as

well as women. Foremost in women role as mother and upholder as well as

agent of corporate stone of knowledge that has kept the process of tradition

6 CWD, 1989.

11



going as unknown creature of things of measurable value both of material

goods and immaterial matters.7 Thus, they have played an important role in

the process of civilization. Despite this fact, women have often beenassigned secondary role to those of men.

Women in developing countries like Nepal are found to be

discriminated in all spare of life levels. The economic problem they are

facing leads other discriminations and low status. In some degree of

statistical invisibility women in the economy are the worldwide historical

traditional and cultural reasons. Women also are creative; they do havealso creativity which can be applied for productivity. So far, family is the

first school then women play crucial role in maintaining the household

affair. Within the household affair, South Asian men ruled and women are

compelled to obey law and order made by man.

Statistic shows that majority of economically active women work in

formal sectors self employed or other self employed or worker women are

exploited and in the formal sector women are concentrated in the lower

levels with little job security and few benefits. In other words women often

work in the informal sector for little or low wage and are restricted to

activities associated with their reproductive role. The indivisibility of

women’s work in economic accounting system is due to a flaw of

economic activity.8

Nepalese women who constitute more than 50percen out of total

population9 are lacking behind man in many aspect of life. They are under

privileged and disadvantaged in term of their socio-economic status as

7 Ojha, E, R and K.E Weber 1992.

8 Mehbub UI Hog, “Women and Economy”, Human Development in South Asia. 2000.

9 CBS, 2001.

12



compared to their males. In every stage of life, there is sudden

discrimination between men and women. So far men and women are the

two wheels of a same cart they are to be encouraged and empowered.

Our matter of concern of burning issue is the wide spread poverty

characterized in many areas of rural Nepal. In Nepal poverty affects

women rather than men according to the National Planning Commission

(NPC/UNDP:HDR). In 2001, there are 38percen of the people living

below the poverty line.

Rural women are found mostly engaged in collecting fuel wood and

fodder, caring child, livestock and cleaning. They have lower status in the

family, community and usually work for low or little wage. They are

largely excluded from economic decision making such as producing

selling and collecting capital transactions for their farm expenditure. The

economic situation of rural women is found to be determined by ethnicity,

caste, class, age and geographical location as well, most women are still

employed in traditional agriculture sector and less productive sector of

economy.

While literacy and education is considered as avenue to

employment, urbanization is causing of women withdraw from labor force

so there may be inverse relationship between education and employment at

certain intervals of development scale. Women of Nepal in the middle-

income strata have longer working hours and education has significant

positive effect on fertility reduction.10 Some important findings of author

are:-

● The absolute majority of men and women are married by the

time they attain 24 years of age. The mean age of the marriage

10 5 Acharya, Dr. Mina (1994) “The Statistical Profile on Fertility".

13



however has been increasing both for men as well as women. It

has gone up from 19.5 years in 1961 to 21.4 years for men and

from 15.4 to18 years for women in the same period.

● Nepalese women are devoting more time to conventional

economic activities in1993 than in 1978.

● Though government has launched different types of credit

program but they have reached to only small proportion of

rural women.

● Most of the individual women have gained self-confidence and

improved other family income source.

● There is an increasing trend in census reported female

economic activities rates between censuses, while male

economic activities rates demonstrate a declining trend. That

may be attributed to definitional problem or the withdrawal of

male population from economic activities. Despite the

inaccuracy of census reported activity rate such as female

economic activities are nevertheless useful in analyzing trend

in the organized sector of the national economy.

● The role of non-agricultural sector as a source of employment

is increasing at a faster rate for women than for men. However,

the proportion of women in agricultural labor force has also

been increased that could be better statistical reporting.

● In the industrial sector women learn less than men because of

the system of job classification, mode of employment and

exploitation by the factory owners.

14



In a discussion paper, there was strong argument that empowerment

cannot be limited to any one sector hence the proposal that micro

enterprises by itself are not sufficient: it could be necessary condition, butit is not a suffi8cient condition for empowerment.11

In another publication published by out come of the agenda

identification enabling state program / UK. Department for International

Development (2000) gives the valuable suggestion for impact of MPCW to

increase economic and social status of Nepalese women and describes the

considerable facts as:

● Micro credit program have raised rural women’s confidence to

take activities to increase their living conditions. Micro credit

program have proved that even poor women can save and

improve their own lives.

● Gender equality and skill development program backed by

access to credit have brought about some change in women's

position in the society and the family. Increased access to

education, health, drinking water, credit and training exposed

many women to the outside world and has changed their life

style. Education has provided opportunities for better paid

employment, increase social status and better health.

● Micro credit program were introduced to bring Nepalese women

into the main stream of Nepalese economy but the effectiveness

of micro credit critically depends upon the extent and quality of

available social and technical support. There is growing

censuses that credit alone cannot reduce poverty. Poverty

11 Srivardana, Mr. Susil “The Role 0f Micro credit in poverty reduction and promoting

gender equity.”

15



alleviation program was backed up by awareness and

empowerment progammes, support services such as the

promotion of appropriate technologies, the timely supply of extension and inputs and the development of effective

marketing mechanisms and net working are as important as

credit provision.

The world Micro Credit movement launched in February 1997

seeks to deal with poverty and dignity through micro credit. Its goal is to

reach 100 million people in poverty, especially women by 2005. Thefollowing experiences described in this document, could contribute to this

efforts:12

● Self help Groups (SHG) can effectively cater to credit needs of

women living in poverty, especially in emergency condition.

● If SHGs are owned and controlled and managed by women

members, then their Micro Credit activities can economically

empower them.

● Successful Micro Banking within SHG usually leads to greater

credibility and access to larger funds from banks and other

financial institutions.

● It is possible to educate illiterate rural women to manage the

complex financial aspect of SHG.

● Micro Credit and income empowerment of women open the

doors to socio-political consciousness and the broader

empowerment of women.

12 Swiss Agency for Development and Cooperation.(SADC) 2000.

16



● In most cases success of a community Micro credit program

depends upon vital role of facilitating NGOs, which believe in

capabilities of people and work with a clear phase out plan.

● Long term perspectives on operational and financial

sustainability and reliability are important precondition for

program to be taken upon a large scale.

● Strong community based groups with common issues and

problems tackled effectively are major factors contributing to

the success of micro-credit.

● Through economic empowerment and systematic

demonstrations of strength on social issues women can make

men and their communities recognize their rights.

Cooperative and non-governmental Organizations: The Nepal

Rashtriya Bank has adopted a policy to cooperative and non-governmental

organization for conducting limited banking transaction. In this context,

Cooperative Act (1992/93) has provided the provision of financial and

banking transaction to these organizations. There are 19 Cooperatives’

limited and 24 non-governmental organizations under this act. Such types

of organizations are conducting in rural areas to provide self-employment

and income generating activities to deprived rural people.

After the restoration of democracy and financial liberalization has

come to this country, there has been increasing number of non-

governmental organizations. Nearly 18000 NGOs are conducting poverty

focused programs. There are also two Grameen replicating NGOs namely

Nirdhan and center for self help development.

17



2.1 Production Credit for Rural Women

The Production Credit for Rural Women (PCRW) program was developed

in 1982 with funding technical assistance from UNICEF. The Ministry of local Development (MLD) currently implements it through the Women’s

Development Division (WDD) in association with NBL, RBB and

ADB/N. fund is provided by the commercial banks under the intensive

banking program (as a means to ensuring that some of the IBP funds to

Women) and international Fund for Agricultural Development(IFAD)

The main objectives of PCRW are to improve the social and

economic position of women through the provision of credit, extension

services, drinking water, health facilities and various time and labor saving

technologies and skill. Credit is provided through groups of four to ten

members, which are formed by staffs of the WDD. Maximum loan size is

Rs. 30,000 and is provided by the commercial banks at an interest rating

between 13percen to 14percen. Subsides are provided on loans less thanRs. 15,000.

“Co operative is being blessing rural women” a seminar paper

entitled Contribution of Women’s cooperative in poverty alleviation.

Participatory seminar in Kavre’s Women awareness loan

cooperative.13

“Cooperatives in every village and employment in every home”14

2.2 Overview of Poverty Alleviation Program

Expanding the coverage of institutional credit has been the central theme

of poverty alleviation strategy adopted by the government in the past.

13 Gorkhapatra 2061, Shrawan 15 pp7

14 Budget Speech 2061. Finance Minister of Nepal.

18



Efforts to improve access to institutional sources of credit began in the

early 1950s with the organization of credit cooperatives in Chitwan.

Enactment of the cooperative act in 1959 and establishment of cooperative bank in 1963 to finance the cooperatives were further steps towards

institutionalizing the role of cooperatives in rural development, and hence,

in the reduction of poverty. The cooperative bank was redesigned as the

Agricultural Development Bank of Nepal (ADBN) in 1968, with a broader

mandate to provide credit to individuals along with cooperatives.

Together with SFDP a number of different poverty-focused credit programs have been implemented in the country over the years. The small

sector credit program, now called the priority sector credit program was

initiated by NRB in 1975 to extend the rural credit system by involving the

commercial banks. To strengthen this program IBP was initiated in 1981

which introduced the concept of group based lending by the CBs. Also in

1981 PCRW was initiated by MLD as the first women focused program inthe country. To expand the CBs credit to the hard poor cord, the deprived

credit sector program was initiated in 1990; it was also the part of private

sector credit program. PCRW is working as MCPW since 1994. It was the

first NGO in organizing women groups and mobilizing rural group’s

saving. As a major effort towards financing the small credit needs of the

poor rural women, the government established to regional RDBs. Today,

there are five GBRs in the country. A few financial NGOs are also

functioning in rural areas.

2.3 Role of Cooperatives in Poverty Alleviation:

The poor results achieved by the various poverty alleviation programs of

the government have raised doubts as to the appropriateness of the design

and seriousness in the implementation of these programs. A careful view

19



clearly points to the fact that these programs have missed out some

important links. In almost all of these programs, there appeared to be no

clear links between the goal and design, between design andimplementation, between the lessons learned from previous and those

applied new programs and between the knowledge and practice of the

implementing agency officials. In more operational terms some of the

common features of these programs include the following:-

• Partial approach with singular focus on credit supply.

• Mistargeting of the poor;

• Lack of participation and ownership of the poor and

• Non-responsive to the needs of poor.

The above features coupled with the inherent institutional

deficiencies of the implementing institutions rendered most of the

programs ineffective. The programs proved costly and unsustainable at the

local level and the implementation process appeared largely external and

supply-driven. Accumulated experience and informed knowledge suggest

that poverty alleviation is an internal a human process that can’t be

achieved without ample participation and ownership of the rural poor. This

typically involves a framework that draws on local potential and priorities

for development and places people rather than programs in the central

stage. Such a framework will require service delivery through institutions

that are initiated and managed by rural poor people themselves at the grass

root level. Thus, undoubtedly cooperatives only provide a promising

institutional alternative for this.

It is understood that Nepal doesn’t have a successful history of

cooperative movement in the past. The cooperative movement began in

20



1950s that got rapid momentum in the 1960s and 70s failed. The

cooperative that emerged in the process did not provide the above type of

institutional framework for rural development. Following thedemocratization and economic liberalization a new development paradigm

has emerged in the country. The paradigm consists of significant shift from

the centralized, top down approach to a more participatory and bottom of

approach to rural; development. Attempts have been made to create

environment through new policies for the people to plan and manage

themselves. Thus it came to give birth to the community based

organizations including cooperatives managed by the rural poor mainly in

the saving and credit sector.

To consider the examples of cooperative past few years’ experience

suggests that cooperatives can be a passage to carry integrated

development services to the rural poor. Indeed, a careful review of

development programs and prospects of the country would suggest thatcooperatives are only the institutional mechanism for poverty alleviation.

Since the vast majority of people including poor depend on

agriculture for their livelihood. Here, a high and sustainable growth is the

key sector for both economic growth and poverty alleviation in Nepal. The

growth of agriculture has been confronted by several infections like: socio-

economic, institutional, legislative, responsible, transparent, corrupt lessand political. Among these, the following factors have appeared to be

particularly limiting with respect to commercialization and high growth of

agriculture in Nepal.

• Farmers lack organized forum to initiate collective efforts

to establish effective linkages with external agencies.

21



• The technical and financial cost is very high in the rural

level.

• Farmers lack adequate cash flows to finance investment in

agricultural production.

• Production is traditional and subsistence oriented.

• Markets for the product are at far distance.

• Rural poor people alack adequate capacity and skill to demand

for better service delivery.

The above factors indicate to the need for organizing the farmers

in a manner that enables them to achieve economies of skill in production,

access in distant market and receive development services and inputs more

efficiently. Thus, here the significant of cooperative is very high because

so-called other development banks are being collapsed due to corruption

and problem of insecurity. Only cooperative institutional mechanism

solves the problems of rural poor and raises the income of rural poor.

2.4 Some Paradigms

The history of cooperatives is full of evidence of their ability to increase

their members’ income, decrease the risk they run and enable to become

full participation in civil society. This has proved that they are potential to

alleviate the level of poverty. UN recognizes the contribution of

cooperatives to alleviate poverty. In connection to this, UN General

Assembly, Economic and Social Council, the Department for policy co-

ordination and specialized agencies like: ILO and FAO are working

closely since 1994. Now the upsurge of globalization also realizes the

signification of cooperatives for sustainable economic growth to alleviate

poverty. Being Nepalese economy agricultural and traditional non

22



mechanized, poverty has emerged as one of the most threatening

challenges. Slow industrial growth has resulted unemployment and

disguised unemployment, which have further accelerated the level of poverty. To address such adverse circumstances the cooperative approach

has been acknowledged as a suitable instrument for achieving the socio-

economic transformation of rural areas giving emphasis on improving

poverty level. Cooperative can involve rural poor people in different

income generating activities. Cooperative can provide knowledge of

market and power of negotiation for the farmers. Cooperatives can bring

improvement in agricultural production, better market access and create

employment for the rural poor people that can reduce poverty.

Cooperatives are people centric organizations and they play vital role to

mobilize local resources and promote entrepreneurship incorporating the

rural poor in many income generating activities to alleviate poverty.

a)Centre for environmental and agriculture policy researchextension and development (CEAPRED):- It is a Nepali NGO. It has been

working for 10 years. It was started in 1992 in Dhankuta which is also

known as Dhankuta Modal. It has been actively engaged in poverty

alleviation through income generation by promoting the production and

marketing of high-value agriculture particularly off season vegetables in

various parts of rural Nepal. The result of some of the income generating

programs launched by this NGO in different parts of country proved that

the quantity of vegetables produced, consumed and sold; and the amount

of cash incomes generated in short time are truly remarkable. In slightly

more than two years the total income generated by the participating

farmers under an ongoing off season vegetable production in Kavre has

23



reached nearly rupees 73 million which is more than rupees 33000 on per

household basis.

This NGO was spread in every nooks and corners of the country

it was conducted in Dhankuta during 1992-94. This is also known as

Dhankuta model. It mobilized more than 1300 small and marginal

households within the distance of 2-3 hours. Their most of the women

were participating in 85 production groups. During these 2 years project

period, they conducted regular savings and marketed over 5000 metric tons

of different vegetables worth Rs25.7 million. These vegetables wereexported towards Uttar Pradesh of India and west Bengal. By the end of 2nd

year 8 farmer cooperatives were registered from production group. There

was a sharp improvement in the income, consumption and food security of

the participating households before and after the implementation of the

project. There was positive impact in the sense that average household

income increased from Rs. 2480 to Rs.12850 and further Rs. 19150 at theend of last year. This project was phased out in 1994. Since then,

cooperatives have been managing the production and marketing

responsibility. From the study of Sindhuwa cooperative that the market of

vegetables is increased from 20 ton in 1994 to 60-80 tons now. Likewise,

the level of income is not only increased in a sustained manner but also

scaled up.

b) The Small Farmer Development Program (SFDP) was launched

by ADBN in 1975 as a targeted poverty alleviation program of the

Government. SFDP was designed to provide credit to small and marginal

farmers; and to landless poor under a group-guarantee system; requiring no

collateral. Thus, through this program the poor people who had inadequate

or no collateral to offer, also could gain access to institutional credit. Since

24



then, SFDP has been viewed as a major poverty alleviation program of the

governments in Nepal.

25



Chapter - III

Methodology

3.1 Sources of Data

a) Primary Data: - This study is based on the primary source which

is collected from the field survey by using individual questionnaire

among the participants in the cooperative. The field observation

project area which is invested by cooperative.

b) Secondary data: - The secondary data are obtained through the

publication of NGOs, INGOs, Internet, Journals, DDC report,

VDC report and library consult are not ignored.

3.2 Sample Size

There are 450 total members involved in cooperative but among them 10

percent (45) are selected as the sample. The VDC is divided in 9 wards

except ward no. 5. Through data are collected with the medium of

individual questionnaire both in social as well as economic sector in

different levels of life pattern like food and clothing. From all wards the

data are collected as random sampling.

3.3 Data Presentation & Analysis

Data collected during the field survey are analyzed using descriptive

method in various diagrams as possible.

26



Chapter - IV

Analysis of Data

4.1 Introduction to PAWDMC

The name of the cooperative is People’s Awareness Women Development

Multipurpose Cooperative Limited. It is located in Kaskikot VDC ward

no-8. Now, the functions are limited only in the periphery of its located

VDC. It was established according to the National Cooperative Act-2049.

It was established in 2057 BS. As mentioned in its preamble. Its main

function is to provide Micro-loan for the solution of economic calamities

of local people involving the loan for the social and economic welfare of

the people.

The main objectives of the cooperative as mentioned in it by law

are:-

a) To develop the habit of the local people to establish the self

reliance and cordial assistance.

b) Provision of micro-loan in the completive interest rate.

c) Provision of micro-loan for the members in the production,

productive, skillful sectors.

d) Conduction of income generating project for the institutional and

industrial development.

e) To asset the economically and socially weak group of the

people.

f) To motivate the people towards self-reliance & self-conscious.

4.2 Functions

As mentioned in sixth chapter of bylaw there are following functions so as

to achieve above objectives:-

27



1) Agricultural production.

a) Provision of loan for advanced farming.

b) Distribution of advanced seed, chemical fertilizer, improvedinstrument, pesticides.

c) Provision of irrigation facility.

d) To assist to prepare Agricultural Development.

2) Management of market for the agricultural production.

3) Pasteurization of agricultural production.

4) Surplus mobilization.

5) Distribution of profit.

a) Share of bonus profit to all the share-holders.

b) Withdrawal fund of security capital.

c) Employees’ bonus fund.

6) Loan policy.

The collected revenues will be given to the member for the development

of socio-economic status. The loan will be provided only to the involved

members on the basis of deposit as deposited by the members.

7) Purpose of loan:- to conduct the profession cooperative will

provide the following items of loan:

a) For agricultural and marketing.

b) Small and cottage industries.

c) Small trades(tea stall, sewing machine, bee keeping, animal

husbandry, poultry farming)

8) Protection of loan.

9) Provision of insurance.

28



4.3 Foundation of the PAWDMC

Initially, it lurks to move ahead taking share from 139 members collecting

the share with the rate of Rs. 100 per share that amounts Rs, 13900 and allthe members were compelled to deposit 20 percent as the compulsory

saving that amounts Rs. 2780. Thus combined amount of collection

amounts Rs.16680. Likewise, WSTLP had provided 150000 as the

subsidy. After that, UNICEF had provided Rs. 2,00,000 for child

development activities. Nepal Rastra Bank had provided the loan Rs.

2,50,000 in the rule of installment payment. Now the institution has

deposited Rs. 15,04,769. In the institution there were 139 shareholders but

now there are 450 shareholders and amount of per share also doubles

(Rs.200).

The recent period, the institution has distributed loan amount of

Rs.1504769 in the ward wise distribution of the VDC.

Table no. 4.1 Ward wise loan distribution of PAWDMC

Ward no.No. of

borrowersPercentage

Loan distribution

(in Rs.)Percentage

1 39 17.3 255580 17

2 6 2.7 17250 1.1

3 39 17.3 223117 14.8

4 29 12.8 177903 11.8

5 - - - -

6 13 5.7 80834 5.4

7 8 3.5 49250 3.3

8 45 19.9 262915 17.4

9 34 15.0 155770 10.3

Rural self-

reliance

13 5.7 282150 18.7

Total 226 100 1504769 100

29



Source: - PAWDMC official report, 2004

The above table shows that ward no.1 having involved 17.3percent

members and they have taken 17percent of total revenue. Ward no.2 has

2.7percent borrowers and taken 1.1percent loan. In ward no 4 there are

12.8percent borrowers and they have taken 11.8percent loan but ward no.5

is nil. There are 19.9percent borrowers in ward no. 8 and they have taken

17.4percent loan. Likewise in wardno.9 there are 15percent borrowers and

they have taken 1o.3percent loan. Then there are 5.7percent and 3.5percent

borrowers and taken 5.4percent and 3.3percent loan amount in Ward no. 6

and 7 respectively.

4.4 Rural Self-reliance Fund

This fund is known as movable fund for all the wards. It has mobilized

18.7percent of amount of Rs. 5.7percent borrowers.

The main component of the RCDC is to provide loan to woman for income

generating activities. The present study is based on loan disbursement and

its impact on income and loan repayment. The part of data analysis is

related to loan amount and its impact upon earning and standards of

beneficiaries.

4.5 Loan Amount

There are 45 women respondent of 10 borrowers group in the RCDC.

Majority of them are illiterate and engaged in subsistence farming for there

make shift livelihood.

Table no. 4.2 Amount of loan received by sample borrowers

Loan amount (in

Rs.)No. of borrowers Percentage

<2000 5 11.1

30



2000-4000 13 28.8

4000-6000 5 11.1

60000-8000 3 6.6

8000-10000 5 11.1

10000-12000 5 11.1

12000-14000 2 4.4

14000-16000 4 8.8

16000-18000 2 4.4

18000-20000 1 2.2Total 45 100

Source: Field survey, 2004.

Table no.2 shows the total loan amount in percentage of total borrowers.

Out of 45 borrowers 28.8percent have taken of Rs. 2000-4000 loan. The

people that have taken loan amount less than Rs. 2000, 4000-6000, 8000-

12000 are 11.1percent respectively. 8.8percent of people have taken the

loan amount have taken Rs.14000-16000. The people that have taken loan

amount loan amount of Rs. 18000-20000 are 2.2percent. The people that

have taken loan amount of Rs. 12000-14000, 16000-18000 are 4.4 percent.

4.6 Loan Distribution by Purpose

Loan is necessary for things for creating unemployment and generating

income among the poor. It is very effective targeting and supervision over

proper use of loan it helps to increase income and erases the assets of poor

household. Loan can play significant role in increasing access to basic

social service and enhancing the well being of very poor people. Woman

who is able to access loan can also get increased access to primary health

care, safe water and sanitation for her family.

31



Household income and production also contribute more time then man

use their income to meet core basic requirement of their family like

education, health and sanitation. Occupation denotes employment of the people in different sectors is involved in different sectors for earning

purpose. It is found that women are basically involved in different

occupations such as small trade, tea stall, restaurants; curry farming,

animal husbandry and so on. Most of the women are limited only in

household affairs it is the cause of poverty. They are to be aware through

the medium educational and financial skill. Undoubtedly, they can play

positive role in the upliftment of socio-economic status because man and

woman are like two wheels of the same cart.

32



Table no 4.3 (a) Occupation of borrowers before project

implementation

S.No.

Occupation No. of borrowers

Percentage

1

Food grain production

(paddy,maize,millet,wheat

etc)

17 37.7

2 Unskilled labor(Farm labor) 15 33.3

3 Animal husbandry 6 13.3

4 Skill Development 2 4.4

5Cash crops(vegetable, fruits,

bee-keeping etc)

2 4.4

6Business Activities(Small

grocery, tea stall etc)

3 6.6

Total 45 100Source: Field Survey, 2004.

The above mentioned table shows that the institution members wereengaged in many economic and social activities prior to launch projects as

food grain, unskilled labor, and animal husbandry and so on. Traditional

food grain production occupation was engaged 37percent borrowers.

33percent borrowers were involved in traditional farming labor.

13.3percent were engaged in traditional animal husbandry. 4.4percent

borrowers were involved in skill development professions. 4.4percent borrowers were involved in cash crop farming and 6.6percent borrowers

were involved in complementary, business and economic activities.

33



Table no 4.3(b): Occupation and loan amount of the borrowers after

project

S.N.

Occupations No. of borrow

ers

Percentage

Loanamoun

t (Rs)

Percen-

tage1 Animal Husbandry

(Buff, goat, pig)

19 42.2 103300 40.

8

2 Skill development

(employment and

training)

5 11.2 29000 11.

5

3 Cash croups 14 31.17 69000 27.

3

4 Shops(tea stall,

grocery, medical

etc)

7 15.5 51342 20.

3

Total 45 100 252642 100Source: Field survey, 2004.

The above mentioned table shows that the total loan amount Rs. 252642 is

provided among the 45 borrowers. Out of the borrowed total loan 40.8

percent is seems to be invested in animal husbandry. 11.5 percent loan is

invested in the skill development programs likewise 27.3 percent loan is

invested towards cash crop farming and 20.3 percent loan is allocated for

different commercial activities. 11.2 percent borrowers are found to be

involved in skill development programs. 42 percent borrowers are found to

be engaged in improved animal husbandry. 31.1 percent of the borrowers

are involved in cash crop farming (vegetables, fruits, bee keeping etc.) and

the project 15.5 percent are involved in commercial phenomenon after the

implementation of project.

34



4.7 Income Level

Income has played significant role for social and gender impact. It has

serious limitation but is presentation in aggregate forms. Income should beseen as the only measure of poverty alleviation. Income has often been

confused with cash flow and income generating activities may produce

more cash but associate cost also may be high. Income denotes the earning

of the borrowers of the project through any income generating activities.

The income may be in the form of money different kinds of consumption

goods (basket system). For convenience the self consumption by borrowers

is included in income. More than 80 percent of women borrowers were

engaged in different traditional activities (food grain, unskilled labor,

animal husbandry etc.) before borrowing the loan from PAWDMC.

Table No 4 Income of the borrowers after borrowing the loan from

PAWDMC


Borrowers’ hand earns money at there minimum subsistence level before

joining this cooperative. Before borrowing, 35 percent had income

between Rs. 1500-2000. 20 percent borrowers had earned between 25 the

S.No.Income

Range

Before

borrowingPercentage

After

borrowingPercentage

1 500-1000 8 17.7 1 2.2

2 1000-1500 1 2.2 5 11.1

3 1500-2000 16 35.5 12 26.6

4 2000-2500 9 20 10 22.2

5 2500-3000 5 11.1 8 17.7

6 3000-3500 4 8.8 6 13.3

7 3500-4000 1 2.2 3 6.6Total 45 100 45 100

35



range of 2000-2500. 17 percent borrowers were earned between the ranges

of Rs. 500-1000. 11.1 percent borrowers were earned between the ranges

of Rs. 2500-3000. 2.2 -3000. 2.2 percent borrowers were earned the rangeof Rs. 1000-1500. And remaining 2.2 percent were in the range of Rs.

3500-4000 per month. Although the range of income ranges effect after the

project implementation is positive on the borrowers of the project in

PAWDMC. The table shows before borrowing and after borrowing the

project implementation 26.6 percent borrowers have earned between in the

range of Rs. 2000-2500 per month. Likewise 17.7 percent borrowers are

found to be earned in the range of Rs.2500-3000. 13.3 percent of people

earn in the range of Rs. 3000-3500 per month. So, it concludes that the

income range is found to be positive incensement after borrowing loan

from PAWDMC.

4.8 Living Standard

Living standard of the respondent before and after is an indicator of socio-

economic development. It is measured in terms of consumption pattern

(food, cloth, health, education etc) the living standard of the respondent is

often analyzed in terms of consumption pattern. Descriptive methods are

applied to see whether the living standard has changed. The following

table gives the consumption food pattern:

36



Table No 4.5 (a) Consumption Food Pattern of Correspondents

Before borrowing After Borrowing

S.N. Food No. of

respondent

Percent No. of

respondent

Percent

1 Traditional foods.

(Rice, bread, dal &

vegetable)

21 46.67 7 15.5

2 Food.(adding meat,

egg, milk, fruits etc)

24 53.33 38 84.4

Total 45 100 45 100


Above mentioned table shows that before borrowing 46.6 percent of

borrowers had taken traditional food like rice, pulse, bread and local

vegetables but after the establishment of PAWDMC has reduced 15.5

percent such borrowers. The data shows that the living standard is

increased after the establishment of PAWDMC. Likewise 53.3 percent of borrowers have taken food adding meat, egg, milk, fruit etc but after the

involvement of borrowers in PAWDMC has increased. After the

establishment of PAWDMC 34.4 percent respondents are found to be

consumed hygienic food after the involvement in PAWDMC.

37



Table no 5(b) Clothing pattern of the respondents

Before borrowing After borrowing

S. N. Cloth Description No. of

Respondents

% No. of

Respondents

Percentage

1 Traditional clothes

of cotton, terry

cotton & simple

quality)

31 60 11 24.4

2 Modern clothes of

clean cloth of silk, polyester &

seasonal woolen

quality cloth

14 40 34 75.5

Total 45 100 45 100Source: Field survey, 2004.

The above table shows that before borrowing 60 percent of borrowers usedto take traditional clothes of cotton, terry cotton and simple quality. But

after the establishment of PAWDMC has reduced 24.4 percent, 40 percent

borrowers used modern clothes of silk, polyester and seasonal woolen

quality clothes before the PAWDMC and 75.5 percent members have

consumed modern clothes after the involvement in PAWDMC.

4.9 Change of Housing Pattern before and after Before andafter Intervention

Housing pattern reflects economic status of the people. It is measured in

terms of construction of housing pattern; the living standard of the

respondent is often analyzed in terms of housing pattern. The following

table gives the housing pattern before and after project implementation.

38



Table no 4.6 Change of housing pattern before and after project

intervention

S.N. House type

Before the

implementation

of the project

%

After theimplementa

tion of the

project

%Total

1 Kuchha

(mud+stone+thatched)

23 51.1 22 48.9 100

2 Pakka

(mud+stone+cement+tin

roof+attached toilet and

biogas+Rcc)

16 35.5 29 64.4 100

Source: Field Survey, 2004

Above mentioned table shows that before loan borrowing 51.1 percent of

the borrowers were settled in traditional Kuchha type’s houses like

thatched sheet, mud and stone. But after the establishment of thePAWDMC, it started to reduce at 48.9 percent in aggregate. The data also

shows that the living standard of people is increased after the

establishment of PAWDMC. Likewise, 35.5 percent of borrowers have

constructed Kuchha type’s house before borrowing. 64.4 percent houses

are constructed Pakka types after the borrowing. Thus, Pakka type’s

houses are found to be increased after the involvement in PAWDMC.

4.10 Status of Women

There are more than 50 percent women in Nepal out of total population but

the matter of sorrow is that they do have very low status in the society. To

bring them in the main stream of overall development, their status is to be

39



raised. The status of women refers to the extent to which they have control

over individual freedom. They have political power, self confidence, self

reliance, decision making, social prestige, integrity and socio-economicupliftment. There are various types of status of women which can reflect

all its dimensions. The report to analyze the status of women it has been

defined as follows:-

a) Education of women.

b) Their ability to control over decision making in their own

household and even in society.

c) Self reliance to run their life.

d) Social prestige and integrity.

Nepalese women have lower economic and social status. Lack of

education, skill, decision making power and empowerment are provided by

rules and regulations and society as well. The relative well being of men

and women depends on their relative bargaining power and entrepreneur talency. The institutional credit program helps in income earning activities

for women. The credit program strengthens women’s freedom and

education which are clearly shown in the following table.

40



Table no 4.7: Change in women status after borrowing loan.

S.N. Indicators

Increase

than

before

%As it

is% Unknown %

Total

percent

1 Education 35 77.7 10 22 - - 100

2 Decision

making

power

27 60 14 31.1 4 8.8 100

3 Self

confidence to

live their life

31 68.8 12 26.6 2 4.4 100

4 Social

prestige

24 53.3 14 31.1 7 15.5 100

5 Women

autonomy

25 55.5 16 35.5 4 8.8 100


4.11 Education of Women

Education is the key factor of human of human life. It brings various

changes in the society. Most of the participants in the society are illiterate.

They didn’t get formal education from school. Educated and well trained

women are accepting challenging jobs to face socio-economic problem.

Along with other programs literacy program has been conducted since the

operation of PAWDMC. They are getting knowledge through training,

seminar, group meeting and visiting programs. The above mentioned tablereflects that 77.7 percent women have increased their education after

joining PAWDMC. They got opportunity to learn banking system (loan,

saving interest rate, repayment).

4.12 Control Over Decision Making

Control over decision making was figured out by the questionnaire

regarding their household matters for e.g. Control over borrowed fund,

41



control over income generating activities, control over spending and

earning. If women have controlled over their household affairs, they can

save the time and substitute that in income generating activities. Decisionmaking power of women depends on their education, want, skill, and

endeavour. Above mentioned table shows that 60 percent of women have

increased in their decision making power after joining the PAWDMC.

They can decide by themselves in every spheres of social and economic

sector. They have to have their own decision to earn money and to invest it

in income generating activities. They don’t want any interfere by male.

31.1 percent of the participants couldn’t decide by themselves abut such

household activities before and after the program. They seek help of their

husband or relative member of vicinity to decide about household matters.

Still now remaining 8.8 percent of participants are not able to make

decision. They are entirely depending on their husband, family member,

relative and man of vicinity.

4.13 Social Prestige and Integrity

The main objective of PAWDMC is to aware rural women and put them

out outside of barriers of their household and makes them skilled, through

the medium of empowerment and power sharing. There seems an

improvement in the access of position of power after involving in

PAWDMC since, autonomy and two sides of a same coin. Some few

indicators are used to check the condition of women’s autonomy and social

prestige. Some programs are seemed to be failed at meeting the core access

of position of women. Awareness and willing are to be fought against the

biasness of generation. Their voices are to be raised through every nook

and corner of the rural area. The flame against the gender biasness is to be

raised through the medium of. The above mentioned table shows that 55.5

42



women have increased their autonomy after joining PAWDMC. Similarly,

53.3 percent of women have raised their social prestige after joining

PAWDMC.

Thus we can predict that, undoubtedly, that PAWDMC has helped women

to raise their social prestige and maintain their integrity about their right.

4.14 Role of NGOs

Only government can’t do everything in the country. So the role of NGO is

also very important and essential to help government. This PAWDMC isalso playing an important role as the NGO. Even in this cooperative, there

is a significant role of UNICEF, women Development Society & Child

Development Program is vital regarding the provision of subsidy in

increasing income, raise the flame of awareness, gender issue in alleviating

poverty.

4.15 Women and Employment

From the time immemorial women are trapped only in kitchen as their

employment. Even today women are mostly pre-occupied with fetching

water, collecting firewood cutting grass and sweeping the house. The have

low status in family and community. They have been ever working for low

wage or uncountable. They are largely excluded from economic decision

making such as production and major capital transactions. Their economic

role is limited to domestic work and family expenditure.

Most women are still employed in the traditional agricultural sector

and their involvement in the productive sector of the economy is low.

Their low level of education and social sanitation prevent many women

from working outside their homes. Following table is represented at

43



employed women in business activities before and after the operation of

cooperative.

Table no. 4.8: Employed women in business before and after the

establishment of cooperative

S.N.Types of

employment

No. of

borrowers

after

borrowing

percentage

No. of

borrowers

before

borrowing

Percentage

1 Full time

engage in

their

business

26 57.7 40 88.8

2 Part time

engage in

their

business

- - 5 11.1

3 Totally

unemployed19 42.22 - -

Total 45 100 45 100 Source: Field survey, 2004.

The above table shows that after borrowing loan from the cooperative 88.8

percent of involvement of women fairly engaged in their income

generating activities. They are involved in business activities in their shops

more than 10 hours per day. Only 11.1 percent women are found to be

engaged in household affairs. 57.7 percent of women were involved in

formal sector income earning activities before borrowing only. 42.22

percent of women were entirely unemployed before borrowing loan from

44



cooperative but after borrowing the percentage of income is nil. Thus it

shows that many women are involved in income earning activities.

45



Chapter - V

Summary Conclusion & Recommendation

This chapter summarizes the analysis presented in the preceding chapter,

the conclusion and recommendation to improve some of the existing and

upcoming problems.

5.1 Summary

The cooperative named PAWDMC is one of the many saving and credit

institutions. It is conducted in Kaskikot VDC (Kaski) under the

cooperative act 2049 B.S. it was established to uplift the socio-economic

status of rural women through income generating and awareness programs

to alleviate poverty. In the beginning there were only 139 members but

now there are more than 450 members involved. There are 11 members in

management committee and more than five members are found to be

employed.

The above mentioned data proves that it has been one of the

successful cooperative in Kaskikot VDC. In the initiation, it was started

with Rs.16680 but now there is Rs.1504769 in the fund until the fiscal year

2060/2061.

This cooperative provides credit in a minimum interest rate to run

their income generating activities. The above mentioned data has come to

prove that the range of loan distribution is Rs 1500 to 20,000.

It has been starting awareness as well as income generating

programs since its establishment. It gives loan to conduct the various

activities like tea stall, restaurant, animal husbandry, bee-keeping, poultry

46



farming, cash crops, educational programs, health care programs and bio-

gas plant as well. So, undoubtedly, we can say that it has brought many

changes in the socio-economic status of rural economy of rural poor women like clothing, housing, sanitary, environmental as well as in food

pattern. So, PAWDMC seems very successful cooperative institution in the

realm of poverty alleviating procedure.

5.2 Conclusion

The following conclusions are derived from the above study:

1) Democratic and smooth conduction:

PAWDMC is established under the cooperative principle and

cooperative act 2049 B.S. So, it is running in the smooth and

democratic manner.

2) Investment:

The investment of PAWDMC is increasing year by year. It has

been investing in agriculture, tea stalls, restaurants, small trade,

handicraft, health care and social sector in a minimum interest

rate and flexible way.

3) Loan Recovery:

Loan recovery is very satisfactory.

4) External cooperation:

In the beginning, it was started with Rs.16, 680. But now, there

are 1504769 in the fund. It has been helped by NRB, WDS &

CDP to conduct different awareness and income generating

programs as subsidy.

47



5.3 Recommendation

Rural developments are to be established in every nook and corner of the

country as soon as possible. Already conducted so called developmentBanks are collapsed already due to the cause of corruption unskilled

manpower and security. So, in this condition cooperatives are to be

established. This PAWDMC can be presented as an example of very

successful cooperative. The socio-economic activities conducted by the

cooperative are really appreciable. Still some short comings are found to

be seen in any successful organization. Here, some recommendations are

made in order to make more effective, efficient and successful.

1) Still some of the members of PAWDMC are illiterate although they

are laborious and honest. So, it seems very urgent to conduct the

literary programs.

2) The staffs of the cooperative are very fearful. They hesitate to

provide the documents for the survey. So, they are to be convincedand empowered.

3) Most of the respondents blindly believe in the decision of chairman.

So, the responsibility and member education is to be needed.

4) PAWDMC should be provided monitoring and evaluation power to

all of members.

5) Locally available natural resources should properly be utilized for

further development.

6) Cooperative campaign is considered the best tool for agricultural

and rural development. So, PAWDMC should be able to conduct

other effective and phenomenal programs.

48



7) Chairman is the pivot of PAWDMC. Time is being changed. So,

he/she should be trained in the proper manner according to the need

of time.

8) The above mentioned data shows that their respondent in ward no.5

seems nil. This ward is the settlement of Dalit or untouchable caste.

They are landless but can do other professions like sewing,

carpentry and others. So, they are to be involved in the stream of

cooperative as soon as possible.

9) The rural professions like dairy, organic fertilizer are to be started.So, some people may get employment.

10)Most of the rural women are limited only in the boundary of

kitchen. So, they are to be involved in tour, idea exchanging

programs or training classes.

11)At the last it is also recommended that PAWDMC should make

arrangement to provide reasonable amount of loan in a flexible way

so as to increase the number of members and shareholders in every

nook and corner of the rural area.

49



INDIVIDUAL QUESTINNAIRE

1) General Information

1.1) Name of the respondent: - ………………………………………

1.2) Address: …………….District……….VDC……….Ward. No.

1.3) Age: - Sex: - Male Female

1.4) Education: - Illiterate Literate

1.5) Types of family: - Nuclear Joint □ Extended

1.6) Family Head:-……………………………………….

1.7) Family Number:-

2) Introduction

1) What do you mean by co-operative?

a) Common institution of all.

b) An institution that helps to rural development.

c) An institution that helps to alleviate poverty.

d) All of above.

2) What do you mean by poverty?

a) A family that has very small scale of land.

b) A family that has no any professor employment.

c) Illiterate, big family

d) All of above.

3) What sort of role is played by co-operative in improving the fair sex?

a) Providing required knowledge and skill for cottage industries.

b) Managing the market for all productive goods.

c) Creating the compulsory saving through co-operative.

d) All of above.

4) When RCDC was established in your village?

Ans:-………………………………………………………….

3) Economic Status

1) What sorts of functions have you done by Co-op.?

a) Bee-keeping.

50



b) Fruit and curry, milk production, goat husbandry.

c) Small traits.

d) All of above.

2) What sorts of co-operatives are there in your village?

a) Milk collection co-operative.

b) Agriculture co-operative.

c) Women empowerment co-operative.

3) Have you taken loan from co-operative? If you may have in which sector have

you invested?

a) Cash crop.

b) Cottage and small scale industries.

c) Adult education.

d) Skill development programs.

4) In which of the sectors of following are effected by PAWDMC?

a) Towards small family.

b) Towards quality education.

c) Proper usage of contraceptic goods.

d) Compulsory saving.

e) All of above.

5) When PAWDMC was established in your village?

Ans:-………………………………………………………….

6) How much you have been saving in PAWDMC?

Ans:-………………………………………………………….

7) How much loan have you taken from PAWDMC and what is the interest rate?

Ans:-………………………………………………………….8) Where do you expense that deposited income?

Ans:-………………………………………………………….

9) Is there increasement in your income?

Yes No.

10) If Yes, how much?

Ans:- Monthly Rs………… Yearly Rs………………

11) Where do you invest it?

51



Ans:-………………………………………………………….

4) Social Status

1) How did you get the concept of co-operative?

a) Through Medias.

b) Taking part in conference and training.

c) Provision of easiness in doing work through community.

d) All of above.

2) What are the positive activities of the establishment of PAWDMC?

a)Development of communal concept.

b) Development of responsibility/ duty and own rights.

c) Development of decision making capacity.

d) All of above.

3) What sort of activities is done in the field of health and environment?

a) Environmental Sanitary. (Toilet and its proper uses.)

b) Bio-gas and its features.

c) Drinking clean water, knowledge about nutrition.

d) All of above.

4) Just now you did talk about the bio-gas plants. What types of did you see over there?

a) Neat and clean kitchen room.

b) makes easy to wash. (Because of moisture less)

c) Lessens some infections of kitchen like cough and respiratory problems.

d) All of above.

5) What types of improvements are brought by PAWDMC?

a) Solution of mental as well as physical problems through community.

b) Awareness about own right, function and responsibility.

c) Some basic way to increase income for the need of family.

d) All of above.

6) What are the causes that women have less access in society?

a) Lack of education and superiority of male.

b) Unequal property right.

c) Conservative and discriminative concept over women.

d) All of above.

52



7) What sorts of benefits have you taken from PAWDMC?

Ans:-………………………………………………………….

8) What is the loan providing procedure of PAWDMC?

Ans:-………………………………………………………….

………………………………………………………….

9) How many offspring do you have & where do they study?

Ans:-………………………………………………………….

53



Bibliography

• Aryal, Yek Narayan. Garibi Nibaranma Kavre Jilla Sthit Jagriti

Utpadan Ra Sharmic Sahakari ko Bhumika.

• Bajracharya, Bhuwan (1993), A review of cooperative in Nepal ,

Kathmandu, Nepal.

• Budget Speech- Ministry of Finance 2004/5. MOF, Kathmandu,

Nepal.

• CBS (2002 ), Statistical pocket book, Central Department of

statistics. 2002.

• Emmanuel, D. Silva. Poverty through Agricultural project. A

political seminar Reportno:30, 1992.

• FAO 1993. Rural poverty alleviation polices and trends, United

Nations.

• Gerald M. Maier 1995. Leading Issues in Economic Development,

Oxford University Press, Mumbai.

• Gurung, Resham Kumar- An economic impact of micro credit

Project for women in Nepal . Central department of economics Kirtipur,

2004.

• Hajela, TN (2000), Cooperatives, principles problems and

practices. Konark publishing, (Delhi).

• Human Development Report Nepal (HDF) Nepal, 2001 pp 27-39.

• Kunwar, Krishna Bahadur (2002), Poverty and rural development

in Nepal, Meena Publications, Kathmandu.

54



• Manual of Adharbhut Sahakari Vyabasthapan Talim Sahakari

Prashikshyan Kendra, 2059.

• NCF. Cooperative Message, Kathmandu. 2003.

• Nepal Rashtra Bank- Economic report 2002, NRB, Kathmandu,

Nepal.

• Pandey, Dhruba Lal, office practice and Management, Asia

Publication, 2002.

• Pandey, Devendra Raj (2000), Nepal’s failed development . Nepal

South Asia Centre, Tripureshwar, Kathmandu.

• Poverty Mapping of Kaski District (PDPP, MLD, UNDP Nep/950)

and DDC Kaski, 2002.

• Principle of Cooperative, Nepal Cooperative Board, Kathmandu

Nepal.

• Sahakari Ain, Kanoon Kitab Khana. Babarmahal, Kathmandu,

2049.

• Saul, Estrine (2000), Social science encyclopedia, Oxford

University press

• Sharma, Prem (2002 ), Handbook of social science research

methodology, New Hira Books, T.U., Kirtipur, Kathmandu.

• Todaro, M.P. (2002), Economic development in the third world,

Macmillan.

• UNICEF, 1989 PCRW: An impact of evaluation of Study in Nepal,

UNICEF, Kathmandu, Nepal.

• Women Development Division, 2000 women Development

Program Report , Kathmandu Nepal.

55



• World Bank, 2000. World Bank Report WB, New York, 2000.

Documents

A Passage to Rural Development