Empowering the poor by shifting from a supply
to a demand-driven approach
The
Management of Natural Resources in the Southern Highlands Project
(MARENASS) and the Development of the Puno-Cusco Corridor Project
(CORREDOR) were launched by the Government
of Peru in 1995 and 1997, respectively. Both projects operate in the
Southern Highlands, where about 73 per cent of the rural population is
poor, and 27 per cent is extremely poor. The projects work to reduce poverty
by enabling families and communities to offer competitive goods and services
that help free them from dependence on agriculture and herding.
Consulting with rural poor people during the planning phase is key. Both
projects build on the earlier successes of the Promotion of Technology
Transfer Project to Peasant Communities in the Highlands Project (FEAS),
which ended in 1999. Funds are provided directly to rural poor people,
who can contract technical assistance services of their choice. The shift
away from a supply-driven system of extension to one of demand-driven
assistance creates a more dynamic market.
The new USD 21.7 million Market Strengthening and Livelihood Diversification
in the Southern Highlands Project will further build on IFAD’s experience
in Peru.
The four projects represent an investment of more than USD 98.6 million
in the Peruvian Highlands. To date, the projects have reached about 1,000
communities and 1,100 farmer organizations – almost 100,000 families.
Lessons
Learned
- Transferring decision-making power and control over project resources
to rural communities helps increase incomes, assets and self-esteem.
- Trained local service providers are better able to respond to rural
communities’ needs.
- Relationships between local service providers and the community can
bridge rural and urban areas and expand marketing and other small-business
opportunities.
- Involving rural poor people in all stages of project planning and
implementation legitimizes their perceptions and needs, creates realistic
expectations and reduces controversy.
- “Innovative technology” competitions between communities
are an effective way to encourage better resource management and sharing
of ideas.
- Projects that are designed to be flexible enable practices to be
abandoned or reinforced as necessary.
Results
Communities that are directly responsible for managing their financial,
natural and social resources have a sense of ownership over development
activities. This in turn boosts self-esteem and empowers them to negotiate
with local government, civil-society and other institutions for vital
services and assistance. The impact has included:
- 500 farmer organizations have contracted their own technical assistance
services for a total cost of USD 7.5 million, contributing USD 1 million
themselves (FEAS).
- Almost a third of the families have set up new microenterprises (MARENASS).
- Incomes of rural poor families rose 64 per cent between 2000 and
2003 (MARENASS).
- 60 per cent of communities improved their household assets, such
as homes, gardens and stables (MARENASS).
- About 2 300 microentrepreneurs and 1 800 artisans are engaged in
new income-generating activities (CORREDOR).
- Women in 360 communities are setting up microenterprises with the
support of a special fund administered by local women’s groups.
- Every dollar spent by projects is getting a direct return of USD 3-5
in communities through the increased value of participants’ assets.
Scaling
Up
The basic principles of the projects’ demand-driven approach have
been incorporated by the National Compensation and Social Development
Fund, which is one of Peru’s largest national development programmes.
Some of the innovative features are being taken up by Peru’s Ministry
of Transport and the World Bank in a new project in the southern Sierra.
These features are also being incorporated into European Union-financed
projects in Guatemala and Chile. In addition, the World Bank has integrated
the concept of transferring resources directly to beneficiaries into its
rural development operations.
