Examples of IFAD/NGO Collaboration in the Field

• Agrarian Reform in The Philippines
• Directing Microfinance to the Rural Poor in Benin
• Rehabilitation and Development Project for War-Torn Areas in the Department of Chalatemango (El Salvador)
• Uganda Women's Effort to Save Orphans, example of NGO collaboration in the context of the Belgian Survival Fund (BSF)

Agrarian Reform in The Philippines

"Organized Filipino peasantry now feels it has a real stake in the agrarian reform programme." — Ernie Garilao, Secretary of Agrarian Reform.

Agrarian reform has the potential of lifting nearly 50% of the Filipino poor from poverty, transforming them into productive citizens capable of making a real contribution to national growth. Moreover, such reform can make faster headway with partnerships among its key players: government, farmers, landowners and NGOs. Experience in the past six years shows that, with constant pressure from farmers' organizations and sound planning and strategizing by their support NGOs, the distribution of land to the poor can move more rapidly, especially in areas where landowner resistance is strong.

The IFAD-funded Western Mindanao Community Initiatives Project, approved in 1998, focuses on poverty groups, including those with no or insecure land tenure, e.g., indigenous peoples. Working with the Department of Agrarian Reform and local NGOs, the project supports communities in putting together the necessary background material to prepare applications for titles and to assist those communities in the subsequent survey work. In coastal areas, communities are assisted in making communal management decisions to regenerate bays and inlets. Community groups and NGOs, through local meetings, articulate issues to become points of advocacy with national decision-makers. The project will also support community resource management, including: the introduction of sloping arable land technology (SALT) in upland areas; improved, low-input rainfed cropping technology; the establishment of mangrove plants in coastal waters to promote the regrowth of fish stocks; and the provision of seedlings for high-value wood lots (teak and mahogany) on tenure-secure holdings.

Directing Microfinance to the Rural Poor in Benin

In western and central Africa, only a few microfinance institutions focus on rural areas and tailor financial services to the more modest needs of the rural poor, despite substantial investments by governments and donors in microfinance in recent years. IFAD has been working closely with NGOs to develop the financial services association (FSA) concept in a number of countries in the region. The governance model of the FSA is similar to that of a traditional savings and credit cooperative. What sets the concept apart from other microfinance approaches is that members purchase shares, which are then on-lent to other members.

Currently, the most extensive network is in Benin, where there are 30 FSAs with more than 5000 members. In southern Benin, the Lobogo Financial Services Association proudly opened its financial records to display the impressive achievements of the organization since its founding in September 1997. A total of 655 members had mobilized nine million Communauté financière africaine francs (CFAF) in assets and lent CFAF 14 million to members to cover various activities, including agricultural produce marketing, school fees and medical emergencies. To date, reimbursements rates are close to 100%. Equally important, association officers and members are proud that they make all major decisions regarding interest-rate structure, awarding of dividends and other key policy directions. Another key advantage is that very small loans are readily available: the credit committee meets two to three times per week, which means than noone has to wait more than two to three days for decisions on their credit applications.

The involvement of a national NGO, Système financier de proximté (SYFIPRO), has been instrumental in establishing the network and in providing critical technical and managerial backstopping. SYFIPRO's activities include carrying out market surveys to determine whether there is sufficient demand for FSA products and services in a given location; training FSA officers, staff and members; and training other NGOs in Benin and other countries in the FSA approach.

Rehabilitation and Development Project for War-Torn Areas in the Department of Chalatenango (El Salvador)

In El Salvador, a peace Agreement was signed in 1992 after an armed conflict that had lasted more than ten years. In order to facilitate the transition to peace, at the request of the Government of El Salvador, IFAD launched a project to develop war-affected rural poor areas. The project area chosen was the Chalatenango Department, which had been one of the worst hit by the civil war. The Rehabilitation and Development Project for War-Torn Areas in the Department of Chalatenango was cofinanced by IFAD, the Government of El Salvador, the European Union and a number of other agencies.

For IFAD, the goal has been to improve the quality of life and the incomes of the rural poor, strengthen rural organizations in war-affected areas and reconstruct the social fabric of the Department of Chalatenango. The participation of beneficiaries and active dialogue among government institutions, NGOs and local governments were identified as cornerstones of the success in guaranteeing sustainability of the project.

One of the most effective service providers involved in the project was a local NGO, Fundación para la Cooperación y el Desarrollo Comunal en El Salvador (CORDES), established by displaced and returned populations of communities. Since 1988, CORDES has been working for the most isolated and poorest populations in Chalatenango. In association with PROCHALATE, its task has been to provide technical assistance and organize regular participatory evaluations of the technical work undertaken. It has successfully applied its own strategy of educating técnicos populares (local promoters), who are able to share and spread their experiences. At the same time, CORDES has been promoting activities at the family level by creating a familia colaboradora (cooperating family) concept.

It has also established ecological committees to support environmental conservation and management. CORDES has excellent negotiating skills and has actively sought additional financial and material support to implement parallel activities in the region. Since its establishment, it has received considerable assistance from international organizations. It also has well-trained local staff. The fact that it is highly appreciated among rural poor people has contributed to its success, both with the project and with its parallel, independent rural development activities.

Uganda Women's Effort to Save Orphans

Although eastern and southern Africa accounts for only 4.8% of the world's population, the region is home to more than half the 33.6 million people infected with HIV; moreover, it is the region where 60% of all AIDS-related deaths occur.

In 1986, a group of Ugandan women set about founding an organization, the Uganda Women's Effort to Save Orphans (UWESO), to address the largely AIDS-generated orphan problem.

Women volunteers, mobilized in rural areas, form the group's backbone. As of July 1998, its membership nationwide encompassed 10000 women, but there were only 25 full-time staff. The strength of this national NGO lies in its volunteer spirit at the grass-roots level.

In 1995, the NGO received a major boost when the Belgian Survival Fund Joint Programme (BSF.JP) provided a USD 1.45 million grant, enabling UWESO to serve as a development organization focusing on the economic empowerment of foster families. The first phase of a structured development project was launched, the UWESO Development Project, and the grant enabled it to capitalize on the innovative and cost-effective efforts of its volunteer members. The BSF.JP enhanced the capacity of the small national secretariat through skills training, technical and financial management support, basic transport and equipment. It subsequently financed the investment and operational costs of the NGO to: enable decentralization of activities to district-level branches; and to create income-generating activities for foster families and orphans.

When the first phase was evaluated in 1998, the encouraging results served as the basis for the formulation and design of a new phase, the UWESO Development Programme (UDP), which began in 1999. In this volunteer-based system, loans are provided to foster families through groups and clusters, and recipients also receive intensive training in record keeping and business management. During the new phase, special attention is being paid to consolidating and expanding the savings and credit operations and to handing over such operations to commercial banking institutions.

The UDP has had a far-reaching impact on both the NGO and its beneficiaries. Thanks to the project, and to the culture of learning characterized by UWESO's receptivity to new ideas, the NGO has made the transition from a centrally run, localized welfare provider for orphans to a diversified, development-oriented and decentralized provider of services, with independent fund-raising ability, directed towards all foster-family caregivers. As far as the beneficiaries are concerned, the project has provided broad-based capacity-building of guardian families. In addition, the savings and credit services — individual loans through groups, which receive intensive training in bookkeeping and business management — have drawn widespread support. Foster parents' incomes and living conditions have improved, small-scale businesses have prospered and 10000 children are able to remain in school. To date, 4000 loans amounting to USD 400000 have been provided to 1875 people, 87% of whom are women. The overall loan recovery rates are approximately 90%.

A second four-year phase of the UDP became effective in late 1999. Building on the successful savings and credit activities of the first phase, the new phase aims at:

• empowering clusters of foster households through training in nutrition, health care and clean drinking water;
• expanding artisanal skills training for orphans;
• expanding UWESO to new districts; and
• coordinating with other NGOs.

The success of the UDP demonstrates the importance of zealously supporting local-level economic organization for savings, investment and services among the poor. Moreover, the support is made immeasurably more effective through collaboration with other actors — and with intense involvement of the community.