Challenging the Frontiers of Poverty Reduction-Targeting the Ultra Poor (CFPR-TUP): Pushing Down and Pushing Out

CFPR-TUP is a programme designed to create opportunity ladders to help the absolute poorest, or the Ultra Poor, graduate to the mainstream microfinance programme through a broad-based and multidimensional attack on poverty. The programme strives to “push down” its interventions by developing new instruments relevant to the livelihood strategies of the ultra poor households.

Secondly it seeks to “push out” the agenda to challenge the existing socio-political frontiers within which the existing approaches operate. Five major components of TUP are: enterprise development training, asset transfer, social development, essential health care and action research.

This programme is planned to reach 70,000 ultra poor households over five years. The programme participants are women from ultra poor households. There are four linked components.
a. Employment and Enterprise Development Training -This component provides training and follow-up services tailored to the specific needs of the ultra poor. In addition to working with those selected for the special investment programme, the training is also extended to two other groups of the ultra poor involved through other institutional mechanisms – the next three cycles of the IGVGD programme and to poorer members of BRAC's Village Organisations who have not yet developed sustainable livelihoods. In 2004, 10,000 specially targeted ultra poor members received enterprise development training in poultry, livestock, vegetable farming, horticulture, nursery, and non-farm activities.
b. A Special Investment Programme for the Ultra poor- This component involves asset transfer and stipend support to the ultra poor in geographically vulnerable areas. In 2004, Special Investment Programme was implemented in 52 upazilas from 12 districts. The 10,000 women covered under this programme received assets to begin an income generating activity such as poultry rearing, livestock, agriculture, horticulture nursery and non-farm activities. They also received a monthly subsistence allowance of Tk.300 as a short time income support.
c. Social Development Programme - This component involves individual and group work with the ultra poor in the programme, providing support and counselling on development of their livelihood strategies and in helping to cope with crises. 10,000 women received support and counselling in 2004.
d. Health Care Services for the Ultra poor – This component provides specialised health care services and referral arrangements for the ultra poor. In 2004, 10,000 members received the tailor made health services provided by the CFPR programme. The health services include social mobilisation, health awareness, basic health care, pregnancy related care, family planning, immunisation, tuberculosis control, vitamin A capsule distribution among children between the ages of 1 and 5. Programme Organisers and Shastho Shebikas educate the ultra poor on health related issues during informal weekly discussions.

Income Generation for Vulnerable Group Development (IGVGD): Including Those Left Out

The Income Generation for Vulnerable Group Development (IGVGD) programme covers the poorest women who own no land, have little or no income, or are widowed or divorced. The objective of the IGVGD programme is to alleviate poverty of the hard-core poor by providing long-term sustainable income and employment opportunities through food assistance, training and access to credit facilities.

IGVGD is a collaborative programme involving three partners including Government of Bangladesh, World Food Programme and BRAC to serve the Ultra Poor. This programme experienced a pilot phase, from 1987, the programme set off to an expansion. Basically, the IGVGD (Income Generation for Vulnerable Group Development) programme involves providing food subsidy and credit support to its member women as well as the following capacity building schooling, which are as follows:
• Enterprise Development Training
• Social Awareness Training

After the final selection, all the IGVGD members are entitled to food subsidy consisting of wheat. The VGD members are encouraged to organise and participate in Village Organisations (VO) that are built to enhance social participation.

Furthermore, this programme enables the IGVGD member women to involve themselves in monthly saving schemes with BRAC. BRAC engages these VGD women into savings schemes in order to develop a practice of saving money for future application. This extreme poor segment of rural Bangladesh enjoys very limited access to service from financial institutions like commercial banks to preserve savings which leave them with little understanding of the maintenance and mechanism of an organised saving scheme. BRAC orients them with the saving plan, and helps them avail services of continuing savings in their respective accounts. VGD members are entitled access to micro credit, which provides them with a first loan amount of Tk 2,500 on an average to initiate their small entrepreneurship.

With skill training VGD women become eligible for credit support with no collateral required. The average size of the first loan is Tk. 2,500. IGVGD is a two-year cycle programme, with new intake in every cycle. The current VGD cycle was from January 2003 to December 2004, and covered 292,200 VGD members in 268 upazilas of 43 Districts. During this period, 100% IGVGD women received Enterprise Development Training and Social Awareness Training. Moreover, 69% of VGD women received credit of average loan of Tk. 3,697.