EMPLOYMENT & INCOME GENERATION

While BRAC believes that microfinance services are necessary to help break the cycle of poverty, it places equal importance on micro-enterprise development services to maximize the return obtained by the poor. Unlike standard business development programs, which offer some mix of generic training and marketing services, BRAC has developed an integrated sector specific approach to enterprise development for the poor.

BRAC has identified six sectors in which large numbers of low-income women can be productively engaged at or near their homes: poultry, fishery, livestock, sericulture, agriculture, and agro forestry. For each of these sectors, BRAC has developed an integrated set of services, including training in improved techniques, provision of improved breeds and technologies, on-going supply of technical assistance and inputs, monitoring and problem solving as needed, and marketing of finished goods.

Microfinance

BRAC’s microfinance program has cumulatively disbursed over USD 4 billion and serves over 6 million poor and landless people. Ninety-eight percent of BRAC’s microfinance members are women, and these members belong to the 170,000 Village Organizations (VOs) BRAC has created that serve as forum where the poor can collectively address the principal structural impediments to their development, receive credit, mobilize savings and build upon their social capital.

In Bangladesh, which ranks as one of the poorest and most densely populated countries in the world, with 49.8% living below the “upper poverty line”, BRAC’s Micro-finance program has distributed US$ 501.26 million in year 2006 alone, with a 99.49% recovery rate where no collateral is required. Members’ savings outstanding is US$ 141 million.

Over the years BRAC realized that microfinance, though a successful and thriving program, failed to reach the poorest 25% of the population. So, in January 2002, BRAC introduced an innovative new program called, ‘Challenging the Frontiers for Poverty Reduction – Targeting the Ultra Poor (CFPR-TUP). Using a specific set of criteria to identify these families in the margins of society who are too poor to take advantage of standard microfinance options, BRAC designed a subsidized scheme that included income generating assets, training and health care services. This subsidized scheme was tailor made to create opportunity ladders for the ultra poor in order to help them transition into the mainstream microfinance programs. CFPR-TUP has received widespread national and international acclaim and sets the standard for other development organizations that aim to serve the poorest of the poor.

Poultry and Livestock

In Bangladesh approximately 70% of landless rural women are directly or indirectly involved in poultry rearing activities. The Poultry and Livestock Program is composed of several components: poultry and livestock extension program, poultry farms and hatcheries, feed mills and feed analysis laboratories, bull station, and the disease diagnosis laboratories. To date, 2.11 million people have been involved in this program. The key people under the poultry and livestock extension program are: i) Poultry and Livestock Extension Workers ii) Chick Rearers iii) Key Rearers iv) Cage Rearers v) Broiler Rearers vi) Egg Collectors vii) Model Cow Rearers viii) Model Goat Rearers and ix) Artificial Inseminators.

BRAC started its livestock program in 1983 to protect livestock from disease by developing skilled village level para-veterinarians, and improving local cattle breeds by providing credit and appropriate technical support. These measures are expected to increase the productivity of the livestock sector, and provide a steady source of income for the landless. The government has taken up BRAC’s livestock development model for widespread implementation. The objectives of the poultry-livestock program are to create employment opportunities and to increase the beneficiaries’ income within a short period of time.

BRAC Uganda seeks to build upon its existing microfinance program to address the needs of poor people more holistically through combining microfinance activities with other programs such as poultry and livestock rearing, agriculture production, skills development, capacity building in the management of businesses, and community-based health initiatives. Under the poultry and livestock component, the activities will include training of program organizers, training of farmers, provision of technical support services and linkage to credit for input supply.

Social Forestry

BRAC’s social forestry program, launched in 1988, increases awareness about the necessity of planting trees in rural areas, creates a sustainable supply of high quality seedlings, and reduces the adverse environmental effects of deforestation while creating income and employment opportunities for rural women. BRAC aims to bring all available land in the rural areas (homestead, roadside, embankments, and marginal fallow) under tree cover with the active participation of the rural poor.

The key components of Social Forestry program are: i) Horticulture Nursery ii) Grafting Nursery iii) Agroforestry. BRAC started the nursery program to supply good quality seedlings locally. Nursery workers are given training by BRAC. Each nursery is on 7-10 decimals of land and produces 10,000 seedlings annually. A grafting nursery has been set up to meet the increasing demand for HYV seedlings. The grafting project is based on the asexual propagation of fruit trees.

BRAC launched an agroforestry project on degraded private and government khas land in 1991. The purpose of the project is to produce wood, fuel, fodder, food, fruit and vegetables from the same plot. The agroforestry program encourages women to create plantations in which agricultural crops are mixed with trees so that income is maintained through the short, medium and long term.

Agriculture Extension Program

BRAC’s agricultural extension program promotes the nutritional and income status of households by increasing the agricultural production of VO members through technology transfer. The VO members who have less than 0.5 acres of land receive training, technical support, inputs, and access to BRAC’s microfinance to invest in farming. BRAC’s agricultural extension activities can be broadly categorized into two components: i) Vegetable Cultivation ii) Crop Diversification (rice, maize, wheat, cotton, and sunflower cultivation).

The vegetable cultivation program targets poor rural women. Interested VO members with suitable land are given three days training on vegetable cultivation. Crop diversification contributes to increased agricultural productivity. Maize is used for poultry feed, and as the number of commercial poultry farms in the country increases so does the demand for maize. Sunflower cultivation is also being undertaken, and is profitable. To increase the production, BRAC established a modern soil testing laboratory having a capacity of 4,000 soil sample per year.

BRAC USA is supporting BRAC Uganda’s efforts to raise target smallholders farmers’ agricultural productivity and incomes within five years.

NEW INITIATIVES

BRAC is continuously innovating and piloting new initiatives that include:

The Retrenched Garment Workers Program – BRAC has responded to recent changes in international trade law and quota systems that have caused many businesses in the garment industry to shut down or operate at reduced activity with the Retrenched Garment Workers Program. This program supports women garment workers who have lost their jobs and helps facilitate their rehabilitation into alternative income generating activities, also absorbing some of these retrenched garment workers in its microfinance programs.

Microfinance for Acid Victims – BRAC and Acid Survival Foundation (ASF) are jointly working to help acid victims. BRAC’s Microfinance Program helps rehabilitate aid victims through credit and savings facilities so that they can earn income through investing in different income generating activities.

Women Enterprises Development Program (WEPD) – Managed only by women staff, WEPD gives women entrepreneurs access to funds so that they can become self-sufficient and also job-providers.

Urban Program – In 1991 BRAC conducted a survey on urban slums and found that a substantial number of slum children had no access to education. In response, BRAC opened urban schools in 1997 and also started its urban credit program. BRAC works with government authorities such as city corporations, the health department and the water and sewerage authority to provide safe water and sanitation to slum dwellers. Further, because many female workers in urban areas have little access to proper housing facilities, BRAC has proposed to build hostels complex for young, single women working in the garment industry in Dhaka.