Round 3

May 2011

Best Practices & Innovations (BPI) Initiative

Agriculture & Rural Livelihoods

Education for Income Generation In Nepal

Winrock International
Best Practice Award for Access to Markets and Entrepreneurial Literacy

Overview:
The USAID-funded Education for Income Generation (EIG) Program in Nepal is facilitating social change
within households by combining income generation with entrepreneurial literacy. EIG provides training
in market-linked agriculture production, home-based enterprises and vocational training along with an
integrated entrepreneurial literacy class that teaches numeracy, business planning, credit, life skills,
governance, nutrition and basic health care. Young women, often marginalized in their husband’s
homes, are gaining confidence that comes from knowledge and respect from their husbands and
mothers-in-law by earning income. Consequently, these empowered women play a greater role in
decisions – changing customs revolving around nutrition, health and children’s education.

Intervention Details:
Location All Fifteen Districts in the Mid-Western Region in Nepal
Start Date January 3, 2008
End Date January 2, 2013
Scale State/Provincial/Sub-national
Target Population Marginalized youth: low caste, minority ethnic groups, conflict affected
and women between the ages of 16 and 30 years old.
Number of beneficiaries Direct individuals trained and earning higher incomes: 70,000
Partners International Development Enterprises, International Evaluation and
Training Corporation (IETC), and eight local partners that include
Development Project Service Center (DEPROSC); Samjhauta Nepal
(Samjhauta); Karnali Integrated Rural Development and Research Center
(KIRDARC); Alliance for Social Mobilization (Alliance Nepal); Federation of
Nepalese Chambers of Commerce and Industry (FNCCI); F-Skill, Support
Activities for Poor Producers of Nepal (SAPPROS); and Center for
Environmental, Agricultural Policy Research Extension and Development
(CEAPRED).
Funders/Donors USAID/Nepal
Total Funding $14,681,683; Funding for the best practices components = $5,834,001
Website http://www.winrock.org/
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About the Intervention

1. Background/Context
What challenges or problems were the interventions designed to address? Why was the intervention
needed?
In Nepal, youth from low castes and minority ethnic groups tend to be marginalized, malnourished, and less
educated and poorer than their peers in the general population. They tend to live in remote areas and have
few assets, little access to government services, and limited opportunities to change their situation.
Members of these vulnerable groups joined the Maoist insurgency at a higher rate than other groups.
Following the 2006 Peace Accord, which ended the 13-year Maoist Insurgency in Nepal, the Education for
Income Generation (EIG) program has been training and linking marginalized and conflict-affected youth to
income generating opportunities in areas of Nepal where the insurgency began.

The largest subset of the marginalized groups, women, even those from all castes and ethnic groups, tend
to be treated as second class citizens in Nepal. They rarely own land, many don’t control household
finances, and in poorer households a girl’s education is sacrificed for her brother’s. New brides move into
their husband’s home and hold the lowest status in the household – they generally eat last, after others
have had second or third helpings. As a result, even in food secure households, women may be
malnourished if the vegetables and meat are eaten by others.

EIG is improving the lives of these marginalized individuals by providing them with a foundation of skills and
knowledge through entrepreneurial literacy courses, agricultural training, and demand-driven vocational
training. The program opens up opportunities for individuals to embark on life long careers, creating
promising futures and therefore discouraging them from engaging in conflict.

The program has demonstrated that combining courses in entrepreneurial literacy with agricultural training
and market linkages leads to much greater impact than simply increasing people’s income. Secondary and
tertiary benefits in other sectors are emerging with this powerful combination of interventions.

2. Goals & Objectives

What were the intervention’s goals and objectives? What was it meant to accomplish?

The goal of the EIG program is to mitigate conflict by training targeted youth for employment and increased
income in the Mid-Western Region of Nepal.

Two of the project’s objectives are to:

1) Improve literacy, life skills, and peace-building skills for targeted youth
2) Increase rural income and agricultural productivity for targeted youth

When combined, these two objectives represent a best practice in increasing the skills and confidence of
marginalized youth – particularly young women – so that they can earn income, change intra-household
dynamics, and increase their social status within the community. This is a best practice because the
entrepreneurial literacy training for women amplifies the other impacts for which the project strives. For
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example, applied entrepreneurial literacy gives women confidence (empowerment) to assume a larger role
in their households and communities. By increasing agricultural (horticultural or livestock) production and
through increased income, she gains the respect of family members (husband, mother in law) and her
community. With the respect earned from her family and increased confidence, she is able to change
cultural norms and low social status. For example, women are able to exercise more control over household
assets (income), health and nutrition, as well as participate in community activities. She gains the ability to
become a better provider for her family and a more active citizen.

3. Key Activities
Please describe the intervention’s main activities. What role did each partner play? If applicable, how is the
intervention innovative?
The best practice is the combination of a practical, engaging entrepreneurial literacy program with high-
value horticultural training that links marginalized youth to markets and results in tangible income
generation.

Using a community-based self-selection process, the program identifies marginalized youth in targeted
communities who have less than a class five education. These beneficiaries participate in a ten-month
integrated, entrepreneurial literacy course taught by local teachers who are trained in a curriculum
developed by the program. This part of the program covers a variety of topics including literacy, numeracy,
simple math, health, peace building, community engagement, life skills, how to access credit , and
entrepreneurship. Courses are hands-on and interactive, using a range of techniques such as stories, role
play, group discussion, and guest speakers. Participants take field trips to the district centers to learn about
services that the government provides. Courses not only teach beneficiaries how to read, but also educate
them on key topics such as their rights and responsibilities as citizens; how to engage in meetings; nutrition,
HIV/AIDS and family planning; how to access services provided by the government and NGOs; basic
mathematics including how to calculate profit; how to develop a simple business plan; and how to establish
a savings group cooperative and access credit.

Either at the same time or later, the EIG program provides farmer field training courses for the same
beneficiaries. The courses are organized by Local Service Providers, who are individuals from the
communities whom we train in basic entrepreneurial and agricultural skills. We link them to the markets
and to private sector input suppliers trained by the program who earn a salary based on commission and
fee-based services provided to the farmer. The participants (who form a production group) are trained in
how to grow off-season vegetables and other high-value agricultural products (including horticulture,
livestock and fish). EIG trains beneficiaries in raising specific high-value products based on both the local
environment and local market demand. We introduce micro-irrigation, water storage ponds, low-cost
plastic greenhouses, and other productivity-enhancing technologies that can be procured locally. EIG also
links beneficiaries to credit and to local government programs for financial continued technical support.
With increased income, most farmers are able to repay micro-loans for basic inputs after one season. We
encourage beneficiaries to raise three crops per year and link them to buyers and the market.

Multiple production groups in a similar geographic area are aggregated to create a “pocket area.” The
pocket area typically consists of at least 200 beneficiaries and represents the “critical mass” required to
attract private sector input suppliers and buyers to the pocket area. To facilitate equitable and sustainable
value chain linkages, representatives of the different production groups, along with key leaders from the
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community, form Marketing and Planning Committees (MPCs). The MPCs create a collection center (often
on leased or donated private or public land) where beneficiaries can aggregate and sell their produce. The
MPC links private sector buyers (wholesalers/traders) to the Collection Center, which then serves as a point
not only for sales, but for a range of agro-veterinary services required by producers.

4. Effectiveness/Evidence of Success
What were the results of the intervention, and how were they measured? Who and how many people
benefited from the intervention? What evidence do you have to support these results (e.g. field visit reports,
internal tracking & monitoring, internal or external evaluations, etc.)?

To date, halfway through the project, 22,400 people have benefited from EIG’s literacy course, 94% of
whom are young women. In agriculture, 32,800 youth have participated in agricultural production training
and had an impact on their households, or 164,000 people. Ninety-six percent of the beneficiaries are
increasing their income and improving their diet; Eighty-six percent of the agricultural beneficiaries are
increasing their income by at least 100%. An additional 10% are increasing their income by less than 100%
and/or improving their diet. Four percent of the beneficiaries do not follow through with the training. Our
success rate is relatively high because we do not provide any subsidies and the beneficiaries must have the
motivation and interest to attend the training courses. Even though beneficiaries are growing vegetables
for the market, studies indicate that the households increase their consumption of vegetables, improving
their nutrition.

Because of the success of this two-pronged approach, most of the entrepreneurial literacy beneficiaries
attend the agricultural training.

We find that the high-value horticultural crop production is spreading. New farmers (non-beneficiaries) are
beginning to feed into the Collection Centers, taking advantage of the market linkages established by EIG
and the local service providers established in their area. New farmers are also taking up many of the
technologies after seeing the results on the projects beneficiaries’ land.

We are learning about numerous unintended, positive consequences. We are changing the status of some
of the most marginalized and poorest. For example, because of this project, young women:
spend their earned money on food and health-related expenses for their family
report that they are now sending their children to school because, for the first time,
they understand the value of education
now understand how HIV/AIDs is transmitted and are getting blood tests and demanding that their
husbands do the same when they return from migratory labor in places such as India
visit government offices to access services
help their fellow students and have formed a community of literacy class members
realize the importance of key nutrients in their diets and the diets of their children
eat with their families and not after others have eaten
are empowered and highly motivated to take up small enterprises in agriculture or business

5. Equitable Outcomes
Describe how the intervention enabled the participation of and produced benefits for women. Please provide
data showing the comparative benefits for men and women. If the intervention focused exclusively on men,
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please explain the rationale for doing so.

EIG targets marginalized youth through literacy training. To date 94% of participants have less than
a class five education; 75% have no education. In Nepal, daughters-in-law have the lowest status in
the household. These women – who may be pregnant or nursing – are expected to engage in
physical labor and often eat last and less nutritious food.

The training has been successful at benefiting women because it combines entrepreneurial literacy
with agriculture for income generation. To enable women’s participation, literacy courses are held
at a time and location that is convenient for the participants. Families hesitant to let the young
woman participate are counseled by the literacy class management committee (based in the
village). Once women begin earning money, husbands treat their wives with more respect.

Recognizing that many participants are new mothers who have to balance the classes with work
and childcare, each class provides toys so that young children can play outside the classroom with
supervision. The classroom and training are child-friendly.

By increasing women’s foundational knowledge, the literacy class empowers women and gives
them the confidence and skills (math, negotiation skills, planning, entrepreneurial drive etc.)
required to manage successful home-based enterprises such as small-scale vegetable production.
The wide applicability of the skills and qualities developed in the training keep people engaged.

The agricultural training focuses on low-cost inputs, affordable productivity-enhancing

technologies, and small plots so that people with very little land can produce more food for the
market (as well as their own consumption). Agricultural training consists of a series of short classes
held in the village at a farmer’s field so they don’t take a tremendous amount of time out of the
beneficiaries’ busy schedule. These small holders are linked to markets and often have an
advantage in the market because they produce through learned technologies off-season products
with higher values.

Women save time by accessing water through multiple use water systems, an affordable
productivity enhancing technology meeting their needs for drinking, productive use and agriculture,
rather than collecting it at the tap or the river. These systems can save women from 4-8 hours a day
depending on the distances.

Through the combination of empowerment, confidence building, and income generation, the status of
marginalized individuals – especially women – rises in the household and community.

6. Efficiency/Cost-Effectiveness
How do the intervention’s relative costs compare to the outcomes achieved? Please provide evidence to
support your answer.

Based on this model, beneficiaries are earning an average of $240/year. Moreover, a jobs study revealed
that approximately four jobs are created along the value chain for each person trained in market driven,
high-value agriculture production and generate, on average, 3,000 rupees/month. Using a value chain
approach has a significant impact on indirect beneficiaries.
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The model is replicable and scalable in Nepal and elsewhere. We invest in training and have staff spend
time coordinating with other donors and government agencies to leverage funds for the beneficiaries. We
establish District Development Committees (DDC) that ensure that beneficiaries have access to other locally
available donor and government resources, and we match beneficiaries to the opportunities or inform
them about the opportunities.

7. Sustainability
Is this intervention sustainable in the long-term, socially, financially and environmentally? Please describe
the steps the intervention took to ensure services or impacts will be sustained over the long term, and the
role of local partners or the beneficiary community in continuing the intervention.

Several aspects of this project are contributing to long-term sustainability. First, the literacy program
teaches beneficiaries basic skills they can use for their entire life under a range of different settings (life
skills, negotiation skills, accessing/using government offices and services, credit and microenterprise skills,
etc). The skills learned are not only applicable to agriculture.

Second, the agricultural training and production is all market driven, and all the supported players are part
of the value chain. For example, the project does not provide subsidies to the beneficiaries. The project
pays for demonstrations on occasion; however, EIG always tries to target a critical mass of beneficiaries so
that the private sector can establish and maintain a viable market for inputs (irrigation, seed, microfinance),
and so that production groups and MPCs can aggregate enough product to link with output markets
through Collection Centers.

Part of the market-driven approach is to build the capacity of Local Service Providers (residents of the
community), who receive incentives through private sector commission, not project funding. They serve as
an important catalyst or “middle person” between the members of the production groups and the private
sector, microcredit, government, and donor activities. They earn their money based on commissions selling
inputs in the villages and also they are often leader farmers in that area with knowledge that is extended to
others.

8. Challenges & Lessons Learned

What challenges or obstacles did you face and how were they addressed? What are the most important
lessons a reader should take from this practice?

Challenges: It is difficult to implement programs that do not provide subsidies, but beneficiaries who
commit the time and investment required to receive training are truly motivated.
Lessons Learned: Integrated entrepreneurial literacy, combined with income generation, is having a
significant impact on the lives of marginalized youth, especially women. The impact goes beyond simply
having more money:

We are changing the status of some of the most marginalized and poorest.
Young women earning money report that they are spending more funds on food and health for
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their families
Young women say they now understand the importance of education and are sending their children
to school, too.
Women are getting tested for HIV/AIDS and insisting their husbands do, too.
Young women are eating together with their families and not at the end of the meals.

9. Enabling Factors & Recommendations

What factors were critical to the success of the intervention? What should others know about this
intervention before replicating it elsewhere?

Some of the enabling factors include:

- Presence of other donor and government programs that can supplement assistance for the poorest
beneficiaries through access to grants and/or credit
- An emerging private sector
- Emergence of roads/infrastructure
- Local markets within a reasonable distance
- Sound project management
- Absence of husbands who are involved in migratory labor
- Strong monitoring and evaluation system that holds people (staff and beneficiaries) accountable.

10. Replicability/Adaptability
Has this intervention been successfully replicated or adapted in another setting? If so, where, when and by
whom?

The program has not been replicated to date, but there are indications that it will serve as a model for
improving food security where we are trying to increase access to diversified and nutritious foods, educate
young women, increase the income of young women, and change the status of young women.

This approach is adaptable in other areas where you are targeting the bottom of the pryamid. The key is
integrating two traditionally separate activities – education and entrepreneurial agriculture. The nature of
the agriculture interventions (which must be tied to income) may vary and can be adjusted depending on
the markets and the agroecology. The enterprenurial literacy can be adapted to include information related
to the local situation. For example modules can be developed to include more information on nutrition,
health, calculations, child rearing, cell phones, IT etc.