AGA KHAN RURAL SUPPORT PROGRAMME

Working for Peace & Prosperity at Working for Peace & Prosperity at the Cross Roads of High Asiathe Cross Roads of High Asia

Izhar Hunzai

October 12, 2008

Stages in Societal Development

EconomyEconomy TechnologyTechnology Social Social OrganizationOrganization

Political Political systemsystem

Agrarian Hand tools Clan-based Feudal order

Industrial Mechanical tools

Occupation-based

Centralizedgovernment

Post-Industrial

Automated tools

Constituency-based

Capitalism/Federalism

Knowledge Knowledge tools

Merit-based Self-governance

The Programme Area

NORTHERN AREAS & CHITRAL

KYRGYZSTAN

AFGHANISTAN

CHINA

PAKISTAN

INDIAN HELD KASHMIR

TAJIKISTANUZBEKISTAN

Districts:

7

Area:

87,250 sq km

Coverage:

74,2000

Population:

Apx: 1.2 million

AKRSP: Original Mission (1983)

• Help double PCI in Program Area• Develop a replicable model of PRD

Key Objectives:• Reduce poverty across communities• Create local institutional capacities• Mainstream women in development

Initial Programme

• Organization, Skills & Capital• Small rural infrastructure• Intensive & extensive agriculture• Micro-credit & cooperative marketing• Special programs for women

Investment Since 1983

• Total investment since 1983: $114m

• AKRSP’s current corpus: $7m

• Equity investment in FMFB: $5m

MAJOR DONORS:

CIDA, DFID, AKF, PPAF; EU, Dutch Gov GTZ; RNE and SDC

Key Achievements & Impact• Over 90% of rural communities

organized

• New assets/ income sources created• Key rural sectors developed

• Status of women enhanced

• Overall awareness raised• Public policies improved

Social Mobilisation & Empowerment of poor &

Women

Over 4,700 Village And Women’s Organizations

formed

Over 1500 irrigation channels brought9,000 ha of land under cultivation

Communities access electricity from 247 MICRO-HYDEL projects

634 LINK ROADSgive market access to remote villages

Improved economic infrastructure and increased access to markets

SUSTAINABLE FARMINGNew varieties of food, fodder

and fruit crops introduced

Forestry in fragile environmentsMore than 39 million trees planted

Community Based Wildlife conservation

Resource and environmental management

Building Human capacities

More than 35,000 individuals trained in

productive skills

[1] Real per capita incomes have been calculated using the prices of the base year 19991.

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Rea

l PC

I (P

KR

)

ProgrammeArea

Baltistan Gilgit Astore Chitral Pakistan

1991

1994

1997

2001

2005

PER CAPITA INCOME IN REAL TERMS (In 1991 Rupees)

Year Programme Area Baltistan Gilgit Astore Chitral Pakistan

1991 2939 2384 3134 2850 3233 9807

1994 3976 3407 4769 2790 4312 10312

1997 4851 4771 6074 3684 4337 9820

2001 6198 6078 7402 4870 4886 10661

2005 8676 7832 10589 6710 7482 17808

PER CAPITA INCOMES OF VO AND NON-VO VILLAGES AND MEMBERS (PKR)

Year VO Villages Non-VO Villages VO Members Non-VO Members

1994 5,570 3,917 5,505 4,804

1997 9,422 6,786 9,218 7,723

2001 14,631 12,063 15,183 12,138

2005 22,161 14,988 23,295 19,426

0

5,000

10,000

15,000

20,000

25,000

PC

I (P

KR

)

VO Villages Non-VO Villages VO Members Non-VO Members

1994 1997 2001 2005

POVERTY TRENDSPOVERTY TRENDS

242528.726.129.8

32.1

67

54

45

34

0

20

40

60

80

1991 1994 1997 2001 2005

PakistanNAC

PERCENTAGE OF THE POOREST, BY REGIONYears Programme Area Baltistan Gilgit Astore Chitral Pakistan

1991 33 44 30 31 28 -

1994 28 44 12 33 20 -

1997 17 14 9 30 22 -

2001 9 8 8 12 14 11

2005 5 6 3 6 6 6

0

10

20

30

40

50

Percentage

ProgrammeArea

Baltistan Gilgit Astore Chitral Pakistan

1991 1994 1997 2001 2005

PERCENTAGE OF TOTAL EXPENDITURE ON EDUCATION

7

10

13

3

89

12

5

9

14

18

4 4

89

0

2

4

6

8

10

12

14

16

18

% o

f T

otal

Exp

endi

ture

Programme

Area

Baltistan Gilgit Chitral

1991

1997

2001

2005

PERCENTAGE OF TOTAL ANNUAL HOUSEHOLD EXPENDITURE ON HEALTH

4

6

10

34

6

11

23

7

12

23 3

10

0

2

4

6

8

10

12

% o

f T

otal

Exp

endi

ture

Programme Area Baltistan Gilgit Chitral

1991 1997 2001 2005

SRSO

BRSP

NRSP

SRSP

PRSP

Role model for Role model for a broad RSP a broad RSP movement in movement in PakistanPakistan

RSPN

LPRP

TRDP

GBTI

AKRSP

New Strategy (2006<)

• Spatial view of all sectors and actors• Embed participatory values on local institutions• Formalize, professionalize civil society sector• Transfer major tasks of local development to

LSOs• Engage stakeholders in a broader dialog • Capacity support at all levels• Knowledge management

Area Development Framework

Good governance

and inclusive development

Civil Society SectorEquity thru

participation

Enabling Social Policy

Enabling FiscalPolicy

Social Entrepreneurship

Private sector

Growth thruProductivity

Public Sector

Sustainabilitythru resources& permanency

Programme Themes

Goal:I nclusive Area Development

in NACResource

Development :I mprove l ivelihood

opt ions by creat ing newassets & income-earning

oppor tunit ies f rom available resources

Supply Side I mprovements:I ncrease capacit y for

out reach and costef fect iveness of

development input s & services

Demand Side I mprovements:I ncrease capacit y forvalue-added & equit y

in t he ut ilizat ionof development

input s and services

EconomicDiversif icat ionDevelop prof it able farm and non-farm

sub sect ors

Market Development :

I dent ify market -basedopportunit ies for income, Enterpr ise & employment

Both w it hin and Outside NAC

I nst i t ut ional Development :

Create inst it ut ional capacit iesand promote dialogue and partnership

among all stakeholders

Institutional Development

• LSO strategy a major breakthrough

• Enhanced outreach capacity of public sector partners

• Enhanced co-management capacity of community organizations

• Service delivery gaps filled in social sectors

• Scaling through, partnerships & leveraging

• Tracking trends through impact studies

Women’s Development

• Traditional gender roles changing

• Economic empowerment of women

• Critical mass of skills, entrepreneurship and political participation of women

• Inclusion of women in emerging sectors

• Inclusive trends in new institutional systems

Policy Dialog

• Inclusion of women in elected institutions

• RSP approach included in MTDF

• AKRSP, a partner of choice for local gov

• Public funding for pro-poor, pro-women programmes

• Early consultation with new Gov on poverty reduction strategy and Local Government reforms

Challenges

• Ensuring minimum financial sustainability of LSO for at least five years

• Growing unemployment among educated youth

• Growing differentiation across Programme districts and sections of population

• Food security and climate change-related risks

• Political stability and ability of state to provide basic services

• Managing change, in the face of globalization, greater exposure to China

Opportunities

• New income, employment and enterprise opportunities from planned public sector investments in several mega projects

• Improving policy environment for PPPs, especially at the LSO level

• Prospects for a serious engagement with the new government on poverty reduction strategy

• Opportunity for greater integration within AKDN agencies

Way Forward• A small “core” AKRSP, sustained by its own

income and AKF support• Additional projects, subject to external funding

• Focused on capacity support to LSOs and public sector partners

• Acting as a strategic partner for public and civil society actors

• Leading integration and “Area Development” approach within AKDN

• Dedicated to knowledge management and innovations for wider replication

Thank You