WORTHPact’s Empowerment

Program

USDOL Grantee Workshop, June 2011

Pact International NGO, working in 30 countries, in Madagascar

since 1991 Our Vision: a world where those who are poor and

marginalized discover and build their own solutions and take ownership over their future

What is WORTH?

• A self help process that empowers people and enables them to discover

the inner strengths and resources they need to change their lives

• An innovative microsavings program developed and tested by Pact since

1998

• Has improved the income and living conditions of hundreds thousands of

people in Nepal, Cambodia, Tanzania, DRC, Uganda, Kenya and Zambia

• Initially a women empowerment program

• WORTH’s philosophy:

– SELF-HELP

– DISCIPLINE and RULES

– APPRECIATIVE APPROACH

WORTH’s Purpose

• Economic development at the household level• Income smoothing• Increased literacy and numeracy skills• Women’s empowerment• Strong advocacy vehicle

A CYCLE LASTS BETWEEN 1 AND 2

YEARS

WORTH Empowerment

Cycle

Success in Nepal• Increased number of literate

women from 39,000 to 122,000

• Increased savings by over $1million

• Increased the number of women in business from 19,000 to 86,000

• Carried out over 40,000 grassroots campaigns on various social issues (girls’ education, domestic violence etc.)

• 800 new groups formed by the Pact’s groups without any additional support and after the project ended

How WORTH differs from other microfinance models?• WORTH is based on the premise that dependency is

not empowering

• WORTH addresses, through group member discussions, other development issues:

– HIV/AIDS in Tanzania, also child labor and domestic violence

• WORTH works through local NGOs and women's groups

• Savings-led microfinance links to, but does not depend on, outside credit

• No seed funds

• Networking facilitates sharing knowledge and building bonds

• Women focus on success

• WORTH is replicated by women themselves

KILONGA

• KILONGA is Pact’s and SIVE’s project• Funded by the USDOL• To fight against child labor through

Education• 4.5 M, 2008-2012• Currently supporting 9059 children

(whole project life target: 9,000 children)

• 7 regions• 6 WFCL sectors: CSEC, mining,

quarrying, agriculture, fishery, load carrying

WORTH and KILONGA

The situation in Madagascar:Children work to raise money for their family because…

Why do you work ? % of responses

To help family 80.30%To raise money for school 3.68%To help family for food 8.56%Have fun at work 7.47%

KILONGA’s sustainability strategy fosters among others on lasting improvement of household’s income so that they afford maintaining their children at school.

Adaptation of WORTH

• Not gender focused – household focused

• WORTH members are ALL parents of the 4,000 beneficiaries, less than 15 years old

• Translation of all tools and materials in the local language

• Integration of anti-child labor message in the WORTH materials

• WORTH groups act as sensitization vehicle against child labor, on children's rights and the benefit of education

WORTH Implementation Process1. Establishing WORTH groups

2. Election of the Management committees

3. Training of the Management committees

4. Literacy session/training

5. Saving process

6. Loan process

7. Capacity development on business skills, village bankings

Ongoing: capacity development on child labor, importance of education, gender equity, child rights

LIST OF MATERIALS AND TOOLS

Book 1 : Our group

Book 2 : Road to Wealth

Book 3 : Successful Sellings

Literacy assessment tool

Management committee training

curricula

Worth Manual for implementers

Worth toolkits (saving journal, saving

passbook, cashbook, financial

statement, loan journal, loan passbook,

personal collateral, loan request)

Achievements to date…• Starting phase: January 2010

• 139 WORTH groups with 3,010 KILONGA households from 7 regions are operational

• 278 Literacy volunteers are currently trained on literacy program

• 556 Management Committees members were trained and have received WORTH toolkits

• 80 WORTH groups have completed the first cycle and members have shared the interest collected in the form of dividend

Achievements Cont’d…

Challenges• Uncertainty in the political situation• Worth participation is a condition to benefit

from Kilonga project• Time consuming approach due to members

literacy level• Following / respecting rules and by laws • Self help and saving are new concepts for

beneficiaries. Most of time, they expect external funding

• Lack of trust between members • Fear of taking loans initially• Determination of types of income-generating

activities: economically viable, socially acceptable and ecologically sustainable

• Start-up phase can be slow

Lessons Learned• Take time to share success stories of

WORTH at the beginning and along the implementation to create emulation

• Training the village bank management committee helps build trust

• Build group ownership at the beginning to promote sustainability

• Communities, families and husbands play critical roles to support Worth Group members

• Ensure comprehension of the added values of Worth

• Promote investigative research of types of income generating activities among members

Thank You!

www.pactworld.org