Africa!!!. La ventana abierta por los servicios financieros

Como imaginar un lugar sin estar ahí, desde todo punto de vista el mundo tiene muchas inequidades pero lo que hemos visto aquí, en estos primeros días de Ruta, es de gente que trata de salir de la forma que sea de su pobreza, gente que ha estado reprimida a lo largo de la historia moderna y que a la pequeña oportunidad abraza el entusiasmo y con sus limitaciones nos muestra que con poco si es posible hacer mucho.
Lo que hemos visto en estos primeros cinco dias, es una enorme capacidad de hacer cosas grandiosas, algunas con resultados debatibles, pero en fin de cuentas generadoras de un enorme capital social, relacional y de capacidades que no deja de sorprendernos, desde el inicio de la ruta nos dimos de cara a una realidad dura, o hasta hostil con una población casi olvidada, pero con las mismas inquietudes y miras inquitas de saber quienes éramos y que cosa podíamos dejar para su utilidad.

Pasando los días nos abriga la calidez de la cercanía a la línea ecuatorial con un paisaje que incluye elefantes, cebras, antílopes, hipopótamo y miradas extrañas de ver a gente ………..

Che esperienza meravigliosa questa Ruta! Mai nella nostra vita ci siamo svegliati cosi presto ma cosi volentieri! Ogni giorno della Ruta e´ un giorno in piu´ di apprendimento, di conoscenza, di scambio di informazioni, di straordinario arricchimento professionale e personale. L´idea che tutti i partecipanti rientrino nei loro paesi di origine e applichino cio´ che hanno imparato e cio´ che ritengono piu´ utile per il loro paese e per la loro comunita´, e´semplicemente elettrizzante e rappresenta la forma di cooperazione allo sviluppo (cooperazione sud-sud) dei prossimi decenni!

Alla fine della Ruta potremo dire di aver visitato 4 casi concreti di istituzioni microfinanziarie (e di averle poi analizzate e approfondite durante i wrap-up meetings, ciascuno esprimendo i propri compiacimenti o le proprie preoccupazioni), di aver imparato molto ma di aver anche risposto noi alle domande che le nostre amiche e i nostri amici africani ci ponevano per sapere cio´ che accade nei nostri paesi.

Durante la Ruta si lavora, ma il piacere e il divertimento non mancano di certo! Che divertenti i nostri viaggi in bus, cantando le canzoni piu´ conosciute (Akuna Matata,ecc…) ma anche quelle dei singoli paesi dei partecipanti, cosi come i vari inni nazionali! E poi mangiare i piatti tipici ugandesi (platano, riso, fagioli, patate, carne di capra, verdura…) cucinati dai nostri amici che cosi calorosamente ci ospitano nei loro villaggi e nelle loro case! E che accoglienze indimenticabili, con balli e canti che ci coinvolgono tutti! Alla fine della giornata siamo tutti un po´ stanchi, ma felici di essere stanchi perche´ esserlo ha significato passare una giornata intensissima e bellissima! Ogni giornata della Ruta e´ come un seme piantato, con tutte le possibilita’ che diventi presto albero e dia i suoi frutti non appena i partecipanti rientrano a casa!

Per finire non possiamo non citare le bellezze naturali apprezzate durante tutta la Ruta, tra foresta e savana, montagne e laghi, campagne, piantagioni di te´ e tanto altro, e poi gli straordinari animali! Abbiamo imparato molto anche della storia, della cultura e della tradizione ugandesi grazie agli appassionati racconti dei nostri amici ugandesi. E infine il gruppo, un gruppo di persone da vari continente e infiniti paesi (Peru, Colombia, Mexico, Uganda, Kenya, Malawi, Camerun, Somalia, Italia, Olanda…!!!!) che gia´ a meta´ Ruta son in realta´ un gruppo di amici!!

A questo punto non possiamo che dire grazie a chi ha permesso che tutto cio´ abbia avuto luogo: grazie Procasur, grazie Diana, grazie Fred!!!!"

LEARNING ROUTE ON GENDER AND MICROFINANCE- Uganda

Solidarity and Trust: Key elements for improve rural livelihhod


by Maria Fernanda Arraes

For the last 9 days we have travelled to different regions of Uganda, looking for new ideas and successful experiences in rural microfinance services and products that pay attention to gender differences. Now we have arrived in Iganda district in the Nile valley.

Our last field visit to this adventure journey had the objective to learn fromthe "Kugumikiraza" and "Together we stand" groups, who are using he Village Savings and Loans method to improve their liveliood. The group welcomed us with song, theater and a poem that explained in detail their experiences, starting with the visit of the first technical staff that arrived to sensitize them about this idea.

When someone coming from Kampala told the community for the first time to "put their money together in a box", the first impression of the community was of course to suspect their savings would be stolen...today they laugh when they remember this time.

Village Savings and Loan Association (VSLA) is a good practice that focuses on very poor people and supports them to manage their household cash flow. Based in a communiy, VSLA can be complemened with other services from microfinance institutions, which normally focus on provinding credit for clients who already have a business activity.

After a number of meetings and trainings, the communities form their own associations. In general these groups invovle 15-30 persons, men and women, chosen by themselves. They define their objectives, adhere to standard VSLA rules, elect their officials and design their saving system. Members put their money into a fund from which they can borrow after three cycles and pay back with 10% interest, so that the fund can grow. The regular savings contributions to the group are deposite for a whole cycle and then distribted partially or totally for the individual members, who will use these saving for their own needs. Most of the groups can function independently without support from the technical staff after 12 months.

Poor women have to create their own economic activities; they need to save money to feed their families; plan for social evens such weddings, pay schools fees and uniforms; health services, etc. It was a good lesson to see how the community changes and how well they have understood the importance of saving money.

The VSLA give them the possibility to socialize an meet regularly, to be trained, to benefit from the solidarity of the community, save mone and invest. Now they appreciate the savings, even more than the loans. In both groups that we visited in Iganga we observed that the women improved their livelihood through asset accumulation, better nutrition and improved health after having participated in this initiative.

These cases showed us that beyond economic empowerment, women also go through a process of social empowerment. They became more confident, motivated and engage. As one women said: "before joining VSLA, I would not be able to stand up in front of you and reply to your questions". The relationship with their husband changed and women started to participate and become involved in decisions at the family an community level.

The communities groups still have challenges: it is time now to think how to improve their products and how to access new markets. More than the opportunity to develop income activites, this experience represents an important cultural change, different family relationship and community dynamics.

After these moving visits, we returned back to Kampala to discuss all these cases and think how we can adapt and apply the lessons in our activities related to microfinance and rural development in our countries....See you in the next post, when i will share with you some of the lessons learned and innovative ideas !!

IFAD's Near East and North Africa Division ends its annual 2010 Retreat in Tuscany, Italy

IFAD’s Near East and North Africa Division (NEN) ended its annual “Reteat” in Tuscany yesterday with an endorsement of its draft Divisional Management Plan 2011 and a debate on the bottlenecks facing the division in various areas. Divided into five groups, the participants discussed the most pressing needs in areas extending from project design and supervision to COSOPs, grants policy, knowledge management and staffing issues as well as possible solutions.

The discussions, which were orchestrated by the Regional Economist, Mylene Kheralla, touched upon some key issues that require more in-house interaction, particularly within the Project Management Department. Such internal exchanges and dialogue would help ensure that the views of NEN are taken into consideration when decisions are taken on key initiatives such as the new COSOP guidelines. The Division Director, Nadim Khouri, explained that some of these questions and suggested course of action required further post-retreat discussions, underlining the importance of internal communication to foster a greater understanding of such issues within both the division and the department.

Following this early morning debate, the participants moved on to visit the commune of Cetona, a few kilometres south of Chianciano Terme, where they were received by Mayor Fabio di Meo at the town hall. The Mayor welcomed IFAD’s visitors and briefed them on the various territorial development activities that his municipality has undertaken with the support of EU’s LEADER programme and with the involvement of LAGs. Municipality experts gave PowerPoint presentations on some of these development activities, including the establishment of an infant day nursery, Il Cucciolo, and implementation of an extraordinary maintenance scheme at the public Library of Cetona.

In his statement, the NEN Director Nadim Khouri briefed the Mayor and his staff on the purpose of IFAD’s interventions and investments in support of socio-economic development activities in the NENA and CEN regions. He underlined the importance of learning form the various territorial development experiences undertaken by local authorities, public institutions, communes and the private sector in the Tuscan “regione”.

A practical example of the success of public-private partnerships in territorial development was given by the 800 hectars (2500 acres) Spineto farm estate, Abbazia di Spineto. The estate combines agricultural development, environmental protection and biodiversity conservation activities with tourism, conferences, cultural initiatives, promotion of better nutrition, research and aid programmes. The Retreat participants visited the Abbazia di Spineto, where they were received by representatives of the Siena Province and the owner and General Manager of the Abbazia, Dr Marilisa Cuccia. Dr Cuccia is an investor from Milan who had purchased the Abbazia while in a state of decay and began renovation works in 1994 with a view to bringing the farm estate back to its former glory in the middle ages.

The Abbazia di Spineto was founded in 1085 and represents a fine example of Italian and Tuscan monasticism. It was first placed under the dominion of the town of Orvieto (1120); but later became a protectorate of the Republic of Siena until it became part of the New State ruled by the Florentine duke Cosimo de’ Medici. In 1627 Pope Urbano VIII took it over and entrusted it to the Cistercian Order. It remained under the control of the Order until the abolition of the smaller monasteries in 1783. From that date onward it survived as a farm taken care of by Cistercian lay brothers and became a private property and has had a succession of owners since then.

Besides the productive activities, such as the production of olive oil, legumes, vegetables and fruits, Dr Cuccia explained the various projects she initiated as an expression of social commitment and for which the estate received the support of the EU and the public institutions of the Tuscan “regione”. These include, among others, the Nutritional Education project, which aims to combat child obesity; the Theatre Workshops programme for young people with psychological problems; the Stem Cell Research project for scientific research in the transplant of umbilical cord blood stem cells as a cure for leukaemia; and the aid programme beyond Italy in support of the African Medical Research Foundation (AMREF) through three main projects in Sudan, Uganda, Kenya, and Tanzania. The Abbazia has also established and hosts the non-profit cultural association, Associazione culturale Abbazia di Spineto incontri e studi. It also promotes biodiversity conservation by protecting fauna species such as the red fox, the wild boar, the roe deer and the common pheasant as well as flora species such as the broom, the young oak, the mountain maple, the juniper, and cornelian cherry.

In his statement, Director Khouri thanked Dr Cuccia for the briefing and hospitality and, above all, the opportunity to learn more about the ways and mechanisms used in decision making processes from Brussels to Siena via Rome, which help the emergence of working pubic-private partnerships such as this one in Spineto. He mentioned the importance of seeing how the concrete results achieved by such partnerships in terms of territorial development are helping to boost the socio-economic advancement of the region’s population.

During the lunch break at the Abbazia di Spineto, the division’s CEN Country Cluster, lead by Abdelkarim Sma, gave a presentation on its achievements in 2010 and plans for 2011. The cluster, which is responsible for one third of NEN’s lending programme in 2010-2012, reported a large number of operational results, including the delivery of US$33.5 million in new projects and highlighted the challenges laying ahead and the way it intends to meet these challenges.

The lunch break was followed by a presentation on Abbazia’s nutritional education “Mangiocando” project by its coordinator and nutritional expert, Dr Georgio Ciacci. Dr Ciacci explained how the programme helps educate some 150 participating children and their families about unhealthy eating habits and healthy alternatives found in the traditional local cuisine, with emphasis on the use of olive oil, legumes and vegetables. He said the programme also underlines the importance of rediscovery of how different crops growing in different terrains give rise to different eating and tasting habits.
At the end of the visit, Director Nadim khouri thanked Dr Ciacci for the presentation and Dr Cuccia and the representatives of the Siena Province for all the efforts they have exerted in making the visit a very fruitful learning and knowledge sharing experience for the IFAD Retreat participants. He expressed hope that such exchanges and the acquired knowledge would contribute to strengthening their capacity to initiate similar successful territorial development initiatives and public-private partnerships in their respective countries. Such innovation, he concluded, can boost efforts to help their poor rural communities grow out of poverty and achieve higher levels of progress and modernity.

Roads not handouts for farmers

by Kanayo F. Nwanze, IFAD President

Smallholder farmers need roads and financial services not handouts.

If words and good intentions could feed people, there would be no hungry children in the world. But as those working in development know all too well, malnutrition, hunger and poverty are bound tightly together in a Gordian knot that requires collective action to cut.

The June G8 and G20 meetings in Canada focused on children's and women's health. World leaders must take care not to fall into the trap of seeing these things as a single resolvable issue. You cannot guarantee good health without a nutritious diet, you cannot ensure a nutritious diet without freedom from poverty, and you cannot free most of the world’s poorest people from poverty without taking a systemic approach to improving the lot of small farmers. Most of the world’s 1.4 billion extremely poor people live in the rural areas of developing countries and depend on agriculture for their livelihoods.

Helping developing countries to address food security and to become major food producers is the key focus of a public-private partnership meeting in Accra, Ghana, on 2-4 September. The African Green Revolution Forum is trying to build a consensus to grapple with agricultural deficiencies in Africa.

Feed children, feed their minds

The land farmed by poor people in developing countries is rarely bountiful. Less than 2ha of productive land is the norm for farms in Asia and most of Africa. In rural areas, many poor people do not produce enough food to feed themselves and their families. Instead, they are net buyers of food. With incomes of less than $1.25 a day, they cannot afford to buy much.

It is one of life’s ironies that three-quarters of Africa’s malnourished children live on small farms. In Asia and Latin America, farm children also often go hungry. Children who suffer from malnutrition early in life are forever deprived of their full physical, mental and social development potential.

Think small

But what if households could boost their productivity, gain access to new markets and ensure the kind of financial returns that would have demonstrable impact on development?

To break the link between malnutrition, hunger and poverty, rich and poor countries must support the poorest smallholders, creating the conditions for the transition from subsistence to commercial farming.

Numerous studies show that GDP growth generated by agriculture is at least twice as effective in reducing poverty as growth in other sectors. Experience repeatedly shows – in China, Thailand, Vietnam, India, Ghana, Burkina Faso and elsewhere – that smallholders can lead agricultural growth.

Small farms are often more productive, per hectare, than large farms, when agro-ecological conditions and access to technology are similar. Small farmers have a strong incentive to get the most from their land and their own labour. Indeed, there is ample research to show that there are few economies of scale in the production end of farming. Family farms have very low management costs and are labour intensive, while large farms are either heavily mechanised – offering few employment opportunities – or have high costs for managing the workforce.

Creating a green revolution also means not treating poor rural people paternalistically by doling out handouts. Smallholders need financial services to pay for seeds, tools and fertiliser. They need the protection of insurance. They need secure access to land, water, roads and transportation to get their products to market. They also need agricultural research and technology to improve their resilience to rapid economic and environmental changes. These are all things that governments and the donor community, with the support of the private sector, can put into place for small farmers.

Don’t stop now

A public policy environment that appeals to investors, combined with new commitment from the private sector, will lay the ground for a better agricultural sector for Africans and a route away from poverty.

Creating the conditions for rural poor people to develop profitable businesses, by reducing the cost of finance and by fostering their entrepreneurial spirit, will help to establish a vibrant rural sector across the value chain.

A dynamic rural sector will generate demand for locally produced goods and services. This will spur sustainable non-farm employment in services, agro-processing and small-scale manufacturing. With better access to higher quality food in childhood, young people will be able to contribute more to their societies. And with a greater range of rural employment options, rural youth will have an incentive to become the farmers of tomorrow instead of looking for work in the cities.

In recognition of agriculture’s power to improve developing economies and the need to grow enough food to feed the 9.1bn people who will be living on the planet 40 years from now, G8 leaders pledged around $20bn towards food programmes and sustainable agricultural development at the L’Aquila summit last year.

At a time when budgets are tight, countries may mistakenly think it prudent to cut back on investments in sectors such as agriculture and development. This would lead to greater world food insecurity and slower economic growth.

Progress at the African Green Revolution Forum in Ghana could set a good example for other regions. If the leaders of nations in Africa, Asia and Latin America take the necessary steps to create vibrant rural economies and the international community assists those countries that are making real efforts to help develop, they will be able to cut the ties that bind malnutrition, hunger and poverty.

Development is a choice: It is Business unusual

I am reminiscencing—a solemn reflection about the past week. Today, I finally resume the blog…after keeping you in suspense---suspense that is not deliberate. Perhaps I was overly optimistic and excited about blogging daily. But my first blog experience is interspersed with intermittent power cuts, weak internet connectivity—a hibernating computer—and a heavy workload. But I am resolute, better late than never, the saying going goes. Come with us as we share the intrigues, insight, interesting experiences and challenges of our last log before departing to Rome.

The workshop is insightful. We go in to talk about finance and investments into broad sustainable land management and its corresponding linkages with national development processes. But a number of issues emerge: the need to address land tenure and land rights; the need for a robust investment framework, and the need for a “green economy” in Zambia. It requires that Zambia move from business-as-usual to business “UNusual”. Land must be seen as an asset, a natural capital and a national pubic good. The sustainability of the country’s development path, requires that it pays attention to land management and its interlinkages with national wealth creation and sustainable development. Therefore, “financing and investments into sustainable land management is not an option but an imperative” says one participant..

Unlocking Financing Opportunities: Internal, External and Innovative Sources of Finance

We focus on three sources of financing namely: internal, external and innovative sources of financing. These three areas are not distinct in themselves but closely inter-linked and mutually re-enforcing. We are amazed at the depth of discussions. In fact, the discussion focus on the need to rationalize the use of huge existing resources and leveraging emerging funding opportunities from a variety of internal and external – public and private sources. Participants focus on internal resources such as pension funds….. This potential is untapped fully.

External Resources: The session on external resources, resonates well with participants. International agreements such as the Paris Declaration on Aid Effectiveness, require that, resources from development partners are aligned to Government Priorities. Therefore, land needs to be well positioned and integrated in key national development processes such as Zambia’s Sixth National Development Plan (SNDP). This is one clear way to receive the needed attention and corresponding investments into sustainable land management. The SNDP, which sets the direction of the country in the next 5 years, is a framework within which Government and development partners interact.

Essentially, participants resolve to include land issues into the SNDP. They define key actions. The imminent finalisation of the SNDP offers an opportunity, and requires a number of immediate actions to be devised and put in place between now and June 2010. Given the cross-cutting nature of land degradation and SLM, as well as the inter-linkages between poverty and land degradation challenges, the mainstreaming process requires joint and/or coordinated action between key stakeholders, as well as common understanding of SLM-related issues, options and solutions.

Innovative Finance: We start this session by showing an image of what I call “the paradigm shift” picture. This picture, courtesy of Roshan, depicts different perspectives (depending on the angle one views it). It is always hilarious to hear the different responses when we ask people what they see. I recall one participant say “I see a British girl with a bonnet”, another says “I see an old woman” and a third says, “I see both an old woman and a girl in the same picture”.

So why this image? What is the significance? It reminds us about perspectives, it is about the way one sees things, it is about stretching one’s imagination. And what does it tell us about innovative finance?

We draw a parallel between this image and innovative finance. Simply put, innovation finance is a paradigm that assumes that one can and should use ideas, approaches and resources yet to be fully tapped to address sustainable land management. This includes exploring …

We hold a chat show (another use of the knowledge sharing tools at the disposal of staff). We parade guest speakers including the project coordinator from IFAD’s rural financing programme in Zambia. He shares some good insights into the innovation and outreach facility. Carbon trading issues are also lighted. We follow the chat show with working group exercises outcomes on this are profound. Participants list a number of potential areas novel Public-Private-Partnerships (PPP).


Our First Reality Check

As we bask in all the excitement about the interesting issues and outcomes of the workshop and interesting perspectives, Soledad and I are confronted by one participant who feels Africa has had too many strategies and does not need more. As we talk about strategies, illegal logging in parts of Zambia goes on unabated, he says. He is frustrated. He is angry that not much is being done to stop the onslaught on land. He is angry at the rate of deforestation. He becomes confrontational but he provides no alternatives to address the challenge.

I try to be diplomatic, accommodating and tactful. But I am also firm with him. I can understand is frustration and perhaps he has a point. I am frustrated myself with the onslaught on land. But frustrations must be channelled positively. I explain to him that a strategy is not an end in itself but a means to an end. Therefore, the very essence of the integrated financing strategy is to outline some strategic choices and strategic actions to be implemented. It is not a panacea to all challenges but it offers strategic options, solutions and alternatives, at least, from the financing view point. He calms down after a while and offers an apology later.

The Political Economy of Resource Mobilization

I learn lessons and experiences from the dialogues at this workshop. It reminds me of political economy - what I call the political economy of resource mobilization. The issue of finance and investments cannot be devolved from other economic and political processes. It is about the relationship and interconnectedness between individuals and society and between markets and the state, using methods drawn from economics, political science, and sociology. In order to address the issue of finance, there is the need to concurrently address some of the following:

Economic Valuation of Land: Analytical work to develop evidence-based arguments to make the economic case for more investments into SLM and/or for reforming current practices is imperative. This is intended to raise awareness on the issues and to inform decision-making on finance and investments and to.

Advocacy and awareness: In order for sustainable land management to attract the attention desired, there is the need for information and communication work including strategic engagement of Parliamentarians and the media.

Social Mobilization: to engender positive behavioural changes. Therefore, through planned actions such as national greening campaigns, advocacy, and awareness raising, many communities, households, and villages can be empowered to invest in sustainable land management issues that bear in the implementation of the UNCCD.

Safaris and Strategies: A Journey of Resolve, Rejuvenation and Results

We conclude the workshop with a roadmap agreed by the Government and key development partners to develop the Integrated Financing Strategy. As we get ready to depart Chaminuka, I have no doubt in my mind, the workshop is a success. Commitments are renewed. Resolve to work together and to achieve results. To borrow Simone’s word, the workshop has been rejuvenating. We are all smiles, as we hand out certificates of attendance to participants. We take a group picture afterwards and it feels like a small family already.

And before I forget, for this last blog, we discuss the type of picture to post. Siv feels we should post the picture of participants in the conference—a ‘serious picture’. No pictures of zebras this time around other wise colleagues may feel we have been “safaring” all this while. So here we go with one of the nice picture taken at the meeting room.

It’s been a nice experience blogging through social reporting. Siv, Soledad and Simone have been very supportive in this and kudos to the team. We are off to dinner to have a drink after tedious preparations and all the work that has gone into this.

Thanks for following our journey on safaris and strategies. The actual journey towards the development of the integrated financing strategy continues. The workshop is just a tip of the ice berg. Stay tuned for some future blogs.

Just realised that couldn't upload photo...

Safaris and strategies: Zambia’s journey to develop an integrated financing strategy

As we taxi off the runway on our way to Lusaka, I sit in my chair reflecting on our journey to one of the most beautiful countries south of the Sahara, Zambia. We are on our way to an inception workshop. I am with Siv on this flight to Lusaka and as we fly over the Alps with its amazing mountain top snow, I turn to look at her. She is in the same reflective mood. Perhaps she is thinking about the same things as me—a journey to support an integrated financing strategy - a journey to navigate the challenges and tap into financing opportunities - a journey to join Zambia as she deepens her efforts to address one of her most compelling developmental challenges, land degradation.

I am excited about the journey as I recall some of the keys to successful resource mobilization--- at the core is the ability to systematically and strategically access, utilize and efficiently manage financing and investments--- for sustainable land management. So why an Integrated Financing Strategy?

Her Beauty and her Resources

Zambia has great resources such as land, forests, rivers, plants, animals and biodiversity. One of the most beautiful in the continent. The country is richly endowed with a wide range of indigenous energy sources, including hydropower, coal and renewable sources of energy. With major perennial rivers such as Zambezi, Kafue, Luangwa, Kabompo, Luapula, and Chambeshi. The Victoria Falls is a must see.

Inarguably, land resources are critical to the human, economic, social and sustainable development in Zambia. Key sectors of the economy depend on land. Notably, the agriculture, natural resources, tourism, trade, mining and energy sectors depend on land and are key drivers of economic growth and export revenues in the country. Land provides employment and source of livelihoods for many rural communities.

Her Challenge: The Resource Haemorrhage and its Impact

But, one of the most compelling developmental challenges today is land and natural resource degradation. Between 250,000 and 300,000 hectares of forest are lost every year. Deforestation, biodiversity loss and soil erosion produce negative environmental impacts, often worsening the effects of climate change and droughts, whilst generating huge economic and social costs that hamper the achievement of national development goals such as Vision 2030.

So the Integrated Financing Strategy embraced by the country is to build on ongoing country processes and programmes to address land/natural resource degradation challenges. Clearly, finance is not a panacea for all the challenges. It is one of the means only.

I woke up from these reflections as we got off the plane in Lusaka. I am excited. We were off to Chaminuka but the road is bumpy. The rains have been intense in Zambia these past weeks and have left big gullies in the road. The driver navigates the path road so well to avoid pot holes that we say “Zicomo” (thank you in Bemba). Perhaps, the bumpy road is a good reminder that, charting the path to the development of a financing strategy is not straight forward. There will be twists and turns.

On our way we see ostriches. Siv is excited. We both take pictures. In fact, the area is known for its wildlife and natural scenery for safaris. We plan to take one later. Not a bad idea after all. But as I reflected on the path to a strategy for financing, I see a semblance to safaris. Safari is an adventure, it is place to explore the known and the unknown, there are choices to be made, a mix of things to see, and nature’s beauty to enjoy. But going safari can be tough and rough. The road can be bumpy but exciting and gratifying. Same with strategies.

Well, all I can say now is welcome to Zambia. Come with us to explore the design of an Integrated Financing Strategy. The journey now begins.

Basement blues

Saturday, 23 January 2010. The final day to wrap it all up. We spend the full and only day in the hotel basement, a kind of behaviour that has probably not yet been seen in Cusco, the tourism capital of Peru. Maria is back with us, having overcome the altitude sickness.

The first session, a left-over from yesterday, draws conclusions from the rural financial services in the project. The overall feeling is that the savings-based approach is very sound and sustainable, and that the combination of savings with micro-insurance, especially life insurance, is very powerful in assisting the rural poor to acquire assets while making sure no calamity throws them back to square one. It was suggested to limit the savings subsidies in time, and to include an insurance package in the savings products similarly to the credit products.

Lunch is spent preparing the innovation plans with which we hope to put the learned bits and pieces to practice in our own work, without which the entire tour is useless, as Ariel reminds us.

Making sense of it all

The Rwanda team kicks of with a joint proposal to integrate CLARs and competitions to provide capacity building grants through 2 IFAD-financed projects and one financed by Belgium. The plan would use local structures already being set up, but with a new focus on popular presentations of the proposals and results to be assessed by CLARs. An innovation would be the strong involvement of community innovation centres (CCIs) as secretariat to the CLARs supported by project staff, thereby supporting sustainability. The plan is explicit in its implementation plan, aiming at organising the first community competitions in December 2010.

Next is Venezuela. Their innovation plans promoting rural financial services, especially a savings culture, starting with a few pilot MFIs (cajas rurales), by providing subsidies to savers and additionally using competitions between savers (especially women) to allocate credit to the most performing savers that request credit. This sounds like a very interesting combination of elements of the SSDP. Marcela suggests undertaking exchange visits with Colombia.

The Colombians themselves, true ambassadors of their country, start their presentation with a publicity movie on Colombia. They continue with a talking map, evidently having learned something on the trip. It proposes:

• a pilot activity on including cultural identity in the business promotion, also to respond to the cultural diversity of the clients;
• the inclusion of micro-insurance with small subsidies; and
• the promotion of local talents. Finally, Marcela from the Inter-American Institute for Cooperation on Agriculture (IICA), Colombia, plans to orient the local authorities in its development efforts, carry out exchange visits and to promote rural savings strategies.

The Irrigation and Rural Livelihoods Development Project (IRLDP) in Malawi wants to pilot some activities in 3 districts. The project team wants to move from project-driven grants for inputs and materials to CLAR-type allocation systems, include services by talents through direct sourcing in the these grants, link farmers to microfinance institutions and improve community-level marketing, and use PRAs to develop talking maps for natural resource management. Ariel suggests that convincing the authorities of the changes will be a challenge, and we propose that the project look for allies to support the cause.

Elizabeth Farmosi’s proposal is called Alliance Sierra Sur – Mother Earth. It is targeted at the Sierra Sur project, with new mechanisms for the population to access resources, alliances with public and private institutions, and improvements to the conditions of the competitions in favour of the poorer members of the participating communities. Good stuff, but possibly the recommendations are a little late for the project and can rather flow into the next design.

Maria Hartl proposes a Learning Route on rural financial services in Peru, targeted at IFAD-financed projects, IFAD staff (especially field staff) and other partners, covering savings, credit, insurance and leasing. Recommendations to Maria were to include remittances, and to match well the innovation needs and experiences available. I wonder how many of us are considering whether this should be their next route.

The final stretch is the auto-evaluation of the Learning Route, which I find really embarrassing: how can you just praise everything. In desperation, I propose organizing the background material so that it’s a little easier to work with. But honestly, the organization and contents was terrific, and now it’s on us to implement the learning plan, as otherwise Ariel will come back some day and tell us that it was all futile. I hope we can count on some ongoing support from PROCASUR and the project for that.

The last night we spend at Chicha, a restaurant specialising in refined traditional dishes. The tour ends with a fun round of surprise awards of certificates between routeros, at which it becomes clear to us that we’ve become a close group of friends that has shared a very intense experience.

I wouldn't be surprised if it turned out that this tour was the best thing I did this year.

Claus Reiner, Country Programme Manager, IFAD