Upon the success of the pilot project for the extreme poor titled “Financial Services for the Poorest (FSP)”, PKSF with the fund of the Government of Bangladesh launched the Ultra Poor Program (UPP) in 2004 previously known as the Hardcore Poor Program (HCP).

According to the guideline of the program, “Ultra poor are those section of people who are unable to meet the basic needs of living, who lack in self-respect, confidence, intelligence and skill to work” The guideline also points out clearly who will be targeted in the program.

Extremely vulnerable poor targeted

The program targets the following category of the ultra poor population:

· Beggars, traveling sex workers, vagabonds and street urchins.
· Slum-dwellers, the homeless, seasonal laborers, marginal farmers and people living in and around areas affected by river erosion.
· Persons who are dependent on others such as the landless and unskilled individuals.
· People dependent on daily labor only.
· Bonded laborers and domestic helpers.
· Female headed households dependent on others’ assistance.
· Old people, physically disabled and those who have no alternative source of income.
· Members of those families without an earning person.

Selection of Partner Organizations

87 among the Partner Organizations (POs) of PKSF have been implementing the ultra poor program. These POs are operating through new unit/sub-unit/outpost or existing branches in about 382 poverty stricken upazila of 61 districts.

Ultra Poor Program (UPP) in operation

The POs of PKSF have been implementing Ultra Poor Program alongside the existing credit programs in the poverty-stricken areas. Modalities of the program are kept flexible in order to make it popular to the poor and the implementing partners. For example, service charge has been fixed at a lower rate for both POs and beneficiaries than regular programs, which are shown below.

Overview of UP Program (April 2007)

Capacity building of the ultra poor

One of the most important components of the ultra poor program is enhancing capacity of the beneficiaries through imparting training on application and management of income generating activities.

In the mean time, a total of 1,24,475 beneficiaries have been trained on various IGAs like poultry and livestock rearing, beef fattening, vegetable cultivation, nursery, stitching and tailoring, cane and bamboo craft etc. 15,000 more beneficiaries are expected to receive training by June, 2007. They are also being trained in raising awareness and knowledge about society and state, rights and responsibilities, education, health, sanitation and lifestyle.

Other than the beneficiaries, PO staff including credit coordinators, branch managers and field organizers are provided training on ultra poor program operation. 2800 staff in total received such trainings.

The POs have been implementing these training programs with the financial and policy support of PKSF. Trainers in these programs have been selected following the requirement of the Foundation. These programs have instilled much enthusiasm in the poor peoples’ minds to overcome obstacles to becoming independent and self-sustained.

Policies offer remedies to the barriers to the inclusion of ultra poor

Major Economic Impacts:

1. Resource Increase and Asset Creation- Majority of program members positively stated about the benefits received and formation of assets by loan money. The most important assets created out of loan are house, goats, cows and rickshaws.

2. Change of occupation pattern and employment condition - There has been some change in occupation pattern after program intervention. There has been increase of self-agriculture, non-agricultural labour, petty business, nursery and livestock rearing after the program intervention.

3. Change of Resource Base - Homestead land has increased after program intervention.

4. Change of flow of Income and Consumption - Program loan has positively significant impact on household income and consumption.

5. Food Security - Chronic food deficit and occasional food deficit have declined and households with surplus food have increased implying that situation of food security has improved after the program intervention.

6. Savings - There has been positive savings in all the households.

7. Change of Household Assets - Possession in all the items of household assets has increased considerably after the program intervention.

8. Social Benefits - The main social benefits are manifested in better sanitary and health condition and increased empowerment of women, their increased health consciousness and free movement and participation in family and societal affairs.

9. Literacy - There has been increase of literacy.

10. Housing and Sanitation - Households are in better condition in respect of number of rooms and materials for roof and wall.

11. Cooking and lighting - Major portion of program households have separate kitchen room for cooking.

12. Women Empowerment - The program has increased the empowerment of women. Now husband and wife together take decision in family affair. Both husband and wife jointly take decision in children's education, their marriage, health treatment, taking loan, entertainment, voting, food intake, in taking child, in sleeping arrangement, housing, purchase of cloths, giving gift, in sale and purchase of assets, lending money, choice of occupation and movement of women beyond the house.

Challenges of the ultra poor program

I. Attaining sustainability of the program run by the POs

Studies show that achieving sustainability of the ultrapoor program is near impossible. Although cross-subsidization sustains the program temporarily, it may not be feasible in the long-term.
The high operating cost poses the biggest challenge for the implementing POs with regard to sustainability. Sufficient preparation should be made as to how the PO will become sustainable phase by phase. It is imperative to assess overall activities under a comprehensive plan in this regard. However, many units of the most POs have attained operational sustainability of the ultra poor program.

II. Enhance coordination among various interventions

To ensure coordination between the on-going projects and the ultrapoor program with respect to the accumulation of information regarding the list of service providers, products, target people, members etc. is extremely important for successful implementation of the program.

The ultrapoor program targets primarily the beneficiaries under the Food Security and Vulnerable Group Development (FSVGD). Moreover, efforts are made to integrate other organizations working for the same cause with the ultrapoor program, for example, Social Investment Pilot Program of Social Development Foundation (SDF), SHOUHARDO Project of CARE Bangladesh, and Char Livelihood Program (CLP) of DFID etc.

In northwestern Bangladesh, there occurs a time of want and dearth during the Bangla months of Aswin and Kartik due to insufficient employment opportunity, which is known as ‘Monga’. Poor people pass this time without enough food. In order to save them from hunger, PKSF started a program for monga mitigation titled ‘ Programmed Initiatives for Monga Eradication (PRIME)’ which was launched on August 15, 2006. Initially PRIME is being implemented in Lalmonirhat district and will be replicated in other areas phase by phase.

Future plan of PKSF for expansion of ultra poor program

PKSF has the ambitious goal of bringing the whole segment of ultra poor under its programs. This giant task demands extensive coordination among programs carried out by the government and other development organizations in order to free the ultra poor from poverty effectively and sustainably.

To this end in view, PKSF has drawn up a projection of expansion of the program in the next four years. By the end of 2010, about 6,30,000 new ultra poor members will be included in UPP making the total to 1.15 million. To serve this huge clientele, additional Tk.3370 million will be needed beside the existing govt. fund. Extensive programs for capacity building of the beneficiaries and the POs are also in the planning process. Several donor organizations are interested to finance capacity building programs, which is expected to make the ultra poor capable of utilizing credit more fruitfully.

For Further Information-
Contact persons:

· Dr Jashim Uddin
Deputy General Manager
Email: jashim@pksf-bd.org

· Dipen Kumar Saha
Deputy Manager
Email: dipen@pksf-bd.org