American Journal of Rural Development

Current Issue» Volume 2, Number 4 (2014)

Article

Engaging the Extreme Poor People with Private Sector for Livelihood Resilience

1NOHA Mundus Scholar at the Uppsala University, Sweden and Post Graduate Fellow, Stephen Zuellig Graduate School of Development Management, Asian Institute of Management, Philippines


American Journal of Rural Development. 2014, 2(4), 59-67
DOI: 10.12691/ajrd-2-4-1
Copyright © 2014 Science and Education Publishing

Cite this paper:
M. Mizanur Rahman. Engaging the Extreme Poor People with Private Sector for Livelihood Resilience. American Journal of Rural Development. 2014; 2(4):59-67. doi: 10.12691/ajrd-2-4-1.

Correspondence to: M.  Mizanur Rahman, NOHA Mundus Scholar at the Uppsala University, Sweden and Post Graduate Fellow, Stephen Zuellig Graduate School of Development Management, Asian Institute of Management, Philippines. Email: mithunmds07@gmail.com

Abstract

Bangladesh made significant improvement in reducing poverty since its independence in 1971 however, diverse developmental challenges remain. The role of public, private and non-governmental actors in poverty reduction has been widely recognized in the literature. Numerous private sector initiatives are proliferating within NGOs’ project portfolios as an opportunity for an innovative approach to poverty reduction. Despite this progress, studies have shown that the degree to which households above the poverty remain highly vulnerable and could slide back into poverty when faced with an economic shock such as loss of working opportunity, food price inflation, illness, natural disasters and other crises. Therefore, beyond attention to poverty alleviation, addressing households’ resilience is crucial to make this progress sustainable. Using a case study approach, this study investigates how a private sector intervention undertaken by NGOs effectively helps the extreme poor households build their livelihood resilience. The case study considered in this research is based on the Social and Economic Transformation of the Ultra-poor (SETU) project of CARE Bangladesh regarding its collaboration with Classical Handmade Products-BD (CHP-BD), an export oriented rug-manufacturing company. Under this collaboration in SETU (phase-1), nearly 270 females from extremely poor households (i.e. SETU project beneficiaries) engaged in rug production of CHP-BD who could create resilient livelihoods and moved them from lower productivity housemaid works to higher productivity rug factory working though they had to face income shock due to a sudden closure of the factories for a couple of months. The study analyses the coping strategies adopted by the workers during the closure. It explores the ways in which workers learnt from this event and changed their behaviour in terms of savings, income diversification and strengthening social connections. The author also analyses how this change in behaviour helps them build livelihood resilience towards potential shocks.

Keywords

References

[[[[[[[[[[[[[[[[[[[[[[[[[[
[1]  Household, Income, and Expenditure Survey, (2010). Dhaka: BBS.
 
[2]  UNDP, (2013). Eradicate extreme hunger and poverty. http://www.bd.undp.org/content/bangladesh/en/home/mdgoverview/overview/mdg1 Accessed on 10 November, 2013
 
[3]  Rahman, M. Mizanur, (2013). Making agriculture commercially viable to the poor, The New Age http://www.newagebd.com/detail.php?date=2013-04-17&nid=46257
 
[4]  Lanjouw, P. & Stern, N. 1993. Markets, opportunities and changes in inequality in Palanpur, 1957-1984. In A. Braverman, K. Hoff & J. Stigliz, eds., The economics of rural organization: theory, practice and policy. New York, USA, OUP.
 
[5]  Estudillo, J. P., & Otsuka, K. (1999). Green Revolution, Human Capital, and Off-Farm Employment: Changing Sources of Income among Farm Households in Central Luzon, 1966–1994. Economic Development and Cultural Change, 47 (3), 497-523.
 
Show More References
[6]  Momen, N. Md. (2007). Implementation of Privatization Policy: Lessons from Bangladesh. The Innovation Journal: The Public Sector Innovation Journal, Volume: 12 (2), Article: 4
 
[7]  Hossain, M. (2004). Rural non-farm economy in Bangladesh: A view from household surveys (No. 40). Centre for Policy Dialogue (CPD).
 
[8]  Mahmud R.B (2012) Skills development in Bangladesh RMG sector, the News Today: http://www.newstoday.com.bd
 
[9]  IFAD, (2012), Deepening IFAD’s engagement with the private sector
 
[10]  Sobhan, R. (1998). How bad governance impedes poverty alleviation in Bangladesh. OECD.
 
[11]  Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy, 26 (4), 315-331.
 
[12]  Alderman, H. and C.H. Paxson. (1992). “Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries,” World Bank Policy Research Working Paper WPS 1008.
 
[13]  Reardon, T., Taylor, J. E., Stamoulis, K., Lanjouw, P., & Balisacan, A. (2000). Effects of non-farm employment on rural income inequality in developing countries: an investment perspective. Journal of Agricultural Economics, 51 (2), 266-288.
 
[14]  Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy, 26 (4), 315-331.
 
[15]  Omamo, S. W. (1998). Farm to market transaction costs and specialisation in small-scale agriculture: Explorations with a non-separable household model. The Journal of Development Studies, 35 (2), 152-163.
 
[16]  Reardon, T., Delgado, C., & Matlon, P. (1992). Determinants and effects of income diversification amongst farm households in Burkina Faso. The Journal of Development Studies, 28 (2), 264-296.
 
[17]  Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. Food policy, 26 (4), 315-331.
 
[18]  Stuart, R. (2000). The poor and their money. January 2000.
 
[19]  Duflo, E. (2007). The economic lives of the poor. The journal of economic perspectives: a journal of the American Economic Association, 21 (1), 141.
 
[20]  Chambers, R., Conway, G., (1992). Sustainable rural livelihoods: practical concepts for the 21st Century. Discussion Paper 296. IDS, Sussex.
 
[21]  Weick, K.E; Sutcliffe K.M; and Obstfeld, D (1999) Organizing for High Reliability. Research in Organisational Behaviour 21 81-123
 
[22]  Sutcliffe, K.M and Vogus, T (2003) Organising for resilience, in, K.S. Cameron; J.E Dutton; & R.E Quinn, eds., Positive Organisational Scholarship: Foundations of a new discipline 94-110, San Francisco, Berrett-Koehler.
 
[23]  Kabeer, N. (2012). Women’s economic empowerment and inclusive growth: labour markets and enterprise development. SIG Working Paper.
 
[24]  Mondal, A. H. (2000). Social capital formation: The role of NGO rural development programs in Bangladesh. Policy Sciences, 33 (3-4), 459-475.
 
[25]  Chambers, R., Conway, G., (1992). Sustainable rural livelihoods: practical concepts for the 21st Century. Discussion Paper 296. IDS, Sussex.
 
[26]  Carter, M. (1997). `Environment, Technology, and the Social Articulation of Risk in West African Agriculture’, Economic Development and Cultural Change, 45 (3): 557-591.
 
[27]  Ellis, F. (2000). Rural livelihoods and diversity in developing countries. Oxford University Press.
 
[28]  Karlan, D. (2010). Helping the Poor Save More. Stanford Social Innovation Review, 48-53.
 
[29]  Reardon, T., Berdegué, J., Barrett, C. B., & Stamoulis, K. (2007). Household income diversification into rural nonfarm activities. Transforming the rural nonfarm economy: opportunities and threats in the developing world, 141-82.
 
[30]  Alderman, H. and C.H. Paxson. (1992). “Do the Poor Insure? A Synthesis of the Literature on Risk and Consumption in Developing Countries,” World Bank Policy Research Working Paper WPS 1008.
 
[31]  Brisson, D. S., & Usher, C. L. (2005). Bonding Social Capital in Low‐Income Neighborhoods. Family Relations, 54 (5), 644-653.
 
Show Less References