Assessment of Micro-Macro Linkages in Poverty Alleviation - UNDP

69 Pages·2003·0.68 MB·English

Un i ted Nations Deve l o p m e nt Prog ra m m e
Eva l u ation Of f i ce
Assessment of Micro-Macro Linkages
in Poverty Alleviation: South Asia
Assessment of
Micro-Macro Linkages
in Poverty Alleviation:
South Asia
UNITED NATIONS DEV E LOPMENT PRO G RA M M E
EVA LUATION OFFICE
Octo ber 2003
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Copyright © 2003
United Nations Development Programme
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ASSESSMENT OF MICRO - M AC RO LINKAGES IN POV E RTY ALLEV I AT I O N :SOUTH ASIA
Foreword
The Assessment ofMi c r o- M a cr o Linkages in Pov erty All e vi a t i o n : South Asia pr esents a revi e w
of the results of pover ty alle vi a t i o n prog r ammes in the sub-reg i o n during the last seven yea r s
with special re fe rence to Bangladesh,In d i a , Nep a l , Pakistan and Sri La n k a .G over nm e n t s
in these countries have long given high priority to poverty reduction, both in national
po l i c y and prog r am m e s . This emphasis continues in national pover ty red u c t i o n strat e g i e s ,
es p e c i a l ly now in the context of achi e ving the Millennium Devel o p ment Goals (MDGs ) .
The UNDP Evaluation Office comm i s s i o ned desk res e a r ch in the five countries to survey
results and lessons learned from various pover ty alle vi a t i o n pro g ra m m e s ,w h i ch have been
sy nt h e s i z ed and incorpo r ated in this rep o r t. The cons u l t a t i o ns for this reg i o nal assessment
involved discussions with key government representatives, civil society organizations,
res e a r chers and NGOs from the reg i o n. The major aim was to draw eva l u a t i v e evidence by
su r veying existing studies to examine how to look at micro experi e n c e s ,h ow they relate to
the macro,and what the linkages ultimately lead to in terms of wider devel o p ment impact.
The issue of micro-micro linkages is a critical,and often overlooked,dimension of
poverty and other forms of social and economic exclusion. Given the large number of
micro level interventions, including the South Asia Poverty Alleviation Programme
(SAPAP),it is critical to know the connection between the value of social mobilization
and a demonstrated influence on macro-level poverty reduction, which should be
examined through empirical evidence. Have the efforts led to improved development
outcomes in terms of reduced poverty or better human development indicators in the
sub-region? The lessons learned from the efforts of UNDP and partners indicate that
th e r e needs to be a colle c t i v e approa c h that should be flexible enough to reflect the specific
context of the country and link national (macro) and local (micro) interventions into the
over al l aim of pover ty red u c t i o n. This will req u i r e new ways of worki n g ,ne w joint ven t u r es
with a broader range of partners to foster national ownership of prog r am m e s , in c luding poor
people themselves and,ab o ve all, gr eater political comm i t m e n t . The rep o r t suggests policy
recommendations aimed at improving the situation.
We hope that this assessment will provoke renewed discussion around operational
st r at e g y devel o p ment and conc e r ted action, by the countries themselves and by the dono r
co mm un i t y in general . It is also expected to cont r ibute to cros s - r eg i o nal learning in other
reg i o ns conf r onting similar issues.A workshop organized by the UNDP Evaluation Office
and the Regional Bureau for Asia and the Pacific to launch the assessment in 2002 attrac t e d
ma n y cont r ib u t i o ns from South Asian participants and the rel e vant UNDP country offices,
generating diverse perspectives on strengthening micro-macro linkages.The Evaluation
Office would like to acknowledge their engagement and support.We would also like to
thank S. Nanthikesan for producing this synthesis report and the national researchers,
Q.M. Ahmed, M.M. Akash, S.M. Dev, S.Galab, B. Hewavitharana, N.S.Jodha, and
S. Ray, for producing the country assessments. We welcome future dialogue with all
our partners on the key issues raised in the report and the approach set out, and look
forward to future collaborations.
Nurul Alam
Acting Director
Evaluation Office
UNDP i
ASSESSMENT OF MICRO - M AC RO LINKAGES IN POV E RTY ALLEV I AT I O N :SOUTH ASIA
Contents
Fo rewo rd i
Exe c u t i ve Su m m a ry i i i
1 . I nt rod u ct i o n 1
2 . Co n ceptual Fra m ewo rk of Mi c ro - Ma c ro Linka g e s 4
3 . The Ma c roe conomic and Po l i cy Env i ro n m e nt 9
4 . An a l ysis of Mi c ro - Ma c ro Linka g e s 2 5
5 . Lessons Le a rn e d 3 7
6 . R e co m m e n d at i o n s 4 3
An n exe s 4 5
I. Terms of Reference 46
II. Acronyms 49
III.List of Documents Consulted 51
IV. List of People Interviewed 54
V. List of Figures and Tables 55
i i
Executive Summary
ASSESSMENT OF MICRO - M AC RO LINKAGES IN POV E RTY ALLEV I AT I O N :SOUTH ASIA
1 . PURPOSE AND SCOPE OF that these micro initiatives would,in and
THE REGIONAL ASSESSMENT of themselves , si g n i f i c an t l y reduce the high
incidence of poverty in the sub-region.
This rep o r t assesses the linkages betwe e n Instead, one of the principal goals of
pa r ti c i p a t o r y pover ty alle vi a t i o n sche m e s these initiatives was the incorporation of
and macro- l e vel pover ty alle vi a t i o n policy in f o r ma t i o nal channels aimed at impacting
i n i t i a t i ves in five countries in So u t h the effec t i v eness of macro policy mecha n i s m s .
Asia, namely, Bangladesh, India,Nepal, It was hoped that concrete experience at
Pakistan and Sri Lan k a . It is not a general the gras s - r oots level would help the “ma c r o”
study of the successes and/or failures of identify the factors rel e vant to improvi n g
either macro pover ty alle vi a t i o n initiatives targeting and delivery. In particular, it
or community-level poverty alleviation was hoped that lessons learned would be
programmes; its principal focus is an transmitted regarding the components
assessment of linkages between the micro n e c e s s a ry for successfully nego t i a t i n g
and macro poverty alleviation initiatives the constraints arising from the macro
that contribute to their effectiveness. policy regime and its interaction with
Par ticular attention is given to the linkages existing initial conditions.
flowing from the former to the latter. In February of 2002, the Evaluation
A reg i o nal assessment was underta k e n Office (EO) of UNDP convened a meeting
to draw out general lessons from a that launched an in-depth assessment of the
comparison of countries that had diverse mi c r o- m a c r o linkages that cont r ibuted to
po ver ty profiles and policy reg i m e s . Th e s e the effec t i v eness of UNDP’s devel o p me n t
lessons are expected to provide valuable efforts in South Asia.The meeting was
input for future policy recommendations titled “Assessing Linkages betw e e n
and programme design practices of the Macro and Micro Level Initiatives in
UNDP in wide-ranging contexts. South Asia”and was held in New Delhi,
India. It was recognized that a regional
perspective on the micro-macro linkage
2 . BAC KG RO U N D would be useful for future country
programming and regional initiatives.
The top-heavy, s u p p ly-side focus of Co ns e q u e n t l y,a reg i o nal assessment study
n a t i onal pove rty all ev i a t i on measure s based on individual country assessments
had long been identified as inhibiting was initiated.The analysis was based on
the fight against poverty in the region. em p i r ic al evidence documented in UNDP’s
In response, the UNDP began work on Re s u l t s - O r iented Annual Reports (ROAR )
participatory pilot programmes at the and various Poverty Reduction Strategy
co mm un i t y level in six South Asian Papers (PRSPs).
countries under the South Asian Poverty In analysing the micro macro linkages,
A ll ev i a t i on Pro g ramme (SAPAP) in this regional report is primarily based on
1994. Other international agencies such the country assessments and cons u l t a t i o ns .
as UNCDF,Aus t r alian Aid,Wor ld Bank, It mainly focuses on state-spons o r ed macro
SI D A and DFID,am o ng others,had also poverty alleviation initiatives,based on a
funded similar prog r am m e s . In addition, sy nthesis of key findings from the country
there was a plethora of comparable local as s e s s m e n t s . Ex p e r iences of micro initiatives
initiatives in the South Asian region. sponsored by UNDP and other donor
These programmes were based on social agencies were presented in most reports,
mo b i l i z at i o n for sustainable self-devel o p - but some focused exclusively on SAPAP
i v ment. However, it was not anticipated pr ojects (e.g.the country rep o r t for India).
EXECUTIVE SUMMARY
3 . MAIN FINDINGS: de c e n t r al i z at i o n was not comm e n s u r ate with
M I C RO - M AC RO LINKAG E S fiscal decentralization, which prevented
the flow of resources and information to
Lo oking at loca l - l evel pro g ra m m e s the local leve l . Thus inappro p ri a t e ly
studied in the country reports through fu n c t i o ning decentral i z at i o n could hinder
the lens of micro-macro linkages led to micro-macro linkage.
the following categorization of results: The La chi and No rt h e rn Are a
Development Plan projects in Pakistan
3 . 1 . Mi c ro Fa i l u res and Fa i l u re were also local successes. However they
to Influence Ma c ro Ef fo rt s entered the local scene as a part of the
Interventions that failed locally without wider rural support programme (RSP)
leaving any legacy cannot alter the that existed in the region and had a
micro-macro linkages. The KST project proven successful track record.This was
in Bangladesh belonged to this category. also the case for the SAPAP project in
It was not rep l i c ated and had ver y limited Andhra Pradesh in India,which was but
impact on macro policy making. The a small part of the poverty alleviation
Re h a b i l i t a t i o n of Wat e r logged and Sal i n e i n i t i a t i ves undertaken by the state
Land project in Pakistan was another government,GOI and NGOs.
example of failure, due to lack of To add value to the engagement
demand and ow n e r s h i p. T h e re was with the macro,projects have to come up
cultural dissonance regarding the goal with distinct and more creative models
of using reclaimed land for agriculture. of civic engagement than those that
already exist. Otherwise they contribute
3 . 2 . Mi c ro Su c cesses without little to altering existing block a g e s
L i n kages to Ma c ro Ef fo rt s between the micro and the macro in
Th e r e were interven t i o ns that left positive the form of perceptions, information
outcomes at the local level but failed to asymmetry, institutional mismatch and
influence the macro.At least three country asymmetric power relations.
examples illustrate this case,namely,Sri
Lanka,Pakistan and to an extent,India. 3 . 3 . Mi c ro Su c cesses with
The Nuwara Eliya project in Sri Lanka L i n kages to Ma c ro Ef fo rt s
yielded mixed results local ly.This proj e c t Interventions that succeeded at the local
did accomplish modest civil society level and influenced the macro were also
mobilization and established horizontal observed in the country studies. Despite
links. However, it came into conflict the abject macro cond i t i o ns that cont i n u e
with existing state-spon s o red pove rty to plague Nep a l , the SAPAP prog r am m e
al le vi a t i o n proj e c t s , su c h as Janasaviya and in the country was “su c c e s s f u l ”. A proj e c t
Samurdhi, engaged in similar activities. started in one district involving 5,910
As y mm e t r ic power rel a t i o ns between the members. It was then extended to the
mi c r o and the macro resulted in the proj e c t me s o - l e ve l ,c over ing 270,000 households,
lacking state ownership/commitment. thanks partly to the strong commitment
In the Sri Lankan situation there from the State and UNDP. There are
was an added dimension to the problems several reasons for this success.
the project had to confront. It faced an First, the programme was designed
institutional mismatch in the form of to utilize the existing structures,such as
d ys f u n c t i onal decentra l i za t i on , w h i ch VDC that were involved with poverty
contributed to a disconnect between the re d u c t i on measures underwritten by
micro and the macro.The administrative GON, NGOs and donors. Secondly, at v
ASSESSMENT OF MICRO - M AC RO LINKAGES IN POV E RTY ALLEV I AT I O N :SOUTH ASIA
the design and functioning stages,ef f o r ts approach that regarded the poor as a
were made to link the project with the m onolithic entity that is vulnera b l e,
macro. For instance,SAPAP was linked without agency and incapable of articu-
with the District Development Council lating its interes t s . The poor on the other
(DDC) that served as the focal point for hand,perceived the State as a static and
l o cal deve l o pment administra t i on in
monolithic entity that is perpetually deaf
Nepal. In addition, SAPAP formed a
to their interests, as evidenced by their
Di s t r ict Coordi n a t i o n Committee (DCC)
e n t re n ched pove rty. T h ey tended to
that linked all line agencies of the GON
be l i e ve actions to seek rep r es e n t a t i o n and
in the district and the SAPAP — a move
remedy would not effect any changes.
that provided a horizontal and vertical
These attitudes and perce p t i o ns cons t i t u t e d
link for the micro. Finally, the SAPAP
the barriers of communication between
pr og r amme rec e i v ed strong comm i t m e n t
mi c r o- and macro- l e vel anti-pover ty efforts .
from GON and was a novel concept in
the Nepalese context.
Closer scrutiny of these categories of Information asymmetry and deficit
results points to some key determinants The macro lacks information on the
that influence the micro-macro linkages, priorities and needs of the poor; thus it
which are presented below. la c ks knowledge of targets and approp r ia t e
delivery mechanisms. The poor, on the
3 . 4 . Key De te rm i n a nts of other hand,la c k knowledge of the res o u r ce s
Mi c ro - Ma c ro Linka g e s that are accessible,the opportunities that
An a lysis of the five country re p o rt s are available and the synergies that are
showed recurring problems of targeting possible when social mobilizat i o n is coupled
and delive ry with macro initiative s
with the establishment of horizontal and
against poverty. Similarly, community-
vertical links.
level programmes,even when successful,
had frequently failed to influence policy
Institutional mismatch between
at the macro level . These rec u r r ing prob l e m s
target and delivery mechanisms
cannot be explained as simply arising
Linkages between the macro and the micro
from a lack of available resources.They
also were inhibited by the inefficiencies
also point to persistent cons t r aints operat i n g
of political and economic institutions.
at differ ent reg i s t e r s . Based on informa t i o n
For instance, as the Sri Lankan study
fr om the country rep o r ts , four dimensions
pointed out, inadequate political and
may be discerned in which the factors
contributing to the disconnect between ad m i n i s t r at i v e decentral i z at i o n would act
the micro and the macro operat e ,na m e l y: as a barrier to the channels of tran s m i s s i o n
b e tween the macro and the micro.
1. Perceptions and attitudes regarding
Persistent exclusion from political power
each other
has left the poor with limited institutiona l
2. In f o r ma t i o n asymm e t r y and/or deficit
arrangements to convey their aspirations
3. In s t i t u t i o nal mismatch between target
to the centre. As evidenced from all country
(and needs) and deliver y mecha n i s m s
studies, markets and public institutions
4. Unequal power relations
had not been able to rea c h the ultra poor,
Perceptions and attitudes who could not meaningfully influence
regarding each other the micro-macro information channels;
Early efforts by the State in all five thus they remain excluded from macro
v i countries had been characterized by an decision-making processes.
EXECUTIVE SUMMARY
Unequal power relations rec o g n i z e that the devel o p ment assistance
This is perhaps the most important of all provided by UNDP is but a fraction of
dimensions and even may be at the root the total assistance received by all five
of the other three factors,de s c r ibed above. co u n t r ies cons i d e r ed . Co ns e q u e n t l y,UN D P
It concerns the lack of political will on cannot expect to wield influence with
the part of the macro to establish links governments based on the merits of its
with stakeholders. A meaningful attack financial con t ri b u t i on s . T h e re f o re, t o
on large-scale pove rty re q u i res more influence the micro - m a c ro linkages,
than a tax and transfer approach. The UNDP has to be judiciously strategic in
deep redistributive efforts required to or che s t r ating its strengths and experie n c e
address large-scale poverty would face on the ground in each country.
resistance from the status quo.Mo r eo ver ,
the exclu s i o n of the poor from econo mi c I .Holistic Ap p roach
and political structures leaves them with to Pove rty Al l ev i at i o n
little voice or choice in decision-making Just as poverty is multi-dimensional, so
p ro c e s s e s .E ven when the centre is willi n g too are the strategies to alleviate poverty
to listen, l o cal hiera rchies vested in and their attendant micro- m a c r o linkages.
maintaining the status quo often block For instance, to ensure that success in
voices of the poor being transmitted cr edit mobilizat i o n is sustainable,it has to
“upstream”. As a result, there was very be attended by an expansion of prod u c t i v e
limited political space and commitment o p p o rtunities and market access for
for opening up channels of comm un i c at i o n products. At the same time,public insti-
between the macro and the micro.These tutions and markets should receive much
determinants seldom exist as entirely more emphasis as they influence people’s
s e p a rate ca t e go ri e s . T h ey were oft e n income and access to resources. Thus
pr esent together in instances of inhibited efforts to mobilize capital should build,
m a c ro - m i c ro linkages and should be simultaneously, horizontal linkages for
rec o g n i z ed as fundamentally interli n k e d . potential markets and income opportu n i t i e s
Neve rt h e l e s s , it is also important to to escape the low-equilibrium trap, as
identify these as related but distinct we l l as ver ti c al rel a t i o ns h i p s . Ho we ver ,th e
dimensions of micro-macro links in the absence of credit insurance is likely to be
South Asian region. de t r imental to efforts at credit mobilizat i o n
in areas affected by conflict.
Another instance in which a holistic
4 . MAIN LESSONS LEARNED approach to poverty alleviation is an
immediate imperat i v e is when HIV / A I D S
Over the last few decades UNDP has is an issue. Micro-macro links for the
extended its work in well over one pr omo t i o n of awareness and dissemination
hu n d r ed countrie s . Wor king with limited of preventive measures are weak in the
resources it has built healthy working region. Lack of information and mis-
pa r tnerships with gover nments and policy perceptions affect both the micro and
makers around the globe.Its interven t i o ns the macro. Policies on health insurance,
h a ve demon s t rated its com m i t m e n t pr even t i v e public health services and making
to wa r ds anti-pover ty initiatives and gained related drugs available at afford a b l e
it the reputation of being a trustworthy p rices should become re s p on s i ve to
p a rtner with sincere intentions and mi c r o- l e vel needs.Mi c r o- l e vel initiatives
sound approaches against poverty. need to work at the household level
That being said,it is also important to towards overcoming the cultural stigma v i i