CHAPTER 1 INTRODUCTION

Background In developing as well as the developed countries the role of NGO is being recognized tremendously. The NGOs play a vital role in the development of a country. Without these efforts which are made at micro level any country cannot proceed on the way to sustainable development whether it is at local level or social and cultural development. From early childhood I was very much keen to know that how these NGOs work in the area of social-economic development. I feel myself lucky that I got a chance to work in national rural support program (NRSP) a nonprofit organization working in the rural areas of Pakistan. After working in NRSP in Rawalakot region Azad Kashmir, I experienced how things actually happen at various levels. The rules followed by NRSP, the administrative procedure, the nature of organization, coordination among different departments, the working environment,, relationship with local community, study of credit utilization of Livestock Development and the rehabilitation of earth quake affected areas. History Of NRSP The NRSP was established in 1991 to replicate Agha Khan Rural Support Project (AKRSP) at a small scale in the villages within Islamabad. In August 1992, the government of Pakistan decided to start an institution building program, replicating the experience of the AKRSP. The govt. announced a sum of one billion rupees (US$ 40 million) for the first year of this program, and promised to give 6 similar payments 1

in the coming years. The NRSP sponsored by the government as public company, initially started its programs in sixteen districts located in five regions in the first year. Work has already started in 32-district including four district of AJK and was expected to expand in another eight districts. AKRSPs methodology was based on intensive mobilization in the field. In order to allow the intensive mobilization in the field NRSP has adopted a decentralization of management. NRSP has established five regional offices for managing the districts in its region. Each Regional office has operational authority. The unique thing about the NRSP is that the government has provided the entire funding from its resources. Through NRSP the government of Pakistan has released the first installment. Operational plans have made regarding various areas, field activities launched with experienced staff members and training programs started in order to train new staff. NRSP participates in rural development by using community participation approach. Legal Status Of NRSP The NRSP is a public company limited by guarantee registered under section 42 of the company ordinance on November 2, 1991.NRSP was established to replicate the successful experience of AKRSP in other areas of Pakistan. NRSP works in accordance with a decentralization system of regional offices. Each regional office has to manage a maximum of three to four districts. NRSP head office is situated at Islamabad. How NRSP Practices NRSP is largest social organization of Pakistan. NRSP provides sustainable solutions to the problems of the community through its operations at region and 2

district level. The activities of NRSP mostly take place at the local community level and on small scale. Aim of NRSP is community development by improving the condition of poor people in villages. In the process of poverty alleviation and rural development there is establishment of linkages with the government department for serving the rural community. So that human, economic and technological resources should be accessible to the rural poor. NRSP works in a process of decentralization. Regions have complete authority to run programs according to the local needs of the community. Rawalakot Zone Introduction. Rawalakot region of NRSP is currently working in three districts of Azad Jammu and Kashmir i.e. Poonch, Sudhnoti, and Kotli. According to planning and Development Department of AJK, the number of members of total rural households in the programme area is about 171,571. In most of the region territory is hilly with a population spread over the hills. Life in the region is not too much difficult due to hard geography of the area. In district Rawalakot daily activities are interrupted during winter season due to extreme cold, as villages are cut off from nearby cities due to snowfall and landslides. Whereas in district Kotli hot weather prevails and rainfall in the region is between 1,300-1,500mm.

All these three districts of the programme area are located in different zones. However, poor farmers face many agriculture problems like small land-holding, around eight canals per household; scarcity of water; scattered population on hills etc. In Rawalakot region majority of people belongs to non-agricultural community and earns livelihood by serving in governmental departments, enterprises, businesses and mostly working abroad. No feudal system exists in the region and 99% of the community owns land and house. The Rawalakot Region. Rawalakot zone is operating in AJK. It covers district Poonch, Pallandri and Kotli. In the region three field units are working, in Rawalakot, Hajira and Pallandri. One field unit has formed in the district of kotli. Number of community organization formed in the Rawalakot Region till June, 2008 is 1048 with 617 male 277 female & 154 mixed organizations. The number of community organizations is quickly increasing. This region covers area of 1424 square kilometers with population expected around 6510000 for 2008. The number of Union Councils in this region is 27. Projects Of NRSP Communication Schemes. To link the rural areas with Rawalakot city there were 58 communication schemes. The cost was 12,984,998. The contribution of Cos was 2,756,097 and the

donors contribution was 10,228,901. All these schemes have also been completed by November 2005. Total number of beneficiaries in rural areas was 2,650. Water Supply Schemes. There were about 97 NRSP water supply schemes. The cost of these schemes was 8, 826, 7887/-, out of which contribution of COs was 2,541,134 and contribution of donors was 6,285,621. All these projects have been completed by November 2008. From these schemes the total number of beneficiaries was 1997. Agriculture Schemes. There were about thirty one (31) different agriculture schemes organized by NRSP in Rawalakot. These schemes in different areas of vRawalakot support farmers. The cost was 990,244. In these schemes the contribution of Cos was 231,740 and contribution of donor was 458,504. The number of beneficiaries was 1116. Future Planning Of NRSP For the coming years, the targeted population (poor population) of the area will be served by way of the following tactics: Recognition of honest and dedicated activists. Focus on target groups i-e the poor with willingness to work in COs. Development of creative sector. Recognition of progressive farmers for manifestation of agricultural technologies. Increasing linkages of COs with agencies, and NGOs. 5

Watchful credit judgment, disbursement and supervision. Reduction in the compensation phase of credit. Bigger focal point on HRD, NRM, PITD, and SSS actions Working Environment of NRSP NRSP provides two kinds of environment for its workers: Office Environment Field Environment Office Environment. It deals with the environment of office. NRSP district office Rawalakot provides a very pleasant working environment. The office environment is very comfortable and mostly workers are seen working at late hours. Different sections in office of Rawalakot Region are related .workers are very co-operative and help each other. Every worker is keen to fulfill his or her responsibility. Female employees are respected a lot. Workers work in accordance with the formula of optimum utilization of time. The main features inside the office environment are: Autonomy Of Work Employees working in NRSP are free for their work. They all work independently as they know their duties and responsibilities. There is no pressure on workers.They are free to take initiatives. Decentralization Of Authority

In administration there are two kinds of authorities. One is centralized authority in which the whole authority belongs to one single head, while in decentrialization; authority splits form top level to subordinates. In NRSP there is decentralization of authority, as everyone is free to make decision according to the requirement of the work. Flexibility In Procedure Programme procedure of NRSP is very flexible. Rules and regulations are simple and flexible. This flexible procedure can absorb any organizational change, so whenever and wherever, change is required it is easily accommodated due to this flexibility of procedure. Cooperation Of The Staff In NRSP there is high level of cooperation among the staff and DPO. DPO fulfills the needs and requirements of his staff and in return staff gives full cooperation in accomplishment of the tasks and the objectives of organization. Due to cooperation and good working atmosphere NRSP is progressing day by day and gaining excellent reputation in the region. Field Environment. It is related to the environment of the field. Besides the office environment it is very important o have a pleasant field environment. In rural areas during the process of community organization (CO) formation for rural development, it is necessary to have a good relation between the community members and NRSP staff. Continuous

interaction amongst the social workers of NRSP and people is very much necessary to build the element of trust. Friendly Interaction It is the duty of the social organizer to organize the community. So social organizers have a very close interaction with the people. This friendly interaction helps in identifying the real needs of the people. People give very positive response towards rural development because they want to move with the modern progressive society. Opportunity Of Learning Definition of learning is knowledge gained by study. In NRSP there is huge opportunity of learning. NRSP provides a chance to learn about the organizations as well as about the communities like knowledge of the field work, prevailing recourses in the village. There is great exposure of a variety of situations, environments and personalities. Role Of Community The basic purpose of the NRSP is to work with the rural community .Community is basic partner of NRSP in rural development; this partnership follows the principles of rights and obligations. Community has to perform assigned responsibilities collectively. As the goal of NRSP is development of rural community so it needs the involvement of community. Linkages Of NRSP With Development Agencies 8

NRSP is a kind of support organization. An organization to support rural community and facilitates development through mobilization of resources. Such resources are available from govt. departments, donor agencies and other developmental sectors. NRSP has the following partners: Community Organizations. The COs provides human, financial and other resources for all development activities. Government And Line Agencies. These include for example agencies for barren area development, Punjab Small Industries for vocational training and First Women Bank etc. International And Local Donor Agencies. A lot of local and international agencies are working for the rural development. As the agriculture growth component of the Swabi Scarab Project was initiated by the financial support of the Swiss Development Corporation and The Asian Development Bank.

Goal Of NRSP The goal of the program is lessening of poverty and upgrading in the life style of rural people. 9

Objective of NRSP The major aim of NRSP is to promote nationwide network of organizations which would facilitate local communities towards development. Its aim is to aid development through local resource mobilization. The mobilization of local resources through a saving and credit program. Mechanical aid to expand agricultural production. Commercialization of the rural financial system. Specification of credit. Reduction of poverty. Financial support of affected people. Linking people to different departments. Strategy To connect communitys potential to assist them. Tactic For the purpose of this potential, the people require social direction to: Categorize themselves into multi-purpose broad-based community organizations in order to band resources, cut down on expenses, attain economies of scale, etc. and help in identifying true and authentic activists in the community. It is only these individuals who can harness the actions people are willing to undertake in terms of opportunities and needs.

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Determine the feasibility of identified needs and opportunities, in terms of people, s capacity, readiness, equality, sustainable and required resources that may be accessible with in the area or can be accessed from outside. Arrange, protected and make possible flow of required resources to the community. Monitor, entrance hall and establish linkages between communities and other development agencies, such as government departments, Area Council, Union Committee, NGOs and donors. Exclusive Features The programme is indicting, i.e., core financial support had been provided by the GOP. In spite of Government sponsor ship, there is no meddling from the Government and the programme manages to maintain its autonomy and apolitical status.The programme has made itself sustainable by running its operations from the returns on an endowment fund. It flow a modular approach with an inbuilt instrument, which enables it to easily expend to extra/location.The expansion approach adopted by NRSP is holistic rather than single sector oriented, aiming at covering the whole program districts. Credit and IIRD have been utilized as successful investments in organization where investments in Productive Physical Infrastructure schemes (PPIs) were not approaching.

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NRSP started Health Project for Earthquake affected areas Datote, Hussainkot and main Rawalakot city.NRSP started Education Project for 6 months in Earthquake affected areas and reconstruction of 38 schools. NRSP also worked as Relief of tent villages, food items, CGI sheets, winter kits for school children and reconstruction of houses in five union councils of Poonch AJK.Trained people like carpenter, mason, electrician and plumber for Reconstruction of Houses in affected areas. Outline Of NRSP: Till March, 2008 NRSP is functioning in 900 union councils, out of the total 750 union councils belong to the program region. Since 1993, 1865 community organizations with the membership of more than 51339 members have been formed. Total saving of communities has crossed the figure of Rs. 45.34 million with an average saving of Rs. 9265 per community organization. The increasing tendency in saving shows the movement of community organizations toward self-reliance. NRSP is working with following regions: 1. Rawalakot 2. Rawalpindi 3. Khushab 4. Mardan 5. Turbat 6. Badin/Mirpur Khas

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Management of NRSP
A board of Directors who is responsible for policy decisions governs NRSP; while a core management team implements the program, compromising of a full time chief Executive Officer (CEO) & program Managers in the following fields. Human Resource Development Rural Credit & Enterprise Development Natural Resources Management Physical Infrastructure & Technology Development Social Sector Services Monitoring Assessment & Planning Finance & Accounts

Field operations of NRSP are managed through six regional offices where the above sectors are represented at a senior level and run by a regional program officer (PRO) who is part of NRSP management team; each region has four to five field units. Each field unit has two social organizers, one male & one female field assistant and an internal organizer from part of the field unit team.

Board of Directors
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Shoaib Sultan Khan Dr. Arshad Zaman Tariq Masud Dr.Zafar Altaf Syed Badar Ali Mohd. Azam Khan Cdr.A.A.Nasim Bashir Ahmed Pervaz Masood Safdar Hussain Kazmi Abdullah J.Memoon Ijaz A.Naik Fazal Ullah Qureshi Kishwar Nahid Sikandar Hiyat Jamali Humayoon Khan Dr.Nazar Memoon Dr.Rashid Bajwa

Chairman Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Chief Executive

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Organization Network

Network of NRSP

Head Office Islamabad

Region Regional Regional Program Office Rawalpindi Program Office Badin al Progra m Office Rawlak ot

Regio nal Progra m Office

Regiona l Progra m Office

Regional Program Office Mardan

FU.Attock

FU.Gola

FU.Hajir a FU.Pala

FU.Tu FU.Ta

FU. Jauhar FU.

FU.Charguli FU.Dargai FU.Dhakki FU.Herosha FU.Hattani FU.Kalpani FU.Lund Khawar FU.Takhtbai FU.Tangi

FU.Chak FU.Tathe. Jang FU.Talaga ng FU.ICT FU.Murre e

FU.Talh FU.Digr i FU.Mirp ur Khas FU.Badi n

ndri FU.Kotli FU.Rawalak

FU.Tu

Quida bad FU.

FU.Abbas

Bhakk

FU.Schn

FU. Nurpu

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Sectors of NRSP in AJK

NRSP is divided into different sectors as; 1. HUMAN RESOURCE DEVELOPMENT 2. NATURAL RESOURCE MANAGEMENT (NRM) 3. SOCIAL SECTOR SERVICES (SSS) 4. PHYSICAL INFRASTRUCTURE & TECHNOLOGY DEVELOPMENT (PITD) 5. RURAL CREDIT AND ENTERPRISE DEVELOPMENT (RCED) 6. MONITORING ASSESSMENT AND PLANNING (MAP) 7. FINANCE AND ACCOUNTS (F & A)

Human resource development

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Human Resource Development occupies a major position in the development of a country. The circumstances across the globe shows the fact that the nations that have invested more in their human assets have gained strong positions among others. Countries like Japan are exceptional examples, where the human capital contributes 85% towards the national wealth. The Human Resource Development section of the National Rural Support Programme was established in 1992 to enhance the skills of the work force. With the gradual expansion in its area of operations, Human Resource Development has become a highly apparent independent institute.

Management
We can say that skill improvement is one of the chief factors in obtaining best rural development. A skilled nation is inevitable protected into the prediction of being a developed one.

Objectives of HRM
To expand the management and guidance for both men and women development. To Initiate appropriate means to enhance consumption of local resources. Reinforce and cheer the village based skills to fasten efficiency. 18

 Promote village specialists in different fields. Extend resource personnel in NRSP

Purpose of HRM
The purpose of human resource development program activities is to promote the mechanical and supervisory skills of development professionals, activists and community organizations.

Natural resource management (NRM)

Introduction

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Natural Resource Management plays a vital role in the economic development of rural areas. In AJK agriculture is not only the dominant source of earning for rural families but also a means of livelihoods for many people who depend on farming and its related activities. The average size of farm holding is around 15 acres; with fragmentation through inheritance farm size is decreasing. In AJK, unlike Pakistan, there are a very high proportion of owner-operated farms, and around 85% of the rural population owns their land. This proportion is even greater at high altitudes. The prevailing cropping system is maize in summer (kharif) and wheat in winter (rabbi). Average grain yields are around 1,200kg/ha for maize and 1,000kg/ha for wheat. 20

Walnut is the major crop, followed by apple, apricot and pears. Some produce is sold, and more quantity is stored for winter. Livestock especially buffalos represent a vital component of livelihoods. On average there is more than one buffalo per household, but many households have 2 or 3.Cattles are also kept (average 1.5 per household). Bullocks are kept for draught. It is ensured that sufficient stocks of animal fodder are stored for the winter period. They also ensure that sufficient dried fodder is stored. Out of the total land area of AJK almost 40 per cent is covered by forests. But deforestation that has led to heavy soil erosion. People rely heavily on forest to sustain their livelihoods, and there are over 30 species which provide people timber for construction, fuel wood and for making tools. In addition, there are many nonwood forest products widely used for purpose of animal fodder, animal litter, resins, and fruits and berries for human consumption. Objectives of NRM Following are the objectives of NRM: Preventing loss of natural resources Enhancement of Productivity Rehabilitation of Environment

Aim of NRM: The goal of the NRM is to enhance ability at the local level for more creative and sustainable management of natural resources.

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Focus of NRM The focus of NRM section is on increasing the efficiency of food and cash crops, as well as livestock husbandry and agric-forestry.

Approach
Following are the approaches of NRM: Agriculture Increase in access of farmers to improve agricultural inputs, such as seeds, fertilizers, feticides, pesticides, etc. Making use of sub-fertile lands. Better water management to reduce over and under irrigation.

Forestry Orchard management & development of fruit nursery. Plantation and establishment of forest nurseries. Development of sericulture.

Livestock Improvement in animal feed & fodder. Preventing losses through vaccination & better management of animals & poultry birds.

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Replacement with better breed animals.

General Activities
Training in livestock & preventive measures will form a regular NRM activity for CO members primarily involved inline stock development. Improved varieties of fodder will be introduced in areas rearing in livestock. Vegetable farming will be taken to scale. Farmers will be provided support in adopting improved seeds & cultivation practices through guidance. COs across the NRSP region will be motivated to start a forestation campaign. NRSP shall assist them in terms of long term credit. i.e. for 5 years. Since its Programme Inception, NRSP has keenly observed the needs of the communities regarding the crop production, orchard management and animal husbandry.

Social sector services (SSS)

Introduction NRSPs aim is to reduce poverty by supporting the community based organizations which were organized on the principle of self help. NRSPs Social Sector Services 23

section supports poor communities in meeting their needs in the areas of primary education, basic health, sanitation and drinking water.

Objectives: 1. To provide linkage between organized communities and Government/NonGovernment Institutions; 2. To ensure participation of community in various projects being designed and implemented at various levels, especially those focusing on children and women; 3. To facilitate the government in implementation of its social sector programs; 4. To help poor communities to access basic education and basic health facilities.

Social Mobilization (SM)

Rural Support Programme (RSPs) defines Social Mobilization as a tool that enables people to organize for collective action, by pooling resources and work together in order to lessen poverty and work towards development. It is a process that empowers women and men to organize their own community organizations which enable them to initiate and control their personal development. The basic purpose of the process of Social Mobilization is encouraging men and women to form a group, typically consisting of 20-25members, known as a Community Organization Education Most of the education programmes that NRSP has managed focused on school management and improvement through the participation of community.NRSP builds 24 (CO)

the local institutions (e.g. School Councils / School Management Committees / Village Education Committees). It also trains teachers. This helps in increasing the rate of literacy and in improving the quality of education especially in primary schools. NRSP has been invited to manage similar programmes in education by government and various non-governmental organizations.following is the approach of NRSPs approach in this regard:

Organize and sensitize local communities to give proper education to their children.

Build organized communities and guide them to effectively mobilize and manage their resources.

Build the capacities of the teachers through efficient teaching. Linkage of community members with the schools and relevant government departments or with other funding institutions.

Focusing on individual households to address the problem of dropouts or children who never enrolled in school.

Support communities in preparing and implementing school-based action plans. To facilitate government education institutions in having more access to community members.

Implementing school improvement programmes. To facilitate illiterate adults in joining functional education centers.

Projects:

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Revitalizing, Innovating, Strengthening Education (RISE) (Post Earthquake Education Recovery Programme) Donor : USAID/AIR

Project Duration : 4 years (August 2006 to August 2010) Objectives: 1) to improve financial and human resource management related to teachers training. 2) Improving performance of teachers. 3) Improving participation of community.

Increasing Community Participation in Education (DFID) Project: Donor : DFID

Duration of project : 34 months (December 2006 to October 2009) Objectives: The purpose of this project is to increase access to education , and to improve quality of elementary education in AJK through increased community participation. The key objectives are to:

Assist Education Department of Government of AJ&K to strengthen School Management Committees (SMCs) in Muzaffarabad, Neelum, Bagh and Kotli districts

To enhance role of SMCs by building their capacity and effectiveness through training and other support.

To build linkages between SMCs and Education department.

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To establish Community Teachers Resource Centers (CTRCs) in Muzaffarabad, Neelum, Bagh and Kotli.

To build the capacity of teachers and Education department officials to support community participation.

Health
Naya Qadam project: Donor : NRSP and Naya Qadam Trust & Jaipur Foot

Duration of project : August 2007 Objective:

To identify and facilitate persons with disabilities. To provide artificial limbs to physically disabled person

Pakistan Earthquake Disability Project:

Donor

: PPAF/World Bank

Duration of project : 3 year (July 2007 to June 2010)

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Objective:

The major objective of the project is to improve the quality of life and empowerment of people with disabilities in the earthquake affected areas. Following are the specific objectives;
1. Improved quality of the PWD through better health services, improved mobility 2. Improved mental health through psycho-social therapy. 3. Increase in PWD capacity development through community based services 4. Maintain specialized institutions to provide good quality rehabilitation services 5. Developed an environment where PWD, their families and communities take

action on disability PRIDE Project-Community Mobilization at Sub-District Level: Donor : IRC

Duration of project : 34 months (September 2007 to June 2010) Objectives: NRSP's overall objective is implementing PRIDE's community mobilization strategy in Bagh is to support the project's third intermediate goal: increasing demand of quality health services by communities.

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Physical infrastructure and technology development(PITD)

Introduction

Many rural communities in Pakistan lack the basic infrastructure required for water harvesting, storage and delivery. They also lack the means to link their communities with markets and health and education services. Roads, bridges, sewage disposal systems and drainage systems are amongst the top priorities identified by community members. Once communities identify the need for a physical infrastructure scheme NRSP's Physical Infrastructure and Technology Development section carries out studies relating to technical, financial and environmental aspects of the proposed scheme. Social Organizers work with community members to make sure they have both financial and managerial resources to implement and maintain the scheme. In all of these schemes, community members contribute at least 20% of the cost, and take responsibility for the operation and maintenance of the schemes. But due to the earthquake of October 8, 2005 the contribution of the community has been decreased to 3% for the O&M and this is the case for the projects going on in Muzaffarabad,

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Bagh and Poonch.

Role of PITD in the Current Scenario

The main focus of the Physical Infrastructure and technology Development (PITD) section is on providing support to local communities to meet their needs of physical infrastructure. This support involves: Providing Social. Guidance: Through interaction, the communities are made aware of the fact that the solution to their infrastructure needs is within their capacity. So they realize that they were capable of fulfilling their physical infrastructure needs a long time ago, had they not waited for external support. The roots of this dependency lay in the arrival of public sector development programmes Providing Technical Assistance: NRSP believes that the communities have the capabilities, and are able to plan and implement their own development initiatives. It involves villagers to take an active role in identifying, designing, constructing operating and maintaining infrastructure schemes. In a number of cases, communities have completed infrastructure schemes using only local resources and the technical support of the NRSP PITD section.

Rural credit and enterprise development(RCED)

Introduction 30

The goal of NRSP credit programs is to fill the vacuum in institutional credit that prevents the rural poor from improving their activities in the production sector. The RCED programmes does this through making small credit accessible to the rural communities in the fields of Agriculture, Livestock, Small Enterprise and Infrastructure Development. RCED is also upgrading managerial and production sills related to the activity and providing guidance and linkage for marketing. Once a CO generates sufficient savings in its collective bank account, it may write a resolution to obtain a loan. These loans have very suitable interest and these rates of interest for each category of loan have been fixed after a careful analysis of market situation. Repayment is made on a monthly installment basis in all types of loans. The CO responsibility for repayment of loan ensures honest utilization and timely repayment.

Credit Lines There are four main credit types under which NRSP gives credit. These are Agriculture, Inputs, Livestock Development, Enterprise Development and Small Infrastructure as individual enterprise. Agriculture Inputs In this credit line, credit is provided for fertilizers, agro chemicals, seeds, feeds/fodder and ploughing. The maximum amount of this credit per member is Rs.6000. The

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credit has to be repaid either in full amount or in installments spread over the period of 6 to 12 months. Service charge is 18% per annum. Credit for Small Infrastructure Schemes This credit line is provided to the people for productive infrastructure such as development of lands, installation of tube wells etc. This credit is repayable in monthly, quarterly or six months installations spread over a period of 36 months. Enterprise Development In this credit line, credit is provided both for working capital and for capital investment such as machinery, tools and equipment. Small-scale entrepreneurs engaged in manufacturing small business and marketing are eligible for this facility. Maximum credit per members 20000 with 18% service charge per annum. Installments must be made monthly for 12 months or 36 months for long-term loans Credit for Livestock Development Credit for Live stock development covers two phases, one for breading of goats, sheep and in second phase credit is provided for milk animals such as cows and buffaloes. In first category the credit ceiling is 6000 per member for sheep, goats and Rs.10000 for calves service charge is 18% per annum. In second category of credit, as for as buffalos and cows credit ceiling is 30,000. Repayment is made lump sum or monthly installments over a period of 24 months. For provision of credit NRSP has a nlinkage

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with First Women Bank by following the approach of the Grameen Bank of Bangladesh. Proposal growth The following proposals were drafted during the year: Proposal for Community Based Family Planning Program. Proposal for social mobilization element for NWFP forestry sector project. Proposal for social mobilization of the Punjab Scrub and rangeland Management Project. Proposal for funding Community Schools from the National Lottery Fund, UK. Proposal for Poverty Alleviation through Micro Credit. Proposal for Social Mobilization Component for Bahrain Area village Outreach project. Proposal for Social Mobilization Component of Pehur High Level Canal Project. Proposal for NRSP program support form UNDP. Proposal for combined funding form DEID, UK and LFL, UK for Community Schools.

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Proposal for Community Mobilization Component- Northern Education Program in AJK.

Chapter 2
Finance and accounts (F & A)
Introduction In the year 2008-09, the F&C section was assigned the added accountability of maintaining the accounts listed of RCED. As part of decentralization, various finical activities were developed in the regions. There steps led to more efficient management of financial transactions, particularly credit disbursement. As a result, the processing period of credit cases has been reduced; in most cases and issuing of the cheque is not more than a week. It is worth mentioning that, where as F&As volume of work increased, no new recruitments were made in the year. In the field, up to now, SOs has shouldered the responsibility of maintaining the accounts of credit disbursement and recovery. However, with/the record expansion of the credit programme, it became obvious that 34

the SOs will have to believe of these responsibilities so that they can increase their interaction with the community. Therefore, additional staff will be moved at the field unit to maintain record of credit disbursement, recoveries, and the entire program operation account at the field level. Bank borrowing from credit disbursement NRSPs expanded credit program requires a continuous cash flow proportionate to the accelerated demand for the COs. Whereas recoveries were partially covering cash requirements for credit disbursement, the rapidly increasing number of COs and beneficiaries within COs means that a much greater inflow of cash is required. NRSP can maintain its size of credit disbursement within available resources by enhancing the endowment, but such a approach would inevitably create a financial hurdle for other program activities. In light of fact, NRSP decided that in order to meet genuine credit needs, to explored, i.e. funds from commercial banks until donors take over the role. This was considered the most suitable solution. Statement of sources and applications NRSPs income for the year amounted to Rs. 4,239,022, of which 65% was income earned on the endowment and 25% constituted the grant received from the UNDP under PAK/92/006.The remaining 10%was made up of a grant from POP and income generated through various training programmes.

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Total expenditure for the period amounted to Rs.15, 229,095. This includes 57.3% in credit disbursement; 16.8% on Social Organization; administration cost is 9.3%. Human Resource Development expenses totaling 4.4%, and the remaining figure reflects the expenditure on miscellaneous inputs to communities. The difference between income and expenditure was met from recoveries on account of loans to COs borrowing from banks surplus from prior year and other increase / decrease in assets.

Personal field experience

My intended field was to observe and analyze the basic strategy and approach adopted by NRSP for its development program. NRSP made tremendous efforts for the welfare of the society. As earlier mentioned NRSP adopted different tactics for the poverty alleviation. Its people oriented approach successfully approved it operations. To Maintain Technical Information System /Management information System /Financial Information System and Other Manual and Computerized Books of Accounts. Receive Cash / Cheques And Prepare Receipts /Cheques Maintain Cash and Back Accounts. Prepare The Vouchers OF Daily Transactions. Enter The Receipts In MIS and Vouchers In FIS. Maintain the Records of Disbursements and Receipts Preparing Of Bank Reconciliation Statements.

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During my two months internship program I went through many observations and achievements. In 21st centaury world, the man has landed soon successfully and seeks new ways to capture Mercury and space as well. But the people are still in the whirl of poverty. We are deprived from our basic necessities of life (bread, clothes, and shelter) but with the passage of the time, we realized our rights and now we are fully aware of them and are making our full efforts to resolve them by ourselves. Although all of NRSPs sectors are making their best efforts for the eradication of poverty, but 1 was much impressed by HRD (Human Resource Development) sector and RCED (Rural Credit and Enterprise Development) sector efforts and their deep impact on the fate of the community. Man thinks from belly it is said. We arc poor because of resource constraints. Until we have not food to eat. We cant think for the journey to Mercury. We also needed resources (Human Resources) to overcome the poverty. These two sectors provide the facility to generate resources. Through Micro Credit financing people by Assets likely (livestock, merchandises and operating tools). Through training programs people arc able to know, how to operate these tools and Assets. This bilateral combination community is generating enough resources to meet the difficulties of life. Now the standard of life is improving. During internship period I was engaged in the preparation of following heads:

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Top sheets I prepared the top sheets related to various expenditures. These top sheets help in the preparation of vouchers. All expenditures related to a particular head e.g. electricity, fuel, telephone and vehicle maintenance etc are added and the bills are pasted on a blank paper. After this voucher is prepared.

Vouchers voucher is the basic document and is prepared when the transaction is about to be done.: Vouchers can also b classified as : Receipt voucher, Payment Voucher, Journal Voucher. Usually the Pre printed format is used. Voucher should have answer to following questions. Who, when, what, how, how `much, to whom, what for etc. All supporting to voucher must be attached. Vouchers should be initialed by the person preparing it. Following are the different types of voucher. 1. Bank payment voucher 2. bank receipt voucher 3. cash receipt voucher 4. cash payment voucher 5. journal voucher/ JV

1. Bank payment voucher The Bank Account must be credited and the account selected by the user is debited. The user selects the required Bank from the pop-up Bank menu and selects the 38

required account name from the list. Following are the features of bank payment voucher. Office Total amount requested Deductions Surcharge Net paid Amount in words Purpose of payment Debit and credit accounts: Account code Account description Amount person to which the payment is made vr. no date cheque no. bank accont no.

2. Bank receipt voucher: When payment is received through the bank. Following are the features of bank receipt voucher. Date Voucher no. office

Debit and credit accounts: 39 Account code

Account description Amount Amout in words Purpose of adjustment

3. Cash receipt voucher: Payment is received in cash form. Cash payment voucher has the following features; Date Voucher no. Office RO

Debit and credit accounts: Account code account description amount amount in words purpose of receipt

4. Cash payment vouchers: When payment is made in the form of cash..it has the following features 40 Pay to Payees invoice no Address Total amount requested office

Deductions Net paid Amount in words Purpose of payment

date vr.no

Debit and credit accounts: Acc. Code Acc. Description Amount

5. Journal voucher: Date Voucher no. Office

Debit and credit accounts: Account code Account description Amount Amount in words Purpose of adjustment

Bank reconciliation:

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NRSP district office Rawalakot has 14 bank accounts in Habib Bank Limited and these are reconciled at the end of each month, during this process we tele the bank accounts and FISS specific ledger accounts. It has two parts; first part contains the summary of bank accounts and second contains the bank reconciliation. Part 1: Summary of Bank Account Bank name Branch Account No. Nature FIS code

A. Opening Balance. B. Add deposits during the month. C. Less withdrawals during the month. D. Closing balance. Part 2: Bank Reconciliation Balance per bank statement. Add: Not credited in bank accounts. Less: Not debited in bank books. Less: Unpresented cheques. Balance as per our books

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Budgeting: NRSP is concerned with various projects that are granted by different donors from time to time. The budgeting process starts when NRSP receives proposal from the donor. Then the Finance and Accounts department prepares project budget within the allocated cost and sends to the donor organization for approval. After suitable changes by the donor the budget is approved. Whole budget is divided in four sections. 1. Capital Assets: All the assets which are purchased as a requirement of the project and are necessary for its completion. 2. Salaries And Benefits: Salaries and wages of the workers working on project. 3. Administration Cost: Office Rent Gas Electricity Vehicle petrol

4. Programme Activity: All programme activities under taken.

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NOTE: 80% of budgeted amount must be spending on programme activities and remaining 10 to 20% on other heads.

Cash in hand: Loan is given by NRSP to the people for various projects. It is disbursed for 12 month and interest rate is received on the loan on the basis of diminishing balance method. Firstly the loan section Recommend Verify Make credit case Then CRO (Credit resource officer ) verifies After this SCO (senior credit officer) recommends DAO (district accounts officer) processes cheque DPO (district programme officer) approves and loan is issued. Recovery is due after 45 days in 12 equal installments and these installments are recorded in CIH certificate and then entered in MIS.. The cash in hand certificate has the following features. 44 Location District office Date

Cashier A. Opening balance B. Add received

Receipt Amount C. Total available D. Less paid Vr no. Amount E. Closing balance Demonstration Numbers Total amount F. Total physical counted G. Excess/short (E-F)

MIS (Management information system): Mis is a unique software system used by the NRSP. The installments recorded in Cash in hand certificate are recorded in MIS. MIS software has the following features 45 Base tables Credit cases Mis utilities

Recovery closing Report

The task which I mostly do was the recording of cash in hand recoveries in MIS.

FIS (Financial information system): Vouchers are recorded in software called FIS.

Formaton of community organization (CO) Moreover I visited different field units with SOs (Social Organizers) During these visits Of Cos (Community Organization) were formed. A CO is important forum for empowering people to take an active role in management of local development and to work for the common purposes of the community. First of all people of a particular community identify their need of forming a CO

for their any common problem or purpose and call SO for CO formulation. SO of NRSP visit that community, introduce their organization and brief the

people about all that benefits which they can avail by CO formulation, All expected members should be present in that meeting. A CO contains at least 15 to 20 members. Members are registered and a president and manager are selected. Saving is collected and that saving is deposited in COs Bank Account which is

maintained by President and Manager Jointly. 46 All records are maintained by manager.

A saving book is given to every member for keeping his/her saving record. Two members of CO are selected for VO membership. Now the initial process is completed. Two meetings are held in every month in

which the members plan their future activities.

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Chapter 3
SWOT Analysis of NRSP

Strengths 1. Network of /Community based organizations (CBO,s) 2. Skilled Staff in Social Mobilization 3. Well Reputation in implementation of Difference projects 4. Activist /Volunteer Workers 5. Local Support Organizations Weaknesses 1. Political changes in Country harm the progress in diff erentProjects 2. There in no Permanent donors 3. No international access working at national level Opportunities 1. It can grow international level 48

2. Bulk Capacity building and learning institute. 3. Attraction for international donors 4. Vast potential for social mobilization Threats 1. Parallel institutes and organizations 2. Politically changing environment

SWOT FARMULA =

(S+O)-(W+T)

= (5+4)-(3+2) =9-5 =4

According to above analyses NRSP has more plus points as compare to negative aspects So we can say that the organization has Positive SWOT.

Suggestions
As being internee I deeply studied NRSP and examine activities of the organization very closely; the staff is very hard working and takes keen interest in their specific

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responsibilities. Some points are laying in organization that has to be improved as mentioned below:

Being the citizen of the developing country we should appreciate and welcome the rural development packages. Pakistan is rich of natural resources but the need is of proper use and maximum benefit out of it.

NRSP must be flexible regarding the packages and every individual should be given maximum opportunity in income generating activity.

NRSP must encourage small organization to have maximum effort for rural development.

The local people should be selected for jobs, because they know better about rural problems and they themselves have the experience.

NRSP should arrange household industries of poor farmers and should adjust this package in his participatory approach with rural community.

Manufacturing sector should be promoted by way of providing long term loans to this sector and NRSP should incorporate this suggestion in its participatory approach.

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Conclusion
It is quite clear from detailed study of NRSP that it plays a very important role in Pakistan to alleviate the poverty of rural people by enhancing their capabilities. NRSP actually act as a bridge between the donor agencies. Different departments of NRSP solve the problems of households living in rural area. NRSP organized the people into community organizations so that they can pool their resources, solve their problems collectively.

NRSP pays special attention to resolve the problems faced to females who lives in rural areas.

NRSP works through the formation of community organization at the village level and invite the community to form development partnerships. CO may be formed as male and female or mixed groupings also assume that the people who live in a village know their needs better than outsiders. The community organizations with the help of NRSP staff begin the process of situation analysis and assign priorities to the felt needs of the community.

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References http://nrsp.org.pk http://nrsp.org.pk/sectoral_activities_MER.thm http://nrsp.org.pk/sectoral_activities_IRM.thm http://nrsp.org.pk/sectoral_activities_ENRM.htm Note Bookhttp://Nrsp.Org.Pk/Sectoral_Activities_SSS.Htm

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