FOREWORD

Abraham H. Maslow’s Theory of Hierarchy, a five-tier model of human needs with the physiological requirements at the base to self-actualisation needs at the apex, is a concept that many of us would be familiar with. Maslow believed that the needs in the lower part of the hierarchy, i.e., the physiological (e.g. access to food, water, shelter and clothing) and safety (e.g. legally and financial security), must be met for an individual to reach the higher-up needs. If one takes a closer look at this model, a person can fulfil most of the needs in the first two tiers if they have access to a secured funding source. Hence, having a stable ‘livelihood’ becomes a necessity and a critical part of an individual’s life as it is a medium to support living. Chambers and Conway describe livelihood as a sustainable activity required for strengthening means of living, having the capability to withstand and recover from shocks or stress, provide employment for the next generation, and enhance other livelihoods at various levels and terms.

Over the past decade, the employment rate in India has seen significant changes due to the collective efforts by the government and civil societies through various policies, employment drives and job opportunities created due to growth in different industries. However, with the onset of the pandemic, the Covid-related restrictions have left many unemployed and unable to access even the most basic physiological needs, thereby reversing the progress attained. In 2020-21, India faced its worst economic contraction since its independence owing to the second wave of the Covid-19 and frequent lockdowns that amplified the poverty levels across the country. With millions pushed into poverty and countless children suddenly orphaned, this dramatic turn of events is indeed a matter of concern for various stakeholders as desperate cries of help ring through the nation.

With “Livelihood” as its theme, this edition of Keystone captures different aspects with evidence-based articles that explore key issues prevalent at the ground level and showcase successful support programmes and proven project models that have improved the livelihood resilience of the communities. The importance and need for a resilient livelihood for the benefit of children are highlighted in the first article, followed by a brief of our Cash and Voucher Programme that has positively impacted the communities by providing monetary aid to support the families and to restart their businesses. This issue also includes articles on the Climate Resilient Agriculture project and our work in establishing and promoting Farmer Producer Organisations, both of which have played a significant role in elevating the income of the target farmers and enabling them to be economically resilient during the challenges brought on by the pandemic. With skill training becoming pertinent for getting employment, the Prime Minister’s Kaushal Vikas Yojana (skill-training scheme) and World Vision India’s role in promoting the scheme among the youth have also been discussed in this edition.

Though World Vision India is a child-focussed organisation, we understand that the presence of sustainable livelihood within a family is imperative for the well-being of every child. With this perspective, the organisation has woven short-term livelihood-related projects into its strategy to help families cope with the post-pandemic stresses. We hope that the articles featured in this issue will help initiate stimulating and insightful discussions on the topic at all levels, ultimately ensuring the well-being of children.

Happy reading!

The Aftermath Of The Covid-19 Second Wave

Rural India & Children Need A Lifeline

By Madhav Bellamkonda, CEO & National Director - World Vision India

Introduction

"Ring-a-ring o' roses, A pocket full of posies, A-tishoo! A-tishoo! [or Ashes Ashes], We all fall down..."

We grew up singing this nursery rhyme as kids, hardly paying attention to its origin or meaning. Peter and Iona Opie, English folklorists, opined that the acts of sneezing and falling-down described in the rhyme rendered credence to the theory of it originating during the Great Plague of England in 1665[1,2]- the 'rosy' rash accompanied by sneezing or coughing and finally the victims "fall down". Some folklorists surmise that this song was enacted by those children who remembered the plague. The sight of long queues in front of hospitals, people carrying oxygen cylinders, overwhelmed crematoriums, etc., are disturbing visuals surrounding the 30.5 million COVID-19 cases and 400,000 deaths (approximately)[3], making India the third country with the highest fatalities in the world. However, job losses, growing hunger and orphaned children are increasingly becoming the face of this second surge of the pandemic in India besides the alarming scarcity of oxygen cylinders and concentrators. Similar to the first surge in March 2020, the second surge leaves behind both health and economic crises in its trail, both urban and rural India.

Children & The Pandemic

The widespread perception during the first pandemic wave, backed by data, was that children are not affected by the COVID-19, unlike the other population groups. However, the reality is far from being favourable for children.

The disastrous effects of the March 2020 lockdown and the consequential fallout on the economy, specifically for the population at the bottom of the economic pyramid, are still fresh in our memory. According to two studies, the first wave of the pandemic in India pushed approximately 230 million[4] Indians into poverty with earnings less than $5 per day and around 75 million[5] people who faced extreme poverty with $2 or less as their income per day, accounting for nearly 60% of the global increase in poverty[6]. Despite the increased spending of almost 16% in the second quarter of 2020-21[7] as a strategic measure to reverse the economic contraction of 23.9%[8] seen in the first quarter of the financial year, the economy did not recover to the expected levels as other growth drivers had not picked up the pace.

The devastating second wave of the pandemic, on the other hand, exposed the underfunded and under-equipped healthcare system that prevented the country from effectively responding to the crisis. In a matter of weeks, India's daily caseloads[9] reached an average of over 300,000 cases per day in May 2021, with around 8.5 hospital beds per 10,000[10] people and eight physicians per 10,000 patients. It also spread deeper into the hinterland, affecting millions with a vengeance, bursting the myth that COVID-19 is only an urban phenomenon. The positivity rate in the 533 rural districts was more than 10%[11] at the beginning of May 2021 and rose sharply by the middle of the month[12,13]. Continuance of such high positivity rates in the future would spell disaster to the 895 million[14] rural population. While many agencies are confident that the fatalities have been underreported, the 200,000[15] (approx.) deaths recorded during the second wave makes one wonder about the number of children who might have been orphaned. The cost incurred for the treatment of affected family members may have economically weakened many.

Through emergency procurement of medical supplies by various agencies, a narrative of technical assistance can easily hide the impoverished story of human crisis as it can be sidestepped with a dismissive argument that a technical problem requires a technical answer. Unless one breaks down the technical narrative of this crisis and broadens it to gain a touch of ethic, this crisis will only be perceived as a health crisis and not a humanitarian one. We need to turn our attention quickly towards other life support systems, in economic terms, as we grapple with poverty, loss of livelihoods and extreme hunger. With millions of vulnerable people already pushed into poverty, owing to the first wave of the pandemic, the resultant effect on children will be unimaginable. Those living in poverty require a lifeline of support, and the narrative emerging from the grassroots level is straightforward – food to eat and money to survive (refer to the graph below)[16].

Our wrongly placed confidence that children are somehow immune to the COVID-19 strain is shattered as the caseloads and fatality rates increase daily among children across the country[18]. If one considers the large population of malnourished and vulnerable children living in rural India, they are certainly not prepared for any wave of COVID-19.

Systems to Synergies: A Collaborative Child-Focused Response

One of the most visible initial impacts of the pandemic on children was on their education as 1.5 million schools closed down, affecting around 247 million children in elementary and secondary schools in India[19]. The closure of schools also means that about 120 million[20] children would not be receiving their nutrition diet through the Mid-Day Meal programme, and an estimated 115 million[21] children are at the risk of malnutrition due to the pandemic. Considering the existing reality of the malnourished under-five children in India[22], an increase in the number and a higher prevalence of anaemia in girls points towards a frailer future generation, leading to a weakened workforce for the country.

As poverty looms over most households across rural India, the potential increase in child labourers and early marriages can be foreseen. Temporary economic respite for the groom's family in the form of 'dowry' and transfer of responsibility of one family member from the bride's side due to lack of money for sustenance can become motivating factors for families to resort to early marriages. During the second wave, the higher fatality rate among the age group of 30-40 has left many children without either one or both parents, with disturbing reports of people offering children for adoption through social media, thereby leading them into the hands of human traffickers. Violence against children, such as trafficking and abuse, could become more prevalent, especially for orphaned children, if left unaddressed at its nascent stage.

The stark realities of children's suffering will not disappear in one swell of humanitarian aid. They are systemic and require a stronger will to implement what has already been provisioned in the policies. A collaborative effort among the Government, community-based organisations (CBOs) and civil society organisations (CSOs) with the aim to NOURISH, EDUCATE and PROTECT the children will be of utmost significance if we intend to reverse the adverse effects of this global pandemic.

The cash transfer provision by the Government to the women account holders of its Jan Dhan Yojana for meeting the nutritional needs, beyond what is given through the Public Distribution System (PDS), is an important initiative. However, the possibility of many poor people being excluded, inoperative accounts and lack of awareness can create a massive drawback to the scheme. In the operational areas of World Vision India (WV India), apart from the distribution of food baskets, nutrition gardens are being promoted to address the daily nourishment needs of the families. These play a crucial role in ensuring that the dietary requirements of every household are met at a minimum cost. Likewise, CSOs can support the poor households in setting up kitchen gardens and assist the Government in monitoring and improving the nutrition intake, especially among girls, pregnant/lactating mothers, infants and children, using the existing infrastructure of Anganwadis and ASHA workers. The Government could consider recognising child-related services as essential services, such as allowing immunisation programmes for infants and children, to be carried out on a priority basis.

Undoubtedly, the digital divide has caused a massive dent in the education system, with scores of children unable to continue their studies. The Remedial Education Centre model of WV India aims to bridge that gap by enabling educated youth from the communities to assist their learning. A community-based model like this, with elements of peer learning, can be vital in helping children cope with the educational challenges of the post-pandemic era.

Another critical area where the CSOs need to focus on is child protection. Although there are Government-mandated district, block and village level child protection committees, a community-based model is essential to ensure that identifying children in need and their monitoring can be carried out at the grassroots. WV India Child Protection Unit model aims to enable members from the community to identify and address instances of child abuse, early marriages and trafficking. The model has been proven to address the child protection needs of the communities and has successfully created child-friendly spaces to ensure child well-being. Much of the work ahead on the ground involves changing the attitude and behaviour of the key stakeholders in the communities – parents, caregivers, faith leaders etc., to care for the children. Organisational structures such as the School Management Committees, District Child Welfare Committees and the local panchayats, among others, can play a more significant role in ensuring child well-being at the grassroots.

The devastating effects of the loss of parents or caregivers could leave children vulnerable to several forms of abuse. The effects on their emotional and cognitive growth could be deeper and long-lasting if not addressed on time. A direct cash transfer programme by the Government to the caregivers of the orphaned children could ensure their care. The subsequent monitoring and reporting could be done through the District Child Welfare Committees (DCWCs) of the respective areas. Many CSOs could perhaps play a vital role in building the capacity of the caregivers of the orphaned children and supporting the children through psycho-social care through trained counsellors. A model like the CPU can be adopted and practised in every rural community, connecting them with the government-run Child Protection Committees for a sustained existence to protect, support and monitor orphaned children and their well-being.

The discussion on the negative effects of the pandemic will not be complete without addressing the topic of livelihood. Loss of livelihood and earning members within households has been the main factor for many to become impoverished. With millions relying heavily on the unskilled employment sector as a means for livelihood, the restrictions imposed and the prevalent panic are not providing a beacon of hope for these workers. Improving and rebuilding livelihood is crucial to lowering the prevalent issues which are not favouring children. Along with the efforts of the Government to create employment opportunities, CSOs can focus on building the capability of the unemployed labour force by supporting them to explore and adopt varied resource generation activities. Women from the community can be trained to take up social enterprises by accessing government schemes such as the Pradhan Mantri MUDRA Yojana (PMMY) that provides loans for non-farming small and micro-enterprises. The existing Self Help Groups (SHGs) can be mobilised to take up a more prominent role in providing financial assistance to those in need. The programme models of the Bangladesh Rural Advancement Committee (BRAC) and the Grameen Bank of Bangladesh are stellar examples of microfinance and microcredit for the poor. WV India's Economic Development Assistance (EDA) model and the microfinance model seek to provide the monetary support that the poor, especially those living in the rural areas, require to rebuild themselves.

Conclusion

Combating the aftershocks of the second wave and a successful outcome for the well-being of children will only happen if there is greater trust between the Government and CSOs. CSOs must recognise the Government's existing systems and schemes and not waste precious resources re-inventing the wheel. Instead, strengthen the system by identifying and filling systemic gaps. The Government, on its part, perhaps, should recognise the capability of the CSOs in bringing the much-needed softer touch and last-mile connectivity to the appropriate schemes, ensuring their effectiveness and reach. An environment of mutual accountability and trust could be the right framework to combat the pandemic. The genesis of COVID-19 in India may not be anyone's responsibility, but the end of the pandemic is certainly everyone's responsibility.

This crisis will remain etched in people's memories for a very long time, particularly in the minds of those who lost their near and dear ones and those who survived the crisis, exacerbated by a failed system. Long and sustained COVID-19 protocols and child-focused policies for children in urban and rural areas are key to safeguarding children from possible future waves. Our inability to protect our children will reinforce the line "Ashes, ashes, we all fall down", giving it a contemporary context.

Endnotes

1. Opie, Iona; Opie, Peter (1997) [1951]. The Oxford Dictionary of Nursery Rhymes (2nd ed.). Oxford: Oxford University Press (Nabu Press). pp. 364–365. ISBN 978-0198600886.
2. Opie, Iona; Opie, Peter (1985). The Singing Game. Oxford: Oxford University Press. pp. 221–225, 227. ISBN 978-0198600886.
3. As on July 5, 2021. https://www.mohfw.gov.in/
4. Azim Premji University (2021) State of Working India 2021: One year of Covid-19, Centre for Sustainable Employment, Azim Premji University. https://cse.azimpremjiuniversity.edu.in/wpcontent/uploads/2021/06/SWI2021_Web_25June.pdf
5. https://www.pewresearch.org/fact-tank/2021/03/18/in-the-pandemic-indias-middle-class-shrinks-and-poverty-spreads-while-china-sees-smaller-changes/
6. https://www.pewresearch.org/global/2021/03/18/the-pandemic-stalls-growth-in-the-global-middle-class-pushes-poverty-up-sharply/
7. KPMG,2020. India’s Rural Economy: Key to Economic Revival and Sustainable and Equitable Growth. https://assets.kpmg/content/dam/kpmg/in/pdf/2020/12/india-s-rural-economy.pdf
8. https://thewire.in/economy/india-gdp-record-shrinks-fy21-q1-covid-19-lockdown
9. https://www.covid19india.org/
10. https://www.fitchsolutions.com/pharma-healthcare/resurgence-covid-19-infections-will-take-toll-indian-healthcare-system-15-04-2021
11. https://indianexpress.com/article/india/massive-covid-spread-533-districts-reporting-over-10-positivity-7311426/
12. https://timesofindia.indiatimes.com/india/positivity-rate-20-or-more-in-2-out-of-every-5-districts-in-india/articleshow/82488107.cms
13. https://www.deccanherald.com/state/top-karnataka-stories/two-karnataka-districts-among-top-5-with-highest-covid-test-positivity-rate-in-india-986612.html
14. https://data.worldbank.org/indicator/SP.RUR.TOTL?locations=IN
15. https://www.aljazeera.com/news/2021/7/2/india-covid-death-toll-400000-black-fungus
16. https://idronline.org/covid-19-donors-need-to-look-beyond-funding-oxygen/
17. The numbers do not add up to 100 since the organisation had the option to choose more than one funding support area.
18. https://timesofindia.indiatimes.com/city/bengaluru/40000-under-9-kids-test-positive-in-2-months-in-karnataka/articleshow/82818566.cms
19. https://www.thehindu.com/news/national/closure-of-15-million-schools-due-to-covid-19-impacted-247-million-children-in-india-unicef-study/article33981143.ece
20. https://www.indiatoday.in/coronavirus-outbreak/story/no-school-due-to-covid-19-disrupted-learning-affected-kids-health-lancet-task-force-1792064-2021-04-17
21. https://swachhindia.ndtv.com/115-million-children-risk-malnutrition-due-to-covid-19-pandemic-india-child-well-being-report-53597/
22. https://thewire.in/health/child-nutrition-levels-in-india-worsened-over-last-five-years-finds-nhfs-survey

For further details, contact madhav_bellamkonda@wvi.org

Go to Contents | Next Article

The Cash And Voucher Programme

A Safety Net for Vulnerable Households

By Rebecca S. David, Head- Policy and Research

With contributions from Blesson Samuel, Head-Emergency Relief and External Engagement; Bhaswar Banerjee, Former CVP Technical Adviser for Asia Pacific – World Vision International and Saji Varghese, Head-Humanitarian Programming

Inputs provided by Anjana Purkayastha, Senior Director- Program Quality, Strategy and Research; James Neil Devasahayam, Head -Technical Programs and Technical Solutions and Ann Kavitha, Consultant – World Vision India.

Introduction

The COVID-19 pandemic has been extremely hard on the lives and livelihoods of people. As a solution to tackling the pandemic, various state governments and the Indian Central Government compensated livelihoods mostly in the form of cash transfers to vulnerable populations, especially those possessing labour cards, in addition to enhancing rations, giving out pensions for the elderly, disabled etc.[1] The Azim Premji University, in a study, estimated that one year of the COVID-19 pandemic has pushed 230 million people into poverty with an increase in the poverty rate by 15% in rural India and 20% in urban India[2]. With the unemployment rates at 13% and the labour participation falling to 39.7%[3], the Indian labour market is at its worst since the nationwide lockdown during April and May 2020.

US $ 5.6 billion was programmed for CVA in 2019; this constituted 17.9% of total international humanitarian assistance (IHA)- double the amount which was programmed in 2016, which was 10.6% of IHA at that time [7]

This article looks at how cash and voucher transfers can help families in these dire, emergency situations. The Cash and Learning Partnership (CALP) Network defines Cash and Voucher Assistance (CVA)[4] as ‘all programs where cash transfers or vouchers for goods or services are directly provided to recipients. In the context of humanitarian assistance, the term is used to refer to the provision of cash transfers or vouchers given to individuals, households or community recipients, not to governments or other state actors’[5]. In recent years, the FAO has observed a growing practice in the use of cash-based transfers for crisis risk management and humanitarian and transition programming[6]. According to the State of the World’s Cash Report (2020) published by the CALP Network, $5.6 billion was programmed for CVA in 2019; this constituted 17.9% of total international humanitarian assistance (IHA)- double the amount recorded in 2016, which was 10.6% of IHA at that time[7].

A review of evaluations of unconditional cash transfers concludes that the early evidence is promising and notes that ‘[e]merging-market governments have also begun to shift away from expensive, regressive, and distortionary subsidies of basic commodities such as food or fuels and instead are giving cash to the poor’ (Blattman et al., 2017). Advocates of cash and voucher-based approaches claim that they can be more cost-effective, timely, allow beneficiaries greater choice and dignity, and boost local economic activity (Paul, 2005). In-kind transfers have historically been a way for Governments in many developing countries to transfer resources to poor households (Gadenne et al., 2017). Under the ‘Grand Bargain’[8], international donors and aid agencies committed to making humanitarian aid more efficient and endorsed a shift towards greater use of cash and vouchers under Commitment 3: ‘increase the use and coordination of cash-based programming’. The Grand Bargain commits donors and aid organisations to provide 25% of global humanitarian funding to local and national responders by 2020.

An FAO note on ‘Cash-Based Transfers in FAO’s Humanitarian and Transition Programming’ talks of how cash transfers lead to food security[9] through:

• Providing beneficiaries with purchasing power and access to agricultural inputs, goods and services
• Increasing the purchasing power of beneficiaries and helping to offset the risks of nutritionally vulnerable populations by buying less expensive, quality food.
• Sustained CTs have proven effective in reducing debt and increasing savings and productive investment, preventing malnutrition among vulnerable populations.

World Vision India's Cash & Voucher Programme: A Brief

There is increasing global evidence in support of both cash and in-kind transfers-CVAs (Aker, 2014; Longhurst et al., 2020). As the COVID-19 pandemic ravaged on, World Vision India (WV India) responded with its Cash and Voucher programme, in keeping with World Vision’s commitments to the Grand Bargain. The term Cash and Voucher Programme (CVP), in WV India, refers to all programmes where cash or vouchers for goods or services is directly provided to individuals, household or community recipients, enabling them to meet their basic needs. World Vision[10] has made a commitment to deliver at least 50% of its humanitarian assistance through multi-sectoral and multipurpose cash, where the context for CVP is appropriate such as in urban contexts, where there is community acceptance, market functionality etc. Thus far, the organisation’s CVP programme has reached the numbers mentioned below -

The CVP model has been designed to provide aid that is flexible, caters to inflationary issues[11] and could serve as insurance against price shocks. World Vision did comprehensive market assessments and checked the feasibility of CVP with field teams to decide on the modalities for COVID-19 response. The cash/commodity vouchers ranged from ₹1000 to ₹10,000, thus accommodating price variations. The intervention is being provided to migrant workers who have returned to their villages, small and marginal farmers, landless tenant farmers, vulnerable families, daily-wage workers, and small/street vendors who have lost their livelihood and become economically weaker due to the negative impact of the pandemic on the Indian economy.

Commodity vouchers are more viable when money could get stolen, when certain products are not available freely on the market. Often, there are substantial variations in prices for essential commodities across space, even within local geographic areas. To address these situations, and given the diversity of needs across the community, WV India included the provision of Multi-Sector Cash and Voucher Programme for the aid of most vulnerable households or disaster-affected households to meet their basic needs (WVI, 2017); it is calculated based on local consultations, income-expenditure analysis, minimum wages of the region and peoples’ needs. This programme is used when two or more sector-specific needs can be addressed through local markets by using cash or vouchers. For example, shelter or food could be a priority need for affected families, and assessments showed that beneficiaries could buy food or shelter from the local markets using cash or vouchers. Though money is provided to meet specific objectives, households have the flexibility and choice on how to spend their cash based on their priority needs. Both approaches require humanitarian actors to understand the local economy and market dynamics in the aftermath of a disaster and continuous monitoring after interventions.

An illustration of the indicative workflow of the CVA approach within WV India for supporting small entrepreneurs is given below for a better understanding of how the model has been designed for the optimum benefit of the recipients. The direct presence of the staff on the field gives the organisation a significant advantage at every level – from identification of beneficiaries to post-distribution monitoring. This eliminated the involvement of any third party, thereby ensuring effective and efficient delivery of the aid.

Types Of Cash And Voucher Assistance (CVA) Given By WV India For The COVID-19 Response[12]:

Unconditional Cash Transfers

Unconditional cash transfers are given with no conditions for beneficiaries to fulfil prior to receiving the money and no restrictions on how the funds should be used. It is assumed that if basic needs have been identified during the assessment, the money will be used to cover those expenses. Unconditional cash transfers are often used at the start of an emergency and should be used for the short term.

Conditional Cash Transfers

Conditional cash transfers are given on the condition that recipients ‘do something’ (for example, rebuild their house, plant seeds, establish or re-establish a livelihood) in return for receiving the cash (which is a qualifying condition). The cash vouchers given by WV India are mostly for Landless Tenant farmers and Small Entrepreneurs; this initiative supported 5381 small entrepreneurs

Commodity Vouchers

A voucher may be used to provide predefined goods and services. It can be paper or electronic; the voucher usually is exchanged in designated shops, specifically organised fairs or designated service providers. Commodity vouchers in WV India’s programming provide access to agricultural inputs such as seeds, bio-fertilisers, vermicompost, bio-pesticides, manual sprayers and any other agriculture inputs to be exchanged in designated shops. These are targeted at farmers/tenants to exchange quantity and quality of specified goods or services with participating vendors, which will restart/strengthen farming. Commodity vouchers are most suited under present circumstances to avoid public distribution and maintain physical distancing.

Cash for Work

Payment may be made for work on community or public-works programmes to improve or rehabilitate community services or infrastructure. It is important not to confuse CFW with paying casual labour since CFW is a form of conditional transfer; it should also usually be lesser than the ongoing wage rates. As part of WV India’s COVID response, this was given to 1369 beneficiaries.

The four different approaches adopted by WV India for COVID response complemented the existing social security schemes and relief packages offered by the Government of India. The CVA, if appropriately designed and tailored to the needs of the population, can be an effective and efficient tool to address the needs of affected people.

Challenges & Gaps Observed

• The constant lockdowns and restrictions due to the pandemic became barriers to the distribution of CVA vouchers.
• Different levels of understanding and capacity among various stakeholders and lack of awareness of CVA emerged as a challenge.
• Humanitarian agencies within India should strengthen cash working group (CWG) coordination to improve cash and voucher assistance efficiency and effectiveness. There is a need to harmonise cash transfers programming approaches as well as enhance synchronisation in assessment, designing, and implementing cash delivery mechanisms among agencies.
• There is a gap in humanitarian CVP and social protection programming in India. A more integrated approach must be promoted.

Recommendations

The four different types of CVP used effectively by WV India in the programming reached the most vulnerable families. Some recommendations[13] to strengthen the programme are as follows:

• Work with relevant Government entities in charge of Disaster Risk Management, Social Welfare, District Administrations, etc., could be a practical entry point to ensure that the CVP is also recognised as an essential service to reach the people in the field.
• Prioritise digital data systems (with data protection of beneficiaries ensured), along with utilising and complementing government data systems, which would go a long way.
• Strengthen programme accountability mechanisms to ensure that CVA maximises benefits to people affected by the crisis.
• Promote and leverage linkages between humanitarian Cash Transfer and Social Protection schemes in India. CVA should aim to complement robust social protection systems where they exist and contribute to their strengthening where they are weak or are at an early stage.
• Develop country-specific evidence to harmonise cash transfers programming approaches and promote the most appropriate distribution models and delivery mechanisms across sectors. Strengthen cross-sectoral coordination, especially with social protection, WASH, nutrition, health, and shelter.
• Develop and periodically update Minimum Expenditure Basket (MEB)[14] for India to improve the efficiency of multipurpose cash transfers. Currently in India, MEB is not being followed as different organisations follow different transfer values.
• Develop the capacity of the different humanitarian actors (government organisations, NGOs, private sectors, and networks) on Cash and Market-based programming following international standards and guidelines and create an in-country knowledge platform.
• Integrate “do no harm” approaches while designing cash and voucher programme as it is necessary to plan gender-sensitive measures to reduce risk to women and children.
• Prioritise strategic collaborations between organisations, capacity building of programme personnel and establishing standard operating procedures to strengthen the operational efficiency and effectiveness of cash delivery.

Conclusion

WV India’s CVP has been successful in reaching out to support thousands of people during the COVID-19 pandemic. This programme is also being implemented by other WV offices in different countries for emergency responses and recovery programmes (WVI, 2017). The flexibility of cash/commodity vouchers allows the benefits given to be timely, cost-effective and successful in ensuring dignity for the beneficiaries. The extensive and effective implementation of the cash and commodity voucher programme by the government as well as the civil societies would certainly prove to be beneficial for those living below the line of poverty, struggling to revive themselves economically.

Endnotes

1. Tata Institute of Social Sciences (TISS) Response to COVID19 Series – 2 Policy Response of the Union and State Governments: TISS document (TISS document)
2. Azim Premji University (2021) State of Working India 2021: One year of Covid-19, Centre for Sustainable Employment, Azim Premji University
3. As on June 6, 2021. https://www.cmie.com/kommon/bin/sr.php?kall=warticle&dt=20210607151754&msec=740
4. CVA and CVP are used interchangeably in World Vision and mean the same.
5. calp-glossary-english.pdf (calpnetwork.org)
6. http://www.fao.org/fileadmin/user_upload/emergencies/docs/Guidance%20Note%20CashVoucher.pdf
7. SOWC2020_Full-report.pdf (calpnetwork.org). https://www.calpnetwork.org/wp-content/uploads/2020/07/SOWC2020_Full-report.pdf
8. Grand Bargain | Agenda for Humanity. http://agendaforhumanity.org/initiatives/3861
9. Food & Agriculture Organization (FAO). (2013). ‘Cash Based Transfers in FAO’s Humanitarian and Transition Programming http://www.fao.org/fileadmin/user_upload/emergencies/docs/Guidance%20Note%20CashVoucher.pdf
10. World Vision International is one of the signatories to the ‘Grand Bargain’. Source: WVI Cash & Voucher Strategic Roadmap FY 19-22. (2019) Global Disaster Management Team, World Vision International.
11. https://www.thehindubusinessline.com/opinion/columns/narendar-pani/Cash-transfers-can-be-inflationary/article20313809.ece
12. This section was heavily influenced by World Vision International’s document on ‘Cash Transfer Programming and Operations (2017)’
13. Some of the recommendations in the section are influenced by a webinar on ‘Cash and Voucher Assistance during COVID-19’, organized jointly by Sphere India and World Vision India on the 8th of July 2021. The speakers were from the World Food Programme (WFP), ECHO, Plan International, Sphere India and World Vision.
14. A Minimum Expenditure Basket (MEB) requires the identification and quantification of basic needs items and services that can be monetized and are accessible in adequate quality through local markets and services. Items and services included in an MEB are those that households in a given context are likely to prioritize, on a regular or seasonal basis. An MEB is inherently multisectoral and based on the average cost of the items composing the basket. It can be calculated for various sizes of households- calp-glossary-english.pdf (calpnetwork.org)

References

• Aker, Jenny (2014). ‘Comparing Cash & Voucher Transfers in a Humanitarian Context: Evidence from the Democratic Republic of Congo’. Source: https://www.povertyactionlab.org/sites/default/files/research-paper/4276_Cash_versus_Vouchers_JennyAker1sept2014.pdf
• Blattman, Chris, Michael Faye, Dean Karlan, Paul Niehaus, and Chris Udry (2017). ‘Cash as Capital’. Stanford Social Innovation Review (SSIR)
• CALP (2020). ‘The State of the World’s Cash- Cash & Voucher Assistance in Humanitarian Aid’. The Cash Learning Partnership. Source: SOWC2020_Full-report.pdf (calpnetwork.org)
• Centre for Monitoring Indian Economy (CMIE): Source: https://www.cmie.com/kommon/bin/sr.php?kall=warticle&dt=20210607151754&msec=740
• Food & Agriculture Organization (FAO). (2013). ‘Cash Based Transfers in FAO’s Humanitarian and Transition Programming’. Source: http://www.fao.org/fileadmin/user_upload/emergencies/docs/Guidance%20Note%20CashVoucher.pdf
• Gadenne et al (2017). ‘In Kind Transfers as Insurance’. International Growth Centre (IGC) S-35323-INC-1.
• Longhurst et al (2020). ‘Linking Social Protection & Humanitarian Cash & Voucher Assistance’. Source: High-Level-Briefing-Paper-Part-I-WEB-EN.pdf (calpnetwork.org)
• Honorati, M, U Gentilini, and RG Yemtsov (2015). ‘The state of social safety nets 2015’. World Bank.
• Harvey, Paul (2005). ‘Cash_and_Vouchers_in_Emergencies’. Humanitarian Policy Group (HPG), Overeseas Development Instititute (ODI)
• Saferworld et al., (2018). ‘Overview of Cash Transfers and Vouchers in 2018 Humanitarian Response Plans’. Stockholm: SIDA.
• World Food Programme (2014) ‘Cash & Vouchers Manual’. WFP
• World Vision International (2017). ‘Cash Transfer Programming & Operations’. WVI
• WVI Cash & Voucher Strategic Roadmap FY 19-22. (2019) Global Disaster Management Team, World Vision International.
• WV India's CVP impact video

Contact rebecca_david@wvi.org for more information

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Producer Collectives for Resilient Livelihoods

By Pratima Kollali, Research Officer

This article has been developed with inputs from Anjana Purkayastha, Senior Director- Program Quality, Strategy & Research; James Neil Devasahayam, Head -Technical Programs and Technical Solutions; Daniel Raj A, Livelihood Specialist (Non-farm Sector); Sieti Banu Immanuel, Livelihood Specialist (Farm Sector); Meren Nampui, Senior Manager- Program Monitoring; Marseibor S Lyngdoh, Associate Director- North East Zone; Garikimukkula Kamala Kumari, Coordinator Strategic Alliance Monitoring; Tabita Francis, Senior Manager- Program Monitoring and Subramania Siva P, Research Officer.

Introduction

Agriculture is the largest source of livelihood in India. India is the second-largest producer of agricultural commodities[1] and 70% of rural households depend primarily on agriculture for their livelihood. Despite the growth in the farming sector in the last decades, the real change in income of small and medium farmers has not increased in proportion to their efforts. Around 82% of the total farming population comprises small and marginal farmers[2] , living on an average monthly income of ₹6426[3]. These farmers face several challenges in getting access to credit, negotiating prices, inputs, water, access to technological innovations, logistics, supply chain management, marketing facilities and achieving economies of scale. It is evident that they are struggling to survive[4], although the agricultural sector is the backbone of the Indian economy[5] .

This has been exacerbated by the protracted COVID-19 pandemic, which has brought additional risks and challenges upon small and medium farmers[6]. The nation's most stringent lockdown yet, has had a complex and adverse effect on the Indian agriculture sector[7] , making it necessary to provide financial and entrepreneurial assistance to these farmers to make them more resilient. This article intends to present evidence and postulates that these growing pains of Farmer Producer Organisations/Companies (FPOs/ FPCs) can be solved through the active engagement and interventions by Producer Organisation Promoting Institutions (POPIs) in terms of creating linkages to the market, credit and supply chains, value chains, identifying appropriate business models and the capacity building and handholding of the management team during the pre-production, production and post-production stages, thereby strengthening farmers' livelihood[8]. The article cites success stories and examples of how World Vision India's interventions as a POPI has equipped FPOs/FPCs with the tools and training to transition from subsistence farming to sustainable farming.

Farmer Producer Organisations in India

The Ministry of Agriculture, Government of India, launched a pilot initiative to promote member-based, farmer-led organisations in 2011-12 in a partnership with state governments that involved mobilising 2.50 lakh farmers into 250 FPOs (each with an average membership of 1000 farmers)[9]. Through the implementing partner, the Small Farmers' Agribusiness Consortium (SFAC) that was responsible for creating an enabling environment to promote FPOs in the country, farmers could register themselves as an FPO under special provisions of the Companies Act,1956[10] with the producers as the shareholders. These organisations have the potential to increase the value added by small and medium farmers, create employment, achieve economies of scale and gender equality, challenge structural inequalities and oppressive social norms, reduce poverty and achieve the 2030 Agenda for Sustainable Development.

Since these organisations are in line with their commitment to the SDGs and its ambitious vision of "Doubling the farmers’ income by 2022"[12], the government has been vehemently promoting FPOs since the last decade. With its newest budget announcement of ₹700 crores being demarked for setting up 2,500 FPOs in 2021-22 targeting 60,000 farmers[13] as it endeavours to create 10,000 FPOs in the next five years[14]. However, the past evaluation of 5000 registered[15] FPOs paints a grim picture (refer to the graph below). The lack of availability of capital, onerous compliance requirements, membership size, difficulties in forging market linkages and the lack of managerial acumen are some reasons why FPOs are not thriving in the country[16].

What are Producer Organisation Promoting Institutions

In this fast-paced economy where change is a constant, the FPOs face stiff competition from commercial market forces at various levels, and the lack of professional and qualified managers aggravates the situation. To build the capacity of FPOs, the government allows private institutions to actively support and promote these organisations using their own resources as a philanthropic gesture or with the noble objective of the socio-economic development of the farmers. These facilitating agencies are termed as Producer Organisation Promoting Institutions (POPIs). The aim of the POPIs is to train the FPOs in management, business development and capacity building, and the National Bank for Agriculture and Rural Development (NABARD), SFAC, government departments, corporates and domestic and international aid agencies can fund a POPI to promote and handhold any FPO which is in its nascent years. However, only legally entitled agencies can become POPIs to enter into valid legal contracts with the FPOs and other related institutions.

According to NABARD[18] , a POPI is responsible for enabling the FPO to be self-sustainable and ensuring that the members acquire technical and managerial skills to run the organisation even after the exit of the facilitating agency. POPIs are also involved in conducting regular evaluations and monitoring of the FPOs to ensure progress and timely reporting to the funding agencies. Training on various technical and administrative aspects are provided to the POPIs and by the funding agencies.

Can POPIs Facilitate The Growth of FPOs?

A group of small and marginal farmers as an FPO have better bargaining power - both domestic and foreign and the required financial strength to calculate high-value crops. However, to achieve this utopian ecosystem and accelerate overall growth, FPOs around the country need to overcome several challenges - mobilising farmers, getting the FPO registered, the lack of adequate capital, technological know-how, a weak sense of ownership among the shareholders, lack of gender equity, business planning and the overall lack of marketing expertise. In a study conducted on FPOs in the Indian state of Chhattisgarh, only 70% of the surveyed FPOs were functional and struggled with the lack of vision, direction, marketing and value addition, business acumen and the inability to attract capital or credit from external sources[19] further cementing the need for more handholding and capacity building. With 50% of India's FPOs in the nascent stage, there is immense potential to be harnessed to benefit small and medium farmers exponentially.

With their knowledge and expertise, POPIs can play a crucial role in strengthening the FPOs through financial and technical support that most FPO members lack. Instances of POPIs successfully mobilising FPOs can be seen across the country with organisations like International Crops Research Institute for the Semi-Arid Tropics (ICRISAT), Centre for Indian Knowledge Systems (CIKS) and Sahabhagi Vikash Abhiyan (SVA), among many others, working with the farmers to add value and channelling them towards sustainable growth. As POPIs, these organisations have been instrumental in assisting the FPOs in creating market linkages with processing industries and financial institutions. Training in management and entrepreneurial skill development, exposure visits, and handholding support through personal visits or online counselling for FPOs form a part of the capacity building initiatives by the POPIs.

World Vision India (WV India) is firmly committed to achieving the SDGs, improving the lives of the most vulnerable population and enhancing child well-being. With these targets in place, it is also one such organisation that dons the role of a POPI to some of the FPOs/FPCs in its operational areas. The role of a POPI is in line with WV India's Building Secure Livelihoods project model, which aims to sustainably build secure livelihoods for small and medium farmers through gender, social and economic inclusion.

It is a recognised POPI that has actively been promoting farmer's resilience and livelihood and has helped register 16 FPOs consisting of 360 farmer groups mobilising 6067 farmers. The FPOs are in the nascent stage and WV India is assisting the FPOs strategically and programmatically by helping them create business plans for approval by NABARD, early-stage grants to withstand the stress induced by the pandemic and initiate processing units. The effectiveness of this collaboration wherein farmers are empowered and involved in creating transformational communities can be inferred from the numerous stories of transformation and data gathered from the field. Three success stories are included below to attest to the cogency of this assertion.

Evidence From The Field

SUCCESS STORY 1: Partnership for Progress

LOCATION: Bhimadole Mandal, West Godavari District, Andhra Pradesh

The Bhimadole FPC has successfully benefitted from collective selling and collective procurement of inputs under the tutelage of WV India. The early-stage capacity building and handholding by WV India, in the form of training, outreach visits and linkages, have collectively increased the capacity of the farmers to negotiate prices and establish access to the digital market and large-scale retailers and have equipped the farmers with the skills to create a five-year market-led business plan, and in accessing credit from banks. With the linkages and guidance from WV India, the FPC is the first of its kind in the district, with a valid procurement license obtained from the Andhra Pradesh State Civil Supplies Corporation Ltd. This early success has generated a gross profit of ₹34 per quintal and now amounts to ₹20,00,000 in the last year. This collaboration is the first step towards building a sustainable business model and has benefitted farmers by reducing the overall cost of production and receiving the optimum sale price for their products, augmenting their household income.

"The FPO has created a sense of confidence, ownership and purpose within us. We are all working together as one community and reaping the benefits collectively. With the training and guidance offered to us, we plan to expand our agri-production to other crops." - Mr Mennem T Rupus Kumar, CEO-Bhimadole FPC

SUCCESS STORY 2: Urlong Tea – Dreams Come True

LOCATION: Myakenraw, East Khasi Hills, Meghalaya

A remote village in Meghalaya, once infamous for its drunken brawls, poverty and country liquor production, has risen like a phoenix. This model village, transformed by the vision of the village headman, WV India and women farmers, is now a leading tea producer in the Northeast region. Producing a brand of rice and millet liquor known as "Pyrsi" a decade ago, the same Khasi women are now brewing green and white tea, branded as 'Urlong' which translated from the local language means 'Dreams come true'. This collective of 20 farmers, of which 11 are women, now en masse produce over 3000 kg of organic tea leaves annually and export to Australia. With assistance from WV India to set up a tea-processing unit and funds from the Ministry of Tribal Affairs, this transformative ripple is now being emulated in seven neighbouring villages in the East Khasi Hills. WV India has distributed 60,000 tea saplings to build the capacity of these neighbouring villages to start a tea plantation.

"The community went from being infamous for alcoholism to becoming producers of world-class tea. Now, in every household, children have become the centre of our investment, especially the girl child, who is the custodian of the clan and the land." - Mr D. L. Nongspung, Lead Initiator of the Urlong Tea.

SUCCESS STORY 3: Collective Action for Collective Good.

LOCATION: Muzaffarpur and Vaishali, Bihar

The collectivisation of farmers in Vaishali and Muzaffarpur in Bihar is a true testimony of local mobilisation in unprecedented and challenging times. The FPOs used the wheat produced within their community to aid some of the most vulnerable households within their districts during the first wave of the COVID-19 pandemic. Premium quality wheat, through the new voucher system introduced by WV India as a COVID-19 response measure, benefitted 1,947 households. This is a shining example of community mobilisation that led to higher resilience and created livelihood opportunities for the FPO members.

"During this pandemic time, WV India has helped us a lot, because of which my whole family was fed by the support provided." - Mrs Soni Devi & Mr Randheer Singh (Vaishali, Bihar)

Along with these transformative success stories, WV India, in its commitment to ensure gender equity and overcome barriers to women farmers, has customised women-centric training on new farm techniques, cultivation of kitchen gardens, livestock feed production, fruit juice production, processing units, vermicompost production, creating business plans and accessing capital. This has directly led to increased women's participation in FPOs, putting them at the forefront and actively involving in decision-making while gaining entrepreneurial skills. Across the FPOs working with WV India, 27% of the board members are women, with two FPOs having more than 50% women board members.

Recommendations & Conclusion

Policy-Level Recommendations

• Incentivise institutional lenders to lend to FPOs and allow private equity to enter Farmer Producer Companies (FPCs) to help transition from the grant-based model to a self-sustaining business model.
• Provide concessional credit flow to strengthen agriculture infrastructure.
• Promote women's empowerment through gender integration by revisiting the FPO/FPC guidelines with a gender lens.
• Incentivise and set-up exclusive women-centric FPOs/FPCs across the agricultural sector.
• Offer larger equity grants and support to establish processing infrastructure for FPOs with a minimum of 51% women shareholders.
• Create a platform to enable a hassle-free supply chain.
• Develop rural infrastructure and improve logistics across the country to ease transportation from one place to another.
• Focus on training younger, educated youth of the country to become agri-based entrepreneurs.
• Link FPO products to the Public Distribution System (PDS).

Promoting Organisation-Level Recommendations

• Route farmer-centric schemes of the government through the FPOs/FPCs to ensure wider coverage.
• Emphasise strengthening the capacity of the FPOs and creating linkages with institutions to secure grants and loans.
• Strengthen FPOs to promote Social Enterprise Development with a focus on developing a market for secondary produce.
• Assist FPOs/FPCs to complete the agri-cycle (pre-production, production and post-production).
• Select local talent and build capacity to develop entrepreneurial skills.

FPOs show great promise to provide small and medium farmers with better bargaining power and the tools to mobilise the power of collectivism while keeping individualism at the forefront. The intervention of a POPI in this environment will help FPOs create market and credit linkages, twinning with government schemes, crop and seed advisory services and the capacity-building exercises that will enhance sustainability and productivity. Moreover, indirectly, these can improve the livelihood of farmer members by augmenting their incomes and reducing poverty and vulnerability to shocks such as the COVID-19 pandemic. The multi-stakeholder partnership will directly contribute to meeting the 2030 Agenda for Sustainable Development, improve the lives of the most vulnerable households, achieve gender equity and most importantly, improve overall child well-being.

As 50% of the FPOs are in the nascent stage, it is vital to guide them and provide financial support to initiate them strategically. It is also reassuring to see the budgetary demarcation and emphasis provided to FPOs in the recent past. There is an urgent need to encourage more farmers to join FPOs to reap the benefits. In the last year, the FPOs partnered with WV India have shown tremendous progress and cement the fact that effective POPIs can be instrumental in the process. For the FPOs incubated, there is a need to monitor and evaluate progress periodically and initiate strategic programming as and when necessary to ensure sustainability, progress and continued farmer resilience, and POPIs may be the key enabler for an FPO to become vibrant and sustainable.

Footnotes

1. According to the latest National Crime Records Bureau (NCRB) data, the total number of farmers/ farm laborers who died by suicide in 2019 was 10,281 and this accounted for 7.4% of the total deaths by suicide.

Endnotes

1. FAO factsheet. FAO in India. India at a glance. http://www.fao.org/india/fao-in-india/india-at-a-glance/en/
2. FAO in India. Factsheet. http://www.fao.org/india/fao-in-india/india-at-a-glance/en/#:~:text=Agriculture%2C%20with%20its%20allied%20sectors,275%20million%20tonnes%20(MT).
3. GOI. Ministry of Statistics and Programme Implementation, National Sample Survey Office,2014. Key Indicators of Situation of Agricultural Households in India. http://mospi.nic.in/sites/default/files/publication_reports/KI_70_33_19dec14.pdf
4. According to the latest National Crime Records Bureau (NCRB) data, the total number of farmers/ farm laborers who died by suicide in 2019 was 10,281 and this accounted for 7.4% of the total deaths by suicide.
5. ICAR. National Agricultural Scenario. https://icar.org.in/files/state-specific/chapter/3.htm#:~:text=India%EF%BF%BDs%20economic%20security,change%20in%20the%20foreseeable%20future.&text=In%20the%20same%20period%2C%20the,fallen%20from%2061%20to%2019%25.
6. WBCSD,2020. Impact of COVID-19 on smallholder famers – insights from India. https://www.wbcsd.org/Overview/News-Insights/WBCSD-insights/Impact-of-COVID-19-on-smallholder-farmers-in-India
7. Grant Thornton & FICCI, 2020. Decoding agriculture in India amid COVID-19 crisis. https://ficci.in/spdocument/23267/FICCI-GT-Report-on-Agriculture.pdf
8. SFAC India, 2013. Policy and Process Guidelines for Farmer Producer Organizations. http://sfacindia.com/UploadFile/Statistics/Farmer%20Producer%20Organizations%20Scheme.pdf
9. SFAC India, 2013. Policy and Process Guidelines for Farmer Producer Organizations. http://sfacindia.com/UploadFile/Statistics/Farmer%20Producer%20Organizations%20Scheme.pdf
10. SFAC,2019. Strategy Paper for promotion of 10,000 Farmer Producer Organizations (FPOs). http://sfacindia.com/UploadFile/Statistics/StrategyPaperonPromotion10KFPOs.pdf
11. Nicholls Elizabeth, Ely Adrian, Birkin Linda, Basu Prathiba & Goulson Dave,2020. The contribution of small-scale food production in urban areas to the sustainable development goals: a review and case study. https://link.springer.com/article/10.1007/s11625-020-00792-z
12. NITI Policy Paper, 2017. Doubling Farmers’ Income. https://niti.gov.in/writereaddata/files/document_publication/DOUBLING%20FARMERS%20INCOME.pdf
13. The Economic Times,2021. Government to set up 2,500 Farmer Producer Organisations; set to cost Rs 700 crore. https://economictimes.indiatimes.com/news/economy/agriculture/government-to-set-up-2500-farmer-producer-organisations-set-to-cost-rs-700-crore/articleshow/80867950.cms?from=mdr
14. Ibid.
15. NABARD,2020. Farmer Producers’ Organisations (FPOs): Status, Issues and Suggested Policy Reforms. National Paper. https://www.nabard.org/auth/writereaddata/CareerNotices/2309195308National Paper on FPOs - Status & Issues.pdf
16. Govil, Richa, Annapurna Neti and Madhushree R. Rao. 2020. Farmer Producer Companies: Past, Present and Future. Azim Premji University, Bangalore.
17. SFAC India,2019. Strategy Paper for promotion of 10,000 Farmer Producer Organisations (FPOs). http://sfacindia.com/UploadFile/Statistics/StrategyPaperonPromotion10KFPOs.pdf
18. NABARD, 2015. FARMER PRODUCER ORGANISATIONS. Frequently Asked Questions (FAQs). https://www.nabard.org/demo/auth/writereaddata/File/FARMER%20PRODUCER%20ORGANISATIONS.pdf
19. Joshi Sanjay and Choudhary Vijay, 2018. Performance of Farmer Producer Organisations (FPOs) in Different Regions of Chhattisgarh State: A Case Study.

For more information, contact pratima_kollali@consultant.wvi.org

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Upskilling Programmes for The Rural Indian Youth

A Policy Brief on The Pradhan Mantri Kaushal Vikas Yojana

By Ann Kavitha, World Vision India

Inputs on WV India's livelihood initiatives by James Neil Devasahayam, Head – Technical Programmes and Solutions

Introduction

With an estimated 833 million people living in more than 600,000 villages[1], rural India is home to approximately 70% of the country's total population. While agriculture and its allied activities remain the chief source of livelihood for most people, the non-farm sector includes the semi-skilled workers, migrant labourers, daily-wage workers, small business owners and specific-skill workers whose trade form varies from region to region (e.g., silk weavers, bangle makers, etc.). Since the onset of the global pandemic in 2020, the frequent lockdowns and restrictions have hurt the country's economy, leaving countless inhabitants unemployed and without income. For the 229 million[2] youth of India, the situation has gotten much worse than before. During the nationwide lockdown, the unemployment rate reached 23.52%[3] in April 2020 that raised huge concerns among many on the future of the nation's economy. Although a recovery has been made with the lift on restrictions, bringing the unemployment rate in the country to 7% in July 2021, 34% of the youth is still unemployed[4,5]. They have lost almost two years of plausible income, with many trained in no particular skill-set. With the doors of schools still shut, the online classrooms are not accessible to many, especially those living in poverty and in the rural areas. Hence, the increase in the number of school dropouts, especially among the children in higher secondary classes, is an inevitable phenomenon that is predicted across the country.

A rapid evaluation of the current scenario urges the need to address this gap by not only exploring ways to create more employment opportunities but also train the youth in various skills that would enable them to get assured placements, bridging the gap that has been created due to the sudden halt in education for many. The Government of India has been working towards creating employment opportunities and upskilling the country's workforce for more than a decade now. The Mahatma Gandhi National Rural Employment Guarantee Scheme, National Food for Work Schemes and the Pradhan Mantri Rozgar Scheme are some of the prominent initiatives by the Centre, along with several state-led initiatives that have been introduced and promoted vigorously over the past few years. One such notable scheme is the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), one of the Centre's flagship programmes. This article provides a brief of this policy with a discussion on its implementation and reception on-ground. The development of this article has been supported by a telephonic interview with an experienced consultant in the sector and a desk review of secondary data, published literature and the organisation's project-related documents provided.

The Pradhan Mantri Kaushal Vikas Yojana

Started in 2015, the PMKVY has been implemented in three phases thus far. The Budget allocated in the current fiscal year for the scheme is approximately ₹2500 crores, roughly ₹220 crores less than the previous year[6]. The programme aims to enable a large number of Indian youth to take up industry-relevant skill training that will help them secure a better livelihood by providing them with a skill certification[7]. According to the official website, around 1.07 crore people have been trained and 18.95 lakh candidates have been placed in jobs under this policy[8]. The training programmes under this scheme are designed to provide theoretical and practical expertise on different skills for meeting the requirements of multiple sectors, ranging from aeronautics, telecom and hospitality to the information technology, healthcare and fashion industries. With assured placements, each trainee is encouraged to complete the course to earn a government-approved certificate that qualifies them for employment opportunities in the respective sectors.

The scheme has been lauded for its pro-student approach, which strives to maximise the trainees' benefit with the utmost transparency. Private companies, individuals, Non-Governmental Organisations (NGOs), etc., can become the training partners after successfully meeting the requirements set by the Centre and the states. This allows for the establishment of training centres across the country of an unvarying standard and legal compliance.

Details of the scheme can be found on the official website.

Importance of Skill Development Programmers in The Post-COVID Context

An estimated 230 million[9] people being pushed into poverty since the past year is undoubtedly a discomforting thought. This scheme comes in as a ray of hope for those looking to upskill themselves or learn a new skill. The second wave of the pandemic in the country laid bare the chasms in the healthcare sector. The government's focus has now shifted towards strengthening the healthcare system and boosting the economy[10,11,12]. The need for more frontline healthcare workers and first responders could be an opportunity for the youth looking for employment to equip themselves with the necessary certification. The Information Technology, Telecom and Infrastructure Development sectors are also among the top industries that are rapidly growing which require skilled workers. Promoting this scheme among the potential workforce, especially from the rural areas and the unemployed migrant, daily-wage workers, could decrease the country's unemployment rate, thereby increasing the number of people living above the poverty line.

Returning to school/university while there is a question mark about the source of the next meal for the family or the future for those orphaned due to the COVID-19 virus may not be the option for many children. For those living in the rural areas, the future seems much bleaker with the lack of infrastructure and awareness on various relief measures set up by the government. The PMKVY considers candidates from the age of 15, which can be the critical factor in ensuring that even the partially educated youth get certified through the Recognition of Prior Learning or Short-Term Training courses, helping them bridge the gap created by the sudden halt in regular education.

The post-pandemic events have taught us that an integrated response approach is crucial for supporting those affected, especially the children. Emphasis on a singular issue such as loss of education or increase in child labour may not be sufficient. Instead, a closer look at the piling issues reveals their interconnectedness, making 'livelihood' a solution to most problems. Being a child-focussed organisation, World Vision (WV) India's objectives revolve around boosting the well-being of children, especially the most vulnerable, in its operational areas. The organisation, along with its primary objectives, has included livelihood resilience as a short-term goal that would prove beneficial for the children in the long run, recognising the importance of at least one stable source of income for a family in these uncertain times. In the past year, WV India has trained 40 youth as para-vet service providers, who have provided their services to more than 5000 people involved in the goat rearing livelihood sector. Around 11,600 youth from selected operational areas are currently being motivated to join the National Skill Development Council (NSDC) approved centres for training and placement. This initiative is being carried out with the necessary support from two Programme Implementing Agencies – Reaching Hand and Nav Gurukul Organisation – to help the unemployed youth to equip themselves with a skill that would qualify them for employment in a secured environment as opposed to struggling to make ends meet. In Delhi, 15 Job Melas have been organised, along with the Good Worker organisation, that have successfully placed more than 155 youth in different jobs with an income between ₹15,000 and ₹20,000. Over the past few years, the organisation has also been instrumental in enabling more than 1,500 women from the urban areas of Faridabad to be trained and placed in garment export units with an earning of ₹7,000 of ₹15,000 per month.

Highlights & Challenges of The PMKVY

For any unemployed youth, especially those who belong to the economically weaker section, a 'no cost' skill training programme with an assured placement assertion is perceived as an excellent opportunity to upskill oneself to meet the challenging demands of the employers. The scheme protocols mandate the training centres to ensure that the trained student has a minimum of three months of continued employment, giving the student some time to get a foothold in the workplace without the fear of an early dismissal. The prospect of getting better work and its related benefits serves as an encouragement for the rural youth to get this certification free of cost.

However, every coin has two sides. "The scheme is like a double-edged sword," says Dr Rishabh Harinarain, Director - Business Development, Tennex Consulting. Although the scheme is highly beneficial for the students, the training centres are entrusted with time-consuming, tedious back-end paperwork to ensure consistency, transparency, and accountability. The government's approval and transfer of payment take a while, leading to delay in meeting the expenses incurred by these centres. "Ensuring accountability is critical to protect the trainees and the taxpayers' money. Yet, a lot of training centres find it difficult to keep up with the paperwork and the changes in the policy that raises the demand for consulting agencies, like ours, to provide the necessary support," asserts Dr Rishabh. Even though the point of attraction for the scheme is the "free of cost training", the trainees are not provided with a stipend which could have been a motivating factor. The guidelines specify a stipulated amount that the trainees can avail as a transportation allowance but claiming it takes time. The high cost of establishment, including trainers and equipment, can deter private organisations from joining the initiative.

Having little or no access to training facilities makes the rural youth vulnerable to issues of livelihood and unemployment. There is a need to bring the scheme to the hinterland to ensure that they are given equal opportunities like their peers living in an urban setup. As most training centres depend solely or majorly on the reimbursement by the scheme for continuation, the high cost of setting up, lack of motivated youth and awareness and the delay in receiving act as deterrents. If the training centres in the urban location are facing losses, one can imagine the condition of those in the rural sites. With the rising demand for skill-based workers and the availability of employable youth in rural areas, it is pertinent that more training centres be established in these areas.

Taking The PMKVY to It's Goal

The PMKVY is undoubtedly an important and beneficial initiative for millions of youth today. The following recommendations may be incorporated at the policy level to ensure its successful implementation –

• An increase in the budgetary allocation for the execution of the scheme would help in strengthening the initiative.
• The policymakers can consider providing monetary relaxations for the initial setup of the training centres, specifically in the rural areas, which could motivate the establishment of more centres, benefitting the youth in these locations.
• Simplifying paperwork, reporting mechanisms and quicker fund processing may help reduce the strain on the centres with minimum administrative staff.
• Awareness on existing government schemes can be included in the curriculum for the benefit of the trainees.
• Currently, the onus of branding and publicity of the courses lies with the individual training centres. Along with that, active involvement of the district/block/village-level authorities in promoting the scheme and the centres through radio campaigns, print advertisements, video commercials in local channels, conducting awareness programmes in schools, etc., might prove to be effective in reaching out to more people.
• Allocating monetary incentives for the candidates during the training period and ensuring employment within the candidate's home district are two major recommendations that policymakers can consider to encourage enrolment and minimise the dropout rate.

Every civil society organisation (CSO) has its unique objectives. Given the current scenario, recognising the importance of livelihood is critical. WV India is playing a pivotal role in mobilising youth from the communities in 112 locations across the country to join various training institutes supported by PMKVY. Similarly, other CSOs can identify and support the youth in their respective operational areas to join the courses by partnering with the nearby training centres. The strength of the CSOs lies in the rich knowledge of the communities that they work with, hence harnessing that deep connection to help them access the available schemes rather than replicating them is vital for the eligible beneficiaries to receive the aids provided by the government.

This skill development initiative by the government indeed has immense potential for its successful realisation. The Centre's target is to ensure that 1.5 crore youth get trained in various skill sectors by 2026[13] . As the nation is taking measures to recover from the negative impacts of the pandemic, a collective response and initiative are essential. As the government proactively seeks to strengthen the scheme, the CSOs can provide the necessary awareness, access and promotional support, thereby creating a positive transformation within the communities.

Endnotes

1. Census of India, 2011. The World Bank data estimates that the rural India comprised of 65% (approx.) out of the total 1.3 bn population. https://tradingeconomics.com/india/rural-population-percent-of-total-population-wb-data.html
2. Census of India, 2011
3. https://www.statista.com/statistics/1111487/coronavirus-impact-on-unemployment-rate/
4. https://tradingeconomics.com/india/unemployment-rate
5. https://unemploymentinindia.cmie.com/
6. https://www.indiabudget.gov.in/doc/eb/sbe91.pdf
7. https://pmkvyofficial.org/
8. http://164.100.47.193/lsscommittee/Labour/17_Labour_19.pdf
9. https://economictimes.indiatimes.com/news/economy/indicators/one-year-of-covid-pushed-230-million-indians-into-poverty-azim-premji-university/articleshow/82408369.cms?from=mdr
10. https://home.kpmg/in/en/home/insights/2021/02/india-healthcare-sector-transformation-in-the-post-covid-19-era.html
11. https://economictimes.indiatimes.com/news/economy/policy/india-doubles-healthcare-spending-opens-up-insurance-in-get-well-soon-budget/articleshow/80629478.cms?from=mdr
12. https://www.financialexpress.com/budget/budget-2021-governments-focus-on-supply-side-to-kick-start-economic-growth-more-job-creation-on-cards/2187562/
13. https://economictimes.indiatimes.com/news/economy/policy/govt-to-start-skills-training-under-pradhan-mantri-kaushal-vikas-yojana-in-600-districts/articleshow/80284319.cms

References

• https://www.livelihoods-india.org/uploads-livelihoodsasia/subsection_data/state-of-indias-livelihoods-report-2019.pdf
• https://indianexpress.com/article/jobs/122-million-indians-lost-jobs-due-to-pandemic-these-skills-can-help-them-be-employed-again-6510032/
• https://www.financialexpress.com/economy/salaried-jobs-lost-10-million-counting/2235600/
• https://www.business-standard.com/article/economy-policy/over-7-5-million-people-lose-jobs-in-april-as-lockdowns-bite-cmie-121050301171_1.html
• https://pmkvyofficial.org/App_Documents/News/PMKY-Guideline_report_(08-01-2021)V3.pdf
• https://www.livemint.com/news/business-of-life/out-of-school-children-likely-to-double-in-india-due-to-coronavirus-11597574633476.html
• https://economictimes.indiatimes.com/news/india/1-37-crore-candidates-enrolled-under-pmkvy-since-launch-of-scheme-govt/articleshow/84889607.cms
• https://www.nsdcindia.org/vision-mission
• https://www.oecd.org/coronavirus/policy-responses/strengthening-health-systems-during-a-pandemic-the-role-of-development-finance-f762bf1c/

For further information, contact ann_kavitha@wvi.org

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