From microfinance to the building of local institutions : the origins and evolution of the micro-credit programme of the OPP's Orangi Charitable Trust, Karachi, Pakistan / Arif Hasan and Mansoor Raza.

Format:

Book

Author/Creator:

Hasan, Arif, 1943-

Contributor:

Raza, Mansoor.

Orangi Charitable Trust.

Language:

English

Subjects (All):

Microfinance--Pakistan.

Microfinance.

Finance--Management.

Finance.

Local government--Pakistan.

Local government.

Pakistan.

Rural development--Pakistan.

Rural development.

Physical Description:

xvii, 210 pages : illustrations ; 22 cm

Place of Publication:

Karachi : Oxford University Press, 2012.

Summary:

The Orangi Pilot Project (OPP) was established by the renowned Pakistani social scientist Akhtar Hameed Khan in the informal settlement of Orangi, Karachi, in 1980. The objective of the Project was to build models of participatory development that could overcome the problems faced by conventional development programmes in dealing with informal settlements and poverty related issues. Among other things the Project worked at establishing producer and consumer cooperatives. These attempts slowly evolved into a Micro-credit programme, the first of its kind in Pakistan. Although this programme was originally limited to Orangi, through the OPP's Charitable Trust (OCT), it soon moved to supporting NGOs and CBOs in the rural and urban areas of Pakistan in the operating of their own micro-credit programmes, aimed at small farmers, businessmen and rural women. This support consist of providing training-by-doing to local people in account keeping, market research, credit appraisal and issues related to defaults, for creating client associations that involve themselves in development and socio-political related affairs of their areas. This book describes the evolution of the OCT programme, its current vision, unconventional methodology, the leadership of the OCT partners and the conditions that have produced it, and issues related to the programme's management and sustainability. The book also describes the impact of the programme on human resource development and women, and changes in power relations between producers and market operators, and between different classes in the areas where the programme is operative. Book jacket.

Contents:

Part 1 The Origins and Evolution of the OPP-OCT's Micro-credit Programme 1

1 Introduction 3

Background 3

The Orangi Pilot Project 4

The Importance of Culture 5

The Micro-credit Context in Pakistan 5

Methodology for Documentation 6

2 From Cooperatives to Micro-credit 1983-1987 8

Background to the Formation of Cooperatives 8

The Process 9

The Beginnings of Micro-credit 11

3 Expansion of the Micro-credit Programme 14

The Principles and Objectives of the Programme 14

Funding 15

Initial Methodology: Phase 1: Loans through Social Organisers (1987-1992) 15

4 The Rural Development Trust Experience: Initial Phase 1992-1996 21

Concept and Methodology 21

OCT-RDT Projects 23

Results and Lessons Learnt 24

5 The Computerisation of Accounts and After 26

Loans through Extension 26

The Repercussions of Computerisation of Accounts 26

Causes of Default 27

Gender Dimension 28

Decisions Taken 28

Positive Factors 29

Reorganisation 29

Post-1999 30

OCT Branch Offices 31

The Link with the Pakistan Poverty Alleviation Fund (PPAF) and its Repercussions 31

Other Important Lessons Learnt 32

6 The Vision and Present Structure 34

Vision, Mission, and Objectives 34

Structure of the Head Office in Orangi 35

Structure of Branch Offices and Partner Organisations 37

The Role of the PPAF in OCT Operations 37

Rural Programmes 38

7 The Loan Process within Orangi Town 42

Process 42

Scale of Operations 44

Impact 45

8 The Loan Process Outside of Orangi Town 48

Process 48

Scale of Operations 50

Comparison between Loans Provided to Orangi and Outside of Orangi 51

Rural Versus Urban Loans 51

9 The Partnership Model 53

The Process of Becoming a Partner 53

The Leadership of the Partner Organisations 54

Training 56

Partner Organisation Staff 58

Lending 59

Fund Management 61

Monitoring 61

Recovery 62

Baby Organisations 63

Branch Offices versus Partner Organisations 63

Role and Disasters 64

Sustainability 64

10 Impacts and Repercussions of the Partnership Model 67

Impact on PO Leadership and Staff 67

Human Resource Development 68

Changing Relationships 68

Impact on Women 71

Impact on the PPAF Policies 72

Axioms from the Field 73

11 Major Findings 75

Part 2 Case Studies of Partner Organisations 79

1 Khajji Cooperative Society 81

2 Sassui Cooperative Society 89

3 OCT Branches: Pir Jo Goth 93

4 MIOP Livestock 97

5 Mehran Education Welfare Society 103

6 Foundation for Rural Development 111

7 Saath Development Society 116

8 Mehran Rural Development Society 123

9 Indus Community Development Organisation 126

10 . Shadab Rural Development Organisation 131

Part 3 Appendices 141

1 A Note on Welfare Work by Akhtar Hameed Khan 143

2 Pakistan Microfinance Network 146

3 Persons Interviewed and Organisations Visited 149

4 Literature Consulted 151

5 Pakistan Poverty Alleviation Fund (PPAF) 153

6 PPAF Reporting Requirements 155

7 Members of the Board of Trustees 165

8 Sample of Loan Form and Related Documentation 166

9 Details of Loan Categories in Orangi 185

10 Urban versus Rural Loans: Few Variables 186

11 Mats Programme, 22 December 2010 190

12 Mcrofmance Organisations Network of Pakistan 192

13 Extracts from OCT Financial Statements, 30 June 2010 205.

Notes:

Includes bibliographical references and index.

ISBN:

9780199065097

0199065098

OCLC:

820669372