Project proposal

Project Proposal

The WE CARE Market ProjectCuzco, Peru

Submitted to:

Mott MacDonald (Americas CEO)c/o International Trade Centre (ITC)Palais des Nations, 1211 Geneva 10Switzerland

Date of Submission:

November 27, 2013

The Hunger Project Contact:

Chas YoungProgram ManagerThe Hunger ProjectEmail:   [email protected]: 403-988-2365Project Managers:

Lauren BeerMichael GirardDipti JosephLiana Polsinelli

Table of Contents

i. List of Acronyms………………………………………………………………3ii. Map…………………………………………………………………………….4iii. Executive Summary…………………………………………………………5

1. Background and Rationale………………………………………………………….62. Project Description……………………………………………………………….….73. Cross Cutting Issues………………………………………………………………104. Project Management and Organizational Capacity……………………………..125. Monitoring and Evaluation…………………………………………………………156. Budget………………………………………………………………………………..15

Annexes………………………………………………………………………………18Table 1 – Results-Oriented Logical Framework Table 2 – Activity ScheduleTable 3 – Monitoring and Evaluation PlanTable 4 – Risk Management Plan

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List of Acronyms

Chirapaq: Center for Indigenous Peoples’ Cultures of PeruCo-op: CooperativeITC: International Trade CentreMIF: Multilateral Investment FundTHP: The Hunger ProjectWE CARE: Women’s Empowerment, Change and Restructured Economy

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Map

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1.0 Executive Summary

The number of women in leadership positions remains an important indicator of progress on gender equality. Unfortunately for women in Peru, the majority lacks the necessary economic opportunities to achieve equal access to education, health care, capital, and decision-making powers in the political, social, and business sectors. This project aims to address this significant gender disparity by increasing women’s representation in decision-making positions and governance structures by way of economic empowerment. With a focus on indigenous women living in and around the Cuzco area, this project will establish a women-led cooperative-run artisan market (WE CARE) geared towards the tourism industry. The Hunger Project (THP) will work hand in hand with our Peruvian partner organization, Chirapaq, to develop the organizational and training capacity of the cooperative to ensure its long-term sustainability. The cooperative members will be financially supported through microcredit loans funded by the Multilateral Investment Fund (MIF) and undergo an initial week-long capacity-building workshop and training session in business development, administration, financial accounting, and marketing strategy in an effort to enhance their knowledge, skills and practices in entrepreneurship.

This project is consistent with ITC’s overall objective, namely to increase developing countries’ access to trade opportunities and business development in an effort to achieve sustainable economic growth. ITC recognizes that women are central to achieving these goals and is reflected with their commitment to strengthen institutions that support women-owned business enterprises (WBEs), specifically in Latin America. Once established, the WE CARE market will increase the profiles of the cooperative members’ small businesses through their mutual association and ability to market jointly with other owners in their cooperative contributing to a sustainable income-generating enterprise.

The project will be launched at the start of 2014 with a 1-year commitment term. The overall budget for the project is US $265,382.

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2.0 BACKGROUND AND RATIONALE

According to the 2012 United Nations Development Report, Peru ranks 73 out of 148 countries on the gender inequality index, an average measure taken from three dimensions-reproductive health, empowerment, and economic activity. In all three aspects, women lag behind men significantly due to pervasive social prejudice and discrimination. Gender inequality undermines women’s ability to participate fully in all areas of society and creates barriers to upward social mobility. The Cuzco area, with Machu Picchu being the most significant tourist attraction in the region, is a location where women can prosper socially and economically if systemic changes are made allowing this identifiable group to become more engaged members of society.

Women in Peru have traditionally been a group that has been misrepresented and exist without necessary goods and services to ensure a prosperous life. The systemic barriers that exist further contribute to the issues that indigenous women face. Though these issues have been, by law, addressed, women living in Peru continue to struggle as the minority group, facing both legal and structural challenges that make positive change incredibly difficult. Furthermore, the small advances that women are making in terms of social, political and economic gains are not going unnoticed, and are adding fuel to the fire. Indigenous women in Peru are now more than ever, likely to experience violence both in and outside their homes. This perpetual cycle of poverty and violence ensures that women remain as the lowest members of society, prohibiting any advancement or increased quality of life. Although women represent half of the population of Peru, they do not have equal access to resources or power. Due to prejudice and discrimination, women suffer disproportionately from the country’s pervasive poverty and unemployment. Although human rights issues affect many sectors of the population there are many violations that affect women to a greater extent due to prevailing patriarchal systems.

Several constraints restrict the ability of the rural poor women to participate in labour markets. Access to labour markets is a significant constraint for Peruvian women as they strive to involve as much as men in the workforce. Recent studies present evidence that women around the world are more engaged in domestic work than men. The larger participation of women in non-paid work (lower labour force participation) leads to both their reduced ability to generate income and to their higher dependency on men. The implication of which is that women are more vulnerable and more likely to be exposed to poverty. This circumstance places a restriction on women’s freedom to not only participate more intensively in the labour market – achieving better carries generating higher income – but also in other activities such as leisure and rest time, education and politics. As a result, women suffer from “time poverty.”

Economically empowering women is the most impactful development intervention, both in terms of growth and job creation. Assisting capable,

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competent and intelligent women in establishing a cooperative of women, who will support and encourage each other to become leaders in their communities, is the fastest and most sustainable way of achieving long-term, ethical change.

The International Trade Centre lists in its main goals for future development, “Inclusiveness and Sustainability”, with a focus on women’s development in the economic sector. In Peru specifically, issues such as poverty, high levels of inequality, underemployment and economic corruption, are all focus areas for ITC. The WE CARE Market will work to combat these issues directly in the Cuzco area, working with local women who seek to improve their economic stability, and achieve sustainable growth for the future.

The WE CARE Market will provide a platform for women to achieve stable social-economic status, and will shape a new culture of inclusion and leadership for women who fully understand the cycle of poverty and systemic oppression. The Hunger Project has been working to assist local communities in Peru for many years now, and this knowledge of both the community and culture provides a foundation upon which this project will rest. Our staff members are fully qualified to support this community and female entrepreneurs in achieving their goals for the future, while helping to establish an ethical and socially responsible cooperative of women who are dedicated to positive change.

3.0 PROJECT DESCRIPTION

3.1 Project goal and purpose

The principle project goal and purpose is to increase female leadership through local, provincial, and federal levels, and hence, decrease gender inequality in the women of Peru. The programme goal is to improve the living conditions of women and their families through the development of entrepreneurial skills and civic participation. Project goals:

Provide leadership and skills training. Improve access to financial resources for indigenous women and their

families. All Chirapaq program activities are designed to have a positive impact on indigenous women’s self-esteem and enabling women to recognize their value as proactive members of the society. A longer-term goal of the project is to promote a more positive image of women within the socio-political environment in Peru.

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The micro-finance institutions as well, play a huge part in providing the financial services for the entrepreneurs lacking the access to banking services. 3.2 Expected Results

As a minority of the population, Peruvian women are part of a patriarchal society where they have a lack of human rights, and hence a low political representation for women which leads to Gender Inequality. Our expected results of this project would be women venturing out in commencing their own business projects while accessing the resources of the MFIs. This would lead to an outcome of self-sustainability in terms of their own economic status. Therefore, women would have become more engaged in their own communities where they can step up on leadership roles, and the level of violence towards them would be decrease to a vast extent. 3.3 Beneficiaries

The main beneficiaries of this project would be 50 indigenous women of Peru between the ages of 18-35. Others include:

Local indigenous women – Building women’s capacity to engage in economic activities while building their ability to participate in community leadership will greatly lessen the gender inequality present in their communities. Measures will be put in place to allow those willing to participate, the opportunity to do so. They would also become leaders in the co-op, which would result in training future women members leading to a longer-term sustainability.

Local community – Female members of the Cusco region will achieve higher levels of leadership as well as economic sustainability.

Chirapaq – helping them achieve their end goal of empowering women in the society, as this is part of their mandate for the local community.

Other NGO’s, local organizations – Supplying the community with more empowered women will help local organizations grow and gain influence in the local region, providing a larger more empowered support network at a base level.

3.4 Project Activities and Timeframe (Please refer to Annex 2 for more details)

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This project is expected to be self-sustaining within one year. We will first secure a building and start the permit applications, which should be done within a week. We will then conduct a baseline research, where we will look into the particular needs of the indigenous women and analyze the resources they already have available. Job descriptions and advertising will then be carried out in 4 days, after which we would then start the application process where 50 of the women in the community will be chosen, which is expected to last for 2 weeks. After purchasing the needed vehicles and renting a house for the staff, we will then prepare the 1st Report of the year and arrange for benefits for the staff. We will then conduct the 1st quarter feedback interviews and reports from the women. In February, we start with 2 training workshops on Leadership, business skills and community engagement, which will last for 5 days each. Signs for the market will then be made along with the 2nd monthly report from the expat staff.In March, the market will be prepared for its opening through the purchasing of tables/chairs for the vendors, setting up stalls with the women, holding co-operative meetings and carrying out the marketing strategies along with the production of the Peruvian goods.In April, we hope to reach the milestone of opening the market to the public towards the end of the month. In May, we carry out the month 5 reports and ensure the smooth running of the business market. From June to September, monthly reports will be carried out along with feedback interviews and quarterly reports. October is the month the market reaches the 6-month mark for carrying out the Monitoring and Evaluation of the market along with the reports. 2 months into the monitoring and evaluation phase, we will then carry out a final review of the project in 2 weeks in order to make an absolute decision on the sustainability of the project. 3.5 Assumptions and Risk Management (Please refer to Annex 4 for more details)These are 3 assumptions we have made about the project:

Women will become leaders in their local, provincial and federal governments.

Women will generate a sustainable profit from resources used, feel empowered and take ownership of the market.

Consumers will choose to purchase goods at this market, rather than other, less ethical options, depending on the price variability.

Here are 3 risks that we are willing to take to implement this project:

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Cuzco region receives an unusually low amount of tourists during the initial year

Extreme weather destroys the market Shortage of supplies for market materials (women can’t produce goods)

The risk management table in Annex 4 rates the odds occurring, the impact it would have and then the management response.

4.0 CROSS CUTTING ISSUES 4.1 Gender

This entire project is geared towards the empowerment of women and the removal of gender inequality in the region. Giving women the ability to engage in empowering activities that are beneficial to themselves both mentally and financially will go a long way in closing and eventually removing the gender inequality gap. Women will be included in the decision making process from start to finish on this entire project.

4.2 Environment

The project will have a small environmental impact with a building being used for the actual marketplace. We will use a pre-existing structure that will help reduce the impact created by the project. The other elements that will create an environmental impact will be the materials required to create the goods for sale at the market. However, this will help curb other environmental impacts created from shipping goods from around the world for sale in the local markets. Any materials used for products will be sourced locally when possible and from environmentally sound producers. This means wood will be from known local suppliers, as well as any other materials possible (i.e. Wool, beads, etc.)

4.3 Sustainability

FinancialThe market will become self-sustaining financially within two years, however after year one the amount of required financing will severely diminish. The market will run like a co-operative with members of the market being in the head positions. There will be a small fee, based on capability that will be provided to the cooperative in order to ensure that the market will run sustainably. The financial decisions will also be handed over to the women at the head of the cooperative, taking over the financial control as well. The funding to continue the program will eventually come from the market itself, creating a sustainable, impactful lasting and market.

Organizational

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The market will be set up and run by the female vendors basically from the start. There will be training provided prior to the opening of the market as well as on-going mentoring while the market solidifies itself in Cusco. The market will run as a cooperative with many people being able to voice their opinions and be involved in the decision making process. Women are encouraged, and empowered to take leadership roles within the market and then move beyond it into community, regional and national leadership roles.

5.0 PROJECT MANAGEMENT & ORGANIZATIONAL CAPACITY

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The following is the list of the proposed project staff: and their duties/qualifications:

Position Nationality (Domestic/Int’l)

Duty

Program Manager International (THP)

To plan, manage, and be responsible for the implementation of the WECARE cooperative market and to co-ordinate, communicate work regarding the programmes at the community level i.e. workshops etc.Closely monitor project implementation and report to the Country Director

Project Leader International (THP)

Coordinate and schedule activities, resources and equipment and liaise with the project manager to ensure the project is running on schedule

Liaison Project Officer International (THP)

To make scheduled visits to the WE CARE market, communicate and coordinate activities with partner organizations (MIF and Chirapaq) and WE CARE cooperative. Prepare and draft policy materials as necessary.

Financial Officer International(THP)

To maintain all WE CARE cooperative financial accounts from MIF and oversee loan disbursement and repayment among individual cooperative members. To oversee the project budget.

Training Coordinator

Facilitators (Chirapaq staff)

International (THP) + Domestic(Chirapaq)

In partnership with Chirapaq administrators, schedule and gather resources for initial training workshops for the cooperative members and help formulate monthly reports to be given to the project leader. Train participatory facilitators (Chirapaq staff) to transfer skills for future workshop sessions.Facilitators: organize local community meetings, ensure broad participation, ask questions, manage conflicts, and help maintain a productive and informative experience.

WE CARE Cooperative Board (5 members-elected by cooperative)

National Responsible for keeping cooperative members informed, resolving conflicts, overseeing the repayment of loans, managing the cooperative and its members

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The Hunger Project (THP) is a global non-profit organization committed to ending world hunger. Established in 1977 and active in Peru since 1997, THP has extensive experience working with indigenous groups and local organizations in an effort to ensure the scaling-up and long-term sustainability of our development programs. Through a 15-year partnership with local NGO Chirapaq, THP has been successful in creating cooperatives among indigenous women for income-generating purposes and will continue to play an important role in the implementation of the WECARE cooperative. The market concept will be introduced through Chirapaq channels to ensure trust and interest from the local women in the community. In addition, TGH staff and Chirapaq will continue to facilitate already established training workshops for cooperative members with a focus on: administrative skills, self-management, merchandising, alliances and community action. In the past, these workshops have proven to be an effective tool in developing indigenous women’s capacity to build alliances with other organizations and networks. This has significantly contributed to these women gaining a prominent role in the political sphere both locally and nationally.

THP is governed by a 15 member Global Board of Directors as well as a highly distinguished Partner Country Advisory Council involved in fundraising and advocacy work in an effort to funnel resources to THP in their goal to end world hunger and poverty.

MIF: The Multilateral Investment Fund (MIF) is an independent fund administered by the Inter-American Development Bank (IDB) and works in partnership with national governments, business organizations, and NGOs in an effort to reduce poverty in Africa and Latin America. Their microfinance program is a training, savings and credit program; enabling the targeted poor who traditionally lack access to banking and related services to get small loans with the purpose of engaging in income-generating activities. The MIF has proven success in developing women entrepreneurs in 20 countries and currently has a $100,000,000 fund portfolio available for Peru. MIF’s governing body, the Donors Committee, is made up of representatives from all 39-member countries (of which Peru is one) and whose voting share is based on their financial contribution amount. THP has already secured micro loans for all 50 WE CARE cooperative members.

CHIRAPAQ: Chirapaq (Center for Indigenous Peoples’ Cultures of Peru) is a Peruvian organization founded by both Andean and Amazonian people. Since 1985, Chirapaq’s Indigenous Women’s Program has been building leadership capacity through supporting local economic enterprise in which women are able to generate additional income for their households as well as strengthen their leadership in economic management by introducing their products to local markets. These efforts have been complemented by Chirapaq’s quarterly training workshops in which 120 indigenous leaders strengthen their skills and enhance

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their knowledge about gender and human rights. Chirapaq’s promotion and policies of indigenous and women’s rights has gained national and international recognition.

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6.0 MONITORING & EVALUATION

Staff will be required to complete monthly reports for both the Hunger Project and for ITC. These reports will include the progress of the project, updates on the current usage of project budget, any issues that have arisen in the past month, and how these issues are being handled to ensure a positive outcome. As well, staff will conduct interviews with the women participating in WE CARE, in order to gauge the effectiveness of the project on impacting the lives of these women and their families. These feedback reports will be made to The Hunger Project each quarter, and will be readily available to ITC if requested.

The women entrepreneurs will be required to complete quarterly reports to assess the financial impact the market has had on each of them individually. These reports will be available to ITC for viewing. The information presented will aide in completing the final project evaluation.

Staff will complete the baseline evaluation upon arrival in Cuzco. Information will be gathered from the female beneficiaries of the market, national pay-rate reports, and parliamentary statistics to measure the project’s objectifiable indicators. As discussed above, both beneficiaries and staff will conduct quarterly reports, in order to measure progress. These reports will all be made available to ITC. The final evaluation will be conducted in 2 sections; at the end of the project cycle to evaluate the impact of the market on the women and their community, and secondly following the next elections municipally, provincially and federally, to measure those indicators.

7.0 BUDGET

7.1 Budget Breakdown

WE CARE Market Line Budget

DonorPartner/THP

EXPENSESContribution

Contribution

Total Budget

Personnel $171,600 $171,600Activities $39,000 $39,000Office/Admin Supplies $1,100 $1,100Transportation $13,200 $13,200Overhead costs (18%) $40,482.00 $40,482

Total $265,382.00 $265,382.0

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Project Income (20% of total costs) $53,076.40

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TOTAL $212,305.60

WE CARE Market Expenses

PersonnelActivitiesOffice/Admin SuppliesTransportationOverhead costs (18%)

7.2 Budget Narrative

Personnel: This includes 5 expat staff from The Hunger Project who will be responsible for the project. They will also be responsible for purchasing/leasing the land, advertising and marketing of the new market, and for administrative duties. There are 5 expat staff and 2 national staff members. Expats will be paid $2,000/month, and nationals will be paid a little more than the average national salary at $400/month. The national staff members are responsible for the security of the market. Housing includes renting a house for expat staff for one year at $1,000/month. Benefits include medical, dental, and life insurance. Benefits also include travel from THP headquarters in New York to Cuzco. Benefits also include 2 week paid vacation time for each staff member. Total benefits are $30,000.

Activities: This section includes the cost of the activities to set up the WE CARE Market. It includes leasing a building for the market, the purchase of 50 tables and 100 chairs needed for the vendors, the signage for the market, and the marketing to bring in tourists/customers. All will be one time costs, except for the annual lease of the building. Trainings will take place in 2 groups in 2 phases. There is also a planned training and continuing mentorship with leaders of the co-op. The trainings will take place at the Chirapaq headquarters. The cost includes paper, meals, coffee, and babysitting services.

Office/Administrative Supplies: Chirapaq has allowed THP to use their office space at no cost to THP. This space will be used until office space at the market is open for business. The co-op will then operate out of the office at the market. However, this budget contains money for communications that includes printers, computers, and paper supplies. Permits are included in this section, as well, to cover the one time cost of building permits and business permits.

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Transportation: We will be buying three vehicles to use for staff transportation around the city to gather materials to set up the market. All vehicles will be used vehicles at an average cost of $3,000/vehicle. One of those vehicles will be a truck to transport materials from the vendors to the market. Gas use is projected on the close proximity of the market with living arrangements and the office. Therefore, not a lot of travel is required. Gas may also fluctuate based on market prices. Insurance on the vehicles and drivers is also included at an average of $150/month.

Monitoring and Evaluation: The M&E scheduled for over the year will be conducted by the program managers/staff of THP that are involved with the market. The cost of that is included in the wages of expats.

Overhead costs are costs are associated with the head office of The Hunger Project based at 18%. This includes administration management, fundraising, advocacy, and marketing.

Project income is based on 20% of the total expenses and will be contributed through The Hunger Project private donations. Chirapaq is supplying the office and the use of their equipment for all trainings and meetings until the office at the market is established.

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8.0 ANNEXES

Table 1 – Results-Oriented Logical Framework

Narrative Summary/ Levels of Objectives

Objectively Verifiable Indicators (OVIs)

Means of Verification

Assumptions and Risks

Increase in female leadership in local, provincial and federal levels

Achieve 30% (2/6 national representatives) of women in political representation within 3 years of the project implementation.

Election results in the different levels of government.

Women will want to become leaders in their local, provincial and federal governments.

Support women in becoming engaged in their communities and achieving economic self-sustainability.

Reduction in pay disparity by 75% by bringing the average salary from $250/month to $437/month by the end of the 1st year of the market.

Monthly graphing of income of women in the market. Observing weekly the number of women buying supplies for their businesses, showing control of finances in the family.

Women will generate a sustainable profit from resources used, feel empowered, and take ownership of the market.

Women engage in establishing their own businesses.

50 new vendors owned and operated by women in the market by month 3 of the project.

Monthly report on the number of new women vendors in the market.

Consumers will choose to purchase goods at this market, rather than other, less ethical options.

Establish a centralized marketplace to provide an effective business environment and host training workshops

Inputs: See Budget section

Completed training evaluations after each workshop, building is leased, supplies purchased

Business training is culturally appropriate.Market space is available in a prime location.

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Table 4 – Risk Management Plan

Risk Factor Odds of occurring

Impact if occurs

Management Response

1) Cuzco region receives an unusually low amount of tourists.

Medium High Spread marketing strategies and advertisements to other areas of the Peruvian region.

2) Extreme weather destroys the market

Low High Prepare a temporary make-shift market further away from the actual market before it opens, in the occurrence of a natural disaster.

3) Shortage of supplies for market materials (women can’t produce goods)

Low High Have a back-up of resources available in the case of sudden shortage of market supplies.

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