Village Development Fund (1) (1)

8/6/2019 Village Development Fund (1) (1)

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Presented

By:Group 1Amit Kumar Singh

Alok Kumar Pandey

Debotosh MahatoDibyakanta Nayak

Mohan Singh Bhandari

Satyapriya Sahu

Saumit Das

Soumya Ranjan Rout

Sunil Kumar


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Information about the Project area.

Village Information No. of households = 43 Total population =159

Males =79 Females =80

Major EconomicActivities

Agriculture (Paddy) Fishery Factory worker

The main natural resource isPasakriver (Livelihood forthe fisherman & othervillagers)


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Geographical Information about project area

y Total area is 2,610 Rai (417.60

Hectares)

y Residential area is 460 Rai (73.60

Hectares)

y Agricultural area is 2,150 Rai (344

Hectares)

Saraburi Province

(Thailand)

Sao Hai District in Saraburi


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Background of VDF VDFwas established according to the 8th and 9thNational Development Plan.

The Village Fund established on August 3, 2001. And received transferring payments

from the Government on November 6,2001 amount of 1,000,000 baht.

Since Year 2001. In Early, they used the home of Elder Moo 2 (Mrs. SamrouySai-

Nygm) as the Village Fund Ban Pha-Yao Moo 2 for Meeting community and other

activities.

Later , In year 2007 ,The Community meetings agreed to buy land to build the.

Village Fund Officewith 100 square meters in 100,000 Baht Year 2009. The Building

of Village Fund was completed

Year 2009. They received 100,000 baht from SML statement for building the

community store in this building


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Cont.

The plan supports the establishment of strong community through a bottom

up approach

The policy allowed the fund to be used for enhancing capacity in financial

management and labor skill improvement in order to provide immunity to

poverty in the long run

VDF encouraged the collaboration between the local officials, private sector

and the community in decision making on how to utilize the village fund for

occupational skills, increase income and decrease household debt.


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BASIC INFORMATION ABOUTVDF

y Total member-91 (which is 57.2% of the total population of the village)

y Male-41 (46.1% of the total population of male in the village)

y Female-50 (71.4% of the total population of female in the village)

y Sold Common Stock to Member with 100 Baht / 1 Stock and made the

ShareholderStock Book to all members.

y Total no of stocks-453

y Total amount of stock- 45300


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Goal, Vision, ObjectivesGoal:

VDF is the center for learning, funding, social services and solutions for the community

Vision:

Establish strong economic and social foundation for sustainable livelihood in the community

Develop strong economic and social system for the community according to the Philosophy

ofS

ufficiency Economy

Objectives:

Community sense of belonging

Learning organization

Financial source for circulation

Promote savings

Community participation

Empowerment through local participation


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Organization Structure

Mr.Suthep Pintarak Position : President

Sergeant major.Witoon

Pitpurdpan

Position :Vice President

Mrs.Nuttika Plagwong Position :Treasurer

Committee


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Supporting organizations

Name of agency Level of administration Aspect(s) of support

Community developmentoffice.

1. District2. rovincial

Operational /Advisor /mentor/ secretary of t ecommittee/ training andskill development

Agriculture district office District Mentor forAgricultureactivities

Informal education center District Advisor

Saving Banks rovince Financial Support

BAAC District Financial Support

TAO Sub district Administrative support

SCG Village Infrastructure


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External Support

ExternalAgency Year Assets

GovernmentAid November 6,2001 1 million Baht

SML 2009 100000Baht( onstruction ofcommunity store)

Queens Fund 2010 200000 Baht

SCG Foundation 2010 Computer equipment(3

sets & LCD Projector)

CommunityDevelopmentDistrict,Sao-Hai

2010 ComputerEquipment(1set)


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Activities Undertaken byVDF

Community store activities Loan for occupational

Activities(PaperFlowers,PatchouliWater,woven doormat)

Internet Service

Exposure visit for member Provide Scholarship


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OutputOutput of the VDF is Immunity to PovertyOutput of the VDF is Immunity to Poverty

Economical Provide Credit facilities to the villager for additional source of income and

increase the livelihood Service development

Saving activities

Social Leadership quality

Community development Empowerment of the vulnerable groups

Institutional Skill enhancement for committee

Managerial skills and trainings Learning center development Agencies providing training

CommunityDevelopment ffice (CDO) Bank ofAgriculture andAgricultural Cooperative (BAAC)


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Achievementsy 2009: selected as

community learningcenter ofSalareethai Sub-district

y 2010 :Chosen to fundinstitutions of learningvillagers small town ofSaraburi Province

y Was awarded withoutstanding VDF award

y Received Queens Fund


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StakeholdersAnalysis

Stakeholders Description

PRIMARYPRIMARY

1. VDF committee member Goodwill, social welfare, because they wantthere village to be developed.

2. Villagers Easy occupational loan. Loan availability. Butloan only for occupational purpose.

3. Local money lender and informal source. Less customers.

SECONDARYSECONDARY

1. Government Facilitates members through training and

capacity building program me.2. Community development office. Development of their own village.

3. Commercial banks. Provides financial assistance to VDF.

4. Bank of agriculture and co-operative. Increase in credibility.


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NET PROFIT OF VDF

DURINGTHE LAST 5 YEAR

0

1 0 0 0 0

2 0 0 0 0

3 0 0 0 0

4 0 0 0 0

5 0 0 0 0

6 0 0 0 0

7 0 0 0 0

8 0 0 0 0

2 5 5 0 2551 2552 2553 2554

48,840

67,789 68,990

74,55378,120

Baht

2007 2008 2009 2010 2011 ( June ) Year


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Profit allocation of year 2010

Percentage Amount ( in Baht)

Return risk insurance 5% 3726.65

Return fund 5% 3726.65

Return average 10% 7453.30

Committee reward 15% 11179.95

Public cost 20% 14906.60

Welfare cost 10% 7453.30

Scholarship cost 10% 7453.30

others 25% 18633.25


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Process of Giving Loan

Fill form and sub

mitbu

siness planFill form and sub

mitbu

siness plan

Security of two guarantor at time of approvalSecurity of two guarantor at time of approval

Loan sanctionedLoan sanctioned

Late repaymentLate repayment 1010 Baht/day penaltyBaht/day penalty

Non repaymentNon repayment

First negotiation by the VDF committeeFirst negotiation by the VDF committee

If not solved then Judiciary ProcessIf not solved then Judiciary Process


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SWOT analysisSTRENGTHS

A legal entity / Registered organization.

Simple procedure for accessing the loans.

An autonomous body , takes all the decision

regarding management.

Interest rate fixed by the community, so can

be flexibleStrong participation by the villagers

Multi professional groups

Reduced transaction cost

Good governance

Participation

Transparency

Accountability

Received fund from Queens Fund

WEAKNESSES

Loan is limited to the occupational needs only

Not enough income to expenditure

VDF allocated by the Government to the

village not sufficient

Lack of cooperation by some villagers

Villagers income level is not good enough


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Cont.OPPORTUNITY

Natural resources (Pasak river) , which is a

business hub for the local fishermen.

The area is famous for Poultry farming,

handy craft item, livelihood can be promoted

through these activity.Has received support from the

development budget, village / community-

line year General Ed Sufficiency Economy

and SML.

THREAT

High production costs for the farmers in

village.

Income uncertainty.

Time off work do not match .

Community based organization, still has to

follow the top-down policy


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Comparative Analysis

IndicatorsIndicators ThailandThailand IndiaIndia

Community Participation High involvement of people in

every activities

Low public participation

Committee Members

Responsibility

High job responsibility Low job responsibility and

laziness

Political Interference Low High- Local political parties

influences the VDF

Awareness High awareness-They manage

their funds in appropriate way

Lack of awareness- Improper

use of fund

Size of groups High(more than 50) Low(10-20)

ternal Support overnment, Corporate Sector,

Financial Institution

overnment,Village

Resources

Interest Rate Low 6%-12% 18%-30%

Infrastructure & Technology ood Infrastructure (Office

Building), use of computer at

Lack of infrastructure &

technology adaption


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Problem and constraint

y Management regarding loan appraisal

y Documentation of records-Manually

y Absence ofTechnology adaption in payment system

y No risk mitigation plan

y Operated completely in flood affected area

y Migration due to job opportunity in urban area

y

Improper market linkage of village product


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Future Plan

y Improve and upgrade the learning institute of the village

y Improve the communication and information process of the VDF

y Capacity building of the committee members through exposure visit

y Improve activities and service of

y Saving

y Loaning services


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Lessons Learnt

y In Indian village (village fund/Panthi) concept is not new which is not operate

properly, it is the learning of for us fromThailand (VDF) how to solve the

villagers Financial need at village level.

y It is the good initiative by the Thailand Government to allocate 1 million

baht per village , which enhances the financial stability of the villagers.

y VDF also helps the villagers for emergency, income generation activity by

providing loan at door step.

y VDF play a vital role for the socio-economic development of the village.

y Motivation for sharing of Profit distribution for social welfare is a good

learning for us.

y Motivation and promise for saving of each members leads to success of the

VDF


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RECOMMENDATION From the management point of view

y Adaptation of risk management practices by the VDF.

y Technical assistance for maintenance of records.

y Better market linkage for village product.

y Introduction of diversified loan product.

y Linking the group members with some need based micro enterprise.

y Controlling migration through creation of local employment

opportunity(Fishery, poultry)


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Village Development Fund (1) (1)

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