Presented By:Group 1

Amit Kumar Singh Alok Kumar Pandey Debotosh Mahato Dibyakanta Nayak Mohan Singh Bhandari Satyapriya Sahu Saumit Das Soumya Ranjan Rout Sunil Kumar

Information about the Project area.

Village Information
No. of households = 43

Total population =159

Males =79 Females =80

Major Economic Activities

Agriculture (Paddy) Fishery Factory worker

The main natural resource is Pasak river (Livelihood for the fisherman & other villagers)

Geographical Information about project area

Sao Hai District in Saraburi Saraburi Province (Thailand)

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)

Background of VDF
 VDF was established according to the 8th and 9th National 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. Samrouy SaiNygm) 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 Office with 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

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.

BASIC INFORMATION ABOUT VDF

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

Shareholder Stock Book to all members.

y Total no of stocks-453 y Total amount of stock- 45300

Goal, Vision, Objectives

Goal:
 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

of Sufficiency Economy

Objectives:
 Community sense of belonging  Learning organization  Financial source for circulation  Promote savings  Community participation  Empowerment through local participation

Organization Structure
Mr.Suthep Pintarak

Position : President

Sergeant major.Witoon Pitpurdpan

Position :Vice President

Mrs.Nuttika Plagwong

Position :Treasurer

Committee

Supporting organizations
Name of agency Community development office. Level of administration 1. District 2. rovincial Aspect(s) of support Operational /Advisor / mentor/ secretary of t e committee/ training and skill development Mentor for Agriculture activities Advisor Financial Support Financial Support Administrative support Infrastructure

Agriculture district office

District

Informal education center District Saving Banks BAAC TAO SCG rovince District Sub district Village

External Support
External Agency Government Aid SML Year November 6,2001 2009 Assets 1 million Baht 100000 Baht( onstruction of community store) 200000 Baht Computer equipment(3 sets & LCD Projector) Computer Equipment(1 set)

Queen s Fund SCG Foundation Community Development District,Sao-Hai

2010 2010 2010

Activities Undertaken by VDF

 Community store activities  Loan for occupational

Activities(Paper Flowers,Patchouli Water,woven doormat)  Internet Service  Exposure visit for member  Provide Scholarship

Output
Output 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
 

Community Development ffice (CDO) Bank of Agriculture and Agricultural Cooperative (BAAC)

Achievements
y 2009: selected as
community learning center of Salareethai Subdistrict y 2010 : Chosen to fund institutions of learning villagers small town of Saraburi Province y Was awarded with outstanding VDF award y Received Queens Fund

Stakeholders Analysis
Stakeholders
PRIMARY 1. VDF committee member Goodwill, social welfare, because they want there village to be developed. Easy occupational loan. Loan availability. But loan only for occupational purpose. Less customers.

Description

2. Villagers

3. Local money lender and informal source. SECONDARY 1. Government 2. Community development office. 3. Commercial banks. 4. Bank of agriculture and co-operative.

Facilitates members through training and capacity building program me. Development of their own village. Provides financial assistance to VDF. Increase in credibility.

NET PROFIT OF VDF DURING THE LAST 5 YEAR

78,120 80000

74,553 67,789
68,990

70000 60000 48,840

Baht

50000 40000
30000 20000 10000 0

2550

2551

2552

2553

2554

2007

2008

2009

2010 2011 ( June ) Year

Profit allocation of year 2010

Percentage Return risk insurance Return fund Return average Committee reward Public cost Welfare cost Scholarship cost others 5% 5% 10% 15% 20% 10% 10% 25% Amount ( in Baht) 3726.65 3726.65 7453.30 11179.95 14906.60 7453.30 7453.30 18633.25

Process of Giving Loan

Fill form and submit business plan

Security of two guarantor at time of approval

Loan sanctioned

Late repayment 10 Baht/day penalty Non repayment

First negotiation by the VDF committee If not solved then Judiciary Process

SWOT analysis
STRENGTHS
 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 flexible Strong 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

Cont.
OPPORTUNITY Natural resources (Pasak river) , which is a business hub for the local fishermen. The area is famous for Poultry farming, THREAT High production costs for the farmers in village. Income uncertainty.

handy craft item, livelihood can be promoted Time off work do not match . through these activity. Has received support from the development budget, village / communityline year General Ed Sufficiency Economy and SML. Community based organization, still has to follow the top-down policy

Comparative Analysis
Indicators Community Participation Committee Members Responsibility Political Interference Thailand High involvement of people in every activities High job responsibility Low India Low public participation Low job responsibility and laziness High- Local political parties influences the VDF Lack of awareness- Improper use of fund Low(10-20)

Awareness

High awareness-They manage their funds in appropriate way High(more than 50)

Size of groups ternal Support

overnment, Corporate Sector, overnment, Village Financial Institution Resources Low 6%-12% ood Infrastructure (Office Building), use of computer at village level 18%-30% Lack of infrastructure & technology adaption

Interest Rate Infrastructure & Technology

Problem and constraint

y Management regarding loan appraisal y Documentation of records-Manually y Absence of Technology 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

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

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 from Thailand (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 Less dependent on informal sources like local money lender.

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)