By John Jordan
There are many elements that contribute to economic development that lifts communities out of poverty. One of the more important—and difficult to measure—is effective governance.
An important part of governance that improves lives is enabling individuals and communities to access the various assistance programs governments offer, especially those that help farmers and other producers increase their productivity and output. Ironically, it is often private organizations that are the necessary variable in connecting government to communities that could benefit from such programs.
Take, for instance, what’s been happening with the Ganga Farmers Group in Nepal’s Helumbu Rural Municipality.
This is a group of 23 farmers that, with the assistance of international development organization World Neighbors, has set up a savings and credit group. Members contribute small amounts each month. The amassed capital is used to make loans to members at very low interest rates. Loans are invested in implements and innovations to increase agricultural output and productivity. Regular monthly contributions and loan repayment with interest enables the growth of a significant amount of capital available for loans and investments.
Ganga Farmers Group members were unaware of government programs that provide implements, seeds and other goods at reduced prices, or even at no cost. With World Neighbors’s assistance, members have used loans to purchase a number of subsidized goods, or been provided goods, including:
- Turmeric seeds at no cost
- Mulching plastic with a 50% subsidy
- Mini tractor with a 50% subsidy
- Through a cultural program, a deposit of $376 into the farmers’ savings and credit group
In addition, through registration with the municipality’s health division, all 23 farmers received a water filter and smokeless cooking stove, in total worth $2,255. Proper health is not only good in and of itself. It’s also critical to the ability to work and produce.
Effective public governance, including targeted assistance, is essential to sustainable economic and social development. Private groups often are what enable that governance.
