How Cambodia’s IDE won the 2010 Nestlé Prize in Creating Shared Value

Nestlé Prize in Creating Shared Value recognizes a project or innovation in the area of water, nutrition or rural development implemented by an NGO, individual or a small business. The Prize was first awarded in 2010 to International Development Enterprises (IDEC) in Cambodia for its innovative, market-based approach to increasing agricultural productivity and income for Cambodian smallholder farmers.

The strategy applied by IDE for this was to create a network of small entrepreneurs known as “Farm Business Advisors” (FBAs) who work independently to provide high-quality products and advice to small-scale farmers so that the latter can improve their farming techniques and income. The FBAs work like franchisees linked to a central franchisor that provides training and business support. One interesting product marketed by FBAs is the affordable drip irrigation kit, which reduces water use and labour while improving yields.

An important element of sustainability in the project is the co-dependence of the FBAs and the small-scale farmers. If the small-scale farmers use their services and improve their income, the FBAs also earn revenue and profit from their services.

The Nestlé Prize helped expand the project by scaling up the services to an additional 20,000 people in Cambodia. To learn more about this project, visit this link and watch the video below.

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4 comments to How Cambodia’s IDE won the 2010 Nestlé Prize in Creating Shared Value

  • The Founder's Development Organization Badin FDO

    The Founder’s development Organization Badin is of non-Governmental Organization which is working for the socio economic empowerment of the rural peoples and striving the poverty alleviation through implication of different development program in the rural areas it was established in 2009 by a group of energetic youngsters representing the both sexes of Badin.
    The organization registered under Social Welfare voluntary Organization Act: 1961with Directorate of Social Welfare / Community Development Department Government of Sindh. Home The Organization has been working, since its inception, on different sectors of social development focusing on Education, Agriculture, women development, youth problems and environment for the betterment of the poor and needy peoples of the area. Through their active participation and the help of various donors.

    Objectives

    Social economic empowerment of the rural peoples through formation of CBOs for sustainable development initiatives in the villages.

    Involve rural communities in micro enterprise for alleviating poverty in the rural areas.

    Improve the living standard of the rural peoples through providing them health finicalities at door step and awareness among the women children about the health hazards.

    Advocacy of the social problems and involve communities in the solution of problems
    Mitigation of the flood disaster in the area

    Raise literacy in the area specially girls, women, through establishment of non formal schools and adult literacy centers in the slum areas of the Cities and villages

    Capacity Building of the rural communities through establishment of the Research Center

    To Promote indigenous heritage, Literature, History and culture.

    To Work for better livelihood of indigenous Propels of the area Opposing gender discrimination
    Effort for welfare of landlords and farmers in the areas where there is water shortage is acute.
    Discouragement of forced labor

    Struggle for wild life.

  • MARTIN KOBIA

    1ST COMMUNITY RURALNET COMPUTER COLLEGE (CRCC)- KENYA

    INTRODUCTION
    RuralNet is seeking a grant to put up a Computer college. In this college we intend to teach all Computer studies, Programming, computerized accounting, secretarial studies and other studies as need arise.

    Our objective is to eliminate poverty and illiteracy by promoting education, we intend to create jobs to youngsters by engaging them in income generating activity most of which will be online activities. The formation of an environment that will bring people with diverse interests and backgrounds together in a common forum, good coffee and bakery items will be available, access to the resources of the Internet and other online services, creation of a unique, upscale, innovative environment that will differentiate RuralNet from local coffee houses. Ours is to prepare and make all students and adults conversant with the technology of today’s generation as well as success in college education and for a life –long leaning particularly to the majority poor members of our society. Funding in the amount of $112,000 USD is required for construction and equipping the college and cyber café upon construction. With $480,000 usd our programs will be sustainable for 25 years. We intend to provide relatively subsidized Computer education to the marginalized rural communities in Kenya to curb high illiteracy level in our villages. The college will cater for the ever increasing need for reading materials. This facility will serve an entire district of about 60,000 folks.

    Executive Summary
    RuralNet will provide a unique forum for communication and entertainment through the medium of the Internet. RuralNet is the answer to an increasing demand. The public wants: (1) access to the methods of communication and volumes of information now available on the Internet, and (2) access to relatively subsidized fee to our disadvantaged students and members of public and at a reduced cost to other capable public members; this will enhance sustainability of the project. RuralNet’s goal is to provide the community with a social, educational, entertaining, atmosphere for worldwide communication.
    This business plan is prepared to obtain financing in the amount of $112,000. The supplemental financing is required to begin work on site preparation and construction, equipment purchases, and to cover expenses in the first year of operations. No additional financing has been secured so far. As the youths of Maua Town in Kenya ours is a prayer that we make an impact to alleviate the high illiteracy level and reduce poverty that is rampant in our communities. We intend produce competent computer experts.
    This will shield the executive director Martin Kobia, Maua Youth Team- that comprise of 3 other young professionals, and the yet to be outside investors, from issues of personal liability and taxation. The yet to be donors will be part of the management team.
    The financing, in addition to the planning assistance from the director, donors and other well wishers, will allow RuralNet to successfully open and maintain operations through year one. The large initial capital investment will allow RuralNet to provide its clients with a full featured College and Internet cafe. A unique, upscale, and innovative environment is required to provide the rural community and capable clients with an atmosphere that will spawn socialization. Successful operation in year one will provide RuralNet with a client base that will allow it to be self sufficient in year two.

    We kindly need Nestl’e prize to fulfill this dire need.Thanks.

    Kind regards,
    Martin
    Director

  • Prof. Subhash kotwal

    Respected Sir,
    I am a Fine Art Graduate from Sir J.J.School of Art,Mumbai(1979) & Post Graduate in Animation from N.I.D. Ahmrdabad,(1982). I have 25 years of experience in production,direction of Animation,live action,documentaries,ad films,along with teaching the same for the last 5 years.
    Now I am planning to use my knowledge & experience for much needed Indian Rural Sectors Communication Programme on various issues ,problems and mainly health & education areas.
    Sir,can you guide & help me to establish sustainable long term programme through your Nestle Prize & experience?
    Awating for your early reply.
    Thanking you,

    Prof. Subhash Kotwal.
    Pune,Maharashtra,India.

  • SOHURA LNGO

    Somaliland has few mineral resources, almost no forest resources, and severe infrastructures limitations. Relatively productive pasture, agricultural land and a hardworking rural population are among the countries few resources and assets. Thus, future economic growth will require stimulating commercial activities with in, and based on, the livestock and livestock business.

    The life of a herder is marked by unpredictability and self-reliance. This can make it a real struggle to improve their standard of living. This is the dilemma facing farmers in Gabiley Region. In order to cope with poor crop yields and nutrient deficiencies, the current project proposes the need for an alternative source of income.

    The project proposes to give 50 different families 30 goats to raise. Each family had to pay back 5 new born female goats (min. age two years) each year for six years. Each family is also planned to receive 50 herds of hens. By banning the killing of the goats until herd size reaches 100 heads, in order to encourage milk and milk products, the project helped to enrich the community both in their stomachs and pocketbooks. This also helped to really make this project more sustainable. Additionally, every farmer was required to give fifty hens to be distributed to a new family, further spreading the impact of this project.

    An amazing side effect of this venture will be that it is expected to pull the agro-pastoral communities of the target area together. As the livestock project will administered by a council of agro-pastoralists, they will become used to meeting and making difficult decisions. By bringing the community members together, it is expected that they will start actively tackling important issues as a community.

    Beneficiaries
    The rural female-headed poor families are the beneficiaries of the project. The following table shows the number of target families and supports measures provided:

    Benefits:
    The impact of the project will be reduced poverty in target location through livestock business growth that generates income and employment. The outcome of the project will be expanded activities of rural enterprises engaged in commercial livestock. These will generate employment in rural per-urban areas, raise the value added of traditional commodities and increase rural incomes.

    The project is to stimulate commercial activities in the livestock sector ranging from preproduction support to production to post-production handling, particularly marketing. An expansion of these activities and increases in the value added to livestock produce are expected and employment, primarily in the target areas.

    The cumulative impact of the project on the economy also will be significant through:
    (1) direct increases in production,
    (2) expanded value added, and
    (3) employment generation.
    (4) Income generated
    (5) Improve nutritional status

    II. THE PROJECT CONTEXT

    SL

    Geography

    Situation analysis

    Somaliland has made impressive achievements in a number of areas, but the foundations for further progress remain fragile due to high prevalence of poverty, low income levels, high rates of unemployment, weak production and depleted natural resource base, and lack of access to finance and external assistance. Development is dwarfed each time unfavourable events, such as droughts, occur – entailing dire consequences for government revenues and for the welfare of the whole population.
    Somaliland has an area of about 180,000 square km. Its population is estimated to be 1.7 million, of which 54 percent are pastoralists, 30 percent agro-pastoralists and 16 percent urban dwellers. Split equally between male and female, the population is among the youngest in the world, and the population growth rate was estimated at 3.14 percent in 2004.

    Poverty levels are estimated to be high compared to East African standards, but lower than in many other post-conflict countries in Africa, indicating that Somaliland has moved further along the development continuum. Per capita income was estimated at US$ 250 in 2004, which is lower than that for Kenya (US$350) and Tanzania (US$280), but higher than in Eritrea (US$190) and Ethiopia (US$100). More than half of the population live below the poverty line (i.e. less than US$ 2 per day). The figures however reveal large geographic disparities, with per capita income ranging from about US$ 201-250 in Sahil; and US$ 251-300 in Sool and Sanaag, to US$ 301-350 in Awdal, Hargeisa and Togdher regions. In addition, the figures show clear urban-rural disparities, with urban populations far better off than their rural counterparts.
    The status of progress measured against selected social indicators for which data is available suggests a mixed picture (Table 1.2). Health indicators are among the worst in the world, with under-five and maternal mortality at a staggering 18.8 percent and 16 per 1,000 live births, respectively. Access to education is also limited, although the total gross enrolment rate (GER) of 32.8 percent – 42.4 percent for boys and 23.2 for girls – is significantly higher than in Puntland and South-Central Somalia. For several indicators, the situation is, however, improving: access to improved sanitation stands at almost 50 percent, and access to improved water at 45 percent in urban areas. This indicates that the collective efforts of government, CSOs, NGOs and the private sector are yielding some results, although performance is significantly worse than the average for East Africa.
    Table 2: Somaliland Key Socioeconomic Indicators
    Access to improved water source (%) 45
    Access to improved sanitation (%) 47
    Primary school enrolment – total (%) 33
    Primary enrolment rate – female (%) 23
    Infant mortality (per 1,000 live births ) 113
    Under-five mortality (per 1,000 live births) 188
    Children (under five) under weight (%) 21
    Maternal mortality (per 100,000) 1,600
    Proportion of seats in Parliament held by women 2/82
    Source: World Bank Development Data Platform 2005, UNICEF Primary School Survey, UNDP MDG Report 2004
    Unemployment is high and associated with poverty, poor economic and social outturns, and compounded by the extensive use of khat by a large percentage of the population. Unemployment is both a cause for and results from heavy abuse, and the two problems are closely linked. Young males in particular spend their days chewing, and are left incapacitated and unable to perform their duties. This also has severe gender aspects, as women are left as sole providers for large families. Although traditional mechanisms still continue to provide coverage for the unemployed these are far from sufficient, and are being undermined by increased urbanization and a changing society.

    The majority of Somaliland population depend on a narrow range of livelihoods, in particular livestock and related activities, and farming. These sources of living are vulnerable to external factors, in particular climatic factors (famines and droughts), but also other environmental factors (such as disease or pests) and political or economic factors, such as foreign bans on imports of livestock from Somaliland. Crop production is hampered by unreliable rainfall Coastal fishermen are affected by illegal fishing close to shore which depletes local fish and seafood stocks. Many people are also affected by unreliable access to appropriate livestock, farming or fishing inputs and markets.

    Entrepreneurs and the private sector continue to play a vital role in providing employment and services in the absence of large-scale public enterprises and high public sector employment. All the same, prospects for economic growth and increased job and livelihood creation, are constrained by shortcomings in the business environment which result from the weakness of government institutions. These shortcomings include the lack of adequate legal and regulatory systems, the lack of public investment in enabling infrastructure, poor access to finance and business support services, and inadequate management and regulation of natural resources. These factors affect economic and livelihood prospects in rural and urban areas. However, the expectation of better opportunities in urban areas continues to encourage rural-to-urban migration, leading to unplanned urban growth and pressure on already inadequate services.
    The traditional livestock and agriculture sectors dominate the economy of Somaliland and hence the employment of its people, since much of it is labor intensive. Livestock represent the dominant productive activity, followed by fisheries and crops. The main features of the livestock subsector in Somaliland are the significance of disease and the dependence on an almost tree-less rangeland that is extremely sensitive to drought and has been depleted and destroyed over time. Livestock earnings, which contribute substantially to public finance through export taxation, were seriously damaged by the 2000 drought, which lasted until 2004, and the recent livestock ban in Saudi Arabia, but have since returned to previous levels. In addition, Somaliland has a promising fishing sector with most of the potential in fairly good condition except for the lobster resource which is considered to be in a state of depletion.
    Crop production is sizeable, but plagued by many of the same problems as the livestock sector. About 39,000 farm families are involved in rainfed and irrigated crop production in Somaliland, cultivating about one-third of the area suitable for agricultural production. Rainfed crops include sorghum, maize, cowpeas, groundnut and sesame. Irrigated crops are citrus, papaya, guava, water melons and vegetables such tomato, onion, cabbage, carrot, and peppers. The sector has been vulnerable to droughts and increasingly constrained by the huge damage done to the environment and the lack of available land for cultivation, and is plagued by low efficiency and productivity. Given the deteriorated state of cultivatable farmland the sector’s economic potential is limited, but it will continue to impact the domestic market due to high labour intensity and its importance for local market activity.
    A strong private sector has emerged in Hargeisa and other urban centres as a result of the prolonged peace and achievement of relative security, and is currently involved in a large range of economic activities and import-export businesses. Investments by the private sector in all these cities has resulted in the delivery of goods and services such as electricity, telecommunications, domestic water supplies, and urban waste disposal. At the same time the livestock and fisheries industries have also flourished.
    However, the cost of doing business is extremely high due in part to the lack of international recognition. Presently, Somalilanders do not have access to regular bank financing, and cannot borrow at international market rates. Import and export activity also faces large constraints, as traders cannot obtain international insurance or guarantees. Remittance companies are, however prevalent and some have even started the transition towards regular banking operations, including offering savings accounts and limited forms of guarantees. The socioeconomic mapping studies completed in Somaliland during 2004-05 confirm that business licensing is not pro-poor. For example, the annual cost of daily petty trade fees is substantially higher than annual license fees for larger enterprises. The Chamber of Commerce at present is weak in terms of the services offered, and too dependent on the government.

    Productive activity is also constrained by weak and deteriorated infrastructure, which prevents access to markets and transportation. The roads network is in a state of emergency, with most of the major routes in need of repair, with the exception of the important Berbera-Hargeisa corridor and the border connection past Borama. Although the port in Berbera has seen significant investments over the past decade, it still needs more investments to increase the capacity, and the international

    ————————————————————————————————-
    Muktar Osman Abdi I Executive Director I Somaliland Humaniterian Relief Association (SOHURA)I Address:Sha’ab Area, Borama -Somaliland

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