Background:

The Development Aid program is a cash-transfer scheme made in cooperation with our partner organization Trianglen. Starting in 2010, villages in the ASK-Trianglen network have been given 5,000 Danish kroner (116,500 NPR today) a year by Danish donors to spend on local development projects. Spending of the funds is left to the complete discretion of the village communities so long as the local committee meets the gender and caste representation requirements established by Trianglen.

It was originally designed as a democracy and social inclusion building program but has transformed over its lifespan. The program has since grown from 14 original villages to 51 in 2021. What began as a grant for small infrastructure and health projects has now largely developed into community-owned microfinance funds. Each village now operates its own lending fund by choosing potential borrowers, distributing and collecting loans, and managing accounting records.

ASK-Nepal serves as the program practitioner and facilitator. Our role is to establish the financial connection between Trianglen and the villages, provide guidance and training of how to democratically spend the funds, and conduct follow-up reporting.

Description of Actual Services

Building on the Local Governance Development of Program of Government of Nepal, a 6 step simplified process was developed by ASK with support from Triangle (a Danish NGOhttp://www.trianglen.nu/nepal.html), for the participatory and inclusive planning of project activities at village level. All villagers and facilitators use a simple 6-step process for identification of projects/activities for improvement of life with full participation of all villagers – men and women, rich and poor, old and young. The process further helps identifying what resources – local as well as external – need to be mobilised e.g. municipal funds and other sources.  The process can use as a way of conducting ‘Settlement Level Planning’, which is step 3 in the official 7 step Participatory Planning Process.  After settlement level planning, the Village committee will support to implement the selected activities voluntarily and the members of the committee will not receive fees or other special advantages as a reward for their participation.