Poverty in Nepal
Nepal is one of the world's least developed countries, plagued by rapid population growth, illiteracy, poor nutrition and health, and a virtually non existent infrastructure. Despite the large number of domestic and foreign aid programs that have been launched over the last half century, approximately 70% of Nepal's population is living under the poverty line, and the average per capita income is a mere 210 US Dollar per year, the eighth lowest in the world. Especially the rural area is less developed and very often people are deprived of the fundamental means of social and economic welfare. As a result, most people at the local level have lost faith in "aid" programs and see no hope for future improvement.
To contribute to the development of the country and the improvement of living standards for the rural population and even for the poorest of the poor , the
Center for Community Development and Research CCODER www.ccoder.org has come up with an innovative "new direction for poverty alleviation" which has been implementing over the last 17 years in selected rural areas of Nepal. CCODER believes that although they want to free themselves from the binds of poverty, many people are unconsciously exacerbating their situations bevause they don't understand the root causes of their problems. They simply need some help and direction.
Banking with a difference
In order to achieve its objectives CCODER has developed a unique micro-finance tool appropriate to rural Nepal - the Regional Community Development Bank (R-CODEB).
The most remarkable difference between a R-CODEB and a commercial bank is the strong degree of community participation in bank management and decision-making. The members of all participating self help groups are shareholders and thus owners of each Community Bank. They own and manage the bank on their own, and they decide on policies and regulations. This makes it completely different from other banks. CCODER provides special assistance to the poorest members of the society to enable their active participation in the banking program. Thus the Community Bank is truly a bank of the poor!
Future Plans
Now that the Community Banks are operating well on the regional level the plan is to establish D-CODEBs on district and higher level to utilize
savings more efficiently through inter-lending and to increase the capital volume for income-generating activities. The D-CODEBs will help to further reduce outside dependency and increase the economic and financial self-sufficiency of the village organizations. The first D-CODEB, working in the three districts of Gorkha, Palpa and Tanahu, is scheduled up to the end of 2008. Our final goal is a National Community Development Bank in The New Federal Democratic Republic of Nepal.
Nepal is one of the world's least developed countries, plagued by rapid population growth, illiteracy, poor nutrition and health, and a virtually non existent infrastructure. Despite the large number of domestic and foreign aid programs that have been launched over the last half century, approximately 70% of Nepal's population is living under the poverty line, and the average per capita income is a mere 210 US Dollar per year, the eighth lowest in the world. Especially the rural area is less developed and very often people are deprived of the fundamental means of social and economic welfare. As a result, most people at the local level have lost faith in "aid" programs and see no hope for future improvement.To contribute to the development of the country and the improvement of living standards for the rural population and even for the poorest of the poor , the
Center for Community Development and Research CCODER www.ccoder.org has come up with an innovative "new direction for poverty alleviation" which has been implementing over the last 17 years in selected rural areas of Nepal. CCODER believes that although they want to free themselves from the binds of poverty, many people are unconsciously exacerbating their situations bevause they don't understand the root causes of their problems. They simply need some help and direction.Banking with a difference
In order to achieve its objectives CCODER has developed a unique micro-finance tool appropriate to rural Nepal - the Regional Community Development Bank (R-CODEB).
The most remarkable difference between a R-CODEB and a commercial bank is the strong degree of community participation in bank management and decision-making. The members of all participating self help groups are shareholders and thus owners of each Community Bank. They own and manage the bank on their own, and they decide on policies and regulations. This makes it completely different from other banks. CCODER provides special assistance to the poorest members of the society to enable their active participation in the banking program. Thus the Community Bank is truly a bank of the poor! Future Plans
Now that the Community Banks are operating well on the regional level the plan is to establish D-CODEBs on district and higher level to utilize
savings more efficiently through inter-lending and to increase the capital volume for income-generating activities. The D-CODEBs will help to further reduce outside dependency and increase the economic and financial self-sufficiency of the village organizations. The first D-CODEB, working in the three districts of Gorkha, Palpa and Tanahu, is scheduled up to the end of 2008. Our final goal is a National Community Development Bank in The New Federal Democratic Republic of Nepal.
Institutional backround and the unique approach of CCODER
Poverty is a vicious circle: individuals are poor because they lack sources of income, but in order to initiate income-generating activities, money is necessary. In rural Nepal, banks are few and far between, and in those that exist, loans are usually not available for the poor, due to lack of collateral.
Thus, struggling villagers generally find it next to impossible to come up with the necessary start-up capital for productive economic activities. Since its establishment in 1991, CCODER, a people-first, non-profit organization whose mission is to create thriving and self-sustaining rural communities in the now new Federal Democratic Republic of Nepal has organized more than 25.000 members in seven dristricts of Nepal (Gorkha, Nuwakot, Lamjung, Tanahu, Palpa, Terathum and Kathmandu Metropolitan City) 
and helped them to establish Community Banks, income-generating activities, Community Schools and a Health Care Program - all owned and operated by the communities themselves. A real ownership of the people and the special focus on the underprivileged and the poorest of the poor makes it a true peoples' program and appropriate to the needs of rural Nepal. It is a unique tool to alleviate poverty and sustainably improve the living standards throughout Nepal.
Poverty is a vicious circle: individuals are poor because they lack sources of income, but in order to initiate income-generating activities, money is necessary. In rural Nepal, banks are few and far between, and in those that exist, loans are usually not available for the poor, due to lack of collateral.
Thus, struggling villagers generally find it next to impossible to come up with the necessary start-up capital for productive economic activities. Since its establishment in 1991, CCODER, a people-first, non-profit organization whose mission is to create thriving and self-sustaining rural communities in the now new Federal Democratic Republic of Nepal has organized more than 25.000 members in seven dristricts of Nepal (Gorkha, Nuwakot, Lamjung, Tanahu, Palpa, Terathum and Kathmandu Metropolitan City) 
and helped them to establish Community Banks, income-generating activities, Community Schools and a Health Care Program - all owned and operated by the communities themselves. A real ownership of the people and the special focus on the underprivileged and the poorest of the poor makes it a true peoples' program and appropriate to the needs of rural Nepal. It is a unique tool to alleviate poverty and sustainably improve the living standards throughout Nepal. The development process in each rural community begins with a "Development Education" program, during which villagers are, among other things, made aware of the importance of saving and are briefed about CCODER's micro-finance strategy. Individuals then organize themselves into a village organization called a CDC (Community Development Committee). After the formation of a CDC , 
representatives of 10-20 CDCs unite to form a R-CDC (Regional Community Development Committee). Each R-CDC benefits approximately 5.000 people, drawing up development plans according to the projects and goals of its member CDCs. After a R-CDC had been established for one year a Regional Community Development Bank (R-CODEB) is founded with initial capital from the members' shares and savings.
>>> www.ccoder.org, e-mail: ccoder@wlink.com.np or ccodernepal@online.ms, P.O.Box 5716, Kathmandu, Nepal, phone 00977-1-4351681
representatives of 10-20 CDCs unite to form a R-CDC (Regional Community Development Committee). Each R-CDC benefits approximately 5.000 people, drawing up development plans according to the projects and goals of its member CDCs. After a R-CDC had been established for one year a Regional Community Development Bank (R-CODEB) is founded with initial capital from the members' shares and savings.>>> www.ccoder.org, e-mail: ccoder@wlink.com.np or ccodernepal@online.ms, P.O.Box 5716, Kathmandu, Nepal, phone 00977-1-4351681
