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the Livelihood Stabilization Program

The Livelihood Stabilization Program

In mid July, CARM distributed to some Cambodian NGOs a concept paper on the LSP. The ADB also created a Project/Program Information Document (PID) on the LSP on 5 August 2008, as per its Public Communication Policy. According to these two documents and what CARM explained to NGOs and the 63 families, the LSP would mainly provide recipients with a four-year low-interest (1% a month) micro-credit loan and job skills trainings for the livelihood improvement.

Communities Not Convinced

While the 63 families welcomed the ADB’s intentions to help them restore their life and livelihood, they had a number of questions and concerns over the architecture of the LSP, including:

1. The communities should be given a grant, because the Cambodian government will be funded with a grant from the ADB;
2. The 1% monthly interest is still too high;
3. The four-year program implementation period is still too short;
4. The LSP may not benefit very poor families, e.g., families with only elderly members, or those who need to spend much time to complete job skills trainings. It is not fair to expect these families to quickly improve their livelihood and pay back the LSP loan; and
5. The ADB should immediately implement solutions to improve the situations of the 63 families.

Unless the ADB responds sufficiently to these shortcomings, the communities felt that the LSP would not solve all of their problems. Also, the LSP’s details were not yet disclosed to them. They wanted CARM to give them more information on the LSP in Khmer. They then wanted the ADB to incorporate their input into the LSP before the ADB makes any important decisions, such as approving the LSP. The 63 families submitted these comments to CARM in writing in July and December 2008.

Materials

>>The Livelihood Stabilization Program:

ADB’s Concept Paper on the LSP, dated 30 May 2008.

ADB’s Program Information Document (PID) on the LSP, created on 5 August 2008.

>>Reactions from the communities/NGOs and the ADB’s response:
The 63 Families’ Initial Comments on the LSP, dated 28 June 2008 (original in Khmer).

Mekong Watch’s Submission to ADB’s Southeast Asia Department, dated 20 November 2008.

ADB’s Response to Mekong Watch’s Submission, dated 14 December 2008.

The 63 Families Requests on the LSP, dated 7 December 2008 (original in Khmer).

ADB’s Response to the 63 Families’ Request, dated 23 December 2008.