Meda Ecdi Pakistan Final

THE SEEP NETWORK’S
POVERTY OUTREACH WORKING GROUP
PROMISING APPROACHES IN MF/MED SERVICES FOR VERY POOR PEOPLE
CASE STUDY # 6
“BEHIND THE VEIL”

Access to Contemporary Markets for Homebound Women Embroiderers
in Pakistan
MENNONITE ECONOMIC DEVELOPMENT ASSOCIATES (MEDA) AND

ECONOMIC AND CAREER DEVELOPMENT INSTITUTE (EDCI)
Funded by the USAID Implementation Grants program (IGP)
2003-2007
Case Study prepared by Mary McVay, consultant, in conjunction with:

Linda Jones and Helen Loftin, MEDA and
Perveen Shaik, ECDI
September, 2007
TABLE OF CONTENTS
1. Executive Summary..........................................................................................................i
1. Context ...........................................................................................................................1
1.2. Local context – target area.......................................................................................2
2.1. International Organization.....................................................................................12
2.2. Local organization.................................................................................................15
The main services identified are basic health care and primary education, provided by
the government. These is, to date, no coordination of services to the poor......................20
2. 3. Description of “Very Poor” Target Group.................................................................21
3.1. Individual and Household conditions
........................................................................................................................................21
3.2. Socioeconomic conditions.....................................................................................22
4. Poverty Targeting and Assessment...............................................................................26
4.1. Poverty measurement practices..............................................................................26
4.2. Available Poverty Data..........................................................................................27
4.3. Poverty Targeting...................................................................................................28
5. Products and Services...................................................................................................30
5.1. Financial Products..................................................................................................30
5.2. Microenterprise Development Services.................................................................30
5.3. Non-financial Services N/A..................................................................................34
5.4. Design and Product Development: .......................................................................34
5.5. Implementation Process ........................................................................................44
6. Results...........................................................................................................................46
6.3. Cost Effectiveness and Sustainability ...................................................................51
Annex B: Market Research and Program Design Process................................................55
Annex A................... Market Research and Program Design Frameworks
Annex B (Attached as a separate file)Table One – results indicators
Annex C (photos)
1. Executive Summary
Mennonite Economic Development Associates (MEDA) and Enterprise and Career

Development Institute (ECDI) are implementing the “Behind the Veil” program with a
budget of $600,000 over 3 years. The program helps home-bound, rural women in
Pakistan to reach lucrative urban markets for hand-embroidered cloth, through a network
of commercial, women sales agents. It is an award winning value-chain development
program that has reached over 9,000 women embroiderers by strengthening sustainable
market structures and services. In addition to putting cash in the hand of women who –
for the most part – have never been paid for their labor, the program empowers oppressed
women. As one participant put it, “this woman (Perveen Shaik, ECDI’s program leader)
has taken me step by step and shown me a world where I can succeed. Now I have seen
what is possible and I will keep moving forward because I want to be a part of this world
she’s shown me.”
Target Group
MEDA and ECDI estimate that the women in the program are at poverty level 2 in a 5
tiered system, with 1 being the poorest. Quantitative indicators of poverty include:
• Average earnings from embroidery work were around $6 per month or $72/year
before the project.
• Poverty rates in the geographic areas targeted are estimated at 25% for two states and
33% for the third state. This compares to a national poverty rate of 35% (in 2001).
These estimates are very rough and based on average figures and do not reflect the
poverty rates or living conditions of the specific villages the program targets.
• The program targets women. Pakistan has a gender index of 144. Adult literacy is 63%
for men and 36% for women.
• The program targets rural producers. The poverty rate in rural areas (40%) is
significantly higher than in urban areas (23%).
MEDA and ECDI rely more on the following qualitative indicators of poverty:
• Gender: women have significantly lower economic opportunities, mobility, access to
resources and autonomy in Pakistan due to cultural and religious customs and other
forms of gender discrimination. The program specifically targeted home-bound
women by targeting areas of Pakistan where this tradition is prevalent.
• Living conditions: The homes of target clients are run-down, built from mud bricks or
mud and stick, often open to the elements. If the family owns animals, they are often
tethered very close to the homes due to lack of land. Clients have no electricity,
telephone, running water, sewage or toilet facilities and often use shared pit latrines or
fields. Their clothing is old and worn.
• Health conditions: children are visibly malnourished, have discoloured hair, have
distended stomachs and vacant looks. Women look very old for their years, marry
young. People have disabilities or scaring related to diseases, such as small pox.
• Social conditions: Clients are living under social conditions in which it is difficult for
them to assert their rights and they are often exploited by wealthier people. A “feudal”
elite dominates rural society. Farmers are dependant for their basic needs on a
traditional landlord, and do not have property rights over their land. Rural society is
i
male-dominated. Purdah is common. Target clients are restricted from most forms of
paid labor and from interacting with men. Since men control the markets and trading,
women are therefore cut off from economic opportunity.
• Working conditions and materials: clients find scraps of cloth to embroider and sell
these “patches” to low-value markets through their male relatives as they are unable to
go to markets themselves. They know little about the market and often pay more for
their thread than they receive in payment for the product. In most cases, since women
do not receive payment for the produce – payment is received by male relatives – they
have little control over how the money is spent and are not aware of how much they
really earn.
MEDA and ECDI describe their clients as not being the poorest of the poor in that they
are not destitute, they are not starving, although they are sometimes hungry or
malnourished. They have some kind of tenure in their homes, and access to health
services and free primary school through the government. They also have a valuable and
marketable skill – embroidery – and creative talent which they use to generate designs
based on nature and their cultural traditions.
Targeting Methodology:
This target population is new both to MEDA and to ECDI and was selected by the
program designers primarily to fulfil personal mission and, in part, in an attempt to win
funding. The entire program targeted the poor. MEDA’s tradition target population is
the working poor and ECDI’s is middle class women. The main drive of the program, at
the design phase, was to empower women using a value chain development approach.
When looking for a sector with large numbers of active women-owned businesses,
researchers discovered the embroidery sector as a high potential sector with large
numbers of poor producers. Embroidered cloth is used to make Shalwar Kamiz, popular
throughout the region among middle and upper class women. Specific geographic areas
were targeted because they had high concentrations of embroiderers. Specific villages
were penetrated through years of relationship building during entrepreneurship training
programs and market research. Individual clients were not selected. Rather, they came
forward to sell their products. The program did selected female sales agents. The SAs
were selected based on certain criteria. After initial meetings and focus group
discussions, women from the following categories were selected: those women who
already had some REs working under them; women who belonged to a community or
group where REs worked and were REs themselves with leadership potential; or were
women with pronounced skills who were keen to have REs under them.
MED Methodology
The program methodology is sustainable value chain development, and was the first
sustainable value chain development program to reach very poor women. The program
links rural embroiderers to high value urban clothing markets by identifying and training
a network of women sales agents, helping them access markets, input and design
services, and helping them to pass on inputs, design services and other support to the
women embroiderers. The main innovations in reaching the very poor included:
ii
• Helping them access high value markets through sustainable market mechanisms.
• Offering a holistic package of services to women, through sustainable market
mechanisms.
• Working with microenterprise intermediaries who have appropriate social connections
to target clients, and linking the sales agents with the range of businesses needed to get
product to market.
• Developing a market culture of social enterprise, rather than exploitative business
practices, through training, leadership and ensuring adequate “competition” or market
options for producers.
Program managers also emphasize the luck involved in finding large numbers of poor
people with a marketable skill. To reach downmarket further, to populations without a
marketable skill, the program would subsidise technical training and apprenticeships in
embroidery (or in other marketable skills) to help get client market ready, and then apply
the sustainable value chain development approach.
Results:
The main impact MEDA and ECDI are assessing is increased sales (which in most cases
translates directly to income because inputs are supplied by the buyer) and qualitative
lifestyle improvements reported by women.
• Income:
o For most embroiderers, income prior to the program was negligible. The
average income for all embroiderers reached as of June, 2007 (3 years into
the program) is $170 a year.
o For more active embroiderers, average annual income was around $70 per
year prior, and is now around to the program increased to $240.
• Qualitative Improvements:
o Almost all women report increased contributions to household decision
making, control over their income, greater respect from their husbands and
in-laws, enhanced feelings of self-confidence, more hope for their future,
and general empowerment.
o “Graduation:” Community sales agents have emerged from rural
embroiderers to become sales agents.
o Leadership development: Sales agents have much greater mobility in their
own communities and for traveling to urban centers to participate in
exhibitions and to negotiate with buyers. These women have developed
their capacity to travel across Pakistan, to run businesses, to engage with
men in business, and to form support networks. Commonly, sales agents
have become women’s advocates, community mobilizers and social
entrepreneurs.
o Women groups: women participating in the market now have more
flexibility to form and meet in all female groups, with increasingly less
monitoring by men in the community.
• Family benefits: Through women’s contributions, more children are attending school,
household nutrition has improved, families experience increased facilities and
comfort, and girls are being brought into the family business, and sons are growing up
in households where mothers are respected contributors in thousands of families.
iii
• Male Involvement: Men have become involved in the program in various ways –
supporting their wives, mothers or sisters, accompanying their womenfolk to difficult
areas, becoming partners in the business, picking up things at the market, making
deliveries, and so on. In general, men seem proud of women’s accomplishments, and
respect the value that they contribute to the household.
Organizational Aspects:
Both MEDA and ECDI are small, entrepreneurial institutions that cultivate learning and
give staff flexibility to try new things. In both organizations, extraordinary women
leaders – recognized by international peers for their innovations - pioneered the program
and led staff and the board toward a new way of working. The intended outcome was an
enhancement to the organizational mission, and not a threat to “viability,” although
doubts were expressed along the way about whether it was possible to work effectively
with this population on a sustainable basis.
Cost-Effectiveness and Sustainability:

The program is very cost effective: Less than $25/per client reached.
The initiative is sustainable. The program has stimulated already hearty demand for rural
embroidered clothing, launched into the market 213 sales agents (6 are men), who
continue to bring additional sales agents and embroiderers into the market, and created a
viable market for design and pattern services. The sales agents supply embroiderers with
a full package of services, and embroiderers generally have a choice of buyers to work
with. There is a fledgling association of sales agents in place gradually taking over many
project functions.
Conclusion: “Behind the Veil” demonstrates that markets can work for the poor, and that
sustainable value chain development – or market development - is a viable, cost-effective
and sustainable approach to reducing the poor, even under challenging social and
logistical conditions. Program leaders have ideas for how the model could be adapted to
reach even further down market and to help marginalized people access a fuller range of
social services that would translate the cash they earn into a better standard of living.
They also recognize that more could be learned with a more rigorous poverty
measurement and impact assessment system.
Strengths: internal to the organization that have made MEDA and ECDI successful
and/or are needed to make other organizations successful to adopting sustainable value
chain development strategies that reach the very poor:
• Innovative, entrepreneurial, insightful, skilled leadership with dedication to reaching
the poor using sustainable market systems.
• Funding for, management support and access to professional development in market
research and value chain development.
• Institutional autonomy/flexibility to adapt services and strategies to the market and the
target population.
• Sufficient funding: at least $500,000 for a 3 year period for a small market.
• Links, or the ability to establish social links, to communities and networks of the
target population, and entrepreneurs who can do business with the target population –
iv
the ability to work both with target clients and more sophisticated businesses in the
market.
Weaknesses: or challenges internal to an organization, that it must overcome or mitigate

in order to successfully adopt value chain development to reach the very poor – MEDA
and ECDI overcame most of these challenges:
• Complexity of implementing value chain development, especially sustainable and
comprehensive approaches.
• The timeframe for building relationships and developing markets, compared with
funding program timeframes.
Opportunities: external conditions that make it easier for an organization to successfully

adopt sustainable value chain development for the very poor:
• Target population with a marketable skill
• Demand for the products or services that the target population has skills and/or
resources to produce
• Sufficient density of populations or physical concentrations of producers
Threats: external conditions that could keep an organization from successfully adopting
sustainable value chain development for the very poor:
• Insecurity, political instability and disruption
• Weather conditions, for agricultural related products and services
• Over-subsidized markets
• Conservative social movements, cultural or social constraints, for example men being
suspicious about the nature of the program
• Monopolistic or exploitative tendencies of traders
• Logistical and physical constraints to efficiently reaching more remote areas –
including natural disasters
Helen Loftin, the MEDA program manager, captures the spirit of the program as follows:
“… the project is making a profound impact in the lives of these women. There is no
preaching or sermonizing or criticisms of any sort. We make no comments or conduct no
activities specifically directed at women’s social empowerment. And yet it’s happening
for the women of this project. They are treated better by their families; they channel the
funds back into the household through education, better nutrition, and medicines. Their
children - their daughters - are learning about opportunities other than the yolk of poverty
and suppression. And they have a spirit that goes beyond inspirational. It’s
indominatable. It’s humbling. It reflects humanity at its best – in fact, it’s divine. In the
midst of abject oppression and poverty – I experienced joy, generosity, ambition, good
humour and pure hope. What better foundation for an entrepreneur? Or for a
community?”
Speech to MEDA associates, 2007.
Parveen Shaik, Executive Director of ECDI and the program’s founder and leader, offer
the following advice for other practitioners: “Delivering on promises is key to success at
the grass-root level. It is critical that the project team is committed and able to earn the
v
respect and trust of women with whom they work. One of the main reasons this project
was able to have such an overwhelming impact was that the rural women felt like they
were truly a part of the initiative. They were always given complete information and the
team never failed to actualize any promises that were made – large or small. ECDI’s past
credibility in the sector and its large and varied experience meant that partners at all
levels were eager to engage with the project. The fact that both project partners, ECDI
and MEDA, did not break with cultural norms, such as covering their heads when in the
villages and when interacting with rural women augmented their (the REs) ability to take
part in the initiative and also generated trust and respect within the communities.”
vi
1. Context
Pakistan is a poor country with a rich history, diverse culture and economy,
and unstable political environment. It is caught at the center of the “war on
terror,” and some areas where the program operates are close to the border
with Afghanistan. Natural disasters – drought, floods, cyclones and
earthquakes – occur every few years. At the same time, the government
reports significantly reduced poverty over the last five years, due to growth
in agriculture, manufacturing and IT and services. Pakistan is a muslim
country with a rich history, in the midst of social tension over how to interpret
Islam in the modern world and what role the country should play in the
current global war. Pakistan a range of divers cultures from modern cities in
which women have significant freedom and flexibility, and traditional rural
areas in which feudal landlords and/or religious leaders control almost all
aspects of life. Purdah – the tradition of women being home-bound – is
commonly practiced, in different forms in different parts of the country.
1.1. Country Socioeconomic and Poverty Data
Table 1.1. Country Statistics
1.1.1. National Currency Pakistan Rupee

Amount Year
1.1.2. Population (millions) (WHO) 157.9 2005
1.1.3. Population density per square kilometre (PAP) 166 2002
1.1.4. Percentage urban (PAP) 32%
3% 2002-
1.1.5. Inflation (Government of Pakistan, Federal Bureau of Statistics)
2003
5% ’03-‘04
9% ’04-‘05
7% ’05-06
1.1.5. Nominal Exchange Rate (current, X Currency per US$1) (x- 60.6
2007
rate.com)
1.1.6. PPP Exchange rate (World Bank: PPP/USD amount) 3.25 2007
1.1.7. HDI value (HRD 2006) .54 2006
1.1.8. HDI ranking (HDR 2006) 134 2006
1.1.9. GDP/Capita (PPP US$) (WHO) 2,500 2006
1.1.10. Local currency equivalent of $1-a-day international poverty
line
35%
2000-
1.1.11. Population below national poverty line (%) 1 Rural: 40%
2001
Urban: 23%
24%
2004-
Rural: 28%
2005
Urban: 15%
1.1.12. Population living below $1 a day (%) (expenditure) 17% 2002
1.1.13. Population living below $2 a day (%) (expenditure) 74% 2002
1.1.14. Population living below $2 a day (%)
1.1.15. Population growth rate (Population Association of Pakistan, 2.1% 2002
1
quoting government sources)
1.1.16. Life expectancy (WHO) 61/62 (m/f) 2005
1.1.17. HIV prevalence (% ages 15-49) (UNAIDS) 0.1% 2006
1.1.18. Malaria cases (per 100,000 people)
1.1.19. Population undernourished
38% 1996-
1.1.20. Children underweight (UNICEF- under 5, moderate-severe)
2005
13% 1996-
Children underweight (UNICEF- under 5, severe )
2005
Male 63% 2002-
1.1.21. Adult literacy (UNICEF)
Female 36% 2004
1.1.22. Net primary enrolment ratio Male 95% 2002-
(UNICEF) Female 65% 2005
Male 31% 2002-
1.1.23. Net secondary enrolment ratio
Female 23% 2005
1.1.24. Physicians per 100,000 people .74 2004
1.1.25. Health expenditures per capita $48 2004
1.1.26. Gender-related development index (GDI) rank (UNDP) 144 2001
1.1.27. Gender-related development index (GDI) value (UNDP) .47 2001
1
Explain how the national poverty line is defined: The national poverty line is defined differently in
different studies over the decades, although the basic measurement tool is a consumption assessment, not
an earnings assessment. “Nevertheless, while there is no consensus on the precise level of
poverty in the country at any given time, there is general agreement with regard to
the trends in poverty since the 1960s.” Poverty declined from the 1960s-1990, then
poverty increased from 22% to 35% in 1999, and has probably gotten worse since
1999-2001, due to slow growth, fiscal tightening, severe drought and a number of
natural disasters. It is unclear how the war on terror or recent political tensions have
affected poverty rates.” The 2006 Millennium Development Goals Report from the
Government of Pakistan reports a reduction in the poverty rate from 35% in 2000-
2001 to 24% in 2004-2005. The report notes, however, that 2000-2001 was a
drought year, whereas 2004-2005 was a very strong harvest, which was then
followed by less strong harvests.” Thus, there is some debate about recent poverty
rates and trends, but an appropriate estimate is around one third of the population
being poor.
1.2. Local context – target area

The program operates throughout Pakistan, targeting districts and specific areas where
embroidery is prominent, women’s confinement is high, and poverty is evident.
1.2.1. Briefly describe local socioeconomic conditions

1.2.1.1. Geographic reference of location and size of population
“Behind the Veil” targets rural embroiderers in specific districts of three provinces:
• Multan in Punjab
• Interior Sindh: especially Thatta and Hyderbad
• Quetta in Balochistan
The program links women to buyers in urban areas of these districts as well as to
markets in Karachi (Sindh) and Islamabad (Punjab).
2
Pakistan is overwhelmingly Muslim. Cultural and religious practices vary in the
country from more conservative to more liberal, particularly in terms of women’s
autonomy or confinement. Historically, it has a feudal land ownership pattern which
is still place in much of Sindh province, but there has been land redistribution in
Punjab. Less than half of rural Pakistanis own land, and 40% of the land is owned by
only 2.5% of the population.1 Women are reported as have very low levels of
economic activity, working on their own farms when the family has land, raising small
animals, working in landlord’s fields, or embroidering at home. Even sectors such as
food production and processing, garment making and most handicraft sectors are male
identified and dominated.
The government statistics are based on rural household consumption and expenditure.
Poverty is associated with low education and literacy levels, lack of access to health,
social and public services, and vulnerability to drought or flood for the rural poor. In
terms of poverty in the target provinces, Balochistan is the poorest, then Sindh, then
Punjab:
Human Development Indicators by Province

2000-2001
Pakistan Integrate Household Survey
Adult Literacy Access to
drinking water
Punjab 49% 95%
Sindh 51% 81%
Balochistan 36% 37%
Remaining context questions will be reported for each targeted geographic area in turn:
Quetta in Balochistan:
The program targets slum villages on the outskirts of Quetta, which is the main
commercial hub of the district.
1.2.1.2. Local population characteristics
1.2.1.2.1. Ethnic groups
Balichi, Pashtun, Hazara – these are minority ethnic groups, and are very socially
conservative and patriarchal. Communities tend to be autonomous from the government,
and to resist involvement with outsiders and with government or NGO initiatives.
1.2.1.2.2. Most important economic activities

Livestock, natural gas, fruits. In Quetta the main economic activities are commerce and
trade and services.
1.2.1.2.3. Cultural and religious background
1
Mumtaz, Khawar and Meher M. Noshirwani, Scoping Study, “Women’s Access And Rights To Land
And Property In Pakistan, IDRC.
3
The population is muslim and very conservative. Women practice Purdah, are generally
home-bound, and have very low access to education. Quetta is less conservative than
other rural areas of Boluchistan, but still considered “tribal.” These communities are less
inclined to integrate with government and NGO programs, very autonomous and closed
to outside influence. Traditional and religious leaders have tremendous influence of
social life.
1.2.1.3. Natural resources, economic activities, markets, unemployment (see 1.2.1.2.2)

Women are chronically unemployed and have low access to economic opportunities. The
men are engaged in wage labor and running informal sector businesses.
1.2.1.4. For rural areas only: most important crops and livestock activities, water
supply (irrigation, rain fed), seasons and number of harvests, land availability,
ownership patterns and contracts.
1.2.1.5. Occurrence of droughts, floods, natural disasters or conflicts
Balochistan is an arid, largely mountainous province of Pakistan. It forms 44% of

Pakistan’s land mass and has a 770 km long coast line, but is sparsely populated. It
endures frequent spells of drought, flash floods and earthquakes. Though underdeveloped
by any standards, Balochistan is rich in biodiversity and natural resources. “Wild
variations in physical features and climate have produced diverse landscapes, ecosystems
and habitats that are important as source of livelihoods and national and global heritage.
Economically, its vast rangelands, large numbers of livestock, rich mineral and gas
deposits, and good quality deciduous fruits are of significant value although there is
relatively little industrialization in the province. Balochistan’s arid but diverse climatic
zones have contributed to a rich animal and plants biodiversity while building a definitive
culture heritage that allowed survival in this rugged and harsh landscape.” There has been
significant rural-urban migration to the capital of the Province, Quetta, among local
population and among Afghani refugees. The province hosts several million Afghan
refugees.2
The targeted areas are slum villages surrounding the city of Quetta. Quetta is the
provincial capital and the hub of commerce. Although its population is less than
500,000, it is the more densely populated district of Baluchistan. It rates in the middle
range in the province in terms of most poverty indicators. It is very close to the border
with Afghanistan and has experienced political and security unrest during the program
including bombings and sabotage of the gas pipeline, which has sometimes prevented
staff from traveling in the area.3
1.2.2. Describe government policies aimed at the very poor

According to the government of Paksitan Poverty Reduction Strategy Paper4, the key
“pillars of reforms initiated by the Government of Baluchistan are:
Engendering growth.
Managing the scarce water resources.
2
www.Balochistan.org
3
Ibid and MEDA and ECDI, 2007
4
Government of Pakistan, Poverty Reduction Strategy Paper, 2006.
4
Governance reforms.
Improving human development.
Addressing vulnerability to shocks.”
Key focal areas include education, gender disparities, rural-urban disparities, access to
drinking water, health infrastructure, improved governance and support of the private
sector.
Based on reports from the program, the main government services that the target
population has access to are:
• Basic community health service
5
• Free primary schooling
1.2.2.1. Social protection schemes by the government.
These are not apparent.
1.2.2.2. Policies aimed to integrate the very poor, such as anti-discrimination and
affirmative action laws.
These exist on paper, but the main activity the program reports is that girls are being
encouraged to attend primary school.
1.2.2.3. Property and land rights.

Very few poor people own any land. Women are not recognized as landowners. Families
rent huts or squat.
1.2.2.4. Local government and non-governmental development programs.6
The following are a sample of development programs going on in the region:

• Replication of QKAEMP Sanitation Model
Releasing Confidence and Creativity (RCC): An Early Childhood Development
Programme
• Trial District Development Programme in Baluchistan
• Balochistan Road Development Sector Project
• The Project for Irrigation Water Management, Orchard Management and Drinking
Water Supply in Zardaloo, Balochistan
• The Project for Construction and Support of School of Medical Technology, Quetta
• The Project for Construction of School Building of Qandeel Model Public School
The program does not report their target clients being involved in any of these initiatives.
Multan in Punjab:
The program works in rural villages in Mulan, which is the most accessible and open of
the three districts. The program results here are higher.
5
ECDI, 2007
6
www.balochistan.org
5
Punjab is dominated by the Punjabi ethnic group, the largest in Pakistan, although there
are significant populations of other ethnic groups throughout the province.
Agriculture, industry and mining, and crafts – Punjab has a rich and diverse economy.
Multan, the target district, is also diverse.
The population is muslim, but tends to be more liberal than other areas of the country.
Many women practice Purdah and are home-bound, but more women than in others areas
have access to education, employment and business opportunities. Although traditional
and religious leaders till hold significant influence over social life, there has been land
redistribution in Punjab and society is more open than in other parts of Pakistan.
1.2.1.3. Natural resources, economic activities, markets, unemployment

There are five rivers running through Punjab, making it a fertile agricultural area. Despite
its dry climate, extensive irrigation makes it a rich agricultural region. Wheat and cotton
are the largest crops. Other crops include rice, sugarcane, millet, corn, oilseeds, pulses,
fruits, and vegetables. Livestock and poultry production are also important. The province
is also playing a leading role in agricultural production. It contributes about 68% to
annual food grain production in the country. Despite lack of a coastline, Punjab is the
most industrialized province of Pakistan; its manufacturing industries produce textiles,
sports goods, machinery, electrical appliances, surgical instruments, metals, bicycles and
rickshaws, floor coverings, and processed foods. In 2003, the province manufactured
90% of the paper and paper boards, 71% of the fertilizers, 65% of the sugar and 40% of
the cement of Pakistan. Punjab is also a mineral rich province with extensive mineral
deposits of coal, rock salt, dolomite, gypsum, and silica-sand. In terms of natural disaster,
flood is the most common issue.7

The poor people targeted by the program generally have none or very low access to
services, such as water, electricity, sanitation/sewers, telephone, internet, etc. Roads are
7
http://library.thinkquest.org/06aug/02374/home.html
6
of poor quality and transportation infrastructure inhibits trade and mobility. The two main
services that the government provides fairly effectively are:
• Basic health service (educational and preventative care at the village level)
• Free primary education
In Punjab, there has been land distribution in an attempt to end the feudal system.
Gender balancing plans exist on paper, but the main activity the program reports is that
girls are being encouraged to attend primary school.

Land distribution has increased small holder land ownership, but land is still highly
concentrated among the wealthy. Women’s right to own land is not recognized.
1.2.2.4. Local government and non-governmental development programs.
The Punjab poverty reduction strategy reform program is based on five main pillars:8
• “Improving governance to build an efficient, accountable and service oriented
public sector including strengthening key economic institutions at provincial and
local levels;
• Fiscal and Financial restructuring and management;
• Establishing an effective and transparent enabling environment for private sector
development to accelerate growth;
• Reforms to improve service delivery in basic social services; and
• Addressing vulnerability to shocks.
The program includes land redistribution, slum upgrading, improved rights and status for
women, and improved water services.”
(Not much information on other local NGO programs was provided. I will try to follow-
up on this a bit more.)
Interior Sindh: Thatta and Hyderabad:

The program works in interior Sindh: in rural areas of Thatta, and peri-urban areas of
Hyderabad. This is the most conservative area of the program.

Sindh province in dominated by the Sindhi people, with a significant population of urdi
speaking people who migrated from India during partition, as well as significant
minorities of other “tribal” populations and migrants to Karachi from other parts of
Pakistan. Thatta, one program target area, is mainly Sindh, and is the historical capital of
the region and a very old, historically significant city. The program also runs a regional
office out of Hyderabad, and reaches out to slum and peri-urban areas there.
8
Government of Pakistan, 2006.
7
Agriculture, industry, trade and crafts. Sindh has a rich and diverse economy. Thatta,
one target district, has a rich craft tradition, as do many areas of Sind province.

The population is muslim, and very conservative. Many women practice Purdah and are
home-bound, have limited access to education, employment and business opportunities.
For example, there are honor killings in Thatta. In addition, rural areas are dominated by
a feudal system. Landlords and religious leaders hold significant power in social life.
1.2.1.3. Natural resources, economic activities, markets, unemployment

Endowed with coastal access, Sindh is a major center of economic activity in Pakistan.
generates almost 30% of the total national tax revenue. It has a highly diversified
economy ranging from heavy industry and finance centered in and around Karachi to a
substantial agricultural base along the Indus. Pakistan's rapidly growing information
technology sector (IT) is also centered in Karachi and manufacturing includes machine
products, cement, plastics, and various other goods. Agriculture is very important in
Sindh with cotton, rice, wheat, sugar cane, bananas, and mangoes as the most important
crops. Sindh is the richest province in natural resources of gas, petrol, and coal. The
province is mostly arid with scant vegetation except for the irrigated Indus Valley. Sindh
is well known for its various handicrafts and arts.9 Despite being near Hyderabad, a
significant city, Thatta is surprisingly under-developed and traditional in its economy and
outlook. In June, 2007, the coast of Sindh was hit by a significant cyclone, which also
disrupted commerce and the program.
The poor people targeted by the program generally have none or very low access to
services, such as water, electricity, sanitation/sewers, telephone, internet, etc. Roads are
of poor quality. The two main services that the government provides fairly effectively
are:
• Basic health service (educational and preventative care at the village level)
• Free primary education
9
Government of Pakistan, 2006.
8
None mentioned by the program

There is feudal land rule with large land owners controlling the farming system and
peasants working for a portion of land or of the crop. The poor are very dependant on
landlords and are more or less trapped in their situation.
1.2.2.4. Local government and non-governmental development programs.
The Government of Pakiston PRSP described the poverty challenges in Sinhd as follows:
“Pervasive poverty especially in rural Sindh (is) characterized by poor social services,
large gender disparity, landlessness, and high dependence on public sector alongside the
presence of large manufacturing, finance, and private sector as well as huge urban slums
in Karachi, governance, poor fiscal and financial management till FY99.” The poverty
reduction strategy is decribed as follows:
“The Government of Sindh (GoS) has initiated a reform process with overarching
objective of reducing poverty by promoting growth and accelerating human development.
The reform program has three main pillars:
• Fiscal and financial management reforms;
• Improving governance and public service delivery; and
10
• Regulatory reforms and privatization.”
(Not much information on other local NGO programs was provided. I will try to follow-
up on this a bit more.)
1.2.3. Brief profile of microfinance environment.
Program clients have not had any prior access to microfinance or microenterprise
development services. The program, this year, has introduced sales agents to several
microfinance institutions, in the hopes that the sales agents will be able to expand faster
with access to credit. The sales agents themselves often purchase inputs for women,
which functions as both credit and quality control.
AKHUWAT is non-governmental, not for profit organization providing micro credit

without interest to the poor “at their doorstep.” AKHUWAT charges only for their
“service.” They are planning to open a program in Multan soon. To access credit,
members pay around $8 membership fee, file an application with a copy of their national
identity card and identify two guarantors. Initial loan sizes start from around $165 and
go to a maximum of $420. If all the installments are paid on time, borrowers are eligible
for larger amounts of credit. When presenting to program participants, AKHUWAT
informed the women sales agents that there is no gender discrimination at AKHUWAT.
10
Ibid.
9
P.R.S.P Multan was represented by a female loan officer when they made their
presentation to the program sales agents. PRSP provides credit to the poor and also runs
schools and health centers. PRSP forms separate male and female groups with 15
members for credit disbursement. One third of the groups is issued credit first, then 75%
and later 90% and finally all of the group members. There are some areas that the
program avoids due to chronic flood because the people there are migratory
After these presentations, twelve sales agents applied for credit.
More details are not available at this time.
1.2.3.1. List microfinance institutions (other than subject of case study) and other
financial institutions/services accessible by the poor.
Provide number of clients, if possible.
The program historically does not interact with MFI, and ECDI did not have this
information readily available.
1.2.3.2. Describe dominant microfinance models and services.

Examples are individual or group loans (such as solidarity lending, self-help group
lending and village banking), savings (voluntary/mandatory). Traditional (informal)
microfinance models can also be listed if they are common.
1.2.3.3. Demand versus supply of microfinance services.
What indications exist on demand for financial services? How many clients are
currently reached by microfinance and/or financial institutions in general?
1.2.3.4. Depth of microfinance outreach.
How poor are the majority of microfinance customers? To what extent are very poor
people reached?
1.2.3.5. Existing MF/MED initiatives (other than case study) aimed at the very poor.
10
1.2.4. Poverty
1.2.4.1. Existing Poverty data and geographic areas of the country where extreme
poverty is most concentrated.
1.2.4.2. Does the target area fall within these extreme poor regions?
1.2.4.3. If known, what is the proportion of population in the target area living below
$1-a-day and/or within bottom 50% of people living below the national poverty line?
*
* Multan
* Hyderabad
*
* Thatta
Poverty rates by geography, Program Sites and level poverty rates (1999):
1999: Hyderabad, Sindh: 25%
Baluchistan and Sindh: 25% Thatta, Sindh: 25%
Punjab: 33% Quetta, Balochistan: 25%
NWFP (North West Frontier Multan, Punjab: 33%
Province): 33-45% National poverty rate: 35% (This is from a different report and may not
AJK: 25% be completely comparable)
Jammu & Kashmir: unknown
The program is distributed across Pakistan in order for MEDA to gain experience
working throughout Pakistan. As there are pockets of poverty throughout, the
program nevertheless works with the poor. The program intended to work in North
West Frontier Province – the poorest province - but it was too remote and unstable
during the implementation period. MEDA and ECDI hope to reach there in a
subsequent program.
11
1.2.4.4. Main determinants of poverty.
Which factors are strongly indicative of level of poverty within target area or country
as a whole?
The statistics presented above are based on government rural household surveys that
assess expenditure and consumption.
As a whole, the poor experience:

• Lack of services: electricity, water, sewer, telephone, health care
• Low Education levels, low literacy levels – especially for women
• Remoteness and/or urban squalor
• Low access to land, often through feudal systems in which the landlord retain
property rights. Women’s right o own property is not widely recognized.
• Poor housing conditions
• Poor health, low access to health care
• Social structures and constraints that support exploitative economic practices
• Market disruption due to insecurity, political factionalism and/or natural disaster
For the program target group, in addition:

• Gender: low education, home confinement, domestic violence, arranged marriages,
lack of access to and control over resources, lack of mobility, lack of autonomy to
pursue economic activities, and isolation from markets
It is important to point out that the target population was firstly targeted for its strengths
and resources, which are primarily their skill in embroidery, which is a reflection of the
rich and diverse culture of Pakistan.
2. Organizational Framework
2.1. International Organization
2.1.1. Name and type of the organization (INGO, multilateral agency, foundation, other)
Mennonite Economic Development Associates is an international NGO. It is

is an association of “compassionate business women and men who invest in the lives of
families living in poverty around the world.” MEDA is faith-based in the sense that the
association helps “faith-oriented business owners, executives and leaders … to integrate
their life values with business in practical ways to help the poor.” MEDA works in
partnership with a wide variety of governments, foundations, NGOs and businesses and
encourages poverty reduction and empowerment through sustainable work.11
2.1.2. Organizational background
2.1.2.1. Mission and vision
MEDA Mission
11
www.meda.org
12
“As an association of Christians, in business and the professions, committed to applying
biblical teachings in the marketplace, MEDA members share their faith, abilities and
resources to address human needs through economic development.”
MEDA Vision
“...that all people may experience Christ's love and utilize their abilities to earn a
livelihood, provide for families and enrich their communities.”12
2.1.2.2. Brief history
MEDA is currently structured around its key development strategies:

+Microfinance
+Production and Market Linkages (market development)
+Investment Fund: for example, Microvest (mobilizes investment for microfinance
banks)
+MEDA Trade (a currency exchange business and service for NGOs)
+Community Economic Development – microenterprise development in the US and
Canada
The main strategy supporting the Behind the Veil program is MEDA’s Product and
Market Linkage strategy.
MEDA was founded in 1953. It initial efforts focused on mobilizing volunteer business
people and investors to work directly with lower income farmers and entrepreneurs in
developing countries. MEDA soon learned to leverage the impact of these members with
full-time staff, partner agencies and increasingly efficient and effective program models.
In microfinance, they strengthen and invest in sustainable microfinance initiatives. In
Production and Market Linkages, they develop value chains to help marginalized
entrepreneurs access markets and reap better returns from market engagement. Many of
their programs combine finance with production and market linkage activities. MEDA
has pioneered value chain development strategies, and developed tools which it shares
through conferences, trainings and publications.13
2.1.2.3. Type of support: funding, capacity building, technical assistance, direct

service provider, other
MEDA partners with on-the-ground organizations, linking them to sources of funds

through joint proposal development and program implementation. MEDA provides
technical assistance, direct program management and supervision, capacity building, and
links to international learning platforms. Most of its partners are NGOs.
12
www.meda.org
13
McVay, Mary and Steve Rannekliev, “Towards a Strategy for Business Development: Production and
Market Linkages.” MEDA, 2005.
13
2.1.3. Development intervention approach
2.1.3.1. Primary target group and development focus
MEDA targets the economically active poor with economic development programs.
They believe in offering a “hand-up” rather than a “hand-out.”
2.1.3.2. Specialized in MF/MED or multisectoral
Exclusive MF/MED approach … although MEDA is involved in developing some

health markets, for example for insecticide treated mosquito nets.
2.1.3.3. MF/MED model
MEDA’s Production and Marketing Linkage strategy is a pro-poor value chain

development strategy. MEDA conducted a market assessment to select the
embroidery value chain as an appropriate value chain for reaching marginalized, low-
income rural women. They identified viable consumer market opportunities, and
addressed the product and market linkage constraints for the target women in reaching
these markets. The results have been higher quality, more marketable products, that
get higher prices, and more reliable supplies at affordable cost and/or on credit.
MEDA has established a sustainable and growing market system.
The following diagram summarizes the way MEDA and ECDI view market structures
and systems that they seek to improve so that they better link and provide benefits to
marginalized producers.
2.1.3.4. Other sectors

None.
F
14
2.2. Local organization
2.2.1. Organizational development (S)
Table 2.2. Institutional Background

Issues Observations
2.2.1.1. Name of the
organization or Entrepreneurship and Career Development Institute (ECDI)
institution
2.2.1.2. Geographic ECDI’s head office is based in Karachi but activities and
area of operation interventions are undertaken all over Pakistan.
ECDI is governed by its Board of Directors. The President,
2.2.1.3. Structure supported by the Board and senior management, oversees the
day to day administration of the institution.
2.2.1.4. Registration The institution is registered under the Voluntary Social Welfare
status Agencies (Registration and Control) Ordinance, 1961
2.2.1.5. Regulation
N/A
status
2.2.1.6. Date
ECDI was set up in March 1990
established
ECDI has evolved a more pronounced focus on BDS market
development in recent years but its traditional areas of concern
2.2.1.7. Specialized
have remained women entrepreneurship promotion, technology
(MF/MED) or
dissemination, capacity and vocational skill enhancement. All
multisectoral
interventions have a rigorous gender sensitization focus and aim
to empower women to take control of their lives and destinies.
- Small and microenterprise development since 1990 including
management, leadership and entrepreneurship development
training targeted at specifically at women.
- Research and advocacy (including at important policy forums)
2.2.1.8. Start of
on related gender and development issues since inception.
MF/MED activities
- Since 2002, BDS market assessment in an organized and
concerted fashion although earlier projects had done some work
in three subsectors – frozen foods, vegetable dyeing and
handmade paper.
Capacity development of individual women entrepreneurs,
institutional strengthening of other development agencies,
2.2.1.9. Core business
research and resource development all centered around the
(f.i. credit, savings, …)
promotion of women and their economic and social
empowerment
15
Issues Observations
- Services for ME development were paid through third-party
payers such as First Women’s Bank Ltd., UNICEF, CIDA and
ILO.
- Direct funding for project implementation, especially for pilot
2.2.1.10. Business
activities in the field.
model (prior to this
- Limited revenues raised through grant funding for project
program)
implementation.
- Direct payment (subsidized at times) for training from middle-
class women, stimulating a first generation of entrepreneurs.
Middle class women entrepreneurs and poor rural artisans as

well as micro and small businesses.
2.2.1.11. Target market Institutions such as NGOs, social security organizations,

– MF/MED government employees, service providers such as MFIs
Earlier there was a stronger urban focus of interventions, but

this has radically changed in the last 5 years.
2.2.1.12. Number of Other than the current project, over 2000 individual women
clients/participants – entrepreneurs trained and developed; and 180 MED trainers
MF/MED developed
20 full-time staff members
8 active consulting staff

2.2.1.13. Number of
staff
A resource person roster of 40 trainers
A wide network of field associates throughout Pakistan
2.2.2. Organizational development (S)
2.2.2.1. Mission and vision
ECDI’s vision is an equitable society that creates space for and empowers women to
attain their socioeconomic potential.
ECDI’s primary mission is the creation of an enabling environment for the equitable
socioeconomic development of women and youth in Pakistan through the
enhancement of their entrepreneurial and managerial skills. The organization’s
mission is directed towards its emergence as a recognized leader within the MED and
BDS fields in the Asia-Pacific region.
ECDI offers specialised programs in entrepreneurship, BDS market development and

career counselling for women and youth in Pakistan. It is deeply committed to
16
education, training, research and field activities that allow it to support individuals,
businesses and communities by advancing their income-generation capacities.
2.2.2.2. Brief history
ECDI is a pioneering non-for-profit autonomous capacity-development and

knowledge-based institution headquartered in Karachi that facilitates the social and
economic empowerment of women through small and micro enterprise promotion.
The institution was established in 1990 to address women's developmental concerns
and help expand their economic potential through entrepreneurship promotion,
facilitation of business development services to urban and rural micro-enterprises,
undertake poverty-alleviation projects and consciousness-raising on gender issues.
ECDI has conducted a range of gender sensitization activities on all 12 areas of

concern as identified by the Beijing Follow-up Process. It has conducted gender
sensitization workshops for government officials, NGOs, banks and police officers in
collaboration with various bilateral partners. ECDI is a core member of the Beijing
Plus 10 Process (Sindh Chapter) in Pakistan and is recognized for its consciousness-
raising on critical gender issues
ECDI also offers a wide range of training programs (short courses, refresher courses
and advance courses) for individuals seeking entrepreneurial careers and institutions
working within the women and development and MED/MF sectors in Pakistan. By
2002, ECDI had trained over 2000 urban and rural potential women entrepreneurs.
The institute also provides a range of services to enable micro and small enterprises in
project identification, management and offers linkages to financial institutions and to
the relevant technical experts and skills. More recently, ECDI has focused on sub-
sector development and value-chain analysis and facilitates access to various BDS for
MSEs. ECDI is a member of the SEEP PLP Network in Washington.
2.2.2.3. Objectives
ECDI believes that entrepreneurs are not just born but can also be developed through
well-conceived interventions. Contingent on this belief, the broad objectives of the
institute are:
• To support the development, promotion and expansion of small and micro-

enterprises owned and managed by women;
• To enhance the number of motivated, competent women entrepreneurs in the
country through concerted education and training programs;
• To advance the managerial and leadership capabilities of existing micro and
small-scale women entrepreneurs and expand the social base of the Pakistani
women entrepreneurial genre;
• To promote the fair integration of women, particularly those from rural areas,
in mainstream markets by piloting and documenting new approaches to market
access and disseminating best practices in the area;
17
• To contribute to new knowledge and insight in MED and BDS development
and practice through research and pilot projects;
• To enlarge the existing cadre of local trainers and community motivators to
undertake women entrepreneurship development;
• To advocate for greater policy and resource focus on women through
awareness-raising and sensitization on a range of gender and other
developmental concerns; and
• To network with similar organizations and institutions to share learning and
accomplish common goals.
2.2.2.4. Organizational culture, leadership, innovation (S, M)
ECDI’s staff visualise themselves as a family unit and are strongly committed to its
vision and mission. ECDI’s success has been in remaining small and involving people
who share its core values. Clients are treated as partners and enabled to make informed
choices based on complete and accurate information.
2.2.2.5. Organizational structure, roles and responsibilities (diagram may be helpful)
The basic sub-divisions (by function):
Administrative and Finance Unit

Training and Development Unit
Communications and Outreach Unit
Other staff are divided either thematically or by their program/project affiliation.
2.2.2.6. General qualifications and profile of field staff (S, M)
The field staff, which interacts with beneficiaries/clients in the field, in particular the
REs and the rural SAs, are referred to as the Rural Facilitators. They have graduate
degrees; one has post-graduate qualifications as well. Some are very experienced (up
to 12 years in the field) and others have been more newly engaged and developed.
Field staff traditionally lives within the communities in which they operate, are fluent
in the local dialect and familiar with local customs and traditions.
2.2.2.7. Training/sensitization (of staff, managers, board) on mission and poverty

outreach (S, M)
All staff hired is oriented on ECDI’s mission and work and it is ensured that they
understand and subscribe to its values. Capacity-building and in-house training is a
regular feature of general staff development initiatives. Training is delivered by
ECDI’s cadre of professional trainers, although external agencies/programs are also
tapped into as and when required.
2.2.2.8. Incentives for poverty outreach (S, M)
18
There are no monetary incentives for this – focus on the underprivileged and poor
flows from ECDI’s core mission.
2.2.2.9. Governance
ECDI is governed by a Board of Directors who provide advisory services to the

institution and are in charge of formulating its policies. The current board comprises
of eight committed professionals who are experts in the fields of entrepreneurship,
development, medicine and psychology.
2.2.3. MF and MED services
2.2.3.2. Description of main target group (if not the very poor).
What is the total number of clients, by service (loans/savings), if known? What is
poverty level, gender, social status, professional activities and business types,
ethnicity, etc. of most clients?
Prior to this program, ECDI targeted middle class, educated, mobile and urban women
hoping to start businesses. Now, their main target group is the poor, particularly the
homebound and rural poor, and they work with working poor women as
intermediaries.
2.2.3.3. Selection and/or eligibility criteria
What are selection criteria? What method is used to verify eligibility?
There were no standard selection criteria – it depended on the specific program.
2.2.3.4. Use of poverty assessment tool

Is poverty of general clients assessed? By what method?
No.
2.2.4. Resources and external assistance
- Services for ME development were paid through third-party payers such as First
Women’s Bank Ltd., UNICEF, CIDA and ILO.
- Direct funding for project implementation, especially for pilot activities in the field.
- Limited revenues raised through grant funding for project implementation.
- Direct payment (subsidized at times) for training from middle-class women, stimulating
a first generation of entrepreneurs
No individual donation are solicited.
2.2.5. Relationships (networks, partnerships, other institutions)
19
2.2.5.1. Networks
ECDI is a core member of the Beijing Plus 10 Process (Sindh Chapter) in Pakistan and
is recognized for its consciousness-raising on critical gender issues. Because of it role
as the leading entrepreneurship development organization for women, ECDI has
extensive networks among women entrepreneurs – trainers, graduates, role models,
etc. These have proved crucial in developing a network of sales agents and marketing
channels for the embroidery sector. During the program, ECDI became affiliated with
the SEEP Network, which linked ECDI with other practitioners around the globe
embarking on value chain development for the poor.
2.2.5.2. Partnerships
The partnerships between MEDA and ECDI and then between ECDI and private
sector businesses in the value chain are the main partnerships at work in this program.
ECDI is in the process of forming relationships, and building on existing relationships,
with microfinance institutions to offer credit to sales agents. They are also beginning
to look more at whether and how women are accessing social services - education and
health, for example - that will enhance the impact of increased income.
2.2.5.3. Other institutions
The main services identified are basic health care and primary education, provided
by the government. These is, to date, no coordination of services to the poor.
20
2. 3. Description of “Very Poor” Target Group
This program only targets the “very poor.” The program did not, in fact, set out to target
the very poor. Rather, the program is focused on women’s empowerment and set out to
select a value chain in which larger numbers of women were very active and that
presented strong growth potential. The three sectors originally studied were garments,
handicraft and IT. Researchers were somewhat surprised to find such low rates of
women’s participation until entrepreneurs being interviewed pointed out the large
numbers of women in all parts of the country engaged in embroidery. All middle class
women involved in the research immediately recognized the untapped market potential
because of their own unmet demand for embroidered clothing, and their knowledge of the
market. The program leader, then the lead market researcher, gained introduction to a
few women trading in and creating embroidery through the contacts she had with women
she had previously trained. She was astonished at the poverty, and the low – often
negative – returns for women embroiderers. Most were home-bound and had access to
markets only through male relatives. They embroidered patches of cloth that they had
left over from worn-out clothes. These were sold in very low value markets and made
into garments. Yet, the demand for hand-embroidered cloth and clothing in urban areas
was high and the price differential significant.
Given the targeting process, the program did not gather data on poverty levels of the
clients – rather, the focus was on sales levels. Nevertheless, program leaders describe the
poverty in visual terms (see attached photos). In Quetta, for example, the target
communities are slums on the outskirts of Quetta. The homes have no services, are in
poor condition, and are very close to one another, with animals living alongside people.
One village in Hyderabad region is only accessible by walking over a railway bridge and
along railway tracks, with open sewage running along side it, causing flies and stench in
the heat. In a rural village in Thatta – Jar – there is a cluster of five homes build from
mud brick with no greenery in sight, animals tied to homes, people sleeping in the open
and houses without front walls. The target clients and their families show signs of
malnourishment – especially children with orange hair, vacant looks. Malaria and
dysentery are common.
In addition, poverty is reflected in women’s lack of mobility and autonomy. One reason
it is challenging for the program to get a good baseline of women’s sales prior to the
program is that many women sold products through their husbands, did not receive the
cash from their work and therefore did not know their sales. When the program started
and began gathering women embroiderers into meetings and other groups, in many
villages the men insisted on attending or listening into the meeting to make sure the
subject was ok. Men often accompanied women sales agents on their travels as
guardians.
3.1. Individual and Household conditions
3.1.1. Gender
21
Women
3.1.2. Age
All ages – some young and unmarried, some with young families, others with older
children, some grandmothers.
3.1.3. Disability and chronic disease
Nothing specific, but general poor health conditions and low access to health care.
3.1.4. Culture or religion
Same as reported above.
3.1.5. Ethnicity
Same as reported above.
3.1.6. Membership to socioeconomic groups, such as caste and class
MEDA and ECDI estimate that their clients are in the bottom second tier of a 5 tier
poverty rating – they are not destitute, they have an economically viable skill, but they
are struggling to meet their basic needs and are socially oppressed. See opening
description for more detail.
In most rural areas, clients are members of peasant households in a feudal system.
3.1.7. Household type, composition, marital status
The vast majority are married, generally living in extended family households, with
women moving into the husband’s family. A minority are widows and a minority are
young women, in line for arranged marriages.
3.1.8. Literacy
Clients are generally homebound and have never attended formal school. Some of the
sales agents are literate.
3.1.9. Education
Younger women have often had access to some primary school, especially in Multan,
Punjab, but less likely in interior Sindh and Quetta, Balochistan.
3.2. Socioeconomic conditions

3.2.1. Refugee or IDP status
22
Not in general.
3.2.2. Economic conditions (F, C)

3.2.2.1. Underemployment
National statistics report very low levels of women’s participation in the workforce,
due to women being home-bound. In addition to the embroidery work, women
sometimes work on their own fields or work on landlord’s fields. In general, although
women’s labor burden is significant due to lack of services, clients are looking for
more opportunities to work and earn a living, from home.
3.2.2.2. Income Sources

What are the main income and/or subsistence sources of very poor clients?
Multan: Agriculture
Quetta: Informal sector business and employment
Sindh: Agriculture and informal sector business in the towns
3.2.2.3. Land ownership
Most client families do not own land. Women do not own land.
3.2.2.4. Asset ownership

What are typical assets (productive and/or household) owned by very poor people?
People tend to own chickens and goats and their basic household furnishings and
cookware.
3.2.2.5. Income level

Provide daily wage levels for labor (male/female) if available.
For farm labor, people may be paid wages, but are also often paid in kind.
(Information on wages and family income of the target clients was not available.)
(see section 4.1.2 for details.)
Baseline annual incomes for least active embroiderers: 0 or operating at a loss

Current program average annual income from embroidery: $148
Baseline average annual income for active from embroidery: $72

Current average annual income for active embroiderers: $260
3.2.3. Geographic conditions

3.2.3.1. Rural/urban, remoteness from trading centers and roads, population density
23
Multan, Punjab: These areas are rural, hard to reach by road, and along distance from
major capital cities where demand is strongest.
Interior Sindh: The target areas in interior are both rural and peri-urban. Rural areas are
hard to reach by road, but located relatively close to Hyderabad, a major metropolitan
area. Peri-urban areas are densely populations.
Quetta, Balochistan: These areas are located on the outskirts of Quetta, the capital of the
province, but the Province itself is isolated from the rest of Pakistan.
3.2.3.1. Access to markets

In additional to physical barriers, producers experience social barriers. Prior to the
program, market access was through male household members, who marketed through
informal traders to low-value, local markets.
3.2.3.1. Access to banks

None
3.2.3.1. Access to doctors and clinics
Same as general population described above. Basic primary health case services are
available, but access to treatment care is low, and varies depending on the region - with
higher access in Multan and lower in Thatta and Quetta.
3.2.3.1. Proneness to natural disasters

Only to be completed in the rare case where the very poor target group experiences
different natural calamities from the rest of the population, because the live in distinct
areas where they are more prone to drought, flooding, etc.
Due to poor housing conditions, location of slums, and access to poorer land – i.e.
unirrigated, for example, or more prone to floods, the poor are usually more affected by
the natural disaster.
3.2.4. Major vulnerabilities and risks encountered by target group (F, C)

What are most common vulnerabilities experienced by the very poor? How do they cope
with them traditionally (before becoming clients)?
As a whole, the poor experience:

• Lack of services: electricity, water, sewer, telephone, health care
• Low Education levels, low literacy levels – especially for women
• Remoteness and/or urban squalor
• Low access to land, often through feudal systems in which the landlord retain
property rights. Women’s right o own property is not widely recognized.
• Poor housing conditions
• Poor health, low access to health care
• Social structures and constraints that support exploitative economic practices
• Market disruption due to insecurity, political factionalism and/or natural disaster
24
For the program target group, in addition:
• Gender: low education, home confinement, domestic violence, arranged marriages,
lack of access to and control over resources, lack of mobility, lack of autonomy to
pursue economic activities, and isolation from markets
Traditional survival strategies include:

• Work in the fields,
• Piecework,
• Selling a few eggs laid by family hens or milk from the goat
• In times of crisis, people generally rely on families or communities to act as their
social safety nets.
25
4. Poverty Targeting and Assessment
4.1. Poverty measurement practices
4.1.1. Poverty data collection
Are poverty-related indicators collected on clients? Not really
4.1.1.1. Which poverty indicators are collected?

Embroider sales and empowerment data.
4.1.1.2. What poverty assessment tool is used?

It is an impact assessment tool developed for the program.
Are the data collected through a standard survey? Yes.
4.1.1.3. When and how often are poverty data collected?

The data that is collected is part of an M&E system – not a poverty targeting system.
It is collected by gathering sales data from sales agents and by conducting in-depth
interviews with a sample of 120 women. Data is gathered every quarter in order to
report to the donor.
4.1.1.4. Which clients are measured?

Sales data is collected from all sales agents and, thus, all clients. Empowerment data
is gathered from a sample 120 of 9,500 clients from all 3 regions.
4.1.2. Use of poverty data

How are poverty data used by the organization?
4.1.2.1. What, if any, are poverty categories distinguished by poverty data?

None.
4.1.2.2. How are each of these categories defined? N/A
4.1.2.3. How are poverty data used by organization?

To report to donors and researcher on the impact of the program.
4.1.2.3.1. For client monitoring?

Yes. For example, if sales are low in some areas, program managers might pay more
attention to these sales agents, identify challenges and help to resolve them through
training, creation of additional market linkages, etc. Where sales are high and
possibly unmanageable, the program might help to introduce more sales agents to the
area, etc.
4.1.2.3.2. For client screening? No.

4.1.2.3.3. For client targeting? No.
4.1.2.3.4. For impact monitoring/assessment? Yes.
Also used for product development?- only to indicate that new work is needed, but
not what type of work.
26
4.1.2.3.5. For other uses?
Fundraising, public relations, staff motivation, fulfilling existing obligation to donor.
4.2. Available Poverty Data

4.2.1. Poverty distribution results by internal poverty data collection method:
See below.
4.2.2. Poverty data from a recent poverty and/or impact assessment study
The program primarily pays attention to sales from embroidery work. In general, buyers
provide inputs and so the sales are the profits. The program does not have a baseline sales
figure. The baseline for most embroiderers was very low, close to 0, with many
operating at a loss. During market research, the program documented the average
monthly sales of several very active embroiderers, and this forms as a baseline for more
active embroiderers.
Sales data and the number of embroiderers is reported by sales agents to the program.
They have little incentive to report correctly or incorrectly. The overall sales data is
divided by the number of embroiderers selling to get an average. Around 2/3rd of the
over 9,000 embroiderers reached are “active” at this point, and the second sales figure
reflects sales of these more active producers. Figures are gathered in Pakistani Rupees
and converted at the exchange rate at the time of the sales report. Sales data is collected
from all sales agents and, thus, all clients. Empowerment data is gathered from a sample
120 of the 9,330 clients from all 3 regions.
Baseline annual sales for least active embroiderers: 0 or operating at a loss

Current program average annual sales from embroidery, all clients: $148
Baseline average annual sales for active embroiderers: $72

Current average annual income for active embroiderers: $260
An “active” embroiderer is someone who embroiderers for over four hours per day. (How
is this known, since the sales data comes from the SA – how do you know how many
hours each person works?
4.2.3. Poverty Data obtained through use of USAID certified poverty tool
N/A
4.2.4. Interpretation of Poverty data

4.2.4.1. Comparison between internal and USAID poverty tool data
4.2.4.2. Organization’s own interpretation of poverty outreach
MEDA and ECDI were very pleased to have the opportunity to target a viable economic
sector in which so many poor women were engaged. Their poverty outreach is indeed
higher than expected when they originally launched the program design. Now, reaching
the poor has become part of ECDI’s mission and operating philosophy. MEDA, which
27
had a stronger focus on the poor to begin with, has build capacity around targeting
women. Both organizations plan to continue this trend. The program is hoping, with
additional funding, to become more active in the NorthWest Frontier Province, for
example, which is a lower income province. In Thatta, program managers would like to
see higher participation rates of Hazara people, one of the more traditional closed ethnic
groups. Program leaders have ideas for how to bring in additional women who do not
know how to embroider yet, but they have no specific plans at this point. MEDA has
obtained funds for a replication in other sector in Pakistan and is running women focused
program in other countries, which was not the case prior to this program.
4.3. Poverty Targeting

4.3.1. Does the organization use a poverty targeting tool? NO
Geographic targeting, sector targeting.
4.3.2. What is the client poverty target level?
Program leaders estimate that the level is 2 of 5 – with 5 being wealthy, 1 being destitute.
Critical to program success is the fact that clients have a marketable skill.
4.3.3. Staff use of poverty targeting (S, F)

4.3.3.1. Training/sensitization (of staff, managers, board) related to poverty outreach
How is staff trained in poverty targeting?
This is done informally through inspirational program leaders. ECDI hired new staff
to work directly with the poor, while existing staff worked more with urban sales
agents and more sophisticated businesses in the chain.
4.3.3.2. Staff incentive schemes
None related to poverty targeting.
4.3.4. Issues with poverty targeting (S,F)

If organization is using a poverty targeting tool, what issues has it encountered by using
the tool?
From the researcher’s perspective, the M&E tool has several issues:
• It is not a poverty targeting tool and does not report comparable, statistical poverty
levels.
• The data is gathered, but not fully analyzed. This is partly due to lack of resources,
but also because program management is more motivated by and focused on
empowerment information, rather than statistics. Statistics are produced for the
donor, and are of limited quality anyway due to the circumstances of the clients and
the limitations of available tools.
28
• There is no baseline data collection, and no national statistics are provided for
comparison, so it is difficult to compare the results with other programs in other
contexts.
Having said this, there are no easy answers to most of these challenges. Targeted
households are very socially closed and secretive, particularly at the beginning of the
program and at the beginning of their interaction with the program. The women
themselves could not report their household incomes, although they probably could report
consumption patterns. However, this type of survey requires more skill and time than the
program ahs at present. Additional resources would at least facilitate better processing of
existing data.
29
5. Products and Services
5.1. Financial Products
Table 5.1. Microfinance Product Details N/A
The program advises sales agents to provide materials to poor producers and advises
agent on how to track and deduct the cost of materials form the final price, and to inform
clients about the cost of materials. This functions, from the point of view of the client, as
a form of no-interest credit.
5.2. Microenterprise Development Services

Table 5.2. MED Service Details
Service Types and Features
5.2.1. Training
Training is provided to sales agents who provide both individual and group training to
producers. Th e following described the content of the training from sales agent to
producers
5.2.1.1. Financial literacy
5.2.1.2. Business planning and
management
Yes, but mostly product development, quality
control, the importance of responding to
5.2.1.3. Marketing
market demand, and what the current demand
is.
5.2.1.4. Recordkeeping and
bookkeeping
5.2.1.5. Skill development Yes
5.2.1.6. Technical assistance (Not sure what this means?)
Hands-on, individual and groups, and
5.2.1.7. Training method
mentorship by group leaders and sales agents
5.2.1.8. Other?
5.2.1.9. Costs to client Built into the price of the product.
5.2.2. Business Consultancy and Advisory Services
Similarly, the program provides this to sales agents who work as described above with
individuals and groups.
5.2.2.1. Individual or group sessions
5.2.2.2. Frequency
5.2.2.3. Topics
This occurs as part of the process, but is not
5.2.2.4. Confidence Building
an explicit topic.
5.2.2.5. Other
5.2.2.6. Costs to client
5.2.3. Market Linkages
5.2.3.1. Input supply Yes
5.2.3.2. Marketing Assistance Yes
5.2.3.3. Market Information Yes
5.2.3.4. Producer organizations Often
30
Service Types and Features
5.2.3.5. Business linkage promotion Yes
5.2.3.6. Quality Control Yes
5.2.3.7. Other Technology, product design
5.2.3.8. Costs to client Provided by and paid for by buyer
5.2.4. Other
5.2.4.1. Employment generation
5.2.4.2. Technology development Yes
Provide any further narrative and details relating to microenterprise development

services that were not captured in the table above.
Program Goal and Purpose:
The MEDA/ECDI Program, Behind the Veil, is a 3-year, $600,000 initiative to enable
homebound rural women in Pakistan to increase incomes and contribute to household
revenue by reaching lucrative markets for hand-embroidered garments. To overcome
women’s isolation, the program trained women sales agents and established a multi-
layered network of women sales representations who work closely with rural
embroiderers – providing designs and inputs, quality control, and often production space.
This network has grown to reach 9,330 embroiderers and – for active embroiderers – has
tripled incomes. It continues to grow and expand on a sustainable basis as existing sales
agents expand their networks and as embroiderers graduate to become sales agents
themselves. The following program description puts the program into “value chain”
terminology. 14
Market Selection and Research:
The program was pre-ceeded by 3-5 years of research and relationship building by
MEDA and ECDI. Ultimately, MEDA determined to address the problem of women’s
oppression and poverty, and partnered with ECDI because of their strong presence,
operations and 16 years of training women entrepreneurs. MEDA had recently adopted
and was helping to pioneer sustainable value chain development approaches and
determined to use this approach. In selected sectors, the main productive sector with
significant opportunity was embroidered clothing. As it turns out, the majority of
producers are poor. There is very high demand for Pakistani clothing - Shalwar Kameez
among the emerging middle class, and hand embroidered cloth is valued. However, the
demand is for innovative hand-embroidery and clothing styles with more modern designs
– designs that are less labor intensive than traditional designs because they are more
simple and minimalist. A critical part of the market research was to determine the extent
14
This program description is based on and in some parts excerpted directly from McVay, Mary, Alex
Snelgrove, and Linda Jones, “Program Design Toolkit: From Information to Action: Value Chain
Development Toolkit for Practitioners.” MEDA, 2007.
31
and nature of this demand, and the strengths and constraints for poor women in respond
to this opportunity.
Market Strengths and Constraints

Market research revealed that the majority of rural embroiderers were unable to reach
identified growth opportunities or interact with potential buyers and market
intermediaries due to a reliance on male family members for trading activities. While the
target clients had excellent technical expertise, the products produced tended to be of
inferior quality with outdated designs. The inability of these clients to interact with
markets hindered both delivery of critical support services as well as stronger market
links. The diagram below illustrates, on the right, the common market structure that traps
women in production with low prices and marginal returns.
Sustainable Solutions
Market research uncovered a fledgling business model for replication which had
excellent potential to help the two organizations achieve their goal of increased incomes
for rural women. Under this model, homebound women were able to sell their products to
retailers through female sales agents in a socially appropriate manner. This type of
business is illustrated in the center and labeled as “urban sales agents.” Men would
generally not object to women buyers coming to their homes to do business with the
32
women in their households. At the same time, the model solved the isolation issue by
providing producers with a link to the market, through which critical support services,
such as information, modern designs, and inputs, could be channeled. This business
model was expanded by the program to help rural women reach higher value, higher
return market. It is through the sales agent that sustainable market access and business
services have reached target low-income clients.
Interventions – Program Activities and Client Services
Based on additional market research and stakeholder input, MEDA and ECDI developed
a strategy to facilitate the following three service packages:
1. Embedded package of market access, product development and input supplies to rural
embroiderers (REs) provided by women sales agents (SAs): The project introduced
mobile female sales agents directly to rural embroiderers, creating the market link and
developing an avenue for information flow from markets to producers. Key activities
included identifying women who already acted or were willing to act as sales agents to
rural women embroiderers. In order to work against the development of monopolies,
multiple introductions were made, affording rural embroiderers with a choice of
intermediaries. A training program was also developed to build the capacity of new and
existing sales agents in areas such as community outreach, sales and marketing, and
business development. To develop the necessary links with buyers, sales agents were
assisted with establishing contacts and fostering relationships with retailers, exporters and
exhibition organizers.
2. Market linkage services for urban garment makers, provided by other women sales
agents: The project also trained a second set of sales agents to strengthen market linkages
between urban garment makers and high-value, urban retailers and exporters. Through
workshops, meetings with buyers and sales agents, mini exhibitions, and other
relationship building activities, the sales agents facilitated information sharing and
introductions among women’s businesses in the garment market.
3. Product development and design services to rural embroiderers, provided by mobile

women sales agents: By introducing a new range of customers, the project attempted to
demonstrate to designers that there is demand from rural women for their services. At the
start of implementation, it became apparent that SAs were unable to access these formal
design services. However, an additional value chain actor was identified: the tracer
designer. These individuals, mostly men, design the embroidery stencils and imprint the
designs on the fabric; mobile SAs were able to interact with these men and could afford
their services. Helping improve the quality and innovativeness of these trace designs has
proven to be a successful way to introduce contemporary designs into the market.
During project implementation, various challenges arose that required modifications to

the project model. For example, it was envisioned that the REs would reach male
wholesalers and retailers through direct links with female sales agents. However, the
level of segregation was deeply entrenched; mobile SAs from urban areas were able to
33
interact with the market but had difficultly gaining trust in the community. A many-tiered
sales agent model (with Community Sales Agents (CSAs) purchasing from REs and
selling to urban-based Local Sales Agents (LSAs)) developed; over time CSAs were able
to expand their business and started to compete with LSAs. Some local sales agent sell
wholesale, while other have home-base boutiques. Other developments, such as producer
groups and buying houses have added richness to the value chain and provided greater
choice for remote, isolated women entrepreneurs. These evolutions, and other examples
of the project’s ability to respond to market signals, have been integral factors in the
program’s success.
5.3. Non-financial Services N/A
5.3.6. Empowerment and confidence building
The program does not specifically discuss or confront women’s lack of power or
autonomy. Rather, the program activities result in empowerment and increased mobility.
And, this was intentional. Gender relations are constrained to the point that direct
confrontation can be dangerous and unproductive. Clients were interviewed during the
market research phase, and a sample is regularly interviewed by independent program
staff (independent of sales agents). At the final stages of the program design, managers
held workshops with businesses in the value chain, including embroiderers. However,
clients have not been directly involved in program decisions. Sales agents, however,
have formed an association and have been more directive about next steps in the
program. Clients have more negotiating power than before when they were dependant
on male relatives. In addition, the program works to provide clients with a choice of sales
agents and cultivates a social enterprise approach to business to help clients have more
power in the market. In less viable and accessible areas, it is harder to provide clients
with many choices, and society is more hierarchical, so women are more vulnerable in
these situations.
5.3.7. Graduation of very poor clients into mainstream MF/MED services: N/A
The “graduation” that the program sees and promotes is of embroiderers becoming sales
agents and sales agents working with layers of different community-based sales agents.
5.4. Design and Product Development:

5.4.1. Program rationale/ theory of change?
5.4.1.1. Main issues and challenges of very poor clients which the organization seeks
to address
The program designers identified the following critical constraints for very poor
women:
o Lack of mobility
o Market linkages through spouses and other male relatives
o Poor access to market information, quality and standard inputs, designs
34
o Poor quality products
o Low prices
o Lack of coordination and common marketing strategy with the value chain
It is important to note that the program is also based on the strengths and opportunities
that the client and their situation present. These include:
o Technical skill based (embroidery)
o High market demand for the skill and general product category, and unmet
demand at relatively higher prices in some growing markets
o Nascent or emerging business models that work for marginalized women, that
could be expanded
5.4.1.2. Intended outcomes and impacts

What are the intended (short-term) outcomes at client, household, microenterprise
and community level? What types of impact are expected in the long term?
Goal: to enable homebound rural women in Pakistan to increase incomes and contribute
to household revenue by reaching lucrative markets for hand-embroidered garments.
Specific intended impact are set at the market, intermediary/provider, microenterprise,
individual and household level.
o Market:
 restructure the embroidery market to help rural, home-bound
women access high value opportunities, and expand demand for
rural embroidery work through the sales agents network.
 Develop a viable market for design services to enhance product
value
o Intermediary/provider: build the capacity of women sales agents,
embroidery designers, and other intermediaries to respond to market
demand and to help rural embroiderers to respond to market demand.
o Microenterprise – Rural Embroiderers: Increase sales (it is implied that
this will mean increased return per hour of work, although this was not
measured) through: improved access to inputs, markets, market
information, designs, quality control services and techniques.
o Client: Increased income (equivalent of sales), autonomy, empowerment,
mobility, social interaction with women, decision making power. (Tracked
by asking the opinion of the client.)
o Household: Improved health, increased school enrollment, improved
living conditions, improved status of women in the household. (Tracked
by asking the opinion of the client.)
5.4.1.3. How are products and inputs designed to achieve those intended impacts?
The strategy is to help homebound women reach high-value domestic markets for
hand-embroidered garments by strengthening business support services and marketing
links. MEDA/ECDI devised a comprehensive, holistic package of services, based on
market research and stakeholder input. The services are:
35
o Delivered through profitable businesses on a sustainable basis. Services to the
target clients are paid for by the provider with proceeds from product sales –
they are part of the cost of doing business. Design services are purchased and
then passed on from one business to another as part of a business deal.
o Targeted to different groups of entrepreneurs – rural embroiderers, sales
agents, and urban garment makers – so as to address constraints all along the
value chain from producer to consumer. They are not targeted solely to the
poor clients.
o Customized to the culture, education level, and demand of the different groups
of target businesses.
The three packages are:
1. Embedded package of market access, product development and input

supplies to rural embroiderers (REs) provided by women sales agents (SAs)
2. Market linkage services for urban garment makers and rural embroiderers,
provided by other women sales agents
3. Product development and design services to rural embroiderers, provided by

mobile women sales agents.
In addition to the comprehensive package of services, a critical element of success in

reaching the rural embroiderers is the characteristics and capacity of the intermediary, the
sales agents (SAs). SAs are women who mobile, have or are able to develop social
contact with the rural embroiderers, the target clients. They are literate, have experience
in business, embroidery, or related crafts, and generally have both a business and social
motivation. Some are located in the villages where women embroiderer. Some are in
neighboring towns, and others are in the cities where products are sold. Some are
wholesalers while others have home-base boutiques themselves. It is a vibrant,
competitive market.
5.4.2. Concept development

5.4.2.1. Client Survey Demand/Needs assessment15
MEDA and ECDI undertook market research on women microentrepreneurs across

regions and industries in Pakistan between 2002 and 2004. The timeframe was lengthy
because MEDA and ECDI were participating in a SEEP Network Practitioner Learning
Program.16 Throughout the market research phase and implementation, MEDA and
ECDI have conducted secondary source research, market observation, key informant
interviews, focus group discussions, in-depth interviews, stakeholder meetings and action
research. The process was qualitative and interactive, and driven by specific program
15
This market research description is based on and in some parts excerpted directly from Miehlbradt, Aly
and Linda Jones, “Market Research Design Toolkit: From Information to Action: Value Chain
Development Toolkit for Practitioners.” MEDA, 2007.
16
The Small Enterprise Education and Promotion Network, Participatory Learning Program, funded by
USAID and involving an extensive peer learning agenda.
36
design choices and hypothesis about how the program might work. Some of the activities
and their results are described below. Because market research is a significant part of
value chain development, and of this program in particular, it is presented in some detail.
Annex A present diagrams of MEDA’s market research and program design processes, as
laid out in their toolkit series: Information to Action: Value Chain and Market
Development Toolkit Series for Practitioners.
The aim of the initial market research was to decide the project purpose by: 1)
determining if cross-cutting support services for women microentrepreneurs could be
upgraded for the growth of a variety of industries, or 2) selecting one sub-sector and
preparing a market development program for specific value chains in that industry. In
either case, the impact goal was to increase sales of women microentrepreneurs in rural,
urban and / or peri-urban regions in Sindh, Balochistan and Punjab, and enable them to
contribute to household incomes.
Because of its familiarity with the region, MEDA did not undertake extensive secondary
source research. In fact, from an earlier study MEDA and ECDI had learned that
increasing sales and income through improved market access were top priorities for
women entrepreneurs across Pakistan, but that they lacked the necessary market linkages.
A key element of secondary source research in this phase focused on collecting lists of
service providers (commercial and NGO) for further investigation.
The first round of the research process, was centered around the research question “Are
support service providers market-driven, and able to provide assistance to women
microentrepreneurs to reach more profitable markets?” The research team conducted in-
depth interviews with a range of approximately 115 service providers identified from
conventional sources (the secondary source research above): government lists,
directories, membership roles, and knowledge of the existing formal market. The team
learned that service providers – both public and private sector – were not market driven
but tended to be product driven – focusing on getting input supplies, technical support
and other assistance to women without a clear understanding of what the end market
demanded or how to reach promising new markets.
However, the research team felt that this information was incomplete – that there were
issues relating to appropriate products and market access that they did not understand.
The next round of research used in-depth interviews with women entrepreneurs to answer
the questions “How are women currently reaching markets, and why do they think that
they are not able to increase sales or access new market opportunities?” The 56 women
interviewed across regions and industries indicated that because of mobility restrictions,
they did not have good awareness of market demand, could not obtain quality input
supplies and new designs, and did not have beneficial links to markets. In the case of
rural women, market engagement took place through a male family member – often
through a middleman – and women producers had little control over their work.
The market research had cut across three subsectors: handicrafts, garments and
information technology. During this phase of the market research a fourth industry
presented itself that became the focus of the remaining research effort: hand-embroidered
garments. This industry was of interest to MEDA because the producers of hand
37
embroidery are largely poor, homebound, rural women with few choices for income
generation.
The research team recognized a market opportunity when they learned that pockets of
homebound women were reaching lucrative markets for embroidered garments in large
cities, based on commission work for urban women intermediaries – generally women
who had roots in the same village or ethnic community. The business model was a
promising ‘outlier’. So, the third round of market research was aimed at answering the
question “Do middle class urban consumers represent a market opportunity for
homebound women embroiderers?” The research team interviewed a few key informants
including owners of home-based boutiques, retailers, wholesalers and consumers. These
interviews confirmed that there was unmet demand for quality hand-crafted garments.
In the fourth round of research, the team wanted to understand “Can the model be scaled
up? Can women intermediaries proactively reach more markets and more producers?
Would women intermediaries want to develop their capacity to provide essential support
services, such as product design and quality control, to rural women?” The research team
conducted focus group discussions with support service providers to determine if their
services could be improved, if public sector players could commercialize their services,
and if women intermediaries following the incipient model would be available from this
group. Interestingly, providers were very aware of their shortcomings and requested
support from MEDA and ECDI to access new markets, introduce innovative designs,
improve quality control, and interact with each other to develop a stronger industry and
network. The research team also learned that a small group of women who owned
homebased boutiques in towns and cities were willing to interact directly with producers,
participate in capacity development, and be involved in market development activities.
These women had greater mobility than their rural counterparts and seemed a likely
category of SE with whom to replicate and enhance the rudimentary women intermediary
model.
As a market development proposal was being prepared, the team carried out a final round
of pre-implementation research: a stakeholder meeting with representatives from a
specific value chain to answer the question “Will value chain players begin to understand
each others’ issues, start to develop trust, and agree to participate in a market
development program?” Thirty SEs – embroiderers, women intermediaries, suppliers,
wholesalers (two rather rich and powerful men) – in Multan in Punjab province
participated. Amazingly, learning of the meeting from intermediaries, some women
embroiderers traveled up to five hours by bus to participate even though they had never
ventured outside their communities before. The stakeholder meeting revealed that there
was considerable dissatisfaction and even distrust amongst the various SEs. For example,
women embroiderers stated that they made samples and even filled orders but were not
compensated for their time; wholesalers said that the work was inferior and could not be
sold at market rates to recover their investment in materials. The stakeholder meeting
allowed the airing of these concerns, and then brainstorming of solutions. In the meeting,
the researchers presented the ‘value chain as a team’ concept, with a common goal, that
needed to work together to realize greater benefits for all. The researchers also presented
the costs along the value chain so that producers would understand why there was a
significant differential between their compensation and the price at which goods retailed.
38
These two activities helped relax some tensions between value chain players and
contributed to productive problem solving by the group, and a willingness to participate
in a facilitated market development program.
The final program design that was funded revolved around the business model of the
women sales agents. Before program activities could be developed to foster this model,
greater market research had to be undertaken to ensure that it could be feasibly scaled.
Demand from potential program clients for the services offered through this model was
assessed. Capacity and interest of female intermediaries was also determined through a
series of provider diagnostics. Brainstorming sessions with key stakeholders in the sector,
including retailers, wholesalers, and producers validated the appropriateness of the
selected model and identified potential intervention strategies.
Since program launch, action research has continued to lead to adjustments in program
implementation. For example, MEDA and ECDI learned that urban-based boutique
owners were becoming somewhat monopolistic. The program implemented action
research to test the formation of producer groups with lead producers who would
negotiate for the group. The model worked well and has been rolled out across the
program. The program now promotes choices for market access. Producers are free to
continue working with traditional middlemen, directly with boutique owners, or to
participate in these informal business collectives.
5.4.2.2. Competition analysis
“Competition” came up at three levels in this program, and was considered by

MEDA/ECDI as follows:
1) MEDA/ECDI launched their market research with an examination of existing
providers. This was less to assess “competition” than to assess how a program might
strengthen this “market” of providers. MEDA/ECDI quickly realized that the
government and NGO providers were not market-driven, but that private business
were more market driven and potentially as or more capable of reaching the target
clients.
2) In selecting the value chain, MEDA/ECDI selected a value chain with few other
active development organizations.
3) In its value chain analysis, MEDA/ECDI examined the market potential for
embroidered products, against the “competition” of modern, Western clothing and
against printed domestic and imported cloth. They found an on-going and unmet
demand for traditional embroidery with more modern designs. They considered
whether women embroiderers would experience higher returns if they worked to
satisfy this demand. Although a financial analysis was not undertaken, it was clear that
the more modern designs were less intricate and labor-intensive, although demanding
slightly different skills and consistent quality.
39
4) In its value chain analysis, MEDA/ECDI also considered the competitive position
of rural embroiderers compared to urban embroiders and found low supply and lower
skill levels in the urban areas, again leading the program to conclude that there was
market potential for rural embroiders.
5) In focusing on women sales agents, there were compared to the existing, male-
dominated channel and found to have higher potential for enhancing market
performance and benefits to rural women.
5.4.2.3. Self-assessment
Does the organization conduct self-assessments? If so, how are they conducted? Who
is involved? What have been lessons learned from such exercises?
MEDA undergoes regular self-assessment as part of its regular retreat and planning
sessions. These are participatory with staff coming together from around the globe.
Learning is incorporated into new programs and strategies, and sometimes
documented in published strategy papers. So far, the lessons from this program are
mostly positive and affirming that sustainable value chain development can and should
be targeted to women producers, and that adaptations need to be made to effectively
reach women.
5.4.3. Product/Service design

5.4.3.1. Product/service design process
Explain how the organization decided to provide products/services to very poor
clients, how these were designed?
It is in MEDA’s mission to help poor clients, but the decision to exclusively target
women ….
ECDI, which had previously targeted middle-income women, was excited at the
prospect of conducting value chain development in conjunction with MEDA as an
effective women’s empowerment strategy, and was surprised and pleased to end up
working more with the poor. Now, this is a critical part of the mission.
(For how these were designed, see above section 5.4.2.1.).
5.4.3.2. New versus modified products/services for very poor clients

Was a new product/service specifically tailored to the needs of very poor clients or
was an existing product/service tweaked to meet their needs? What were the cost
trade-offs?
MEDA and ECDI embarked on a pioneering sustainable value chain development
strategy at the same time as MEDA and ECID reached out to very marginalized
women for the first time. This was a co-incidence. The strategy was not seen as
particularly effective for reaching the very poor. Rather, MEDA and ECDI set out to
demonstrate that the strategy could reach the very poor.
40
I think the main difference between their model and some other value chain models is
working with a network of microenterprise intermediaries. Most value chain
development programs find it more efficient and easier to work with a few “lead
firms” who purchase from sub-contractors. The thinking is that it is more difficult to
build the capacity of and influence the culture of informal intermediaries than a few
corporations or larger businesses. This case demonstrates the potential for informal
intermediaries to perform well in reaching the poor and being socially responsible.
5.4.3.2. Risk assessment and product design

What types of risks were identified for working with very poor clients? How did this
affect product/service design?
MEDA/ECDI have considered risks as part of their logical framework process. The
following risk analysis is excerpted from the program logframe. Although some risk
also occur in reaching less marginal microenterprises, they are exacerbated when
attempting to reach more marginalized people.17
Program Risks, Assumptions and Mitigation Strategies

(Excerpted from the program logframe)
Goal Level: Potential Conflict
ASSUMPTIONS
• Regional political factors in the country do not hinder operations of project staff
RISK INDICATORS – Mitigation Strategies
• Project operations avoid high-conflict areas and ensure project representation in rural
areas
Purpose Level: Gender relations, Sales agent capacity, Provider behavior
ASSUMPTIONS
1. Community leaders and male family members allow women to participate and apply
training and techniques
2. Sales agents’ literacy and, numeracy skills allow them to work with embroiderers and
manage business.
3. Monopolistic buying patterns are not continued by female sales agents.
4. Formal value chain players willing to work producers and agents in the informal sector.

• Community leaders are aware of income opportunities for women through the project.
• A range of training modules and delivery mechanisms are offered to meet the varying
levels of literacy of female clients
• Link agents to relevant organizations working in areas of literacy and numeracy.
• Substantial numbers of agents recruited with importance of win-win relationships
highlighted.
• Producer groups help discourage monopolies
17
Adapted and exerpted from McVay. Snelgrove and Jones, 2007.
41
• Range of market opportunities acknowledged by formal actors.
• Links developed with a range of market opportunities.
• Service providers represent both formal and informal sectors.
Activity/Resource Level
ASSUMPTIONS
• Geographic isolation and weak infrastructure do not impede access to markets or for
project staff.

• Project staff based in rural areas.
5.4.3.1. Prototype development and testing
During the design phase, the program was part of an international group of organizations
piloting market research and design, and the program sought the advice of an
international expert in sustainable approaches to value chain and market development.
As an “implementation grants program” partner, the program continues to participate in
peer exchange and learning through the SEEP Network. However, the actual program
was designed and implemented internally.
5.4.4. Pilot testing
5.4.5. Rollout
5.4.5. Product/Service review and assessment: Pilot and roll-out …
The program did not have a “testing and rollout” development process, as such. But there
were phases and different avenues to recruitment and training of sales agents.
1. The first sales agents were identified during market research work 2-4
years prior to the program launch. They were identified by the program
leader through her network of former trainees – a few were trainees, and
others were known by trainees who work in NGOs, governments and
businesses now. The initial sales agents were unique in their
communities, ironically, as leaders and outcasts (for example a widow
who was returned to her original family home). These women provided
the initial model upon which the program was based, and they became the
first sales agents.
2. Once the program got going, in some communities, ECDI, which is known
for conducting business trainings, announced that they were having an
event for embroiderers. Traders and producers came thinking that their
42
goods would be purchased. Indeed, ECDI did purchase their products and
also provided some market advice, got to know the more experienced
embroiderers, and invited them to the program as potential sales agents.
3. Later, the trainings and the subsequent market linkage activities became
known as helpful and more women came forward for training and
services.
4. Finally, many new sales agents are becoming part of the market without
formal training, or are being invited in by sales agents who need additional
representatives to reach more embroiderers.
These sales agents fell into three categories.

• Urban, mobile women who have home-based or store-front boutiques selling
clothes who already have some connections with rural embroiderers.
• Rural women who are leaders of groups of women who embroider. They may
already play a role in taking rural products to markets.
• In rural areas in which there were no clearly identified leaders, the program leader
would meet with embroiderers in a village and get to know them, and identify
among them a social entrepreneur, or or someone who was interested in selling the
products, exhibited concern for others, and had some experience with embroidery
and had a flair for business, were linked to the REs.
Most of the sales agents were poor themselves and/or just one level above poverty and
had strong links among poor women embroiderers. The sales agents themselves link
with and “select” the poor women, although in many cases it is the producers who are
select the sales agent.
5.4.6. The Product Development Cost

5.4.6.1. Total cost
Any information available on the total cost of developing a new product or service?
5.4.6.2. How were they funded?
Which financial resources make new product development possible?
5.4.6.3. Outsourcing during the development process
Did organization outsource the product development process? If so, to whom? Why?
It is difficult to estimate the cost of the program design. (Could we provide the cost of the
market assessment and proposal development?)
5.4.7. Feedback loop

What are the organization’s systems of information flow and feedback? What type of
essential client information is used to better understand their needs and ultimately
guide decision making for product development?
ECDI staff are in constant contact with sales agents and are constantly devising new
activities to support their innovations and help them overcome their challenges. This
often involves sitting with groups of embroiderers alongside the sales agents (who is
often one of the embroiderers) and identifying and addressing specific and program-wide
challenges. In addition, ECDI surveys a samples of embroiders
43
5.5. Implementation Process
5.5.1. Process
Provide a short step-by-step description of the process (and timeline) from targeting a
new area or group and selecting/recruiting clients to providing products/services and
potentially graduating very poor clients to new services.
The program doesn’t really work this way – the market and program develops in a much
messier and organic manner. Roughly speaking, the main process was:
1) Market research, relationship building and program design: 2-5
years, depending on how you define it.
2) Year 1 and ongoing: Sales agent recruitment, training, market
linkages – happened at the same time as embroiderer groups
recruitment and identification.
3) Year 2 and on-going: Identification and incorporation of design
services - identifying and selecting designers and tracer designers
and linking them with sales agents.
4) Year 3 and on-going: supporting buying houses (a higher level
wholesaling and market linkage business) and a sales agent
association.
5) Exit: throughout the program, a critical step in program activities is
planning the market “exit.” This involves ending activities that are
no longer needed and turning over on-going activities to a
sustainable entity. So, for example, some program staff in rural
areas are setting up business guidance units for supporting sales
agents. Buying houses are facilitating market linkages. The sales
agent association is identifying challenges and beginning to
troubleshoot.
5.5.2. Logistics
What are important logistical considerations in reaching and assisting very poor
people? Issues can include mobility/distance, selection, training,
monitoring/counseling, money transfer…
• Lack of mobility, homebound
• Husband and community reluctance for women to meet outside the home
• No telephone communication? No computer, internet
• Physical distance from markets
• Language barriers?
• Illiteracy – need for person-to-person interaction
• Lack of access to cash and to good input supply outlets
These were overcome, in part, with the program business model and women-to-women
marketing, by hiring program staff from the target areas, through cell phone technology, and the
use of practical drawings and samples rather than written instructions. The strong drive of the
end market demand - and increasingly their social objectives - fuels the intermediaries to
overcome these constraints.
44
5.5.3. Information System
How are data obtained, processed, analyzed and used? Who keeps what type of
records (and in what form)? Details on type of data can be further explained in 6.1.1.
Sales agents keep manual record which they provide to program staff, who enter them
into MS excel and process using MS excel. In addition, staff interview a sample of
individual clients and write down responses which are later recorded into and processed
using Excell.
45
6. Results
6.1. Method of measuring results

6.1.1. Type of data
What information does management use to track results (effectiveness), performance
(efficiency), client feedback and impact?
1) MEDA/ECDI report quarterly quantitative data to USAID that is also used as a

bottom-line set of data for program managers to use in assessing progress. See Annex
B “Table One.” This is a standard USAID table for the Implementation Grants
Program. It includes data on effectiveness, efficiency, client satisfaction and impact
at the market, program and client levels.
2) In addition, ECDI managers gather and report to MEDA the following impact data,
which is also used to refine program strategy:
• Market Level: how the structure of the market is shifting, for example:
o whether and how gaps in market function are being filled and how
profitable and sustainable these new activities are.
o Whether there is sufficient competition in the market, or whether
monopolies are developing.
• Provider/BDS level:
o Qualitative benefits (empowerment, mobility, security) for sales
agents; challenges and strategies for overcoming these challenges in
procuring from clients and reaching markets.
o Development of business structures, models and partnerships that
help providers reach more rural women and more efficiently reach
markets.
o Development of associations and their focus on social enterprise –
the promotion of both business and social goals in developing the
market and their businesses.
o Involvement of men as sales agents, monitoring the challenges and
benefits of men in the market and in the associations. Involvement
of husbands and male relatives in escorting and/or protecting women
sales agents.
• Client/Rural Embroiderer level:
o Empowerment, mobility
o Qualitative reports of change in the household – economic and social
shifts such as children eating better, children in school, providing
clothing for children, cleaner houses, healthier families, women
making more decisions in the household, women having more of a
voice in their choice of a spouse, etc.
o Development of associations
3) MEDA/ECDA find it more useful to track results according to the type of business in
the market, rather than or in addition to the type of business service being accessed.
So, their impact charts are divided into the following businesses:
• Rural Embroiderers (REs)
• Sales Agents (of which there are community and local levels)
46
Urban Garment Makers, and their employees or subcontractors
•
• Pattern makers
• Buying Houses
The main clients are the REs, but the other businesses are also microenterprises, and
the employees and sub-contractors are likely to be poor.
6.1.2. Data analysis and use

How are the data analyzed? How often? How are the data used for day-to-day
operations, for strategic planning?
The data are used to report to donors and to support program management. Sales data are
used to assess progress in specific target areas, among specific staff and specific sales
agents – issues are identified and explored and addressed to the extent possible. Sales
data will also be used to assessing where and why the program was more effective, and
what adjustment might be needed going forward.
6.2. Impact
Review of existing evidence on outcomes and impact. Compare with 5.4.1.2. Intended
Outcomes and Impact.
6.2.1. Poverty Impact18
The program has effectively linked 9,330 rural embroiderers with high value urban
markets through a sustainable system of 213 mostly women sales agent. Client-level
impact is assessed in terms of sales generated to embroiderers, outreach to embroiderers
and improvements in embroiderer quality of life.
Sales:
o For most embroiderers, income prior to the program was negligible. The
average income for all embroiderers reached as of June, 2007 (3 years into
the program) is $170 a year.
o For more active embroiderers, average annual income was around $70 per
year prior, and is now around to the program increased to $240.
o Additional income has been generated by 213 sales agents, 6 buying
houses, 5 input suppliers, 40 tracer designers, and 200 urban garment
markets, who employ poor workers. These are all microenterprises and
some sales agents and garment makers were poor when the program
began.
Outreach: The program has reached 9,330 embroiderers. To date, 6,150 women on
average sell every month. While there are no statistics on the exact poverty level of
these women, the program reports them as all being poor.
18
Some of the following passages are excerpted directly from a MEDA Impact Analysis produced by Linda
Jones in July, 2007.
47
Improvements in embroiderers’ lives:
Almost all women report increased contributions to household decision making,
control over their income, greater respect from their husbands and in-laws,
enhanced feelings of self-confidence, more hope for their future, and general
empowerment. In a few instances, we have heard of unmarried women becoming
more vocal about the kind of man they would like to marry, and have requested
that their parents seek a partner who will support their desire to be an entrepreneur
after marriage.
In addition to these specific impact on the poor, the program has supported social change
by empowering a generation of women entrepreneurs who are mobile and successful.
Community sales agents (who were originally REs), local sales agents and buying
house operators have much greater mobility in their own communities and for
traveling to urban centres to participate in exhibitions and to negotiate with
buyers. These women have developed their capacity to travel across Pakistan, to
run businesses, to engage with men in business, and to form support networks.
Commonly, CSAs and LSAs have become women’s advocates, community
mobilizers and social entrepreneurs.
6.2.2. Client satisfaction and feedback

What have been client satisfaction levels with services provided? What suggestions are
made to change products/services?
Client satisfaction is measured, in part, by the percent of clients who are repeat users:19
13. Microenterprise client satisfaction9 -Targets

a. Package of Services from Women Sale Agents to Rural Repeat Close to
Homebound Embroiderers in Selected Areas Clients 95%
b. Market Access Services from Women Sales Agents to Close to
Micro Urban Garment Makers in Selected Areas Repeat 85%
c. Product Design Services from Commercial Independent Close to
Designers to Microentrepreneurs: Repeat 75%
Provide three short client stories, including at least one that was not successful, on which
services were used, how they were used, and what the main impact was on the client, her
household income, etc.
The following are 2 stories of successful client, and one of a less successful one.
Shehnaz (Qasimbela, Multan region)
Shehnaz has been involved with the Behind the Veil project from its very onset. She is
married and has four children. Her husband earns a steady, but limited, income as a
bicycle mechanic in a workshop and Shehnaz has always had to work to supplement the
family earnings. When Hina, Shehnaz’s project Sales Agent, met her, she was
economically stressed and unable to meet her family’s needs. Being highly skilled at
19
From Table One, see Annex B.
48
needlework, Shehnaz worked throughout the month on piecework and small orders from
wholesalers but she would earn around Rs. 800 per month. Shehnaz now earns between
Rs. 5000 – 6000 per month. She is able to contribute significantly to household
expenditures and can afford to buy books and send her children to school. She recently
enrolled one of her younger children in a private school, which was always a dream for
her. Shehnaz also manages to put aside Rs. 500 every month as savings. Her husband’s
respect for her has increased greatly and Shehnaz’s opinion is valued in household
decision-making. Shehnaz’s future looks bright.
Mukhtaraan (Qasimbela, Multan region)
Mukhtaraan belongs to Multan region. She is married to a much older man who is
unemployed. She lives with him and her seven children in a traditional joint family
system. Life was very hard for Mukhtaraan. She was responsible for all household chores
such as cooking and taking care of the children as well as earning to support the family.
Mukhtaraan was often tired and disheartened – despite all her efforts, she was only able
to make Rs. 1000 per month. Through the project, Mukhtaraan got linked to a Sales
Agent who supports her in producing beautiful hand-worked fabrics for sale. She has
taught two of her daughters how to embroider and they help her in production. She now
earns between Rs. 7000 – 8000 per month and is able to meet her family’s basic needs.
Mukhtaraan recently purchased a refrigerator on installments, and also bought herself a
pair of gold earrings. She manages to save Rs. 1000 per month for herself. Before joining
the project, only 3 of Mukhtaraan’s children were attending a government school. Now,
all her younger children go to school as she is able to afford associated expenses.
Profile of an RE who faced the most challenges
Shaista (Nawab Pur)
Shaista is a married woman who lives with her husband in a traditional joint family
system. She lives in a far-flung village in the Multan region and is completely
homebound. Shaista and her husband do not have any children but still barely manage to
earn enough to support themselves. She is under great pressure from her in-laws because
she has not yet had children which are very valued in rural communities. Shaista’s
husband is a wage-based farmer who works on other people’s land for some small
compensation. Shaista used to produce small patches of work on old cloth or whatever
other scraps of cloth were available, which her husband took the market for her. Her
monthly income, prior to the project, was very low, averaging Rs 300 only. Shaista has
49
now been linked to a Sales Agent, who pays her for her work and supplies to a local
shopkeeper in a low-value market. Her income has increased to Rs. 600, but Shaista still
has to struggle to survive. She is working hard with support from her Sales Agent, who
provides her with order work, all required input supplies and design services. With her
determination to succeed, we hope that things will be better for her in the future.
The following stories are all from sales agents, which is the main point of contact for
the program.
Shahida, Quetta: Shahida is a Balochi girl from a conservative community. Although

there was some family resistance, Shahida participated in the program and became a sales
agent. She brought many Balochi women into the program (50 REs) who are now
benefiting from increased income and market access. Shahida attended exhibitions in
Karachi and received orders from wholesalers – in particular, her short shirts were very
popular. While in Karachi, a man saw her and a marriage proposal was made to her
family – the young man moved to Quetta in order to advance his cause. Shahida wanted
to be sure that she could continue in her business before agreeing to the match, and this
has been affirmed.
Saleem, Multan: Saleem was an extremely downtrodden woman in the conservative

Nawabpur village 18km from Multan – known for honour killings, and orthodox social
practices against women. Saleem herself was emotionally and verbally abused by her
husband by her husband, and was completely covered in a black veil in any public venue.
Her face is marked with pocks from smallpox. When she first attended program
trainings, she did not remove her veil in the training venue and her husband would wait
outside the room for her. The family was very poor, with two adobe rooms and a small
courtyard. Saleem became a CSA in her neighborhood in Nawabpur and she currently
represents 130 REs. She is known to be extremely fair and socially minded. As her
prosperity has increased, she have provided more for her family and community. At
home, she enlarged her house which now has two upper rooms. During the day, she has
turned the main floor rooms into a children’s school which community children now
attend for a small private school fee (a sorely needed service in many such communities)
(70 Children registered – 50 boys/20 girls). Saleem’s daughter is a teacher in this school.
In her community, Saleem has also enabled other women to develop their businesses –
not just REs, but she has also assisted women to become a tracer designer, input supplier,
fabric shopkeeper. She says she also encourages women to stand up for their rights and to
not allow themselves to be mistreated as she once was. As a result, Saleem is now
respected both at home and in the community; she is no longer abused by her husband,
but seen as a valuable contributor. Saleem travels to Karachi to participate in exhibitions,
and on her own initiative has developed relationships with buyers and shopkeepers from
whom she takes orders and distributes in the community. We don’t think that Saleem’s
story will end here.
Zohra, Hyderabad: Zohra was married to a much older man who was infirm and
suffering from a form of dementia. In order to support the family, she would go from
door to door selling fabric for women’s outfits. On joining the program, she set her goals
50
higher, both in terms of the quality of the product and the price it would fetch, and in how
she would engage in the market. Zohra has opened an upscale boutique in Hyderabad
(her nephew- sister’s son financed her). Her oldest daughter is currently registered in
college, she helped her widowed sister who has since joined the Behind the Veil program,
and she has a steady upper income client base. The entire family has benefited from
Zohra’s efforts.
Shahida: Sahida was hired as a rural facilitator for the project and by having a native
Balochi, the project was set to make significant inroads into Balochistan – where they
told they’d never b able to go. With Shahida on the team, the numbers for rural
embroiderers and sales agents grew. Shahida opened doors for the program and got it
established in Balochistan. But one of her brothers had an issue with her traveling to the
villages, even though he or his brother would accompany her. As the project prepared for
an exhibition in Quetta, the capital of Balochistan, Shahida disappeared. Nobody knew
where she was or at least, nobody would say. Perveen, our partner, arrived in Quetta and
made her way over to Shahida’s home where her brother ‘greeted’ her. He didn’t know
where she’d gone – he wouldn’t say any more than that. The rural facilitators provide the
office for the project – it’s part of the employment deal. Perveen told the young man that
the project required access to the office and persuaded him to unlock the door. The place
was trashed. Papers strewn all over, posters torn, a real mess. The exhibition went on
without Shahida. Two weeks later, Shahida phoned quietly told Perveen that she could
not continue as rural facilitator. Another has been hired (non-Balochi) to replace Shahida.
To this day, she has never told Perveen where she went or what happened to her. And
Perveen does not ask. Instead of working for the program, she has taken the role of
community sales agent and she has also opened a buying house in her home. This
provides her a more moderate level of activity and yet still provides some income. This
enterprising young lady has already established her products in the high-value boutique in
the Quetta Serena Hotel.
6.3. Cost Effectiveness and Sustainability

6.3.1. Scale and replicability
6.3.1.1. Strategy for scale?
The program has already exceeded it goal of 6,000 embroiderers.
The market development approach used by the program incorporates has three
strategies for reaching scale:
1. Leverage: MEDA/ECDI worked with sales agents
(intermediaries/providers) who in turn worked with target MEs. This
leveraged their outreach: the program trained 213 sales agents who in turn
reached 9,000 target clients.
2. Market Growth: Because the sales agents are driven to expand, and
because the program stimulated additional consumer demand for product,
the sales agents are expanding by hiring and training additional sales
agents who reach out to additional women.
51
3. Sustainable market institutions: MEDA/ECDI have built the capacity of 6
sustainable buying houses (wholesale businesses) that link rural and urban
embroidery traders. New sales agents who want to enter the market can
get in through these buying houses. These new sales agents reach out to
additional rural embroiderers. In addition, MEDA/ECDI have built the
capacity of a sales agent association which works to continually
development the market including supporting new entrants that will in
collaboration with other sales agents.
6.3.1.2. Replicability of program or service
The program replicates itself as described above – through market forces, market
mechanisms and leadership stimulated and supported by the program. In addition,
MECA and ECDI have recently received a large grant from Canadian International
Development Agency (CIDA) to develop additional value chains in Pakistan with the
goal of reducing poverty for marginalized women. The program has won the CIDA
Award for International Cooperation, which indicates its relevance for other market
contexts and regions. MEDA has developed a toolkit series to support replication of
this model by other institutions in other place and markets.
The essential factors for replication of this strategy by another institution include:
• The market research and program design process presented briefly in Annex A and
detailed in the program design toolkit series.
• A commitment to reaching marginalized populations through sustainable market
systems. A belief that market can work better for the poor, and that they can be
influenced to do so.
• Training and capacity building for sustainable, pro-poor value chain development.
Adequate skill set for implementing complex programs and a capacity building
budget and plan.
• Adequate funding for the planed scale of market ($500,000 for 2-3 years for
relatively small market that can reach 5-10,000 people is good estimate.)
• An understanding that market (value chain) development itself is usually not a
social enterprise for the implementing institution. Donors should remove
expectations cost recovery at the implementing agency level.
• Adequately functioning economy and strong demand for some kind of product or
service that the poor have capacity to create and deliver. (Value chain development
is being adapted for even more challenging economies and markets, but may
require different approaches.)
• Visionary and entrepreneurial leadership.
6.3.2. Financial and operational self-sufficiency (if applicable)

Provide information on following ratios, if applicable. Indicate whether ratios relate to
entire client population or to very poor clients only.
There are several layers of sustainability that are possible in business service and value
chain development models, including:
52
1. The enterprise: which ultimately generates increased income and assets for owners and
employees.
2. The value chain: the business relationship that takes SE product to markets, generating
sales for SEs.
3. Business service (or support product) markets: that either sand alone and directly serve
SEs, or that support a more competitive value chain.
4. Secondary business service markets, that serve other business service markets, for
example the market for training SE radio journalists and producers, or the market for
artificial insemination training to rural veterinarians.
5. Sustainability of market facilitation or leadership, for example of the role of trade

associations or local government in conducting value chain development or business
service market development activities.
Generally, in market development, sustainability is looked at well beyond the enterprise,

specific, selected services providers, or specific buyer-SE relationships. In this program,
sustainability has been achieved as follows:
1. The enterprise: Sales have tripled, indicating that embroidery is significantly more
attractive and viable than before.
2. The value chain: Sales agents are earning approximately 15% gross profit margin and
have sustainable links to buyers through a network of rural and urban sales agents and
two buying houses. Rural embroiderers have a choice of sales agents, so the market has
healthy competition. In some areas, independent input markets are functioning so that
women are not necessarily dependant on sales agents for input supply.
3. Business service (or support product) markets: Sales agents continuously provide up-
to-date market information, designs and inputs to rural embroiderers as part of their
business dealings. Various businesses in the market - retailers, garment makers, buying
houses and sales agents - purchase design patterns from designers and channel them to
their producers through sales agents. The program is in the process of linking sales agents
to microfinance institutions who can provide credit to the market on a sustainable basis.
4. Secondary business service markets, that serve other business service markets: some
program staff are beginning to sell sales agent training packages to new and existing sales
agents.
5. Sustainability of market facilitation or leadership, for example of the role of trade

associations or local government in conducting value chain development or business
service market development activities. The two buying house and the sales agent
association are providing some leadership for continuing to develop the market. ECDI
has led the project throughout and together MEDA and ECDI have developed both
53
organizations’ capacity for sustainable and pro-poor value chain development. ECDI has
several offers of partnerships on the table for on-going work, including an offer to expand
this program to another region.
Explain if other measures are used (for non-credit programs especially).

Many of these measures are not appropriate because MEDA and ECDI did not intend to
establish a social enterprise or otherwise recover costs with this initiative. Rather, market
facilitation is seen as a temporary subsidy to stimulate market sustainability.
6.3.2.1. Financial expense ratio

6.3.2.1. Operational expense ratio
6.3.2.1. Cost per client: less than $23
6.3.2.1. Clients per staff member – Clients per provider instead?
Each sales agent, on average, serves around 35 rural embroiderers.
6.3.2.1. Average loan balance per borrower

6.3.2.1. Average savings balance per saver
6.3.2.1. Portfolio at risk
6.3.2.1. Tailoring of product/service
If products/services were tailored specifically to the needs of very poor clients, how
did this affect cost and efficiency?
6.3.2.1. Other?
6.3.3. Cost-effectiveness of non-financial services?

Distinguish different types of non-financial services and indicate cost and cost recovery.
6.3.4. Strategies to cover/reduce costs?

Why measures were taken to reduce costs and to make products/services financially
sustainable. Examples are delivery mechanisms, technological innovation, scale, cross-
subsidization, private or public partnerships… Distinguish between financial and non-
financial services.
If no full cost recovery, what is the strategy for future sustainability?
+Hiring less expensive and experienced staff and building their capacity, using more
experienced consultants/trainers
+Working with less sophisticated providers (pattern designers rather than elite designers)
+Sales agents working hard to overcome barriers for working with groups of women
outside their homes – for example inviting husbands to attend to convince them that the
focus is business.
+Sales agent creating multi-level marketing structures to reach larger rural areas
54
Annex B: Market Research and Program Design Process
Figure 2: The Market Research Process
Make De
Decisions Hyp
Program
Design
Figure A: Program Design Tools and Decisions
Analyze
Budget Guide: Goal & Purpose Articulator: Co
How much will the program cost? Who will the program benefit and how? Which
Information
Will it be cost-effective? market opportunities will drive the program?
Broadly, how will the program achieve this goal?
Re
Strengths & Constraints Analyzer:
Implementation Planner: What positive value chain elements
Who will do what? When?
Or
will be enhanced? What barriers will
What capacity is needed? the program address?
Market Research
Logical Framework: Sustainable Solutions Finder:
Info
How will the program measure How will the problems be solved, on
success? a commercially sustainable basis?
Risk Manager: Interventions Table:

What might jeopardize the What will the program do to support
program? What can be done to sustainable solutions?
mitigate such risks?
55
ANNEX X: Table One – Results
MEDA PERFORMANCE TARGETS AND TABLE 1

ASSESSING THE MARKET FOR GOODS & SERVICES (Final Sales1)
Year 1 Year 2 Year 3

MARKET-LEVEL2 (Embroidered
Only garments)
applicants 1. Annual value of sales (in US$) $52.5
targeting a m $55.1 m $57.9 m
specific PROGRAM-LEVEL3 (Hand-
subsector embroidered garment subsector)
2. Annual value of sales (in US$)4 0.8 m 2.4 m 4.0 m
ASSESSING THE DEVELOPMENT OF THE BDS MARKET

All MARKET-LEVEL (Hand-embroidered
applicants garment subsector)
3. Total number of BDS providers, by
service5
a. Package of Services from
Women Sale Agents to Rural
Homebound Embroiderers in
Selected Areas 18 36 70
b. Market Access Services from
Women Sales Agents to Micro
Urban Garment Makers in
c. Product Design Services from
Commercial Independent
Designers to
Microentrepreneurs: Sales
Agents, Retailers, Garment
Makers and Exporters 4 8 12
PROGRAM-LEVEL
4. Number of BDS providers
participating in the program, by service
Embroiderers 15 30 60
i. Percent
private,
for-profit
providers 100% 100% 100%
Sales Agents to Urban Garment
Makers 15 30 60
i. Percent 100% 100% 100%
private,
for-profit
providers
56

Only garments)

MARKET-LEVEL (Hand-embroidered
garment subsector)
c. Product Design Services
from Commercial Independent
Designers to
Microentrepreneurs: 3 6 9
i. Percent
private,
for-profit
providers 100% 100% 100%
5. Total number of firms acquiring BDS
from program-supported providers, by
service6
TOTAL 1575 3150 6270

All Selected Areas 45 90 180
applicants c. Product Design Services
Designers to
Microentrepreneurs 30 60 90
6. Number of microenterprises7
acquiring BDS from program-supported
providers, by service
TOTAL 1575 3150 6270

a. Package of Services from 1500 3000 6000
Selected Areas
57

Only garments)

garment subsector)
Designers to
7. Microenterprises as percent of total
firms (line 6/line 5) 100% 100% 100%
8. Number of woman-owned
microenterprises acquiring BDS from
program-supported providers, by service
TOTAL 1590 3180 6330

All
applicants
Designers to
9. Woman-owned microenterprises as
percent of total microenterprises (line
8/line 6) (A few men will be included in
the retailers and exporters who
purchase product design services) 99+% 99+% 99+%
ASSESSING THE BDS PROVIDER

58

Only garments)

garment subsector)
10. Total earned revenues from
participating providers (do not include
any grants or donor contracts)
All Product Designers 4,800 9,600 19,200
applicants Sales Agents .58 m 1.75 m 2.92 m
(as is 11. BDS Providers' profitability Based
feasible) on gross margins over revenues.
Product Designers 100% 100% 100%
Sales Agents 15.4% 15.4% 15.4%
ASSESSING THE IMPACT ON THE MICROENTERPRISE CLIENT (Program Level)

All
All 12. Annual value of sales by
applicants
applicants microenterprises 270,00
participating in program 0
(in US$)8 202,50
0
Rural Embroiderers 90,000 270,00
Garment Makers 67,500 0
Sales Agents 90,000 742,50 450,000337,500450,000
TOTAL 247,500 0 1.24 m
13. Microenterprise client
satisfaction9 -Targets
a. Package of Services
from Women Sale
Agents to Rural
Homebound
Embroiderers in Repeat Close
Selected Areas Clients to 95%
b. Market Access Repeat Close
Services from Women to 85%
Sales Agents to Micro
Urban Garment
Makers in Selected
Areas
59

Only garments)

garment subsector)
c. Product Design
Services from
Commercial
Independent Designers Close
to Microentrepreneurs: Repeat to 75%
ASSESSING THE FACILITATOR'S COST-EFFECTIVENESS (PROGRAM-LEVEL
INDICATORS)
All
applicants Year 1 Year 2 Year 3
14. Total program costs (USAID and
All other) 172,557 172,351
applicants15. Total program costs per
microenterprise served (line 14/line 6) 54.78 27.49
OTHER INDICATORS
16. Exchange rate used to
calculate US$ figures 60 60 60
All 17. Estimated percentage of
applicants microenterprises on line 6 who
have poverty loans from any
source 0 0
60
TABLE ONE – NARRATIVE EXPLANATION
Line 1. This figure is estimated as follows: According to the World Bank, approximately 5% of
Pakistan’s 140+ million people are middle class. Approximately half of these are adults under the
age of 65, and approximately half of those are women. This means that there are about 1.75
million middle class women in Pakistan. Each of these women buys approximately 10-12 outfits
(salwar kameez) per year, and clothes with embellishments such as embroidery, trims, beadwork
are very popular. Currently, Pakistani hand-embroidered outfits in contemporary designs and high
quality are not readily available, however we can safely assume that one of their 10 outfits has
some kind of embroidery (local hand-done, machine, imported cloth). Each outfit retails for 1800
to 2000 rupees ($30-$33). We have selected the lower price $30 as part of our aim to be cautious
in all of our targets and estimates.
Line 2. Rural women can easily embroider the fabric for 6 – 8 outfits per month. Of the targeted
rural microentrepreneurs, we estimate that 3 of these outfits will be suitable for contemporary
urban markets within six months of intervention. This means that 4500 outfits per month starting
at 6 mos., 9000 at 18 mos. and 18,000 at 30 months – each sold at $30. (Therefore 27,000 outfits
in year one, 81,000 in year two, and 135,000 in year three).
Line 3. Figures are based on our SEEP PLP market assessment in rural regions of Sindh,
Balochistan and Punjab as well as the urban centers – Karachi, Quetta and Multan. We found
that, although there are models, it is extremely rare for there to be commercial women sales
agents. Also, despite the existence of independent product designers, they do not serve
microentrepreneurs in the hand-embroidered garment subsector. As a result, our market figures
are only slightly higher than our program figures. We do expect non-program figures to rise
slowly during the course of the program and to keep rising when the program is complete.
Line 4 a. and b. The target numbers for women sales agents are modest, since recruitment,
training, commercial launching, and mentoring will not be a trivial matter. Line 4 c. Since
commercial designers are new in the subsector, it will take time to establish them, and we will
begin with only one per urban center to start, enabling us to test service delivery and payment
mechanisms, and to provide models for other designers.
Line 5 a. These targets are based on each women sales agent establishing a relationship with 100
rural hand embroiderers. The totals seem ambitious, but in our SEEP PLP research, we heard of
local buying monopolies where a single middleman bought all the products of 100’s of women
and/or tens of villages. Once relationships are established and families/women hear of new
market opportunities, sales agents will be connected to networks of extended families. Line 5 b.
Our estimates in terms of micro urban garment makers are as follows: if each woman sales agent
works with 100 rural embroiderers, and purchases 3 outfits from each one, then each sales agent
will handle 300 hand embroidered outfits per month. If the average garment maker in the
program stitches 100 outfits per month for a sales agent (may be one to several employees), then
the sales agent will need to have relationships with 3 garment makers.
Line 5 c. Same as 4 c. Starting with 5 clients per designer and rising to 10 by the end of Year 3.
Line 6 – 7. All targeted firms will be microenterprises.
Line 8 – 9. All targeted microentreprenurs will be women except for a few retailers and exporters
who may purchase design services from commercial designers.
Line 10. This will not be the only source of income for independent commercial designers who
will continue with current clients at the same time. The figure is based on 1 day per week per
designer at a rate of 2000 rupees per day. The revenues for sales agents is the amount realized for
hand-embroidered suits sold to retailers and exporters before any costs have been deducted (e.g.,
Year one – 27,000 outfits x 1300 rupees per outfit – or $21.67 each).
Line 11. Profitability for sales agents is based on gross margins – that is profit after all direct
costs are deducted from revenues (inputs, embroiderers fee, garment makers fee). It does not
include deductions for other costs such as transportation, marketing, design work. The gross
61
margin for each suit is 200 Rs (approx $3.33). Profitability for product designers, based on gross
margins, is 100% since cost is chiefly labor/design time.
Line 12. The sales for the each member of the hand-embroidered garment value chain are as
follows: embroiderer receives 200 Rs ($3.33) per outfit, the garment maker earns 150 Rs ($2.50)
for each one sewn, and the sales agents markup to the buyer is 200 Rs per suit. These are all
based on the more modest retail price of 1800 Rs., although the average is 1800 – 2000 for day
wear, and some of these outfits may sell for much more.
Line 13. We anticipate that the rate of repeat clients working with sales agents will be very high
since the sales agents will establish the relationship before working with the embroiderers, and
since there are not a lot of alternatives. The repeat rates are lower for garment makers and product
design purchasers, as other options do exist, and some clients may try out the service but with less
commitment.
62

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THE SEEP NETWORK’S

POVERTY OUTREACH WORKING GROUP

PROMISING APPROACHES IN MF/MED SERVICES FOR VERY POOR PEOPLE

“BEHIND THE VEIL”

MENNONITE ECONOMIC DEVELOPMENT ASSOCIATES (MEDA) AND

Case Study prepared by Mary McVay, consultant, in conjunction with:

Annex A................... Market Research and Program Design Frameworks

Annex B (Attached as a separate file)Table One – results indicators

Mennonite Economic Development Associates (MEDA) and Enterprise and Career

Cost-Effectiveness and Sustainability:

Weaknesses: or challenges internal to an organization, that it must overcome or mitigate

Opportunities: external conditions that make it easier for an organization to successfully

1.1. Country Socioeconomic and Poverty Data

Table 1.1. Country Statistics

1.1.1. National Currency Pakistan Rupee

1.2. Local context – target area

1.2.1. Briefly describe local socioeconomic conditions

Human Development Indicators by Province

1.2.1.2.2. Most important economic activities

1.2.1.2.3. Cultural and religious background

1.2.1.3. Natural resources, economic activities, markets, unemployment (see 1.2.1.2.2)

Balochistan is an arid, largely mountainous province of Pakistan. It forms 44% of

1.2.2. Describe government policies aimed at the very poor

1.2.2.1. Social protection schemes by the government.

These are not apparent.

1.2.2.3. Property and land rights.

1.2.2.4. Local government and non-governmental development programs.6

The following are a sample of development programs going on in the region:

1.2.1.2.2. Most important economic activities

1.2.1.2.3. Cultural and religious background

1.2.1.3. Natural resources, economic activities, markets, unemployment

1.2.2. Describe government policies aimed at the very poor

1.2.2.3. Property and land rights.

1.2.2.4. Local government and non-governmental development programs.

Interior Sindh: Thatta and Hyderabad:

1.2.1.2. Local population characteristics

1.2.1.2.3. Cultural and religious background

1.2.1.3. Natural resources, economic activities, markets, unemployment

1.2.2. Describe government policies aimed at the very poor

1.2.2.1. Social protection schemes by the government.

1.2.2.3. Property and land rights.

1.2.2.4. Local government and non-governmental development programs.

1.2.3. Brief profile of microfinance environment.

AKHUWAT is non-governmental, not for profit organization providing micro credit

After these presentations, twelve sales agents applied for credit.

More details are not available at this time.

1.2.3.2. Describe dominant microfinance models and services.

As a whole, the poor experience:

For the program target group, in addition:

Mennonite Economic Development Associates is an international NGO. It is

2.1.2. Organizational background

2.1.2.1. Mission and vision

2.1.2.2. Brief history

MEDA is currently structured around its key development strategies:

2.1.2.3. Type of support: funding, capacity building, technical assistance, direct

MEDA partners with on-the-ground organizations, linking them to sources of funds

2.1.3.2. Specialized in MF/MED or multisectoral

Exclusive MF/MED approach … although MEDA is involved in developing some

2.1.3.3. MF/MED model

MEDA’s Production and Marketing Linkage strategy is a pro-poor value chain

2.1.3.4. Other sectors

Table 2.2. Institutional Background

Middle class women entrepreneurs and poor rural artisans as

2.2.1.11. Target market Institutions such as NGOs, social security organizations,