The role of NGOS in rural poverty alleviation

The study evaluates the impact of “Local Efforts for Empowerment and Development (LEaD) project of CARE Sri Lanka, Hambantota in improving the livelihood and reducing the poverty of project beneficiary households (BHHs). The contribution of NGOs in alleviating poverty remains only partial and is contested. Conforming to the debate, in helping the poor climb out of poverty for example, NGOs now have developed various strategies focusing the demand-side approach by initiating the development programmes or projects. In line with this international trend, Cooperative for American Relief Everywhere (CARE) International Hambantota, Sri Lanka has implemented a novel approach: “sustainable livelihood approach for development” with its project, named LEaD under its Southern Dry Zone Development Programme in 2007. The Programme aimed at reducing the vulnerability, ensure the sustainability of human development and livelihoods of a 17,000 poor and marginalized households living in 170 villages of four DS divisions in two districts: Moneragala and Hambantota at the end of 1012. To use the sustainable livelihood impact assessment framework, primary data was collected from a sample household survey of 242 BHHs in 74 villages in four Divisional Secretariats (DSs). Qualitative data were collected from focus group discussions and case studies. Impact variables included degree of livelihood diversification; changes of five forms of assets (financial, physical, human, social and natural) and material stile of life; net revenue of enterprises project assisted, as well as perception of changes in community cohesion. The study evidences to suggest that LEaD has been able to reach the poorest of the poor in rural areas: landless people and other marginal groups and increased their standard of living. The provision of microfinance by CARE caused to increase the degree of diversification of livelihood and create social ties among BHHs. However, this social capital is not correlates with that the net revenue from project related activities. The situation may leads to limit the sustainability of the success. On the base of these findings, it can be concluded that while LEaD is very reasonable to help the poor to exit from the poverty trap, it tends not to alleviate poverty