PROGRESS REPORT ON THE KIRIBATI OUTER ISLANDS

DEVELOPMENT PLAN IMPLEMENTATION

MANAGEMENT PROGRAMME

(OIDPIMP)

 

 

PREPARED FOR THE GOVERNMENT OF KIRIBATI

AND THE FORUM SECRETARIAT

 

By:

 

NESTOR M. PESTELOS

 

UNDP/OPS INTEGRATED ATOLL DEVELOMENT PROJECT

AUGUST 1992

 

 

 

PROGRESS REPORT ON THE OUTER ISLAND DEVELOMENT PLAN IMPLEMENTATION AND MANAGEMENT PROGRAMME (OIDPIMP) IN KIRIBATI

 

 

EXECUTIVE SUMMARY

 

 

1.0    Consultations on OIDPIMP implementation were conducted by IADP with 41 resource persons from government agencies, Island Councils and other local institutions in South and North Tarawa and in Abaiang for the period 8 April to 1 May 1992.

 

A major output of these consultations was the modification on the revolving fund scheme to suit the specific needs and situation in Kiribati.  Rather than establish it as a stand-alone rural credit facility for a specific sector, i.e. women, youth, fisherman etc., it has been redesigned as an institutionalized fund to serve as catalyst for mobilizing village and sub-village communities for the various stages of the project development cycle (project identification, preparation, appraisal; submission and approval, monitoring and acquittal of funds).

 

 

2.0    Social preparation and training activities were designed around the central task of setting-up the funds for the Island and each village to ensure that local development management capabilities would be enhanced in planning and implementing projects supported by these funds.  A core team of trainers from MHARD and DBK, under IADP guidance, was intensively trained in carrying out the various activities.  The revised designs were later implemented by the core trainers in Kuria and Makin.  The experiences gained in implementing OIDPIMP activities in all three islands became the basis for training additional national trainers from various ministries in another island, Abaiang.

 

The major outputs of these initial social preparation and training activities in each island covered by OIDPIMP are as follows:

 

·         Establishment of the Island Development Fund (IDF) as a revolving fund facility both for income-generating and village-level social development projects;

 

·         Organization of a village/ward-level committee to assist local communities identify, prepare and submit projects for IDF assistance;

 

·         Identification, actual preparation, and submission of projects from the village or ward in accordance with procedures and policies formulated by the Island Council in coordination with the Island Development Committee (IDC);

 

·         Disbursement of funds to income-generating and social development projects appraised by the IDC and village committees and approved by the Island Council.

 

 

3.0   Recommendations for future OIDPIMP activities in Kiribati

 

·         Provide an additional AUD 15,000.00 for relatively bigger islands (Abaiang, Tab North, Tab South, Butaritari and Nonouti);

 

·          Intensify advocacy activities on the innovative features of OIDPIMP both at national and regional levels, among donors, policy makers and planners;

 

·         Review roles of local institutions and entities in accordance with new development tasks with the view of further enchanting management capabilities;

 

·         Draw lessons from the implementation of the revolving fund scheme and generate insights on how best to reach needy households and community groups with assistance.

 

 

4.0 The following reports/documents have been produced by IADP in the process of providing technical assistance to the government of Kiribati in the implementation of OIDPIMP:

 

·         Report on Mission to Kiribati on Implementation Planning for the Outer island Development Plan Implementation and Management Programme (OIDPIMP)

(May 1992)

 

·         Kiribati Training Programme on Social Preparation and Island/ Village Project Development and Implementation

(May 1992)

 

·         Revised Facilitator’s Guide – OIDPIMP Training Programme

(June 1992)

 

·         Report on Initial Activities Undertaken in Aranuka, Kiribati for the Outer Island Development Plan Implementation and Management Programme (OIDPIMP)

 

 

31 July 1992

 

 

Progress Report on the Outer Island Development Plan Implementation and Management Programme (OIDPIMP) in Kiribati

 

1.0        Introduction

 

Launched in July this year, the Outer island Development Plan Implementation and Management Programme (OIDPIMP) has been carried out in Kiribati initially in four islands (Aranuka, Kuria, Makin and Abaiang).  Funded by the Forum Secretariat and with technical assistance from the UNDP-OPS Integrated Atoll Development Project (RAS/88/014), OIDPIMP seeks to give impetus to the implementation of projects contained in the Island Development Plan or those which will be subsequently identified and formulated based on the Island socio-economic Profile.  Both the profile and the four-year plan of the country’s 16 outer islands were outputs of the IADP-assisted Participatory Island Profiling and Development Planning workshops conducted last year.

 

OIDPIMP implements activities aimed at enabling community groups, local government entities, technical agencies and NGOs exercise and further refine project development skills.  Moreover, the programme identifies relevant community structures and practices which can be further enhanced towards sustained development plan implementation and management.  Its package of interventions basically consist of:

 

·         provision of funds, amounting to AUD 15,000.00 per island, for immediate support to income generating and other village development projects, with the funds under the joint administration of the Island Council and the Island Development Committee;

 

·         hands-on training for al community groups, government agencies and NGOs involved in the participatory project development process at island and village level;

 

·         setting-up of a community-based monitoring and reporting system linked to relevant agencies at national and subnational levels;

 

·         upgrading of national-level skills in the planning, programming, monitoring and evaluation of all types of projects in remote island communities.

 

This Report will deal on the major activities so far undertaken and indicate possible implications to future activities.

 

 

2.0        Major programme Activities

 

The key activities conducted so far are as follows:

 

2.1             Review of country experiences relevant to OIDPIMP components

 

Strengthening local development management

 

Island council operations vis-à-vis development projects was studied in North Tarawa and Abaiang.  In both islands, the council has no funds at its disposal to respond promptly to community projects.  Funds for this purpose are requested through the sectoral agencies or the Local Government Division of the Ministry of Home Affairs and Rural Development (MHARD).

 

While the Island Development committees in both islands have met regularly since the government approved sitting allowances for non-government members more than a year ago, they still do not monitor development projects nor are they active in helping community groups identify and prepare projects to solve local problems.  They tend to merely serve as fora for threshing out implementation details for projects initiated by central ministries.

 

The review noted that in North Tarawa, attempts were made early this year to establish development committees in 5 out of the island’s 13 villages.  No guidelines, however, were formulated regarding their specific tasks and the process of how to get them organized without posing a threat to existing institutional arrangements.

 

In the experience of the Outer Island Community Water Supply Project, the Island Council has been identified as the bottleneck during implementation.  Its team leader says that in practically all the project islands, the council does not honor its commitment to provide transport to sanitarians; the Island Clerk is to o busy with other concerns; and voluntary labor is difficult to solicit.

 

The three-tiered system of local governance, consisting of the Island council, council-paid employees, and national government employees on detail to the council, seems unwieldy for the Island Clerk to manage.  There is apparently duplicating centers of initiatives and authority with the end result that no real local decision-making vis-à-vis develoment projects could take place.  Virtually all decisions have to be referred t central ministries.  Although water is a scarce resource in the outer islands, the project suffers ironically from the apparent indifference of the target beneficiaries.

 

 

Provision of rural credit

 

In Kiribati, the institutionalized sources of rural credit are the moneylenders, trading stores, and relatively new entities, such as the credit unions and the Development Bank of Kiribati (DBK).  They tend to cater to specific types of clientele, their procedures and requirements varying from each other on account f traditional practice, pertinent legislation and existing government regulations or charter.

 

The scope of operations for each source or rural credit has been studied, in addition to its relative advantages and effectiveness.  Although it is common knowledge that moneylenders charge an interest rate higher than the 12% per annum set by law, they remain the most sought-after source of credit both in south Tarawa and the outer islands.  Their popularity is due to accessibility, practically serving as a 24-hour neighborhood bank; practically no tedious paper work and credit investigations required; and the flexibility as to the period of repayment.

 

The trading store is a virtual credit institution.  Goods are usually given out on credit.  A store often serves also as a moneylending outpost.  The situation is the same in Tarawa and the outer islands.

 

First established in Kiribati in 1987 by the various trade unions, there are now 24 credit unions in Tarawa and 15 in the outer islands.  Most of these credit unions are in the work place.  A few are family or clan-based credit unions, while others are church groups.  Around 85% of the loans f\given are provident loans; the rest are production loans.  Members of credit unions are those with salaries or regular sources of income.

 

As of December 1991, DBK extended commercial loans totaling AUD 886,187.00 of which AUD 537,000.00 or 60% were for borrowers in South Tarawa.  North Tarawa accounted for 19% of the total loans given t the country’s outer islands.  The shift to the rural areas has been noted in 1992.  As of April, the outer islands, excepting North Tarawa, applied for loans totaling AUD 793,598.00, with Christmas Islands accounting for 55% of the total amount (and 52% of the total number of applicants).  The average minimum amount applied for is AUD 5,510.00 in the following highly preferred areas: fishing (26%); trading store (18%); video, bar, cinema, nightclub (15%); and transport (12%).

 

 

Revolving loan fund schemes

 

Government agencies and NGOs in Kiribati have had extensive experiences with revolving loan fund schemes, which included: the Fishing Gears Revolving Fund of the Fisheries Division; the AMAK Revolving fund; the SCF Revolving Fund for housing; the FSP Revolving Fund for Seed Center; and the Nei Kaue Revolving Fund of the Roman Catholic parish in Bikinibeau East.  The review of these schemes showed the specific changes in procedures and overall approach which have been resorted to in efforts to address implementation problems.

 

 

Fund-raising activities

 

Organizing for fund raising is a popular community practice in Kiribati.  Each maneaba has its own fund raising committee.  It is common in most islands to welcome visitors (or residents who have returned from abroad) through a maneaba gathering were they are expected to present a contribution or donation to the community.  The review noted specific activities or projects which have been implemented to raise funds: the kare-kare practice in the villages and work places; fund-raising activities of the KPC women Fellowship and the Catholic Women’s Center; a marketing project run by the Island Council in Abaiang; and the SCF tool pool project for carpenters.

 

 

Institution-building issues

 

The review has identified the following institution-building issues relevant to strengthening rural development planning and management:

 

·         integration of the indigenous local-level decision-making structures and processes into the development process;

 

·         restructuring of local government and other institutions, such as the IDC, in the light of development management tasks;

 

·         appointment of a development coordinator to assist the Island Clerk;

 

·         policy guideline on sitting allowances and solicitation of community labor for development projects;

 

·         review of the tasks and functions of the Rural Planning Unit taking into account new thrusts and development in the rural sector.

 

 

2.2             Formulation of guidelines for the revolving fund component; designing and detailed planning of training and social preparation activities

 

In consultation with other agencies (Home Affairs and Rural Development; Finance and Economic Planning; Development Bank of Kiribati), guidelines were prepared for operating the revolving fund.  Based on the findings of the review, it was agreed that the revolving fund would best serve as an Island Development Fund administered jointly by the Island Council and the Island Development Committee to support both income-generating and village-level social development projects.  Terms of repayment for the two categories of projects, as well as funding procedures, were drafted.

 

A training and social preparation programme was subsequently designed to train the core team of trainers based at MHARD and to produce the initial outputs of OIDPIMP:

 

·         projects contained in the Island Development Plan (or identified based on the island profile) and proposed for immediate implementation by each village;

 

·          procedures and terms of repayment finalized the smooth operations of the Island Development Fund;

 

·         village-level structure identified and organized for participatory project development and implementation and for community-based monitoring and reporting system.

 

 

2.3             Validation of procedures and guidelines for the Island Development Fund, the various training designs, and intensive training of the core training team

 

Initial OIDPIMP implementation in Aranuka resulted in the following:

 

Establishment of the Island Development Fund (IDF), a revolving fund facility for both income-generating and village-level social development projects

 

The Island Council and the Island Development Committee were guided to make key policy decisions on how to use and maintain the AUD 15,000.00 grant as part of OIDPIMP’s hands-on development management capability-building component.  In Aranuka, AUD 10,000.00 was allocated under the Special Fund for Income Generating Projects and the balance of AUD 5,000.00 was channeled to the Special Fund for Village Social Development Projects.

 

A 3% service fee is charged on the amount of financial assistance for each category of projects with the fees being made part of the respective special funds and thus help ensure fund maintenance.  The service fees on social development projects will be made part of the Special Fund under the administration of each village.

 

Policy guidelines were also formulated on the maximum amount of financial assistance for each category of projects; the terms and frequency of repayments; legal and other sanctions in case of non-payment; submission and appraisal of projects; accounting and auditing procedures.

 

Putting in place a village-based project development process involving the close partnership of local government units, technical agencies, traditional and other community organizations in the systematic identification, preparation, appraisal, approval and acquittal of v\development projects under IDF assistance

 

A sequential orientation and training process was conducted in Aranuka with the overall objective of clarifying the roles of the various government entities, community organizations and individual households in all aspects of OIDPIMP implementation (project development and management, monitoring and reporting, IDF maintenance for island and village welfare).  Project identification and submission procedures were also established data ward/village and island levels.

 

The key activities in this training process are as follows –

 

Orientation of the Island Council

 

The Island council members were sensitized on their role as local development managers.  OIDPIMP was shown to them as an excellent opportunity to exercise decision-making skills in relation to projects identified by the village people themselves.  As part of the participatory dosing of the training program, they were encouraged to formulate basic policy decisions regarding the effective administration of the island Development Fund.  Supplementary procedures were provided based on government regulations vis-à-vis the handling of public funds.

 

 

Orientation of the Island Development Committee

 

The members of the IDC were shown the importance of its role in the total capability-building efforts.  Their tasks were reviewed and given fresh interpretation in the context of OIDPIMP’s strategy to bring project development as close to the community as possible.  Appeals were also made to their sense of community service and spirit of volunteerism.

 

 

Organization and orientation of the Botaki ni Karikirake ibukin Kaawa (BKK) based either in the village or ward as local-level committee for project development tasks

 

Specific guidelines were drawn up on how to evolve this structure from out of existing decision-making forum at the village or ward levels.  The objective was to formalize in a broader development context what already exists for other community tasks and obligations.  Both the Island Council and the IDC were consulted on how to form the BKK.  In the various maneabas of Aranuka, the Unimane and other sectors were likewise consulted.  By the time the team arrived to formally organize the BKK, the village and ward residents had been briefed by these sectors on the tasks of the local development body and thus were prepared to elect the members.

 

 

Project identification and preparation workshop for the BKKs, community groups and interested households

 

Existing island development profiles and plans were used at village and ward levels for identifying both income-generating and social development projects.  Village and ward residents were encouraged t identify problems actually affecting households in the locality.  They were urged to think of projects as solutions to these problems.

 

Simple, easy–to-follow questions were prepared to guide the BKK and the community residents in preparing project proposals for IDF assistance.

 

Participants were trained on how to accomplish application forms.

 

 

Project appraisal workshop for the IDC and the BKKs

 

Simple project appraisal techniques were taught the IDC and BKK members.  Joint workshops were held which simulated presentation by the BKKs of actual proposals submitted from the village or ward.  IDC members took turns asking questions designed to appraise each project presented.  In a separate simulated meeting to appraise projects, the IDC recommended to the island council three income-generating projects out of four submitted for appraisal by the BKKs.

 

The three recommended projects (chainsaw project, pig raising and procurement of engine for a motorboat) were among projects listed for Island Council implementation under the Aranuka Island Development Plan.  Village groups have in effect taken responsibility for the implementation of these projects after identifying them as crucial for solving locally-felt problems.  Each BKK “defended” the projects proposed as part of the training design to further deepen understanding of key factors to consider in preparing and appraising projects.

 

In case of the project which was returned to a BKK for “further review,” the IDC cited weaknesses in justification and deviation from requirements regarding the naming of guarantors for the repayment.

 

The IDC members were briefed on which form to use in recommending income-generating projects to the Island council for funding under the IDF revolving scheme.  Under OIDPIMP procedures, the IDC can reject project proposals or return them to the BKKs for review or reformulation based on findings from the appraisal.

 

 

Workshop on ranking of proposed projects for the Island Council

 

A user-friendly rating card for prioritizing projects was devised for the island council.  The council actually used it in prioritizing the income-generating projects recommended by the IDC.  Scores were given on the relationship of each project to the goals of the Island Development Plan; perceived effect on other problems; actual households benefited; ability to pay back the funding assistance extended; impact on community skills; and on possible effects to the environment.

 

The Island council rated the chainsaw project from BKK Takeang 239 points; pig raising form BKK Buariki North, 224 points; and boat engine project of BKK Buarua, 215.5 points.

 

The BKKs submitted a total of 7 social development projects for approval by the island council.  Some of the proposals were referred back to the BKKs for review on account of certain deficiencies in the application.  Among the approved requests were for buying a bicycle to ferry children to and from school and to be used in collecting coconuts, and for school fees.

 

The Island Council and the IDC agreed that the BKKs would submit social development projects directly to the Council since their nature do not require tedious appraisal and to reduce the time for processing.  Procedures were also devised to enable prompt response to emergency requests for assistance, such as in cases of accidents, sudden illness, etc.

 

The Island clerk was oriented on the use of the project registry and monitoring forms.  A filing system for submitted and approved projects was also devised.

 

 

Intensive training of a core team of trainers to implement OIDPIMP in the other two islands, Kuria and Makin

 

A core team of 8 trainers from MHARD and DBK was trained to conduct the various activities.  Resource persons from Finance, DBK, and the SPC North Tarawa Project assisted in devising the monitoring and project submission forms and in translating into I-Kiribati the various training handouts.  The visual aids were prepared by the Mobile Training Unit of the MHARD Local Government Division.

 

The DBK representative joined the training at Aranuka and was effectively mobilized in preparing simple and easy-to-follow project submission and approval forms.

 

The conduct of orientation and training activities in Aranuka was considered the practicum for the core team of trainers based at MHARD.  It was directly managed by the IADP Community Development Specialist/Trainer.  Assessments conducted by the CDS/T and the team resulted in a revised Facilitator’s Guide for the OIDPIMP orientation and training activities.

 

 

2.4             OIDPIMP in Kuria and Makin

 

The members of the core team were divided into two teams, one for OIDPIMP implementation in Kuria (17-23 June) and the other for Makin (19-25 June).  They carried out the orientation and training activities based on revised designs.  BKKS were organized and project proposals were generated from each village.  The Island councils, IDC and traditional organizations nod NGOs were oriented on their respective roles.  The performance of each team was assessed by the IADP.

 

 

2.5             Training of national trainers in Abaiang

 

A total of 18 national trainers from six national agencies (agriculture, fisheries, health, DBK, AMAK, public works) attended the training of trainers conducted by the IADP in Abaiang.  OIDPIMP implementation in Abaiang with its 16 villages was used as part of the hands-on training.  The training also provided the participants an opportunity to find out how the projects of their respective agencies were perceived by village people and to appreciate the role of social preparation in project development.

 

 

3.0        Reflections/Implications to Future Activities

 

3.1             Need to increase the amount of the revolving fund for bigger islands (Abaiang, Tab South, Tab North, Butaritari, Nonouti)

 

The amount of AUD 15,000.00 for both income generating and social development projects would not be enough to fund the projects initially generated by the training due to the greater number of villages which has to be extended the revolving fund facility.

 

The recommendation of national trainers is to double the amount for bigger islands so that substantial seed money can be provided each village.

 

 

3.2             Need for more national-level advocacy activities to reinforce programme gains so far achieved

 

In preparation for expansion to the next group of four islands, advocacy activities will have to be undertaken to make sure policymakers, planners and donors appreciate the innovative features of the programme and thus merit greater support in the future.

 

Some of these features are as follows-

 

Emphasis on local decision-making

 

The island Council itself decides on the basic terms and conditions of assistance under IDF.  The IDC is primed on its tasks and consulted on practically all field operations and procedural issues during OIDPIMP implementation.  Traditional and other community-based organizations are involved in organizing the BKKs.  The BKKs and the community are left to themselves to identify which projects to propose for assistance without the usual sectoral advocacy.  The only inputs are those on problems identified at island level, the need to match projects with these problems and the appeal to spend the funds wisely t ensure continuing response to local problems.

 

 

On-the-spot availability of funds to support project development and implementation

 

No doubt a vital lesson from the moneylenders.  It creates credibility to the government’s renewed commitment to grassroots development.  The funds are there were the users are; the people know exactly how much money is available as seed funds for development projects, the potential for increasing the funds, the allocation for each village, the procedures for project submission and the sanctions involved in non-repayment of such assistance.

 

 

Easy-to-follow lessons ad procedures for each step of the village-based project development process

 

Painstaking efforts are exerted to translate training handouts and visual aids into I-Kiribati.  Forms for funding requests, project monitoring, etc. are reduced t the barest minimum.

 

 

Emphasis on the village or ward as the basic unit for undertaking project development tasks

 

The unit closes to the household, namely the village or ward, becomes the focus for starting tasks related to project development.  It promises to be a fertile area for innovative approaches in helping island communities achieve sustainable development.  Having the BKKs evolve from existing decision-making structure did not meet any resistance nor delay in any of the four islands, indicating that at village or ward level, the people know who are best qualified for specific tasks.

 

The unwillingness to combine with other wards for a village-level development entity shows that at current level of social consciousness, the neighborhood takes priority over larger divisions.  Rather than resist it, OIDPIMP in fact takes it as given, creates the BKK where the forum for local decision-making exists, and starts the project development process right where basic community decisions are deliberated upon.

 

The implication is that advocacy for development programmes and projects should extend to as far down as possible.  OIDPIMP seeks to bring development approaches to where the action is – in the village or ward which functions as the basic unit of decision-making in the island.

 

 

3.3             Need to fully exploit the potential of the IDCs

 

In each of the four islands (Aranuka, Kuria, Makin and Abaiang), the IDC has assumed tasks required for the smooth implementation of the OIDPIMP.  Each IDC is committed to meet monthly meetings to appraise projects.  IDC members are also expected to closely monitor the status of projects under IDF assistance through their close liaison with the BKKS.  Each IDC member has a specific BKK to monitor.

 

How long this enthusiasm can be maintained by the IDC remains to be seen.  It will depend on a lot of factors: the frequency of monitoring visits by MHARD; the support and recognition extended by sectoral agencies; the cooperation of the Island council; the support of policymakers and planners, etc.  The IDC’s membership is multisectoral as it multi-village.  It has therefore the potential to be fully developed as the catalytic arm of the Island Council in drawing maximum local involvement in development planning and management as originally conceived by the government upon its inception in 1990.

 

 

3.4             Need to harvest lessons on extending financial assistance to needy households and community groups and simultaneously build development management capabilities

 

As designed, field-tested and implemented in Kiribati, OIDPIMP has the potential to put in place a viable credit scheme for the poor aside from strengthening structures and processes for sustainable development management.

 

The elements for success are there:  simple forms and procedures; village or ward-based supervision and collection; high degree of community awareness; immediate access to funding sure; supportive social organization, i.e. maneaba, church, BKK; service fee and terms of repayment determined by the local people; intimate knowledge of the personal background of beneficiaries.

 

MPs in practically all the islands covered by OIDPIMP were also mobilized to attend the various workshops in their capacity as members of the IDC.  Such involvement of political leaders should be encouraged t ensure support to the unique participatory approaches being developed by OIDPIMP.

 

The Island council members in all four islands have shown enthusiasm to the village-based project development process although it will mean their diminished influence in determining island projects.  Their continued sensitization to the requirements of participatory processes will also have to be further encouraged under OIDPIMP.