Document of The World Bank FOR OFFICIAL USE ONLY Report No: IMPLEMENTATION COMPLETION AND RESULTS REPORT TF: 18040 ON A SMALL GRANT IN THE AMOUNT OF US$2.86 MILLION TO THE ASIAN HERITAGE FOUNDATION FOR CREATING INCLUSIVE BUSINESS MODELS FOR MARGINALIZED TRIBAL COMMUNITIES IN ODISHA, JHARKHAND AND MADHYA PRADESH PROJECT (P145419) July, 26, 2021 Agriculture and Food South Asia Region Regional Vice President: Hartwig Schaffer Country Director: Junaid Kamal Ahmad Regional Director: John A. Roome Practice Manager: Mary Kathryn Hollifield Task Team Leader(s): Vinayak Narayan Ghatate ICR Main Contributor: Arghya Ghosh ABBREVIATIONS AND ACRONYMS AHF Asian Heritage Foundation B2B Business to Business BRLPS Bihar Rural Livelihood Promotion Society CAIF Community Artisan Investment Fund CBO Community Based Organization CFC Common Facility Center FM Financial Management GST Goods and Services Tax JSDF Japan Social Development Fund JSLPS Jharkhand State Livelihood Promotion Society M&E Monitoring and Evaluation MIS Management Information System MP Madhya Pradesh MPSRLM Madhya Pradesh State Rural Livelihood Mission NGO Non-Governmental Organization NTFP Non-Timber Forest Produce NRETP National Rural Economic Transformation Project ORMAS Orissa Rural Development and Marketing Society PDO Project Development Objectives SHG Self Help Group SRLMs State Rural Livelihood Missions STEP Systematic Tracking of Exchange in Procurement TTL Task Team Leader UNESCO United Nations Educational, Scientific and Cultural Organization TABLE OF CONTENTS DATA SHEET .................................................................................. ERROR! BOOKMARK NOT DEFINED. I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES ............................................................4 II. OUTCOME………………………………………………………………………………………………………………………. 8 III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME ................................... 16 IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME ... 18 V. LESSONS LEARNED AND RECOMMENDATIONS .................................................................... 20 ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS ................................................................ 23 ANNEX 2. PROJECT COST BY COMPONENT .................................................................................. 27 ANNEX 3. RECIPIENT, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS ....... 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) DATA SHEET BASIC INFORMATION Product Information Project ID Project Name Creating Inclusive Business Models for Marginalized P145419 Tribal Communities in Odisha, Jharkhand and Madhya Pradesh Country Financing Instrument India Investment Project Financing Original EA Category Revised EA Category Organizations Borrower Implementing Agency The Asian Heritage Foundation The Asian Heritage Foundation Project Development Objective (PDO) Original PDO The proposed PDO is to create employment and sustainable livelihood opportunities to reduce poverty amongst the unemployed youth, women and other marginalized communities in the tribal regions of Odisha, Jharkhand and Madhya Pradesh through supporting their traditional and artisanal skills. Page 1 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) FINANCING FINANCE_TBL Original Amount (US$) Revised Amount (US$) Actual Disbursed (US$) Donor Financing TF-18040 2,860,000 2,860,000 2,860,000 Total 2,860,000 2,860,000 2,860,000 Total Project Cost 2,860,000 2,860,000 2,860,000 KEY DATES Approval Effectiveness Original Closing Actual Closing 09-Oct-2014 09-Oct-2014 09-Oct-2018 09-Oct-2019 RESTRUCTURING AND/OR ADDITIONAL FINANCING Date(s) Amount Disbursed (US$M) Key Revisions 08-Oct-2018 1.65 Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories Change in Implementation Schedule 05-Apr-2019 2.28 Change in Components and Cost Change in Loan Closing Date(s) Reallocation between Disbursement Categories Change in Implementation Schedule KEY RATINGS Outcome Bank Performance M&E Quality Moderately Satisfactory Moderately Satisfactory Modest Page 2 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) RATINGS OF PROJECT PERFORMANCE IN ISRs Actual No. Date ISR Archived DO Rating IP Rating Disbursements (US$M) 01 13-Nov-2015 Moderately Satisfactory Moderately Satisfactory 0.34 Moderately 02 21-Dec-2016 Moderately Unsatisfactory 0.61 Unsatisfactory 03 05-Oct-2018 Moderately Satisfactory Moderately Satisfactory 1.65 ADM STAFF Role At Approval At ICR Regional Vice President: Philippe H. Le Houerou Hartwig Schafer Country Director: Onno Ruhl Junaid Kamal Ahmad Director: John Henry Stein John A. Roome Practice Manager: Shobha Shetty Mary Kathryn Hollifield Task Team Leader(s): Vinayak Narayan Ghatate Vinayak Narayan Ghatate ICR Contributing Author: Arghya Ghosh Page 3 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) I. PROJECT CONTEXT AND DEVELOPMENT OBJECTIVES Context 1. The focus States of the pilot project “Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh� -- Odisha, Madhya Pradesh and Jharkhand -- are home to over 27.9 million (33 percent) of the country’s tribal population, many of whom live in remote, often forests areas. Employment opportunities for these communities are limited to seasonal collection of non-timber forest produce like honey, spices, indigenous medicines, minor agricultural activities on their marginal land holdings and other traditional home- based activities such as artisanal practices. The Scheduled Tribe community exhibits higher levels of poverty at 47.4 percent as compared to 33.8 percent for other communities in the targeted states. Further, the prevalence of certain agricultural practices such as “Jhum� (Slash and Burn Cultivation) in these areas has led to ecological degradation, which has contributed to increased migration, food insecurity, occasional starvation deaths, and malnutrition in children, making these communities among the most vulnerable. 2. Although tribal communities are highly skilled in indigenous knowledge systems (non-timber forest produce collection, traditional healing, natural foods, and crafts), they remain among the most vulnerable and isolated groups in India due to the above-mentioned challenges. Apart from socio-economic deprivation, there has been steady erosion of traditional tribal rights and their command over resources. Low socio-economic and participatory indicators have, in many instances, led to social unrest in tribal areas and the widening of gaps in education, health, transport and housing. These regions often suffer from youth unemployment and lack of livelihood opportunities. Local artisan value chains are lengthy and loose-ended, access to quality raw material is limited and often suffers from supply chain related challenges. While artisan products are increasingly becoming popular in the global handmade market, crafts in the targeted tribal districts continue to be sold at throwaway prices at local markets as artisans have limited opportunities to reach new consumers through relevant marketing platforms. Active control of middlemen in the marketing/value chain system, which is commonly observed, often results in exploitative terms and unfair prices for the artisans. As a result, artisans’ share in the value chain is low. For instance, weavers from Odisha's tribal dominated Koraput district mostly work under middlemen with little to no stake in the local craft value chain. 3. Top-down strategies often result in limited success in comparison to programs that are community-based and follow bottom-up approaches. There is also a pressing need to adopt mechanisms that reflect change in in engagement and types of interventions required, including multi-sectoral approaches that explore convergence of resources and roles by other development initiatives. It is essential to move towards a value chain-based approach involving outcome- based programs and mobilize that focus on capacity building investments and leveraging private sector partnerships. The sector needs to minimize value loss, maximize value creation, higher value capture and value-added services. Rationale for Bank Involvement 4. The pilot project “Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh� was designed to create employment and sustainable livelihood opportunities to reduce poverty amongst the unemployed youth, women, and other marginalized communities in the tribal regions of Odisha, Jharkhand and Madhya Pradesh by supporting their traditional and artisanal skills. It was strategically structured to strengthen the entire craft value chain by testing out an innovative approach to bring creative capital, human capital and social capital together to generate economic capital. Tribal communities are a large minority in India, comprising approximately 84.5 million (8.14 percent) of the total population and inhabiting approximately 15 percent of the Page 4 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) country’s total geographical area. However, these communities experience higher levels of poverty and deprivation. The Project was designed to provide additional product and design development inputs to augment the Jani and Jiva brands and provide innovative marketing assistance to the existing nine Jiyo! artisan cluster organizations in the states of Bihar and Andhra Pradesh.1 5. The key objectives of the project were closely aligned with the World Bank’s India Country Partnership Strategy (CPF FY2013-172) at appraisal stage, which was to support the Government of India’s development goal of growth that is faster, more socially and regionally inclusive, and more sustainable. The project development objectives were structured based on three overreaching goals: Economic Growth, Poverty Reduction and Shared Prosperity that would be met through three areas of engagement: Integration, Transformation, and Inclusion. Further, the project’s focus was on key tribal regions in the focus states using community-driven approaches to support tribal and collaboratively develop flexible, indigenous enterprises for local employment opportunities, increase income and social inclusion for unemployed youth, women, and other marginalized people. Through its end-to-end value chain development approach, the project would engage actively with these communities to leverage from social, creative and knowledge capital of these artisans to bring them in the forefront and enable them to be equal stakeholders at the village level. Theory of Change 6. The pilot project was designed to create employment and sustainable livelihood opportunities amongst the unemployed youth, women, and other marginalized communities in the tribal regions of Odisha, Jharkhand and Madhya Pradesh by supporting their traditional and artisanal skills. The project worked with local institutional partners and master artisans to collectively train skilled and semi-skilled community members. It facilitated the promotion and establishment of 13 community-based organizations (CBOs) in all three project States with 4323 beneficiary households. The project's capacity building program strategically aimed to improve artisan’s skills to develop diversified market led products. This resulted in more than 195 training and skill building programs at the grassroots level that helped develop 605 new prototypes. New marketing channels were developed as an important source of diversifying incomes of tribal artisans - kiosk operations run by young entrepreneurs from the clusters were supported. The project reached out to new market segments such as crafts and artwork programs in public spaces including the Mumbai Airport’s “Jaya He� Artwork Program, targeting hospitality industries, premium wedding cards market(etc.) to help artisans realize their full business potential. By exploring innovative approaches such as three- tier brand development, kiosk models for small towns and rural areas, collaboration with key E-commerce players, B2B partnerships, as well as participation in leading global trade fairs and establishing a robust presence in domestic retail market, the project hoped to achieve marked improvement in the sales of cluster products. These innovative approaches helped contribute to sales worth US$814,061. As a means towards encouraging sustainability, the project supported women and unemployed youth from the targeted communities to be the main stakeholder. The cluster development strategy not only addressed capacity building, but also supported building market linkages to ensure regular input channels and sale of outputs. Activities related to design thinking approaches and co-creation of new products were envisaged to empower artisans to adapt as per the changing business environment. The project also recognized the need for financing to ensure that these value chain approaches can be implemented, and cluster specific financial products were introduced, tailored to the needs of the communities. To facilitate access to finance and other essential value addition support services, 9 common facility centers were created with active participation 1 The project market-tested an innovative three tier brand strategy that categorized product verticals into Jiyo (Premium market), Jiva (mass premium) and Jani (rural/local market) for optimizing trade facilitation. 2 http://documents1.worldbank.org/curated/en/207621468268202774/pdf/7617600CAS0REV0PUBLIC00R20130005004.pdf Page 5 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) of cluster members along with 8 ancillary facilitation centers. A more detailed results chain has been presented in the figure below: Figure 1: Theory of Change Project Development Objectives (PDOs) 7. PDO was to create employment and sustainable livelihood opportunities to reduce poverty amongst unemployed youth, women, and other marginalized communities in the tribal regions of Odisha, Jharkhand and Madhya Pradesh by supporting their traditional and artisanal skills. 8. The Project aimed to provide additional product and design development inputs to develop the Jani and Jiva brands and facilitate innovative marketing assistance to the existing nine Jiyo! artisan cluster organizations in the states of Bihar and Andhra Pradesh. The project’s targeted beneficiaries were 7650 vulnerable artisans from Odisha, Jharkhand and Madhya Pradesh that include 4800 tribal beneficiaries. Additionally, 2850 artisans were from 9 community-based organizations located in Andhra Pradesh and Bihar. Key Expected Outcomes and Outcome Indicators 9. The project’s PDOs was to the provide technical assistance, capacity building and end-to-end value chain services to project beneficiaries. As per the PDOs described above, the project’s intermediate results indicators were as follows: a) 25 percent increase in income for at least 50 percent of target artisan families as a result of developing new products. b) 25percent increase in the number of days of employment through project interventions. c) 75percent Percent of new CBOs (target is 8) that are marketing through their Jiyo, Jani and Jiva brands. Page 6 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) d) 75percent of target HHs have accessed funds through the project, linkages with banks or other financial resources. e) 50% increase in sales turnover by new CBOs as a result of project interventions. 10. Beneficiaries and Target Areas: Employment opportunities among tribal communities are limited in the focus States of Odisha, Madhya Pradesh and Jharkhand. Overall, an estimated total of 7650 community members were targeted to be benefitting from the project. The project directly impacted 4323 beneficiary artisans and 21615 indirect beneficiaries most of whom are women, unemployed youth, and landless community members. In addition to the high concentration of tribal populations, the implementation of the World Bank-supported National Rural Livelihoods Project in these three states informed the choice of pilot project locations. 11. Achievement of the project targets: Despite external factors such as election, demonetization, introduction of GST (Goods and Service Tax) and the implementing agencies frequently changing management, the project was able to develop and strengthen community led collectives for organizing artisans at the grassroots. It builds capacity to enhance traditional skills to global standards, actively engage women and youth to be the key stakeholders, enable access to financial resources and the blue ocean market 3for the rural poor. Components The project had the following components: 12. Component 1: Institution Building, Skill Upgradation and Design Development (Appraisal Cost: US$654,668, Final Cost: US$728,000) • Technical assistance to develop 8 new cluster enterprises in tribal areas in three project states which are complete with Common Facility Centers for production and auxiliary centers for essential value addition support services. • To collaborate with local institutional partners and local master artisans to collectively train skilled and semi- skilled cluster members so that they can further train unskilled members. • To build a holistic model of training to generate a sense of participation and build key resources within the community. • Technical assistance to develop locally based training, capacity building and focused hand-holding support to communities to set up and strengthen their own organizations and train them to take full responsibility of its management. • To complement and help strengthen on-going efforts of the World Bank assisted livelihood projects in building capacity of Self-Help Groups/Federations. • 13 legally registered community-based organizations were created out of which 75 percent of them are marketing through three tier brands. 13. Component 2: Community Cluster Fund (Appraisal Cost: US$559,000, Final Cost: US$473,026) • Investment for the setting-up of 8 Common Facility Centers to be used for production and value addition activities. 3Blue Ocean markets under the project refer to unexplored artisan product centric segments in the domestic and international markets (e.g. wedding cards market, hospitality industries, airports, art at public places etc). Page 7 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) • To support value chain operations at the village level by facilitating ancillary units. • To set up mobile kiosk operations and popularize brands meant for mass premium and rural markets. • Investment to support the purchase of essential tools and equipment at the cluster level needed for production and to be a self-replenishing resource to support minimum production at the cluster level. • 56 percent targeted households have accessed the available fund through their own cluster enterprise and US$285,973 have been disbursed to cluster enterprises that enabled them to fully develop the common facility centers and productions. 14. Component 3: Marketing, Trade Facilitation and Support Services (Appraisal Cost: US$1,104591, Final Cost: US$967,000) • Technical assistance to provide front-end marketing and trade linkages for diversified brands to efficiently link cluster organizations developed during the project to international, national, and local markets. • To establish focused sales and marketing channels for the project’s three tier brands by identifying new avenues and developing external partnerships • Technical assistance to develop brand promotion strategies along with media promotion and other tools such as social media. • To facilitate participation in state, national and international exhibitions, trade fairs, festivals, E-commerce sales, institutional orders, mobile kiosks, customized sales, and corporate gifting. • 605 new market led prototypes were developed through 195 skill and design development workshops, 7 pop up kiosks have been made operational, digital marketing with key market players, showcased in leading global marketplaces such Santa-Fe and Ambiente and US$814061 worth of business was generated. 15. Component 4: Monitoring and Evaluation (M&E), and Knowledge Dissemination and Project Management and Administration (Appraisal Cost: US$510,741, Final Cost: US$605,000) • To support an administration unit to implement the project and to coordinate its activities, design and implement a comprehensive M&E strategy, including a Baseline Study, a Mid-term, and End-term Impact Evaluation. • To develop a Project MIS with an in-built M&E assessment component. II. OUTCOME Assessment of Achievement of Each Objective/Outcome Relevance Rating: High 16. The project was aligned to the World Bank’s India Country Partnership Strategy (CPF FY2013 -17) to support the Government’s development goal of growth that is faster, more socially and regionally inclusive, and sustainable. The Project Development Objectives were structured based on three overreaching goals: Economic Growth, Poverty Reduction and Shared Prosperity to be achieved through three areas of engagement, integration, transformation, and inclusion. The project particularly targeted women and disadvantaged groups and enabled access to economic Page 8 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) opportunities and sustainable livelihood options. The project continued to remain highly relevant to the new CPF for FY2018-22, that aims to reach out to the underserved, neglected and poor through investments in women and youth, enabling them to have access to market and financial institutions especially in the poorer provinces, among others. Efficacy Rating: Substantial 17. The project sought to create employment and sustainable livelihood opportunities to reduce poverty amongst unemployed youth, women, and other marginalized communities in the tribal regions of Odisha, Jharkhand and Madhya Pradesh through supporting their traditional and artisanal skills. The project aimed at providing additional product and design development inputs to develop the Jani and Jiva brands and facilitate innovative marketing assistance to the existing nine Jiyo! artisan cluster organizations in the state of Bihar and Andhra Pradesh. For instance, out of the estimated 7,650 community members targeted from the project, 4,323 artisans and 21,615 indirect beneficiaries most of whom are women, unemployed youth, and landless community members were benefited. The project also built capacity to enhance traditional skills to global standards, actively engage women and youth to be the key stakeholders, enable access to financial resources and the blue ocean market for the rural poor. In addition to the high concentration of tribal populations, the implementation of the World Bank-supported National 18. The following sections explore the achievements of the projects that are in line with its PDO statement: (1) to create employment (2) to develop sustainable livelihood opportunities and (3) to reduce poverty. Employment Creation 19. Developing and strengthening community-led collectives for organizing artisans at the grassroots: The project successfully worked with local institutional partners and local master artisans to collectively train skilled and semi- skilled community members who were further engaged to train other unskilled members. Through supporting poor artisan communities to establish, strengthen and manage their own cluster level institutions, the project helped setting-up mechanisms for community level decentralized decision-making and resource allocation for strengthening local artisan communities’ capacity in managing their own economic activity competitively. This innovative and market informed model of trainings generated a sense of ownership and helped build key local resources within the community. These trainings also created a ripple effect that generated interest among other communities to become part of these new community enterprises. Local trainings, capacity building and focused hand-holding support to communities to set up and strengthen their own organizations were fully responsive to the needs of the community members. The pilot’s effort substantially complemented and helped strengthen on-going efforts of the World Bank assisted livelihood missions in building capacity of the Self-Help Groups/women’s collectives in the three states. The project worked with tribal communities on an end-to-end and market driven value chain approach. It identified community members for capacity building, developing artisan investment funds, designing market led products, facilitating trade linkages, and establishing community owned producer enterprises at the cluster level. This effort has enabled development of 13 CBOs in all three project states with an estimated number of 4323 direct beneficiary artisans and 21615 indirect beneficiaries.4 20. Strategic capacity building programs to enhance traditional skills to global standards: The project provided targeted, need-based, and market-led capacity building programs through focused skill and product development workshops 4 Project Completion Report. Page 9 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) in all project states. More than 195 programs at the grassroots level were organized that resulted in development of 605 new prototypes. These programs encouraged women and unemployed youth community members to take up skills which were traditionally practiced by male members (e.g., weaving, block printing). These product developments were further segmented into three brand strategies, premium, mass premium and rural markets (Jiyo, Jani, Jiva5) for maximizing market impact. Some 200 additional prototypes were developed to cater to mass premium (Jani) and rural market (Jiva) segments which were marketed through kiosk operations run by young entrepreneurs from the clusters. Creating Sustainable Livelihood Opportunities 21. Actively engaging women and youth to be the main stakeholders: The project encouraged women and unemployed youths from the clusters to benefit and take ownership of several activities taken up during implementation. It’s rural kiosk model enabled women members to hold leading positions in community run enterprises, thereby enabling active participation of the most vulnerable members into the local craft value chain. Additionally, the project has been successful in engaging first generation young entrepreneurs from these clusters, thereby allowing them to benefit from their own local and traditional knowledge and be responsible for developing sustainable business models around it. 22. Cluster-based financial resources for new community enterprises: The project introduced cluster-specific financial products that resulted in the creation of 9 common facility centers and 8 ancillary facilities. The model was successful in bringing efficiency in production, enabling, and facilitating production of cluster products worth US$814,061 at the community level during the project period. Additionally, the fund was effectively used to develop and encourage local entrepreneurship through its Kiosk models. A sum total of US$285,973 was made available by the project in its newly developed 13 cluster-based organizations (CBO), for crucial tools and equipment that has brought production efficiency at the community level. Credit linkages established with State Rural Livelihood Missions have improved availability of funds for the communities. 23. Enabling blue ocean market6 access for the rural poor: Through strategic and focused trade facilitation initiatives, the project successfully leveraged new, unexplored markets The project's market led product development approach also opened new opportunities for reaching out to domestic and global craft markets that remained largely unexplored, e.g., crafts in public space, artwork programs at the Mumbai Airport, targeting hospitality industries such as hotels, reaching out to premium wedding cards market and forage foods. By exploring innovative approaches such as three tier brand development, kiosk models for small towns and rural areas, collaborations with key E-commerce entities, B2B partnerships, participation in leading global trade fairs and establishing a robust presence in domestic retail market, the project has successfully facilitated sales of cluster products worth US$814,061 between FY2014- 2019. 24. The project achieved adequate results in strengthening traditional skills and enhancing opportunities and share of rural artisans in crafts market as well as mainstreaming them. The project’s estimated beneficiaries are 7650 vulnerable artisans that includes 4800 tribal beneficiaries and 2850 artisans from Andhra Pradesh and Bihar where 5 The project market-tested an innovative three tier brand strategy that categorized product verticals into Jiyo (Premium market), Jiva (mass premium) and Jani (rural/local market) for optimizing trade facilitation. 6 Blue Ocean markets under the project refer to unexplored artisan product centric segments in the domestic and international markets (e.g., wedding cards market, hospitality industries, airports, art at public places etc.). Page 10 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) the project’s 9 community-based organizations are located. Reducing Poverty 25. Federated communities into grassroots organizations: The project has supported establishment and legal registration of 13 community-based organizations in three project states. Through 236 mobilization workshops and orientation programs, the project was able to bring SHG members into the fold of community led institutions which were later registered as producer groups/collectives. Members were trained further to become key office bearers of these collectives who later extended their skills to more community members. By collaborating with the Bank-assisted State Rural Livelihood Missions7, the project complemented the local institution-building process by addressing end to end value chain support such as market led skill development and capacity building, developing a robust trade facilitation strategy, and enabling increase in the number of working days at the community level. The project has also encouraged members of these newly formed CBOs to engage in local development activities such as community cleaning as part of “Clean India Mission�. 26. Convergence with State Livelihood missions to further strengthen community-based organizations: The project developed non-financial collaborations with State Rural livelihood missions for maximizing the impact among targeted communities. In Bihar the project worked with Bihar Rural Livelihood Mission (Jeevika Program) for the legal registration of the producer group company with 400 active community members being its stakeholders. "Shilpgram Mahila Producer Company limited� is successfully operating with its president being a democratically elected member from the community. The State Livelihood Mission's active hand-holding support towards the legal and other procedural due diligence to complete the registration of the company and the implementing agency's timely support to establish the CFC, brand promotion and regular market facilitation was a win-win alliance for the target communities. According to the state mission's current estimate (FY 2019), the company had an annual turnover of INR 3,500,000/- (US$46,229) in its first year of operation itself. 27. Delivering a Bottoms Up Approach of Value Chain Development: The project was a direct response to the existing practices of piecemeal approaches of capacity building that often-produced half-baked outcomes. In the past, several communities in the targeted districts had suffered from these approaches, which had contributed to loss of confidence/trust in such development programs. Therefore, the project from its inception investigated the entire value chain development by minutely attending to each node of it, evaluating it and embedding them in its design and approach. The key components of the project were strategically designed in a direct response to a robust and wholesome project design. It enabled active participation of the community members in each aspect of implementation that build ownership at the grassroots. Partnership with the State Rural Livelihood Mission helped multiplying the development impact of the project by building trust and confidence at the grassroot level. 28. Scaling up the impacts through convergence with other National programs: While in all the project States, the implementing agency developed CBOs in partnership with the State missions8, it further connected the members with 7http://brlp.in/ http://www.ormas.org/ http://www.prd.mp.gov.in/nrlm/ www.jslps.org 8 Some of these programs included the WB-supported National Rural Livelihoods Project, GoI supported National Rural Livelihoods Mission, Bihar Rural Livelihoods Projects Page 11 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) existing schemes and programs run by the mission and state governments. The Bank supported National Rural Economic Transformation Project (NRETP, additional financing to the NRLP) in these project states have shown keen interest in co-opting the program's clusters in Odisha, Jharkhand, Madhya Pradesh, and Bihar. The next generation of these large livelihood projects have dedicated programs on cluster development that build on experiences from this pilot initiative. This convergence allowed for regular knowledge exchange, scaling up the pilot project outcomes, as well as deepening and expanding of ongoing activities. 29. While the project has showed an encouraging increase in income (25 percent) for at least 50 percent of the targeted communities, 25 percent increase in number of working days and 50 percent increase in sales turnover as according to the project completion report, it is envisaged that the state mission’s engagement with these clusters through programs such as NRETP will further boost and multiply the development impact among targeted communities. The project has also noted other direct impacts in the community’s livelihood due to sustainable increase as well as spillover impacts. 30. Enhanced Traditional Skills: The project undertook a series of strategic capacity building workshops to develop market led prototypes by making effective use of local artisanal skills. 195 skill enhancement and design development workshops conducted at the doorsteps of community members, led to development of 605 new prototypes that were further refined, bought under three tier brand strategy of the project and market tested. 200 additional products were developed to add to the brands specifically created for mass premium and rural segment. The project invested in bringing these products to varied market segments that included international trade fairs and participation in UNESCO’s seal of excellence award along with other channels. 31. Market share for artisanal products increased: The project facilitated a robust marketing push. The project was able to generate total sales of US$814,061 until the end of 2019, out of which more than 50 percent of the total sales value accrued directly to the community members and their institutions. This contributed to at least 25 percent increase in the community’s income for at least 50 percent of target artisan families. The program took up innovative approaches such as convergence with hospitality industries for permanent retail spaces and exhibitions, mobile kiosk programs in rural areas and tier 2 and 3 cities, public artwork programs at leading public spaces (e.g., Mumbai airport), curated pop-up exhibitions, sales in well-known galleries and retail spaces in metro cities. It collaborated with leading E-commerce businesses such as Etsy and Go-Coop, developed sustainable businesses with retail chain stores such as Tribes in the B2B segment and regularly took part in seasonal trade fairs and exhibitions within the country and abroad for a visibility and developing sustainable business relations. These business linkages initiated during the project period are currently ongoing and cluster institutions have been successfully able to bring efficiency in production and professional approach in dealing with customers. The project aimed at bringing the benefits of globalization at the micro level of the poor people by building on India’s move from previous paradigms of c ultural diplomacy to a proactive approach that includes tapping into the ‘cultural’ industries enormous global potential. 32. Restructuring to streamline implementation: The project was able to achieve and, in most cases, exceed its targets. However, the project experienced some unavoidable delays, and was provided an extension of twelve months and closed on October 9, 2019, after two extensions of six months each. Table 1: Assessment of outcomes Create employment by Innovative designs developed by using traditional skills by engaging well known strengthening traditional skills design experts and barefoot designers. Page 12 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) 605 new prototypes developed that were marketed through the project’s three brands 195 skill and design development workshops at the cluster level and at the project’s central studio 4323 direct jobs and 21615 indirect jobs created Create sustainable livelihood Strong Community Based Organizations created with focus on women, opportunities among unemployed youth who are from marginalized sections. unemployed youth, women and other marginalized 13 legally registered community-based organizations/cluster enterprises were communities in the tribal created in three project states regions of project states 13 common facility centers were developed to bring efficiency to the production 75 percent of these new CBOs are reported to be marketing through the three-tier brand developed by the project The project has achieved 162 percent of its original target of developing CBOs Partnership with Bank-supported Livelihood programs to complement Bank’s existing effort 8 ancillary units have been established and supported to facilitate sound production at the cluster level 56 percent targeted households have accessed the available fund through their own respective cluster enterprises Out of total direct beneficiaries 3244 were women and 1089 were unemployed youth US$285,973 have been disbursed to cluster enterprises that enabled them to fully develop the common facility centers and productions Reducing poverty by develop 7 pop-up kiosks have been made operational to target rural and consumers in tier 3 inroads to mainstream markets towns for the targeted communities Established B2B linkages with key craft retailing entities for sustainable business relationships with clusters Digital Marketing linkages developed with well-known E-commerce sites such as Etsy and Go-Coop Page 13 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) Showcased products in international trade fairs and craft markets such as Ambiante and Santa Fe Folk Art Market Participated in globally recognized craft award entities such as UNESCO seal of excellence with an award own for best design development in traditional crafts category Marketed new products through lifestyle stores in renowned hotels some of which resulted in permanent store space in the hotels (Shop at Grand Hyatt in Mumbai) Developed annual curated exhibitions for showcasing, buyer seller meets and capturing festival markets Explored markets in rural and tier 3 cities segment with focused product development Developed business linkages with local establishments for food products CBO members have reported to have achieved 50 percent increase in the sales from the new products developed during the project US$814,061 worth of sales have been reported by the project over the 4-year period until the end of 2019 Page 14 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) State wise break up of Beneficiaries States Female Artisans Youth Artisans Total • Odisha 1049 191 1240 • Jharkhand 886 155 1041 • Madhya 526 443 969 Pradesh • Bihar 567 116 733 • Andhra 216 184 400 Pradesh Total 4383 Efficiency Rating: Modest 33. In terms of implementation costs, the project spent an average of US$151.43 per beneficiary on cluster development and capacity building, approximately US$109.42 for community cluster fund and US$282.57 on marketing, trade facilitation and support services. The project created 4323 direct jobs and indirectly supported 21615 community members. The project enabled 25 percent income increase to at least 50 percent of target artisan families, 25 percent increase in the number of days of employment and 50 percent increase in sales turnover by the new CBOs due to project intervention. The project’s closing date was delayed by one year. The delay was partially justifiable due to implement handover activities that are in line with exit strategy and the sustainability factor. It is however important to note that one of the key reasons for the delay was frequent changing in project management. The team was overhauled several times Causing a momentum of one step forward and two steps backward. The project's procurement mechanism too witnessed delays due to the frequent management shift which contributed to the “Modest� rating. Overall Outcome Rating: Moderately Satisfactory 34. The overall outcome rating is Moderately Satisfactory based on High relevance, Substantial ratings for efficacy and Modest for efficiency. Page 15 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) Other Outcomes and Impacts 35. Converging artisan skills with tourism: A key innovation the project undertook was the development of one of its folk painting (Gond painting) based cluster in Patangarh (in Madhya Pradesh) that had the potential to attract tourists from nearby popular spots. The project strategically planned to develop this cluster where, despite significant concentration of folk painters, they were struggling to survive on account of minimal demand for their work from nearby markets. The project, as part of its capacity building program, developed a range of merchandise designed as tourist souvenirs, and its local common facility center was placed on route to popular tourist spots. The walls of the CFC were painted, and signage was installed on the main road to attract tourists to the village. Today, one of the key sources of sales comes from around 200,000 tourist visiting nearby places including the village. This initiative is endorsed by the Madhya Pradesh state tourism authority. 36. Fine-tuning forage foods for regional B2B market: The project undertook training programs in developing forage foods in Jharkhand by using local forest produces and introducing upgraded machinery and packaging systems. Traditionally, women in these clusters mostly made these food products for personal and family consumption. The project developed capacity building programs to train the women to make foods for wider market, especially for in the local institutions, schools. With the project support, a new women-owned forage food enterprise (Jiyo Mahila Mandal, Gumla) was established that regularly supplies to more than 220 schools in the adjoining villages. This has enabled the targeted women members to earn INR. 3000 per month (US$40) in comparison to having no source of income before the intervention. III. KEY FACTORS THAT AFFECTED IMPLEMENTATION AND OUTCOME 37. Major interest among communities: A major positive aspect of the project was the significant demand for such interventions from artisan communities. They participated with enthusiasm in all the project activities. Communities’ buy-in and pro activeness were some of the key factors that influenced project implementation. Activities in the target clusters had a spillover effect and artisans from non-JSDF neighboring districts requested similar interventions in their clusters as well. Artisans from nearby villages visited JSDF clusters to enquire about the process of participating in project activities and even forming their very own Producer Groups. 38. External factors that delayed implementation: Some of the key external factors responsible for delays during implementation in various target interventions were elections, demonetization and the introduction of Goods and Services Tax (GST). During election months, scheduled training programs had to be rescheduled due to unavailability of several key resources and training centers as well as the associated moral code of conduct. Demonetization was another factor for unavoidable hold ups in productions, training programs and exposure visits. Introduction of GST by the Central Government also caused delays in several planned activities as for both the events timely availability of resources including the lack in operation from financial institutions caused delays and postponements. Lastly, flooding in a few states during 2017 affected some of the project districts and hindered implementation of programs as planned. The project addressed these delays by seeking two extensions for fast tracking project activities. 39. Frequently changing management affected the project implementation: One of the major limitations of the project was on account of lack of continuity of key personnel at the AHF’s central office in Delhi. Due to frequent changes in key managerial positions within the project’s administration team, several planned Page 16 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) activities were delayed. It took significant time for on-boarding of new recruits and for them to gain a clear understanding the project and develop implementation strategy. The high staff turnover added to uncertainty for the project and its target beneficiaries. A fragile structure at the central administrative level resulted in lack of continuity in several interventions at the cluster level and affected the project’s relations with other partners such as the State Livelihood Missions. Decision making became a lengthy process and because of which it took longer to instill faith and confidence in the project contributing to the loss of momentum amongst its target beneficiaries. Bank’s Task Team frequently raised these issues with the project especially during first two years and rigorous post mission follow ups were conducted on agreed actions. 40. Extensions helped achieve outcomes: The project underwent two extensions of six months each to compensate for the lost time on account of external / internal factors. These crucial no-cost extensions along with intensive Task Team support were instrumental in achieving project outcomes in terms of additional handholding support and knowledge-transfer for strengthening producer enterprises. It also was able to address finalization of remaining project activities, enabling CBOs and project beneficiaries to sustain and thrive in national and international craft markets beyond project period and develop a robust exit strategy to ensure sustainability. 41. Bank team's assessment: After a detailed assessment of the no cost extension request, the task team agreed that the proposed no-cost extension will help the project to implement handover activities which is in line with a robust exit strategy to achieve project development objectives and ensuring sustainability of CBOs beyond project period. The task team noted that to achieve this, it would be essential that the project team maintains a fully staffed team at all levels. AHF had accordingly prepared a fast-track implementation plan and relevant contingency measures to mitigate risks. 42. Recipient’s Overall Performance: The implementing agency was able to create employment by developing community led collectives, build capacities of the artisans by enhancing traditional skills to international standards, actively engage women and youth as key stakeholders and facilitate multi-tier market outreach for the rural poor. The agency has also enabled convergence with State Livelihood missions in project states for maximizing and enhancing the development impact. The agency organized several promotional events including a project launch and recruited key staff immediately after the launch. However, due to frequent changes in management, the project's implementation challenges took more time for resolution. Due to several external factors (election, GST and Demonetization) and frequently changing management that resulted in loosing critical time during the project period affected the overall implementation and its impact. 43. Brief Description of the Implementing Agency: The Asian Heritage Foundation is pioneer in providing specialized design-led capacity building training to rural artisans, artists, and others with traditional knowledge systems in India. It has expertise in creating linkages with various international rural livelihood pilot schemes. Its founder, Rajeev Sethi, is one of India’s foremost designers and scenographers. Rajeev Sethi has spent his 40+ year career integrating the work of rural artisans, artists and other skilled individuals into modern design projects and is an ardent advocate for Indian artisans and the traditional knowledge systems of India. Since its founding in 1995, AHF’s mission has been to focus on rural comm unities at the bottom of the pyramid. AHF has managed many large multi-stakeholder projects including organizing the Lotus Bazaar for the Smithsonian Silk Road Festival in 2002 and the Lotus Bazaar at the Forum of Cultures in Barcelona in 2004. AHF has a highly motivated team from different backgrounds committed to contributing to creating Page 17 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) rural livelihood opportunities through design-led innovation, brand development, marketing, sales, social enterprise, and small-medium sized enterprises. The foundation also has access to a diverse network of skilled practitioners, professionals, and stakeholders. 44. AHF had previously implemented the JSDF supported project “Making Globalization Work for the Rural Poor in India� (Jiyo, TF:057811) in the States of Andhra Pradesh and Bihar. The AHF management team was familiar with Bank processes and systems owing to the previous experience with that project. Through the JSDF supported project, AHF supported communities in nine clusters to set up their own enterprises (CBOs) in these two states. It enabled these communities to connect to contemporary markets through Jiyo9, the artisan umbrella brand, thereby promoting sustainable employment and income generation. The Foundation is also involved in assisting the CBOs to create cluster level business plans and in connecting them to credit through the State Livelihoods Programs available in their respective states. Within a short span of 18 months, the pilot project helped these CBOs to achieve sales turnover of US$325,000 in aggregate. IV. BANK PERFORMANCE, COMPLIANCE ISSUES, AND RISK TO DEVELOPMENT OUTCOME Quality of Monitoring and Evaluation (M&E) 45. The M&E framework for the project was designed to capture and assess PDO level progress and achievements. Outcome and intermediate indicators included as part of the results framework were to measure impact and outreach of the project including the number of community members targeted, community investment funds at the cluster level, increases in their monthly family income and workdays, improved market penetration, and nurture community owned institutions. While progress was monitored using these indicators by the implementing agency’s regional project staff and progress reports were also submitted to the World Bank, there were delays associated with the high turnover of key project personnel at the implementing agency’s central office. This also limited utilization of progress MIS data for streamlining data for improving program management. 46. Regular technical and operational guidance to streamline implementation and tracking of project activities was provided to AHF by the World Bank team. The core implementation team at AHF attempted to develop a systemic channel to ensure active/regular communication with project beneficiaries through their local community representatives and the State partners for integrating feedback into implementation. However, there were often delays on account of staffing issues at the central administrative level, which led to lack of continuity in several interventions at the cluster level that affected the project’s relations with its key partners. Task Team Leaders from the Bank frequently addressed these issues with the project especially during first two years and rigorous post mission follow ups were conducted on agreed actions. The AHF team during the last 18 months of the project re-established linkages with targeted communities through frequent field visits to directly oversee training programs and skill development initiatives. These regular follow ups and field visits not only ensured the quality of interventions and training programs but also served as a means to achieve PDO level achievements. A baseline study and an end line assessment were completed by a third- party agency to report on/document overall project progress. Further, these assessments provided an overview of the progress and outcomes of the program using qualitative and quantitative methods. While 9 Jiyo is the one of the three-tier brand introduced by the project. It also refers to as the name of the project. Page 18 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) the PDO and IRI were not changed during project restructuring, the extension provided to implementation duration helped the project to achieve the PDO and develop a robust exit strategy. 47. Incorporating lessons learnt from the project “Making Globalization Work for Rural Poor in India� : Key lessons learnt from the previous JSDF supported project (TF:057811) were incorporated into the program. Some of these lessons were to facilitate convergence with World Bank supported rural development programs in the project states and other Government projects to collaboratively work with the community, implement an end-to-end value chain development approach that builds on an inclusive model of sustainability and constructing a strategic market facilitation plan that includes multi-tier brand development, targeting diverse market verticals and focused market positioning. M&E Rating: Modest Fiduciary Compliance 48. Financial Management: The FM performance under the Project was rated as moderately satisfactory during the life of the Project. During initial stage, the project had weak internal controls and lack of dedicated FM staff which slightly impacted disbursement of the project. The Bank had recommended that the project hire an internal auditor to strengthen its internal controls. The recommendations were successfully implemented, and internal controls were strengthened during the project period. The Project internal Interim Financial Reports and bank reconciliations were prepared monthly; annual audited financial statements were submitted on time. All the audit reports were unqualified, and no issues were noted. Despite slow startup and week internal controls during initial period, the project was able to achieve 100 percent disbursement by closing date. 49. Procurement: Frequent changes in staffing impacted the overall capacity of the client, thereby delaying procurement and impacting availability of institutional memory. Mitigation measures including the use of a project procurement manual, regular update of the procurement plan in STEP, regular capacity building of staff, use of model bid document /contract formats helped in addressing the capacity issues and improving project procurement management. 50. Procurement post reviews were carried out regularly to identify if there were any process compliance or other internal controls issues. Weak record keeping was identified as an area for strengthening. While there was some stability towards the end of the project, the full impact could not be evaluated. Bank provided handholding support to the extent possible, but the internal management and frequent staff turnover issues posed challenge. The procurement assessment was rated moderately satisfactory. Environmental Safeguards: The project took several initiatives in response to environmental safeguards which are later brought into practice by the targeted communities. For the textile cluster of Kotpad in Odisha, the project reintroduced natural dyes and encouraged communities to grow them to minimize the supply chain expenses and popularize growing and production of natural dyes as an alternative source of livelihood along with using it in the textiles. Upgraded working stations such as the elevated tables for the folk painters of Madhubani cluster were specially designed to address the ergonomic issues that persisted earlier. For the block printing cluster of Bagh in Madhya Pradesh, the project took proactive steps in introducing ergonomically upgraded tools for dyeing. New CBO’s common facility centers followed standard protocols of Page 19 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) workspace ventilations, access to differently abled members, crèche for children and toilets. The risk to sustainability of development outcomes is low for the following reasons : 51. Linkages with ongoing Bank Supported Livelihood Programs: In all the project states, ongoing Bank supported projects and State Rural Livelihood Missions were able to directly engage with these new producer groups and support continued training and marketing activities that were initiated by the project. 52. Robust Artisan Institutions: Producer Groups established during the project have been made well equipped with common facility centers for efficient production, developed supply chains and dedicated financial resources. 53. Market Linkages: The project has been able to connect producer groups with several market verticals that resulted in sustainable business relations. A permanent store at Grand Hyatt, Mumbai, regular orders from Tribes Shop, B2B linkages with institutional clients in Jharkhand for forage foods are some of the key milestones enabling sustainability of the project. 54. Revolving Community Artisan Investment Fund: Artisan groups have access to substantial community- managed Artisan Investment Funds sufficient for working capital requirements and future production cycles. 55. Recipient's overall performance was moderately satisfactory: The Task team noted that the recipient's ownership and commitment to achieving objectives was moderately satisfactory. The recipient was mostly responsive to timely resolution of implementation issues, occasionally requiring Task team's intervention. In terms of implementation arrangements, there was room for improvement in the recipient's performance related to timely appointment of key staff, and timeliness of fiduciary activities. Bank Performance 56. The Bank Performance rating is assessed based on the various parameters discussed above including the Bank’s role in developing a strategic, relevant project and ensuring other aspects such as poverty, gender, social development, and other frameworks were aligned with proposed activities. The Bank also provided effective implementation support and conducted regular missions to review and provide inputs on progress and activities. Bank Performance Rating: Moderately Satisfactory V. LESSONS LEARNED AND RECOMMENDATIONS The following are the key lessons learnt: 57. Recognizing the critical role of women in the formal artisan value chain: Rural and tribal regions of India are known for having a rich repository of traditional knowledge and skills. Despite the collaborative efforts of their households, women members often play the role of unpaid ancillary support. The project has showcased that with a focused implementation plan and innovation, women members can be enabled to become main stakeholders, empowered to take charge of their own community led enterprises with mutual support from other members of the community. The project's strategic and focused training programs strengthened their capacity to become skilled members, be responsible for managing their own business organization, learn to negotiate with clients and establish a sound and efficient production system. The project has thus encouraged women to play a key role in artisanal value changes while being at the Page 20 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) forefront. 58. Convergence with ongoing programs can complement and multiply developmental impact: Project interventions were implemented in coordination with the World Bank supported Livelihood Missions in the respective project states. Collaboration with the Livelihood Missions to further organize SHG members into legally registered producer groups and to provide essential support to enhance their skills and abilities was an integral component of the project. By working closely with these existing programs, the project provided essential support to map available skills, develop plans to strengthen them as per market needs and develop community owned institutions. This paved the way for collective action at the grassroots level through community-driven value chains. Therefore, one of the key project deliverables was to collaboratively work in the project states with existing programs. This convergence facilitated the framework for the development of sustainable community led enterprises where the impact was multiplied due to these synergies. 59. Exploring innovative markets for artisanal products10 and creative industries: The project piloted several innovative market verticals such as synergy with the tourism sector, using artisan skills for public artwork programs, scenography for interiors, developing specific merchandise for rural and tier 3 town and kiosk operations. Along its other key marketing efforts, the project was able to develop sustainable tie-ups with the regional tourism segment that significantly increased livelihood opportunities for a group of folk painters. Collaboration with well-known hospitality industries for showcasing artisan skills through installations opened a new way of projecting traditional skills and expanding new horizons. The project’s three tier brand strategy specifically developed for targeting premium, mass premium, rural markets and segmenting new prototypes accordingly enabled opening of new markets for artisanal products. Innovative approaches such as Kiosk operations popularized artisan products in rural areas and smaller towns and it provided employment opportunities to the unemployed youth from the clusters. These new ways of market facilitations have brought secured and sustainable livelihood for the targeted communities. 60. Developing market led designs to create livelihood pathways: The project’s approach to developing new designs by using traditional skills and knowledge resulted in an array of new products targeting new market segments. Scoping studies undertaken by the project’s barefoot designers documented skills that were effectively elevated and embedded into products during design development workshops. Some of the unique approaches taken up by the project are folk paintings that were traditionally used for ritualistic purposes - were developed as interior décor and bamboo fishing traps fine tuned into make ascent lamps. Similarly, traditional containers made from natural fibers were developed and transformed into furniture. Tribal bead work which is mostly used for personal use by a tribal community in Madhya Pradesh was made into ascent jewelries which was later connected to the market through B2B linkages. The project also took up commissioned artwork programs for public spaces and effectively connected the newly formed community enterprises to produce them. The innovative approach to product design adopted under the project has enabled target communities to take their traditional skills to a new heights and access new market segments on a sustainable basis. 61. Revolving Funds at the cluster level: A sum total of US$285973 has been made available by the project in its 10The project reached out to new market segments such as Art in public spaces, Wedding cards market, linkages with hospitality industries and local markets through kiosks. These were largely unexplored market segments for the artisanal products in India. Page 21 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) newly developed 13 cluster-based organizations (CBO. All the common Facility Centers are equipped with crucial tools and equipment that has brought production efficiency at the community level. Credit linkages established with State Rural Livelihood Missions has improved availability of funds for the communities. Customized business plans for each of the 13 CBOs have enabled these new community run institutions to effectively use available working capital to meet production costs against confirmed orders and build inventory for exhibition participation as well as source raw materials for upcoming production sessions. 62. Scope of replicability and scaling up: The pilot was designed to demonstrate a set of replicable interventions for several other livelihood projects across the country. In the project States, the Livelihood missions were strategically engaged with from the beginning to ensure sustainability beyond the pilot project. It ensured that the innovative approaches such as end-to-end value chain upgradation could be scaled up in other non- farm clusters. The learning from the pilot has also informed interventions under the World Bank's NRETP (National Rural Economic Transformation Project) program being implemented in 13 states where a similar end to end cluster development approach in the non-farm segment was launched. All the collectives that were formed during the pilot project have been successfully adopted by the State Rural livelihood mission in the respective state. 63. Procurement Lessons: Key procurement related lessons learned were importance of hiring and retaining of good procurement staff to ensure compliance and consistency. Guidance provided during procurement post review can only be used if there is continuity of staff. A realistic procurement planning can help avoid any ad hoc decisions and ensure efficiency and economy in procurement. Preparation of a thorough and realistic Project Procurement Strategy is important which can help in developing an appropriate market approach for geographically dispersed project and avoid ad hoc decision making. Consistent use of procurement manual, model documents and contract formats (etc) will help in consistency and ensuring compliance. . Page 22 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) ANNEX 1. RESULTS FRAMEWORK AND KEY OUTPUTS A. RESULTS INDICATORS A.1 PDO Indicators Objective/Outcome: Component 3: Marketing, Trade Facilitation and Support Services Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion Percentage increase in income Percentage 0.00 25.00 25.00 83.00 for at least 50% of target artisan families as a result of 30-Oct-2015 09-Oct-2018 09-Oct-2018 09-Oct-2019 developing new products. Comments (achievements against targets): Participation in International Trade Fairs, B2B linkages and businesses with leading E-commerce entities led to 83% income increase as oppose to the targeted 25% Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion Percentage increase in the Percentage 0.00 25.00 25.00 50.00 number of days of employment 30-Oct-2015 09-Oct-2018 09-Oct-2018 09-Oct-2019 Page 23 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) through project interventions Comments (achievements against targets): Orders received from B2B linkages, E-commerce and leading trade fair participations led to 47.89% increase in number of working days as oppose to targeted 25% Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion Percentage increase in sales Percentage 0.00 50.00 50.00 76.00 turnover by new CBOs as a result of project interventions 30-Oct-2015 09-Oct-2018 09-Oct-2018 09-Oct-2019 Comments (achievements against targets): The achieved actual increase in sales turnover is 76% Unlinked Indicators Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion Percentage of new CBOs (target Percentage 0.00 75.00 75.00 160.00 is 8) that are marketing through their Jiyo, Jani and Jiva 30-Oct-2015 09-Oct-2018 09-Oct-2018 09-Oct-2019 Comments (achievements against targets): A total of 13 CBO were supported through project interventions as against the target of 8. Hub and Spoke model was adopted in instances where the distances were high and, in some cases would have involved commuting through deep forests. Hence, in response to the tribal artisan communities (especially women), the project set up additional CBOs to cater to the demand from the communities. This led to setting up 13 CBOs (160% increase in Page 24 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) CBO establishments). Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion Percentage of target Percentage 0.00 75.00 75.00 56.00 Households (HHs) have accessed funds through the 30-Oct-2015 09-Oct-2018 09-Oct-2018 09-Oct-2019 project, linkages with banks or other financial resources Comments (achievements against targets): The under performance was due to delayed response and prolonged registration process which could not be completed during the project period. A.2 Intermediate Results Indicators Component: Component 2: Community Cluster Fund Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion 8 new cluster enterprises Amount(USD) 0.00 8.00 8.00 12.00 established and operational 09-Oct-2014 09-Oct-2018 09-Oct-2018 09-Oct-2019 Comments (achievements against targets): Page 25 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) Component: Component 2: Community Cluster Fund Unit of Formally Revised Actual Achieved at Indicator Name Baseline Original Target Measure Target Completion 8 new cluster enterprises Amount(USD) 0.00 8.00 8.00 12.00 established and operational 09-Oct-2014 09-Oct-2018 09-Oct-2018 09-Oct-2019 Comments (achievements against targets): Page 26 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) . ANNEX 2. PROJECT COST BY COMPONENT Amount at Approval Actual at Project Percentage of Approval Components (US$M) Closing (US$M) (US$M) Component A [Cluster Development and Capacity 0 654668.00 0 Building] Component B [Community 0 473026.00 0 Artisan Investment Fund] Component C [Marketing, Trade Facilitation and 0 1221565.00 0 Support Services] Component D [M&E, Knowledge Dissemination, 0 510741.00 0 Project Management and Administration] Total 0.00 2,860,000.00 0.00 Page 27 of 28 The World Bank Creating Inclusive Business Models for Marginalized Tribal Communities in Odisha, Jharkhand and Madhya Pradesh (P145419) ANNEX 3. RECIPIENT, CO-FINANCIER AND OTHER PARTNER/STAKEHOLDER COMMENTS 1. Asian Heritage Foundation’s comments based on experiences with the JSDF funded and World Bank supported Project JIYO! are summarized below: 64. Relationship with the World Bank Team • The WB Team led by the TTL assisted the Project team to leverage partnerships with different State partners/Rural Livelihoods Missions by joint visits to different states and chairing meetings to introduce the project to the state governments and how this pilot can add value to the ongoing projects implemented by the state Government in Non-farm livelihood’s space. The introductions to the state government were crucial and laid the foundation for furthering the partnerships. • The Bank missions reviewed the project implementation at regular intervals and assisted the project team to overcome the issues and shortcomings through intense brainstorming sessions and helped in preparing the road map to achieve the project development objective. • Knowledge sharing exposures – through participation in World Bank conclave (“Building Community Resilience-The role of the state and women self-help groups) and interacting with other successful projects teams, the project team and the Community members were benefitted with exchange of knowledge and experiences. • The Project extension helped in restructuring process and enhancing a good working relationship between the World Bank team and the new project team, which in turn strengthened the implementation of project activities with focused interventions. • The achievement of the project deliverables was possible because of the recommendation made during supervision missions and periodic reviews – Implementation, Financial and procurement which significantly contributed to the quality of project interventions. 65. Procurement Procedures: • The introduction of new procurement guidelines (STEP) during the project implementation was quite challenging and the Procurement Lead held workshops for training and coaching the staff at regular intervals to adapt to the procedural guidelines and were always available for online guidance. Despite repeated turnover of procurement staff at the foundation, the Bank team always helped the new staff to overcome the challenges in implementing the procedures by conducting regular trainings. • Financial Procedure: 66. The financial Lead of the bank was always ready to assist, whenever the Project team had issues with disbursement, fund allocation, online reporting etc. Page 28 of 28