How RAP2 works to reduce poverty

RAP2 provides a positive environment for more secure and sustainable livelihoods through:

Employment generation:

Over 80% of workers are local and from the poorest households and used in Road Building Groups (RBG). Some skilled labour from adjacent areas are employed in Special Building Groups (SBG)
There will be 5.5 million person-days of employment generated, with average daily wages of $3.5 - $4.0, and payment to workers being transparent and free of corruption
60% of all road building costs are paid in wages to the workers
Local work reduces employment migration
Money from wages has multiplier effects, being used not only for daily living costs, but also for family education, health, paying debt, opening up business opportunities such as shops, tea-shops and small guest houses, and purchasing land for food production
One notable success story is that of a young RAP worker using his earnings on education, eventually gaining a degree and returning to his community as a teacher. Others will follow his example in future.

Increased access:

There are long-term effects through increased access, reduction of transport costs and basic commodity prices, improved access to health services, schools and markets.
A total of 362 km in 12 road corridors will give road access to 55 Village Development Committees and communities for the first time. This will impact on the adjacent population of 200,000.

Income generation activities coupled with micro-finance activities:

Demand-driven training in income generating activities is given to RBG households mainly in fresh vegetable production and animal husbandry on a commercial basis.
The area of land used for this purpose will increase, and in a few years this will generate an annual income of NRs 25 million ($330,000).
Group savings are expected to rise to NRs 150 million ($2 million). The funds are used to give loans at 12% interest to RBG members, with over 60% being used for productive purposes on income generating activities.
Informal money lending rates have been reduced from highs of 36%. Those workers who were caught in the never-ending cycle of loans without being able to make full repayments have been given the opportunity to be released from this trap.

Peace Dividend:

One of the primary reasons for the conflict was acute poverty resulting from lack of development programmes/projects benefitting the poor and excluded people. RAP2 provides immediate benefits to the poor and disadvantaged communities, and as such makes a very positive contribution to the peace process in Nepal.

Local level capacity building / Awareness campaigns:

RAP2 provides awareness raising activities through street drama, mass meetings, and formal training programmes on subjects such as HIV/AIDS, and techniques in accessing basic services (health and hygiene, education), which has resulted in increased levels of confidence and awareness among the workers.