Feasibility Study of Integrating MEDEP Modality in the Mainstream National Poverty Alleviation Programme
This paper explores the feasibility of replicating the Microenterprise Development Program (MEDEP) model of poverty reduction.
MEDEP was started in 1998 in Nepal. It has proved efficient and cost-effective in reducing poverty through microenterprise development. The program, however, is yet to have a significant and broad policy impact. The study evaluates MEDEP in relation to its goals of developing sustainable microenterprises for low income families and capacity building of service delivery mechanisms. Study findings indicate that MEDEP has:
- Surpassed its objective of creating at least one employment per family;
- Helped alleviate poverty levels of the entrepreneur's family;
- Helped illiterate people start enterprises;
- Had very high repayment rates;
- Increased members' savings;
- Demonstrated that improving technical efficiency in production and management processes can increase income.
MEDEP's market-led approach combined with sequential delivery of an integrated package of training and services is effective for microenterprise development. The paper recommends that the MEDEP model be integrated in the mainstream national poverty alleviation program.
