VDC Handbook_Final Version_Aug 14-milan

Table of Contents
Table of Contents............................................................................................................... 1
List of annexes....................................................................................................................7
About this handbook........................................................................................................8
Village Development Committees in Myanmar.......................................................9
What is a Village Development Committee?..........................................................10
Summary............................................................................................................................ 10
1.1 - Definition of a Village Development Committee (“VDC”)...............................................10
1.2 - Purpose of the VDC........................................................................................................................10
1.3 - Principles of the VDC....................................................................................................................10
Inclusive.................................................................................................................................................... 10
Capacity and confidence enhancement........................................................................................10
Integrated................................................................................................................................................. 10
1.4 - VDC activities................................................................................................................................... 11
1.5 - What does a VDC look like?........................................................................................................11
1.6 - A sample Village Development Committee organisation chart...................................12
1.7 - The steps to form and manage a VDC.....................................................................................13
Planning to establish a VDC.........................................................................................14
1.8 - Recommended timeline...............................................................................................................14
1.9 - Funding for establishing VDCs..................................................................................................14
1.10 - Staffing suggestions....................................................................................................................14
Understanding the community..................................................................................17
1.11 - Building linkages..........................................................................................................................17
Linking to the township authorities..............................................................................................17
Linking with other government service providers..................................................................18
Linking to the village administrator..............................................................................................18
Linking with other NGOs, CBOs or faith-based groups..........................................................18
Linking with other VDCs....................................................................................................................19
1.12 - Selecting the villages..................................................................................................................19
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This section provides a recommended process for selecting the villages where it is
appropriate to form a VDC................................................................................................................19
Step 1: Reaching out to the township authority.......................................................................19
Step 2: Selection of Villages/Conducting a needs assessment............................................19
Step 3: Village selection criteria......................................................................................................19
Mobilising the community...........................................................................................21
Summary.................................................................................................................................................. 22
1.13 - Overview: mobilise and socialise..........................................................................................22
1.14 - Launch Workshop.......................................................................................................................22
Objectives................................................................................................................................................. 22
Workshop participants.......................................................................................................................22
Topics to be covered............................................................................................................................22
1.15 - Village Socialisation Workshop..............................................................................................23
Objectives................................................................................................................................................. 23
Workshop participants.......................................................................................................................23
1.16 - Forming an Advisory Group....................................................................................................24
Forming a Village Development Committee..........................................................25
1.17 - VDC Formation Meeting............................................................................................................25
Objectives................................................................................................................................................. 25
Participants............................................................................................................................................. 25
Training VDC leaders.....................................................................................................28
1.18 - Training 1: Leadership and Structures...............................................................................28
Objectives................................................................................................................................................. 28
Participants............................................................................................................................................. 29
1.19 - Training 2: Participatory Rural Appraisal Tools.............................................................29
Objectives................................................................................................................................................. 29
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Participants............................................................................................................................................. 29
1.20 - Training 3: Integrated Community Action Plans (ICAP) and Annual Plans.........29
Objectives................................................................................................................................................. 29
Participants............................................................................................................................................. 29
1.21 - Training 4: Finance (management, planning and budgeting)...................................30
Objectives................................................................................................................................................. 30
Participants............................................................................................................................................. 30
1.22 - Training 5: Village Development Fund management....................................................30
Objectives................................................................................................................................................. 30
Participants............................................................................................................................................. 30
1.23 - Training 6: Procurement..........................................................................................................31
Objectives................................................................................................................................................. 31
Participants............................................................................................................................................. 31
1.24 - Training 7: Monitoring & Evaluation (M&E)....................................................................31
Objectives................................................................................................................................................. 31
Participants............................................................................................................................................. 31
1.25 - Additional trainings....................................................................................................................31
Integrated Community Action Plans and Annual Plans.....................................32
1.26 - Participatory planning...............................................................................................................32
1.27 - Creating an Integrated Community Action Plan .............................................................32
Objectives................................................................................................................................................. 33
ICAP process........................................................................................................................................... 33
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1.28 - Developing the Annual Plan....................................................................................................33
Objectives................................................................................................................................................. 33
Annual Plan process.............................................................................................................................34
Managing and sustaining VDC activities.................................................................35
1.29 - Monthly meetings........................................................................................................................35
Participants............................................................................................................................................. 35
Suggested length...................................................................................................................................35
Agenda and meeting minutes...........................................................................................................35
1.30 - Tips for successful VDCs...........................................................................................................36
Adopting a clear mission....................................................................................................................36
Promoting unity.....................................................................................................................................36
Encouraging participation.................................................................................................................36
Motivating members............................................................................................................................36
Accurate recordkeeping.....................................................................................................................36
1.31 - Sub-Committees and their activities....................................................................................37
Livelihood Sub-Committee................................................................................................................37
Example activities of Livelihood Sub-Committees..................................................................38
Income Generating Ventures (IGV) Sub-Committee...............................................................39
Example Income Generating Ventures.........................................................................................40
Fundraising Sub-Committee.............................................................................................................41
Example activities of Fundraising Sub-Committees...............................................................41
Health Sub-Committee........................................................................................................................42
Example activities of Health Sub-Committees...........................................................................42
Monitoring & Evaluation Sub-Committee...................................................................................43
1.32 - Other activities by the VDC......................................................................................................44
Education scholarships.......................................................................................................................44
Community donation / development............................................................................................44
Funeral grants........................................................................................................................................ 44
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Health grants.......................................................................................................................................... 44
Emergency funds...................................................................................................................................44
1.33 - Temporary project sub-committees....................................................................................44
Fund management..........................................................................................................45
1.34 - What is the Village Development Fund (VDF)?...............................................................45
Purpose..................................................................................................................................................... 45
Management of the Village Development Fund........................................................................45
Principles of fund management......................................................................................................45
1.35 - Managing income and expenses............................................................................................45
1.36 - Growing the Village Development Fund.............................................................................46
1.37 - Important fund management policies.................................................................................46
Loan terms and conditions................................................................................................................47
VDC procurement process.................................................................................................................47
Monitoring & Evaluation..............................................................................................48
1.38 - Principles of the M&E process................................................................................................48
1.39 - Responsibilities for M&E..........................................................................................................48
1.40 - Suggested M&E calendar..........................................................................................................49
1.41 - Recommended tools for M&E.................................................................................................49
Conducting site visits...........................................................................................................................49
Quantitative tools.................................................................................................................................. 49
Qualitative tools..................................................................................................................................... 49
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Abbreviations
CBO Community-based organisation
ICAP Integrated Community Action Plan
IGV Income Generating Ventures
OP Older People / Older Person
PRA Participatory Rural Appraisal
PwD People with Disabilities / Person with Disabilities
VDC Village Development Committee
VDF Village Development Fund
WHH Women Headed Households
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List of annexes
Annex A Budget and Staff Considerations
Annex B VDC Launch Workshop
Annex C VDC Village Socialisation Workshop
Annex D VDC Formation Meeting
Annex E VDC Rules and Regulations Template
Annex F Forming the VDC Main Committee and Sub-Committees
Annex G VDC Main Committee Training Guides
Annex H Tips for working with vulnerable groups
Annex I ICAP and Annual Plan Templates
Annex J VDC Meeting Templates
Annex K Initiating a Livelihood Asset Program
Annex L Initiating an Income Generating Venture
Annex M Fundraising Workshop
Annex N Village Development Fund Management Guidelines
Annex O VDC Procurement Policy Template
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About this handbook
HelpAge International commissioned this handbook to document the process of
setting up a Village Development Committee (VDC), which is a community-based
committee managed by an inclusive group of community members to promote
village economic and social development.
The objectives of this handbook are:
1) To institutionalise and systemise the process of establishing an inclusive
VDC; and
2) To serve as a guide for field staff and other organisations interested to
support communities to establish inclusive VDCs using a holistic approach.
How to use this handbook
This handbook is intended for use by groups or organisations that are interested
in supporting community-led development in Myanmar through VDCs, such as:
national and local government agencies, international and local NGOs, faith-based
groups, and community-based organisations. An organisation may choose to form
a VDC as a first step of the community empowerment process. Once formed, the
VDC acts as the representative of the community for all future development
projects and/or government interventions.
Community Empowerment is a process of developing poor peoples’ voice and
capacity to engage with the range of institutions and individuals interacting with
the ‘people sector’, enhancing their ability to take advantage of local livelihoods
opportunities, and to demand other services and meet other needs. This is
achieved through development and empowerment of self-managed grassroots
institutions of the poor, which also promote participation and protection of
typically excluded or marginalized groups, e.g. older people, children, women,
people with disabilities, landless, IDPs/refugees.
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This handbook should be used as a guide in forming a VDC. It
provides recommended processes, policies and tips for
organisations choosing to form VDCs, but is not an exhaustive
‘how-to’ manual. Some suggested policies or activities will need to be
adjusted and adapted to meet different community needs. The practices
and tips in the handbook are based on the successful experience of
HelpAge International in forming VDCs in Myanmar.

Village Development Committees in Myanmar
Village Development Committees are membership-based community level
organisations developed, formed and managed by an inclusive group of
community members to promote village economic and social development. The
model has been shown to be an effective means of promoting inclusive
development that embraces vulnerable members of the community.
VDCs, for example, can support livelihoods; enhance health, water and sanitation
services and practices; strengthen local schooling; and help communities prepare
for disasters.
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Village Development Committees

Above: VDC Members
discuss community
activities.
What is a Village Development Committee?
Summary
This chapter introduces the definition and organisational structure of the Village
Development Committee and provides an outline of the start-up timeline and the
principles that should guide the VDC.
1.1 - Definition of a Village Development Committee (“VDC”)
A Village Development Committee is an inclusive group of elected community
members who lead their village in introducing economic and social development
activities.
1.2 - Purpose of the VDC
The VDC’s purpose is to:
1) Promote community development through an inclusive approach;
2) Encourage and motivate community members to help each other by
providing a forum to discuss their problems and develop solutions;
3) Represent the village in interactions with external service providers and
build relationships and highlight the needs of the community with all levels
of government authorities and service providers;
4) Encourage and promote community support for vulnerable groups, such as
older people, people with disabilities, youth and women-headed
households.
1.3 - Principles of the VDC
Inclusive
Ensure that all members of society including older people, children, PwD and
women have the right to participate in their own personal development as well as
the development of their communities.
Capacity and confidence enhancement
Build capacity and competence, in both individuals and
communities, to achieve results for themselves. Equip
people and groups with knowledge, skills, and attitudes
that build confidence and empower community
members to take control of their lives.
Integrated
Recognise that age, disability, gender friendliness,
environmental awareness, and disaster risk reduction
are integral parts of all lines of action taken.
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1.4 - VDC activities
VDCs promote development by identifying and solving problems in their
community. VDCs work closely with local authorities, NGOs, and with a wide
range of community members, enabling them to make a positive contribution in
the following areas (for further detail on VDC activities, see Chapter 8):
Area Example
Livelihood and food security VDCs can channel agriculture, small business and
livestock assets to the most vulnerable or poor
community members
Healthcare VDCs can provide health-related training and basic
medicines
Water and sanitation VDCs can build water tanks, wells or sanitation facilities
for the community
Community fundraising VDC activities may raise funds for community use
(micro-finance/revolving loan fund, welfare support to
older people, children)
Infrastructure development VDCs can provide electricity to their community or
improve local roads or footpaths, small irrigation facilities
Strengthen local schooling VDCs can work with the village administrator and
township authority to improve schools, rural health
centres, etcin their community
Protection (older people,
children, PwDs and women)
VDCs activities can provide informal and formal social
protection for vulnerable groups in the community
1.5 - What does a VDC look like?
A VDC is an inclusive group of elected community members representing women,
older people, and other vulnerable groups and community members. HelpAge
recommends that at least 40% of the VDC members are representatives of
vulnerable groups, such as women, older people, or people with disabilities.
A VDC is organised into a main committee and sub-committees. The size of the
committees will depend on the size of the community and should be decided
collectively by the village. The following are examples of sub-committees:
Livelihoods Health Fundraising
Income Generating Ventures Education Protection
Water, Sanitation & Hygiene Monitoring &
Evaluation
Disaster Risk Reduction
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1.6 - A sample Village Development Committee organisation chart
• In the experience of HelpAge in Myanmar, main committees have between 9 and 11 members and sub-committees have between 3
and 6 members. In total, the VDC as a whole usually consists of 25 to 30 individuals who represent and lead the wider community.
• The size of the main committee and sub-committees can be larger or smaller, depending on the size of the village.
• To promote inclusiveness, it is recommended that at least 40% of VDC Members are women, older people, or people with disabilities.
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1.7 - The steps to form and manage a VDC
Below are the main steps in the process of forming and managing a VDC. This
handbook goes through each in detail.
Phase Main steps Suggested
timeline
Select • Begin building linkages with government and
local authorities and other groups in the village
• Conduct initial needs assessment of villages
• Select villages for forming VDC
3 months
Mobilise • Launch Workshop at state & township level
• Form an Advisory Group
• Socialisation Workshop in villages
1-2 months
Form • Elect main and sub-committee members
• Define roles and responsibilities of the main and
sub-committee members
• Define rules and regulations of the VDC
• Capacity building training for new VDC leaders
1 month
Plan • Continued training of VDC leaders
• Develop Integrated Community Action Plan
• Develop Annual Plan and Fund Raising Plan
• Develop assets (electricity, seeds bank, water
facilities) management plans
• Monthly work plan
Month 3
onwards1
Manage • Conduct monthly meetings
• Additional capacity building trainings
• Build up VDC operational systems
• VDC and sub-committee activities
• Dispute resolution and promote unity
Month 6
onwards
Monitor • Monitoring & Evaluation On-going
Recommended Project Cycle: 3 to 5 years
1
The planning phase is ongoing and typically begins from Month 3 with the training of VDC leaders.
Following training, the ICAP is developed and eventually the Annual Plan.
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Planning to establish a VDC
Summary
Establishing VDCs should fit with your organisation’s priorities and goals. In this
section you will find more information on the timeline for the entire process, as
well as funding and staffing recommendations.
1.8 - Recommended timeline
The recommended timeline for initial support in forming a VDC is at least 3 years,
but preferably 5 years. The first 6 months is typically dedicated to needs analysis
and forming the VDC. Once the VDC is running, it will be approximately 2 ½ to 3
years before the VDC begins to be self-sustainable, requiring less staff to monitor
and guide the group. It is strongly advised not to reduce the timeline to less than
3 years, since the VDC will not be mature enough to sustain itself without support
and guidance. Continuing to provide on-going but low-level guidance and
assistance after 3 years is ideal.
1.9 - Funding for establishing VDCs
The implementing organisation will require funding for forming, organisational
capacity building and monitoring the VDCs. The VDCs themselves also require
funding to begin their activities as per their Integrated Community Action Plans.
VDCs are also encouraged and supported for conducting their own fundraising
activities while initial support are given by the organisation. See Annex A for a list
of items that should be considered when budgeting to form and support a VDC.
1.10 - Staffing suggestions
During the 3 to 5 year establishment phase, the VDCs are trained and supported
by a variety of staff, from project managers to trainers and technical officers.
Below are brief descriptions of the types of functions that staff may need to take
on in order to successfully form, manage and monitor the VDC. Annex A provides
an example staffing chart and recommendations on how many staff may be
needed.
Note: The functions below are suggestions only and may be done by staff holding
other job titles.
Management
The overall process of forming and managing the VDC should be supervised by an
experienced project manager, who oversees the entire team working with the
VDCs and ensure the VDCs are progressing. VDC organizational capacities are
also assessed annually to plan and implement appropriate capacity building for
VDC leaders.
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Coordination
Depending on how many VDCs are being formed, a coordination role may also be
needed. This function refers to the monitoring and coordination of VDCs,
government authorities, township authorities and field staff. Typically,
coordination is done at township levels; that is, the coordinator may be
responsible for all VDCs in one township.
Field staff
Staff based in the field work closely with the VDC and with the village and
township authorities. They may provide training and mentoring, attend the VDC
monthly meetings, collect records and reports from the VDC, offer advice and
resolve disputes.
The number of field staff needed will depend on:
• How many VDCs are being formed by the organisation
• How advanced each VDC is (newer VDCs require more guidance)
• Whether transportation is easy and distances short between villages
Finance
It is recommended to have a staff member, such as a Finance Officer, oversee all
budget requirements and spending.
Technical
Depending on the number of communities that are supported through VDCs,
technical staff may also be needed. Technical staff oversee the capacity building
of VDCs in areas such as Livestock, Agriculture, Small Businesses and Health.
They monitor the progress of VDC activities in these areas and regularly provide
trainings to the communities.
Monitoring & Evaluation
Regardless of the number of VDCs that are formed, a Monitoring & Evaluation
function is critical. This function refers to leading the overall M&E activities for the
organisation, capacity building of VDC’s M&E Sub-Committees and for overseeing
their performance. If many VDCs are being formed, the implementing
organisation may wish to appoint an M&E Officer to be responsible for this
function.
Trainers
Throughout the project, training is provided to VDC members on a variety of
topics, such as inclusion, organisational planning and management, book-
keeping, healthcare, fundraising, leadership, participatory development tools,
ICAP development, small-scale business planning and management, conflict
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resolution, participatory M&E, etc. Some trainers may be external, while others
are staff members. In either case, consider the following:
• Trainers should speak the local language or dialect.
• Trainers should have experience in participatory methodologies.
• Trainers should know how to work with vulnerable groups and community
groups.
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Understanding the community
Summary
This section reviews important steps in selecting and learning about the
communities where it is appropriate to form a VDC. This includes beginning to
build linkages, so that the VDC successfully works with the township authorities,
village administrator and other NGOs or CBOs. There are four recommended
steps to selecting the villages and understanding the community: building
linkages; conducting a needs assessment; selecting the villages and conducting a
baseline survey.
1.11 - Building linkages
Forming a VDC is an important first step in the longer-term process of community
mobilisation and community empowerment. Once developed, the VDC will
function as a representative group on behalf of the community when working with
government agencies, external service providers, or other NGOs. It is important
that from an early stage the VDC work closely and build relationships with other
organisations and agencies working within the community.
Above diagram: The VDC is a vehicle for making the needs of the village known, for
proposing solutions and for working with a variety of groups, including government
authorities at the township and village levels, NGOs, and other government service
providers (schools, health centres, etc.).
Linking to the township authorities
At all stages of the VDC’s development, it is important to link the VDC with the
township authority. Below are a few suggestions on how to build the relationship
between the VDC and the township.
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Before forming the VDC, it is recommended that the township authorities are
consulted and informed about the VDC process. This is helpful for the following
reasons:
• When selecting the villages to implement VDC, the township authority can
serve as an advisor and assist in selecting the villages for VDCs.
• The township authority can facilitate the relationship between the
implementing organisation and the village administrator.
Before forming the VDC, the township authorities, relevant ministries and the
village administrator can be informed about the VDC concept through a Launch
Workshop (see Chapter 4).
Once the VDC is formed and operating, one way to continue to involve the
township authorities with the VDC’s progress is through Network Meetings. In
the experience of HelpAge, Network Meetings are an opportunity for VDC
members from multiple villages to share their progress, ask questions and
establish a relationship with the township authority. Typically such meetings are
held every second month between township authorities, project staff, and a few
selected VDC members.
Linking with other government service providers
As the village becomes increasingly connected to government services, such as
Myanmar Agriculture Services (MAS), veterinary, cooperative, transportation,
education, health centres and others, the VDC should be recognized as the
representative of the village in working with these groups and communicating the
village’s needs and priorities. Project staff build the capacity of VDC members so
they are comfortable working with service providers and recognize their role to
coordinate between service providers and the community.
Linking to the village administrator
In order to function smoothly within the village, the VDC will need to work with
the village administrator. At the same time, it is important that the administrator
does not influence the VDC or stifle its progress. One helpful way to involve the
village administrator is to invite the administrator to be part of an Advisory Group
that oversees and advises the VDC. In some cases, the village administrator and
others outside the VDC act as Advisors to the VDC’s M&E Sub-Committee (see
also Chapter 8).
Linking with other NGOs, CBOs or faith-based groups
Once the VDC is formed and operating, it may begin to work with other
community groups on activities or community improvement projects. It should be
recognized from an early stage that any NGOs or CBOs entering the village should
work with the VDC, since the VDC represents an inclusive group of community
members.
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Linking with other VDCs
VDCs have much to learn from each other by exchanging ideas and discussing
solutions to common problems. It is also beneficial to have VDCs share their
progress with other VDCs to motivate one another. In the experience of HelpAge,
linking VDCs to each other was done through Township Committees and Annual
Exchanges:
Township Committees: One elected representative from the VDC
or its sub-committees attends monthly meetings, where other VDC
representatives from across the township attend. In the meetings,
representatives share lessons learned, weaknesses or challenges in the
VDCs and the group also may start working on township-level activities.
Annual Exchange: VDC representatives from across the country share
their ideas, challenges and success stories with one another. This provides
a unique learning opportunity for VDC members. For example, 2
representatives from 10 VDCs may come together for a one-day
exchange.
1.12 - Selecting the villages
This section provides a recommended process for selecting the villages
where it is appropriate to form a VDC.
Step 1: Reaching out to the township authority
See Section 3.1 “Linking to township authorities”.
Step 2: Selection of Villages/Conducting a needs assessment
Conducting an initial needs assessment of multiple villages helps determine which
are best suited for VDCs. Each organisation may have their own methods for
doing needs assessment for finalising villages to form VDCs, but it is
recommended to assess more villages than necessary (for example, assessing
20-30 villages in order to select 10-15).
Timing
A needs assessment can take 10-15 days to complete, depending on how many
villages are included.
Analysis
Data collected from the assessment should be analysed to determine which are
the most vulnerable villages according to the selection criteria established by the
organisation.
Step 3: Village selection criteria
It’s recommended that the final selection of villages be discussed with, and
approved by, the township authority. The township authority may be able to
provide additional information about the villages, allowing for more informed
decisions to be made. In general, villages selected should be the most vulnerable
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and least developed in the township. Below are a few tips on what to consider
when selecting the villages:
What is the overall level of the community’s development?
VDCs should be formed in communities with low level of economic
development opportunities and infrastructure.
Are there other social welfare groups already active in the village?
If yes, consider how the VDC may work with these groups. If there are
other NGOs active or other social groups providing similar assistance, the
village may not be a good candidate for forming a VDC.
Is the village difficult to access?
Villages with difficult accessibility are often poor, and therefore good
candidates for VDCs. At the same time, the practicalities of logistics,
transportation and proximity to other villages selected also need to be
considered to ensure you can provide the consistent support needed.
Step 4: Conducting a baseline survey
Once the villages are selected, it is recommended that a baseline survey is done
to better understand the community’s level of development.
The baseline survey is typically conducted by field staff, who collect information
from a sample of households in the village through a simple, standard
questionnaire. Questions should require straightforward, closed answers, allowing
for easy data entry, information compilation and comparison. While conducting
the survey, sometimes a focus-group session is done within each household.
Understanding the community: Tips
When conducting the needs assessment and the baseline survey, survey
teams should be: gender balanced (both male and female staff); trained in
survey and focus group techniques; and knowledgeable of the local context
and language(s).
It is recommended to request the village profile and data from the township
authorities before visiting the village to conduct any assessment. This will
provide survey teams with initial information on the village profile and
population.
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Mobilising the community
HelpAge through its community mobilization process build capacity of
communities to identify their own priorities, resources, needs, and solutions
in such a way as to promote representative participation, good governance,
accountability, and peaceful change.
Getting prepared
• Be clear and knowledgeable about your goals
• Know your target community and surrounding environment
• Understand the fundamental concepts of mobilization.
• Understand the fundamental concepts of mobilization.
• You must have the required skills
Knowing your goals
The purpose of community mobilization may vary from one organization or
community to the other. However, there are common elements which
include: food security, livelihoods development, poverty eradication, good
governance, empowering marginalized groups, and gender balance. Each of
these goals are complex and can become challenging so there is need for field
staff to be as clear as possible about their programme/projects.
Know your target:
For effective community mobilization, field staff should as much as possible
about the nature of communities in general. The following information can be
collected through formal or informal research into the target community:
• Existing social organizations, economy, languages, etc.
• Political/administrative structure
• Demographic features and population
• Economic activities
• Social stratification and power relations
• Organizations and their functions and activities
• Leadership pattern and its influence
• Cultural facets or traditions
• Health, sanitation and nutrition levels
• Education
• Critical issues and problems
Get Skills
The skills that field staff need for mobilizing communities are not
exceptionally difficult to learn. Since the target group is the community as a
whole, most of the skills you need are based in her/his ability to
communicate. Field staff will need to learn how to be a good public speaker,
an effective leader and a good facilitator.
Field staff must learn how to draw information and decisions out of a group,
which requires a full understanding of the programme/project goals and a
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relaxed confidence in front of people.
Field staff will also need to develop a
personal character that is honest,
enthusiastic, positive, tolerant,
patient and motivated.
Summary
Once the villages are selected, it is important to inform all relevant stakeholders
about the concept of a VDC and its benefits to the community. This section
covers recommended initial steps in mobilising the community – the Launch
Workshop held with village and township authorities; the Socialisation Workshop
with the entire village; and the selection of the Advisory Group that helps to form
the VDC.
1.13 - Overview: mobilise and socialise
The first step to forming the VDC is to socialise the concept by explaining to all
stakeholders – government and village authorities, village elders, and community
members – what is a VDC, what is its purpose and how it can benefit the
community. To do this, 3 steps are recommended and described in detail below.
For the purposes of VDC, “socialisation” can be defined as: the act of bringing
together a group of relevant people in an informal and social setting to discuss
and reach a common understanding about the benefits of a VDC.
1.14 - Launch Workshop
This workshop is a critical step in engaging the authorities that can support the
VDC. One Launch Workshop may be done per township. See Annex B for an
example agenda for this workshop.
Objectives
• Introduce the VDC concept and purpose to the government, township and
village administrator.
• Introduce the implementing organisation and review the importance of
assisting older people and other vulnerable groups in Myanmar.
• Explains expected roles and responsibilities of various stakeholders and
communities
Workshop participants
Participants are typically high-level authorities, and may include the Chief Minister
of the region/state, village administrator, township authorities, and any relevant
ministry officers.
Topics to be covered
• Introduction of implementing organisation mission and vision
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• Importance of community-based development groups in Myanmar
• Description of VDC, typical activities and VDC formation process and
timeline
• Expected roles and responsibilities of various stakeholders including
Township and village authorities
1.15 - Village Socialisation Workshop
After the launch, the village administrator and community residents should be
aware of the idea of a VDC and ready to assist in forming a VDC in their village.
The Socialisation Workshop is the first opportunity the entire village comes
together learn what is a VDC and how it may benefit them. Please refer to Annex
C for an example workshop agenda.
Objectives
• To socialise the overall concept of VDC to the community members
• To tell them the steps of forming a VDC using a thorough participatory
process
• To tell them the benefits of a VDC
• To ensure that the overall vision of VDC is clear to them
• To secure their commitment to supporting the process
Workshop participants
Workshops are organised jointly by the field staff and the village administrator,
and the entire village is invited to attend.
• Introduction to the implementing organisation
• Introduction to VDC – What is it? How does it work? How it is formed?
• Roles and responsibilities of VDCs and sub-groups
• Examples of successful VDC activities around Myanmar
23

• Selection of the VDC Advisory Group and its roles
1.16 - Forming an Advisory Group
In order to ensure the VDC is recognized by all community members, it is
recommended to form an Advisory Group. The Advisory Group is typically a small
group of village leaders and elders that are supporters of the VDC and lead the
VDC forming process in the village (see next chapter for the role and tasks of the
Advisory Group). Once the VDC is formed, the Advisory Group may take on a
monitoring role and work with the VDC’s M & E Sub-Committee. Typically, the
Advisory Group consists of 3 to 5 persons, including:
1. Village administrator
2. Village elders
3. Other influential residents, such as teachers or religious leaders
The Advisory Group should be elected during the Village Socialisation Workshop.
When forming the Advisory Group, it is important to ensure the group
understands the process of forming and managing a VDC.
Socialisation Workshop: Tips
It is important that the VDC is inclusive and that vulnerable groups, such as
people with disabilities, older people and women-headed households are
represented in the VDC. These principles of the VDC should be explained to
the village administrator and to the community.
To promote inclusiveness, field staff should aim to have at least 40% women
participation in the VDC. It is also recommended that each sub-committee
have at least 1 woman, 1 older person and 1 young woman representative.
Such requirements, however, may be discussed and decided by the
community.
It may be helpful to explain the VDC project through short dramas - short
plays which are organised by the field staff and features volunteers from the
community – or other creative ways. Dramas are a fun way to explain the VDC
forming process and portray a typical VDC meeting.
24

Forming a Village Development Committee
Summary
This chapter explains the process of forming a VDC. This may be done through a
Formation Meeting, which follows the 3 socialisation steps explained in Chapter 4.
In the Formation Meeting the VDC Main Committee and Sub-Committees are
elected and the VDC is formally established.
1.17 - VDC Formation Meeting
Following the Socialisation Workshop, community meetings may be organised in
coordination with the Advisory Group where communities are encouraged to elect
VDC Members and discuss and decide the roles and responsibilities of the VDC.
Please see Annex D for an example agenda for this meeting.
Objectives
• Explain the project and approaches
• Explain the purpose of forming VDC and get community suggestions/ideas
from community members
• Establish the rules and regulations of the VDC Main & Sub-Committees
• Facilitate the election of sub-committee members by community members
• Facilitate the process of electing main committee members by sub-
committees
• Elect VDC leadership roles (President, Secretary, Treasurer, etc.)
• Decide length of term for sub-committee and main committee members
Participants
The entire village and the village administrator are invited to attend. In addition
field staff make special efforts to motivate older people, PwDs, women headed
households, landless, marginal farmers to actively participate in project
socialisation meetings through home visits and individual meetings as they
normally avoid coming to meetings assuming that their voices would not be
considered seriously by the other community members. The meeting is conducted
by the field staff of the implementing organisation.
Establishing rules and regulations
The rules and regulations of the VDC ensure clarity, transparency and unity in the
group. The rules and regulations should be discussed and decided at the
Formation Meeting. A template of VDC rules and regulations may be presented,
and the community can add additional rules as they see fit. Annex E provides a
template.
25

Diagram: Recommended make up of the VDC Main Committee.
Selecting the Main Committee and Sub-Committee Members
In order to ensure the VDC Main Committee is an inclusive and representative
group, the following process of electing representatives is recommended:
• Sub-committees and their members are elected first and the Head of each
sub-committee is automatically a member of the Main Committee;
• Next, an additional representative from each sub-committee is voted into
the Main Committee; and
• Finally, a few additional community members, who are not on sub-
committees, are also voted into the Main Committee.
Like in any group, having capable, committed and motivated leaders is
key to success. It is no different with the VDC Main and Sub-Committees.
As much as possible, the selection of Committee Heads and Committee Members
should be a democratic and transparent process. See Annex F for more details on
the selection criteria for each role and tips on how to handle the voting process.
Rules and regulations: Tip
Once the rules and regulations
are established, they should be
made visible at every VDC
monthly meeting so they can
be easily referred to when
needed.
26

Sub-Committee selection
The field staff may suggest sub-committees and the community members decide
collectively which would be relevant for their group. Type and number of sub-
committees depend on the programme of the implementing organisations. Typical
sub-committees include:
• Fundraising
• Livelihoods
• Income Generating Ventures
• Health
• Education
• Protection
Selecting the Monitoring & Evaluation Sub-Committee
The Monitoring & Evaluation Sub-Committee should be an independent group and
the members should not be VDC Members or on any other sub-committees. Members
may include: Village Administrator, religious leaders, other eminent persons who are acceptable to
the community. For additional details on the purpose and activities of the M&E Sub-Committee, see
Chapter 8.
27

Training VDC leaders
Summary
HelpAge considers VDC organisational capacity building as a continuous process.
VDC capacity building aspects are discussed during monthly quarterly monitoring
visits and also bi-annual and annual review meetings with VDC leaders to
determine what additional trainings are needed and when. This section covers the
necessary basic trainings for the newly elected VDC Members. Other training
topics may be added later depending on the activities of the VDC. The basic
trainings include:
• Leadership and Structures
• Participatory Rural Appraisal Tools
• Integrated Community Action Plan (ICAP) and Annual Planning
• Financial Management
• Village Development Fund Management
• Procurement
• Monitoring & Evaluation (M&E)
The trainings ensure the VDC Members are well-equipped for their new
responsibilities. Each training listed here is accompanied by a more detailed
training guide in Annex G, which includes example agendas and useful templates
for each training. Additional trainings should be provided to sub-committee
members and VDC Members throughout the forming process. Suggested topics
are also listed in Annex G.
1.18 - Training 1: Leadership and Structures
Objectives
• Ensure that VDC members approach their duties and responsibilities with
transparency, accountability and integrity.
• Ensure that VDC members are aware of the rules and responsibilities and
know how to conduct the VDC meeting and recordkeeping.
• Review the importance and due process in selecting suitable leaders.
Before starting: Tips for working with vulnerable groups
When conducting the trainings, it is necessary to understand how to work with
vulnerable, diverse groups. Please refer to Annex H for more information
[needs to be developed by HelpAge / or suggest deleting].
28

Participants
Newly elected VDC Members.
• Selfless leadership
• Principles of good leadership
• Role of leaders
• Inclusive leadership
1.19 - Training 2: Participatory Rural Appraisal Tools
Objectives
The goal of this training is to make the VDC leaders aware of certain participatory
tools that they can use to identify key liveihod and other issues and their causes,
assess resources needed to effectively address such issues, take stock of locally
available resources, prioritise their various needs of the community and develop
the community action plan or annual plan.
Participants
Newly elected VDC Members.
• What are Participatory Rural Appraisal tools?
• Purpose of using PRA tools and their use
• Introduce and practice PRAs
1.20 - Training 3: Integrated Community Action Plans (ICAP) and
Annual Plans
Objectives
The goal of this session is to make the VDC leaders aware of the purpose and
process of the Integrated Community Action Plan (ICAP) and the importance of
the annual plan.
Participants
Newly elected VDC Members and selected community leaders if necessary.
• Overview of the planning process
• Introduction to ICAP
• Steps to creating an ICAP
• Introduction to Annual Plan
29

• Steps to creating an Annual Plan
1.21 - Training 4: Finance (management, planning and budgeting)
Objectives
Ensure VDC Accountants and VDC Treasurers understand:
• Basic accounting concepts
• Record and book-keeping
• How to use of cashbooks, payment vouchers and basic financial tools
Participants
The elected VDC Accountant and VDC Treasurer should attend this training.
• Principles of financial management
• Responsibilities of the Accountant and Treasurer
• Using cash receipt vouchers, cash payment vouchers and cash book
• Budgeting and planning
• Recording income and expenditure
• Calculating opening and closing balance
• Using a calculator
1.22 - Training 5: Village Development Fund management
Objectives
An important aspect of the VDC is its ability to manage and grow its own funds.
This training will provide information on the processes involved and the necessary
recordkeeping. Additional information about managing VDC funds can be found in
Chapter 9.
Participants
Livelihood Sub-Committee Head, one Livelihood Sub-Committee Member,
Fundraising Sub-Committee Head, Treasurer, and Accountant.
• What is the Village Development Fund (VDF)?
• Purpose and the formation process
• Management of VDF
• Loan beneficiary selection
30

• Monitoring payments and calculating interest
• Recordkeeping
• Fund Policies
1.23 - Training 6: Procurement
Objectives
VDC leaders obtain basic knowledge on the importance of procurement and
become familiar with a transparent and efficient purchasing process.
Participants
A few elected representatives of the VDC Main Committee or Sub-Committees are
asked to attend. These trained representatives will then be responsible for
supervising purchasing and procurement for the VDC.
• What is procurement?
• Basic principles of procurement
• Key steps of procurement
• Adopting a procurement policy
1.24 - Training 7: Monitoring & Evaluation (M&E)
Objectives
M&E Sub-Committee will obtain basic knowledge about M&E and become familiar
with tools to monitor and evaluate the progress of their VDC.
Participants
M&E Sub-Committee Heads and one M&E Sub-Committee Member.
• What is M&E?
• Introduction to the project cycle
• Reporting format for VDC M&E Sub-Committee
• Practice completing M&E reports
1.25 - Additional trainings
As the VDC becomes more active, trainings should also be provided to the
sub-committees on additional topics related to the VDC’s planned activities, such
as Health, Livelihoods, DRR, Volunteer Home Care, Conflict Resolution and other
topics. See Annex G for suggested training topics.
31

Integrated Community Action Plans and
Annual Plans
Summary
Once the VDC is formed and the new VDC leaders are trained, the group enters
the planning stage. Here, there are following important steps:
• VDCs organises community meetings ensuring representatives of all
vulnerable groups actively participate in these meetings
• Community members are helped to form groups based on the number of
PRA tools to be practiced for analysis their situation. VDC leaders trained
on PRA tools are assigned to each group to facilitate group exercises.
• Each of the groups collectively analyses topics assigned to them and agree
on actions to be taken by who and when
• Once group exercises are completed, VDC leaders with support from Field
Staff compile inputs received from each group using flip charts and
present it to community members to validate key issues and their causes
affecting them, prioritise needs and actions to be taken, resources needed
for various actions, resources available locally and need to be mobilised,
time frame for implementing actions, who would be responsible for what,
etc to develop the draft Integrated Community Action Plan (ICAP)
• ICAP is a long-term village development plan so VDC develops an Annual
Plan based on their ICAP
1.26 - Participatory planning
As the VDC plans its activities and priorities, the process should be participatory
and inclusive. The VDC Members should lead the process and staff should simply
facilitate. Staff should ensure women and vulnerable groups, such as women-
headed households, older people, and people with disabilities are represented,
participating and voicing their opinions and needs. The objective of the VDC is to
empower a community to create solutions for their own development and the
planning stage is an important step in this process.
1.27 - Creating an Integrated Community Action Plan
It is recommended that each VDC begin by developing an Integrated Community
Action Plan (ICAP). The purpose of the ICAP is the first and foremost step to
bringing community members including most vulnerable households and
stakeholders to collectively analyse their situation, identify the needs and
priorities of the entire village in order to decide how the VDC can take action to
improve the community. The ICAP is then used to help the VDC develop their
32

Annual Plan. The ICAP is usually developed through multiple meetings with the
VDC and other community members; project staff act as facilitators.
Objectives
Identify social, economic and environmental problems and analyse root causes
and prioritise the needs of the community. Discuss possible actions to be
undertaken by communities and the resources required and action plans.
ICAP process
Using Participatory Rural Appraisal tools (see Chapter 6, Training 2) the
community and VDC Members work together to identify problems in their village
relating to health, education, livelihoods, etc. Next, residents prioritise problems
and discussing in-depth solutions to the first priority problem identified by the
community. Finally, the group should plan possible solutions and a broader
timeframe. This should be done by discussing what can be done by the VDC, by
community members, the village administrator, government and the project field
staff.
See Annex G for a training guide on ICAP, including methodologies for identifying,
prioritising, and solving problems. Annex I provides an example ICAP template.
1.28 - Developing the Annual Plan
Developing an Annual Plan helps the VDC set goals and assign responsibilities and
it is an opportunity for the Main Committee and Sub-Committees to discuss and
decide on what activities will be done during the year. The Annual Plan should
also include the actions the VDC will take to solve the first priority need identified
in the ICAP.
Objectives
For each annual goal or activity, the Annual Plan should include:
• Task to be done
• Assigned sub-committee and other responsible person
• Expected costs of activity, community contributions and resources
expected from external sources
• Expected income of activity
• Timeline (month during which activity will be completed)
33

Annual Plan process
The Annual Plan is drafted after the ICAP process. It is created through meetings
with the VDC members and the field staff. The role of the Staff is to supervise
and advise as necessary, but the process should be led by the VDC Members.
The
following is a recommended process for developing the Annual Plan with
the VDC:
Each sub-committee presents their proposals for activities to the group for
discussion. The VDC as a group agrees by consensus on each activity and its
budget. The Annual Plan is then documented. (For example, by writing it on a
large piece of paper, or printing it on vinyl, and displaying it in the venue at each
monthly meeting.) At the end of the year, the Annual Plan is reviewed by the
VDC and the M&E Sub-Committee to determine whether goals were met or
whether adjustments should be made for the next year.
Refer to Annex I for a template of an Annual Plan. Annex G provides a training
guide on Annual Planning for VDC Leaders, including further details on the steps
involved in the process.
34

Managing and sustaining VDC activities
Summary
This section details how to manage and sustain VDC activities. Further details are
provided on the structure of VDC monthly meetings, as well as more information
on each sub-committee and its activities. Also included are tips on successfully
managing VDCs.
1.29 - Monthly meetings
Each month the VDC Main Committee
and Sub-Committees meet as a
group to review their progress,
discuss new activities or resolve
problems. During the entire
project cycle, meetings are observed
by field staff.
Participants
All VDC Main Committee and Sub-Committee members and field staff.
Suggested length
2 - 3 hours
Agenda and meeting minutes
The VDC President and Secretary set the agenda for the meetings and also Chair
the meetings. Agenda points and decisions from each meeting should be recorded
by the Secretary and records should be kept for easy reference. See Annex J for
an example agenda and a template for meeting minutes.
Monthly meetings: Tip
Consider encouraging participants to sit in a circle, to facilitate active
participation and inclusivity (see photo above).
35

1.30 - Tip
s for
successful
VDCs
Adopting a
clear
mission
Each member should clearly understand what the VDC does and how it may
benefit their community. Each member must also understand roles and
responsibilities of the others and themselves. Without clear objectives and
communication, the VDC members may disagree about the VDC activities, leading
the group to be divided. In order to ensure the mission of the VDC is clear to all,
VDCs will often publicly post their rules, regulations and other mission statements
around their meeting room.
Promoting unity
For the VDC to succeed, the group needs to be united and working towards the
same goals. To promote unity in the VDC, consider:
• Having membership cards, buttons, uniforms, or other distinguishing items
for the VDC members; and
• Displaying the rules and regulations, organisation chart, annual plan and
photos of successful activities around the meeting venue.
In extreme cases of disunity, the VDC has been dissolved and the entire VDC
selection process re-started.
Encouraging participation
If there are members that regularly keep quiet during the meetings, consider
having a Suggestion Box (pictured above) where they can anonymously leave
their recommendations.
Motivating members
The VDC should establish an attendance policy that requires members’
attendance at the monthly meeting and determine under what conditions a
member should be relieved of their duties, should they miss multiple meetings.
Should attendance drop at the monthly meetings, action should be taken by the
field staff and the VDC to encourage members to participate and the VDC Main
Committee should try to learn why others are not attending.
Accurate recordkeeping
It is critical that the VDC records meeting minutes and financial information to
ensure transparency among the group. The records are often a way to resolve
disputes and ensure the VDC is on-track with its goals. To promote accurate
recordkeeping, training should be given on the importance of keeping records and
records should be regularly reviewed by field staff.
36

1.31 - Sub-Committees and their activities
The VDC Sub-Committees lead many of the VDC’s activities. In this section,
examples of typical VDC Sub-Committees are described in detail along with
examples of their activities. Refer also to Annex F for detailed roles and
responsibilities for each sub-committee.
Livelihood Sub-Committee
Many VDCs across Myanmar choose to have a Livelihood Sub-Committee, whose
activities work to improve the livelihood of community members by providing
training in livestock, agriculture and small business management or through other
activities, such as Livelihood Asset Programs.
Common objectives of Livelihood Sub-Committees
1. Provide training in livestock, skills associated with small scale businesses
and agriculture techniques to community members; and
2. Select and monitor beneficiaries of any Livelihood Asset Program.
Training for the Livelihood Sub-Committee
It is recommended that the Sub-Committee receive training on techniques in
livestock and agriculture, which they can then deliver in the community (i.e.
training of trainers).
37

Example activities of Livelihood Sub-Committees
Livelihood Asset Program
Many Livelihood Sub-Committees choose to develop a Livelihood Asset Program.
VDCs across Myanmar do this activity very successfully. Through this activity, the
poorest and most vulnerable community members receive livestock or agriculture
assets (not cash) to help them generate a sustainable income. Typical assets may
include goats, pigs, sheep or other livestock or fertiliser, seeds or other
agricultural products or tools.
After receiving an asset, the beneficiaries may have 6 months to 1 year to repay
a percentage of the cash value of the asset. Typically, repayment of the full value
of the asset is not required; however, decisions on the terms of the program
should be made by the VDC and the implementing organisation.
For further details on how to establish a Livelihood Asset Program, including
necessary training and recommendations of borrowing terms, see Annex K.
Diagram: Example cycle of a Livelihood Asset Program. Payback terms and purchasing
terms are decided by each VDC.
Livelihood Trainings
In addition to providing livelihood assets, the Sub-Committee also typically
organises trainings for community members about new agriculture techniques or
information about how to prevent disease in livestock.
38

Income Generating Ventures (IGV) Sub-Committee
Many VDCs decide to form an IGV Sub-Committee, which creates a small,
sustainable business that will consistently bring income to the VDC and promote
village development.
Process and training
Setting up the IGV requires support and guidance from the field staff. Further
detail on how to assist in setting up the IGV, including business plan templates,
are provided in Annex L. Training should also be provided to the IGV Sub-
Committee on business management practices and recordkeeping.
Tips for successful IGVs:
The selected IGV is to be decided by the VDC, but it should also depend on
what livelihood or business activity is most feasible in the community. For
example, it is not recommended that a village that is not near water attempt
to establish a fishing business.
The IGV Sub-Committee should consider not only what business will bring in
most income, but also what business will benefit the community the most.
The implementing organisation may wish to provide the VDC with the initial
capital to start the business. For example, should the VDC want to provide
electricity with a generator, the implementing organisation may consider
purchasing the generator on behalf of the VDC.
A realistic income goal should be set for the IGV.
IGV business plans should be reviewed by the Main Committee and Sub-
Committees as a group and field staff to ensure they are realistic and viable.
IGVs should not promote unhealthy or unsustainable practices. Liquor stores
or lottery carts do not solve the community’s priority problems and therefore
should not be approved.
39

Example Income Generating Ventures
Electricity provision
Many VDCs have decided to
provide electricity to their village.
These businesses either take the
form of hydro-power or
generators. Costs include
purchasing the generator or
installing the hydro-power wheel,
repairs, fuel, and operator salary.
The business not only generates
income, but also directly improves
the lives of all residents.
Tractor rental
Another successful VDC business is
tractor rental. One VDC in Mah Laing
Township, for example, purchased a
tractor and rents it out to farmers for a
daily rate. The VDC IGV is responsible
for managing the rental schedule,
payments and any repairs. This
business generates income and reduces
the time farmers spend ploughing their
fields.
Livestock rearing
VDCs may choose to purchase
livestock to raise and then sell for
income. The VDC often asks a
vulnerable community member to
take care of the livestock; when
the animals are sold, this person
receives a portion of the profits.
Rice or seed banks
IGV Sub-Committee may run a rice or
seed bank. After speaking with farmers
about their needs, rice or seeds are
purchased in bulk and provided to
village farmers. Rather than charging
farmers, they are required to pay back
a portion (e.g. 25%) in seeds or rice.
In this way, the bank sustains its
resources.
40

Fundraising Sub-Committee
To raise money for VDC activities, many VDCs form Fundraising Sub-Committees.
To be sustainable, it is important that following the initial start-up period, all VDC
activities are implemented through the group’s own funds.
Common objectives of Fundraising Sub-Committees
Fundraising is key to support and implement the VDC’s Annual Plan. The primary
objective of the Fundraising Committee is to run activities that will raise money
for the Village Development Fund. How much money is raised will vary by village,
but as an example, the Sub-Committee may aim to raise between 3 and 4
Lakh/year.
Fundraising has the following components:
• Deciding the various fundraising activities for the year
• Estimating how much will be raised from each activity
• Running the activity and collecting the money
Training
Fundraising Sub-Committee Heads should learn the basics in planning and
executing fundraising activities. Annex M includes a suggested training plan.
Use of the funds and fund management
Please see Chapter 9.
Example activities of Fundraising Sub-Committees
Microloans
Many VDCs choose to begin a microloan program and provide small
loans to residents at a reduced interest rate. The interest
payments are put towards the Village Development Fund (see also,
Chapter 9).
Small stores or mobile stores
VDCs may choose to invest in a small store with basic items such
as petrol, rice, noodles etc. In some cases the store runs from a
VDC Member’s home and in others the store is a ‘mobile store’ on
a motorbike.
41

Health
Sub-
Committee
A Health Sub-Committee is often formed to assist community members with
health needs, including providing home-care for older or disabled persons,
transporting emergency cases to hospital or increasing awareness about disease
prevention.
Training and supplies
The Health Sub-Committee should receive training by the Health Officer on basic
first aid care and home care practices. Each VDC may also provided with a First
Aid Kit, and Health Sub-Committee members should be familiar with its contents.
Example activities of Health Sub-Committees
Volunteer-based home care
Often VDCs develop volunteer-based home care programs, where volunteers visit
elderly, disabled, vulnerable or other needy people at their home and provide
basic care. In some villages, the home care is done directly by the Health Sub-
Committee members, while in others community members or youth are recruited
as home care volunteers. In either case, home care volunteers should receive
basic training in home care practices.
Medical supplies
Often the VDC Health Sub-Committee manages a stock of medical supplies and is
responsible for replenishing them as necessary.
Emergency transport
The Sub-Committee may choose to reserve an annual budget to transport
emergency cases to the local hospital.
Village training
Health Sub-Committees often provide or arrange trainings and workshops at the
village level on health related topics.
42

Monitoring & Evaluation Sub-Committee
The Monitoring & Evaluation (M&E) Sub-
Committee plays a vital role in the VDC’s
development and sustainability. It is
responsible for monitoring the progress of
the Main Committee and Sub-Committees
and for providing recommendations for
improvement to the VDC.
Training
It is recommended that the M&E Sub-
Committee receive a one-day training on
M&E practices and principles. M&E is a new
process for many committee members and
it is important they understand their role
clearly. See Annex G for a proposed agenda
for this training.
Process
The M&E Sub-Committee is encouraged to attend each VDC meeting and to be
aware of the activities of each sub-committee. The following three methods are
often used by VDC M&E Sub-Committees to evaluate the group’s progress:
• Evaluate the progress of the VDC against the Annual Plan.
• Monitor the status of the beneficiaries of the Livelihood Assets or
Microloans.
• Provide recommendations and suggestions to the VDC.
Reporting
See Annex G for template forms for M&E Monthly Reports and beneficiary reports.
In addition to evaluating the VDC’s progress, the M&E Sub-Committee also may
serve as an important focal point for the field staff to understand the VDC’s
progress and any challenges the group is facing.
M&E Sub-Committee: Tips
M&E Sub-Committee members should be independent from the VDC. Members
who are on other sub-Committees or who are VDC members should not be on
the M&E Sub-Committee.
Some villages also invite the village administrator or other respected persons
to act as advisors for the M&E Committee (see also Chapter 4, Section 4.4).
43

1.32 - Other activities by the VDC
Some VDC activities are best managed by the VDC as a group rather than a
specific sub-committee. These activities should be discussed and documented in
the Annual Plan. Each activity usually has its own annual budget. Examples of
common activities include:
Education scholarships
VDCs may allocate a portion of their budget to providing scholarships to students.
Community donation / development
VDCs may decide to work with the village administrator to financially contribute
to community
development projects,
such as
improving water
supplies or
rebuilding roads,
public buildings
and wells.
Right:
Communities often
identify a lack of water
as a priority problem
in the ICAP. As a
result, VDCs have built
water tanks, wells and
pipes that
successfully deliver
water to the entire community.
Funeral grants
A small budget is often allocated to providing funds for funerals of needy
residents.
Health grants
A small budget may be allocated to providing funds for residents who are in need
of health care, such as major surgery.
Emergency funds
An annual budget may be allocated for emergency funds for residents. The
decision to use the funds should be made by the VDC by a vote.
1.33 - Temporary project sub-committees
Should the VDC decide to pursue a large project, such as building a water tank,
they may wish to develop a temporary project committee to lead it. At all times
when electing new sub-committee members, the process should be democratic
44

and transparent. The members should clearly understand their role and goals and
the committee should be dissolved once the project is complete.
Fund management
Summary
A major part of the VDC’s responsibilities is to accurately and transparently
manage the Village Development Fund. This includes:
• Recording income and expenses of all activities
• Monitoring and growing the Village Development Fund
• Transparently purchasing items (procurement)
This section will describe the process involved with the 3 activities above.
1.34 - What is the Village Development Fund (VDF)?
The VDF refers to all money raised and managed by the VDC, including money
from fundraising efforts, asset repayments and loan interest and profit from
income generating activities.
Purpose
The purpose of the VDF is to support the development of the community through
VDC activities and community-based financing of economically viable
income-generating activities by vulnerable groups.
Management of the Village Development Fund
The VDF is managed by the VDC Treasurer and Accountant with close supervision
by the VDC Main Committee. The Fundraising Committee coordinates all
fundraising efforts and loan disbursement and payments.
Principles of fund management
Transparent
All processes should
adhere by transparent
procedures.
Clear
All transactions must be
documented.
Sustainable
Loans and grants should
only be given for
sustainable and viable
businesses.
1.35 - Managing income and expenses
The Treasurer and Accountant work closely together to monitor and record all
income and expenses of the VDC. The Fundraising Sub-committees with support
from Livelihood Sub-Committees are responsible for keeping up to date records of
all loans and payments for their sub-committees and reporting them to the
Treasurer and Accountant.
45

The VDC Treasurer and Accountant should receive training on recordkeeping and
financial management. For more details on the role of the Treasurer and
Accountant see Annex F. For details on the necessary trainings, see Annex G.
1.36 - Growing the Village Development Fund
There are 4 main activities that generate funds for the VDC into the VDF. For
details on each activity, please refer to Chapter 8, which describes each activity in
further detail.
Diagram: Fund-generating activities. Fundraising activities, interest from loans, and
livelihood asset repayments are managed by the Fundraising Sub-Committee; income
generating ventures are managed by the IGV Sub-Committee. All funds raised and profit
generated is given to the VDC Treasurer to be added to the VDF.
1.37 - Important fund management policies
Developing guidelines for managing the VDF is an important step in ensuring that
all group members understand the process. Policies also help serve as a reference
if there is disagreement over how to manage the money, as they are terms that
the group has already agreed upon. It is recommended that each VDC develop
loan management and procurement guidelines that are suited to their group’s
needs, such as the two policies referred to here:
Fund management: Tip
To ensure transparency, the VDC Treasurer often announces the balance of
the VDF and the monthly income and expenditure at the VDC monthly
meeting.
The Treasurer and Accountant may keep separate records, as a way to check
their accuracy and have a back up, should anything happen to one set of
documents.
It is recommended that the VDC open a bank account, which requires the
signatures of multiple officers in order to withdraw money.
46

Loan terms and conditions
Please see Annex N for recommendations on the terms and conditions and
principles involved in fund management.
VDC procurement process
The VDC should conduct all purchasing in an ethical fashion. A Procurement Policy
should be developed with the VDC and closely followed. For an example policy,
see Annex O.
Prior to handling Procurement, VDC members should receive training on
Procurement Processes (see Chapter 6). In the experience of HelpAge, typically 3
VDC Members were selected for training: VDC President, Accountant and
Treasurer. Those who receive training are then responsible for overseeing and
managing the VDC’s Procurement Process.
47

Monitoring & Evaluation
Summary
Throughout the VDC project, Monitoring & Evaluation (M&E) should take place.
This chapter provides further details on the frequency, principles and tools for the
M&E process led by the implementing organisation. For details on the M&E
activities conducted by the VDC M&E Sub-Committee, see Chapter 8.
1.38 - Principles of the M&E process
M&E is a process which aims to assess the success or failure of projects and
initiatives based on data collection, analysis and logical assessment. M&E
processes are needed to objectively and accurately assess the quality of a VDC
project, so that areas for improvement can be identified and acted upon (with
guidance) and the overall quality of the VDC can be improved. The M&E process
should be inclusive, independent and action-oriented.
Inclusive
Evaluate the project by
speaking with multiple
stakeholders.
Independent
M&E Officer should be an
independent evaluator
and should not be
involved in implementing
the project.
Action-oriented
Weaknesses should be
addressed through an
action plan prepared by
the field staff.
1.39 - Responsibilities for M&E
VDC M&E
Sub-Committee
VDC Advisory Group M&E by Project Staff
Closely monitor progress
of VDC Main & Sub-
Committees
Monitor progress of any
loan or asset program
beneficiaries
Provide updates and
reports to project staff
Work closely with VDC M&E
Sub-Committee
Provide advice, guidance and
feedback to M&E Sub-
Committee on VDC progress
Rely on VDC M&E Sub-
Committee to provide
updates and highlight issues
Conduct independent
evaluations in addition to
VDC M&E Sub-Committee
Extensive and external
evaluations may also be
conducted
The VDC M&E Sub-Committee and the VDC Advisory Group should work closely
and openly with project staff to share M&E information and updates. In addition
to relying on the VDC Sub-Committee and Advisory Group for reporting on VDC
progress, project staff should also conduct independent evaluations of the VDC.
48

When an organisation is forming multiple OPSHGs, it is recommended that M&E
should be led by an M&E Officer from the implementing organisation. To ensure
objective assessments are made, the M&E activities should be done by someone
who is not directly involved in the forming or management of the OPSHG and
ideally should be neutral and objective in his/her assessment.
1.40 - Suggested M&E calendar
It is recommended that project staff provide monthly updates on the progress of
the VDC. These monthly progress reports may be provided by field staff and
should also report on whether any VDCs are facing special challenges.
On an annual basis, it is helpful to have an external evaluator – i.e. someone not
directly involved in the VDC forming and management process – to assess the
strengths, weaknesses and progress of the VDC.
Following the project cycle, at the conclusion of the implementing organisation’s
involvement in the VDC, quarterly visits to the VDC are helpful to ensure the
group is sustaining its activities and continues to work towards community
development.
1.41 - Recommended tools for M&E
Conducting site visits
Site visits provide a full picture of the VDC and allow evaluators to speak with a
number of stakeholders involved in or with the VDC, including:
• Township Level – Township authority
• Village Level – VDC Main Committee, village administrator, sub-committee
members, other VDC members, other residents
• Field office – field staff and trainers
Quantitative tools
Quantitative M&E tools seek to collect objective data about the performance of a
VDC, so that they can be compared over time, between VDCs, and with other
similar programs. Basic types of data that could be collected might include:
• Number of members
• Type of activities and number of participants/beneficiaries in each
• Loan data
• Village identification data (income level, health indicators, etc.)
Qualitative tools
Qualitative tools seek to form a better understanding of the VDC’s performance
based on personal accounts and individual stories about what happened over the
life of the VDC and in the M&E period. Ways to record this information include:
• Interviews – speaking one-on-one with people about the VDC.
49

• Focus group discussions – bringing a larger group of people together to
discuss how the VDC went.
• Surveys – including non-numerical and more dialogue-based questions in
M&E surveys
• VDC capacity assessments – The overall capacity development and
effectiveness of the VDC may be periodically assessed using some type of
tool. Examples are included in Annex P.
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