DFID’s livelihoods work in Western Odisha

Review

We awarded a green score and made three recommendations after finding that the Western Orissa Livelihoods Project (WORLP) was successful and contained much of what we consider to be best practice in delivering UK aid.

Findings

The Department for International Development’s (DFID) completed £33 million, ten-year project sought to reduce poverty by building infrastructure and supporting community-based business. It was backed by strong local community involvement and political commitment. Beneficiaries now have increased incomes and more secure livelihoods, and communities are better able to respond to extreme climate conditions such as drought or heavy rains.

DFID developed a strong project based on lesson learning and detailed political analysis. There were sustainable impacts in areas where the project delivered a comprehensive package of support. Results have been mixed, however, in areas where a less intensive approach was implemented. ICAI found that this project could have been improved by a better planned exit strategy, which would, in turn, have offered greater post-project support to the Government of Odisha.

Recommendations

WORLP is completed. The following lessons from WORLP are applicable to DFID’s future programming for livelihoods and climate resilience.

1. It is particularly important for livelihoods and other climate resilience programmes that DFID enables long-term planning and budgeting. DFID staff should be made aware that departmental budgeting cycles should not constrain effective planning. This is especially the case where an intervention’s success depends on community participation and ownership.
2. Exit and sustainability matter. There should be a specific mandatory workstream in all projects, from inception, that plans for exit and sustainability. DFID needs to manage livelihood projects actively right through to the end.
3. The project emphasises the benefits of transparency to and involvement of beneficiaries. DFID should continue to develop greater transparency at all levels, including in respect of project results.