Fostering dignity – Annual report 2018 by Misjonsalliansen

• who • why • what • where • how

Fostering dignity Annual report 2018

Our values:

Close, capable and brave

ph oto

: oddmund kø h n

Andreas Andersen

FOSTERING DIGNITY Since 1901 Mission Alliance has stood alongside the poor in fighting for a better and more worthy life. We believe that God the Creator has given each individual person unique qualities and a unique place on earth that only they can fill.

he undeniable worth of humanity is God-given. It is our calling, therefore, to protect each person, and to stand up against the exploitation of individuals and communities. Mission Alliance’s new vision expresses this calling in the following way: “Fostering dignity in an unjust world”. By uniting our international partners with our supporters in Norway, we have made important progress in achieving our vision. 448 059 people from three continents have participated in our international work. Millions of people have been indirectly affected, and we can only imagine the long-term effects that this will shape. Additionally, thousands of people in Norway have been educated and challenged in different ways to engage in the fight for a more just world.

pho

to : e r l e n d b e r g e

Helge Simonnes

In 2018 we received a record-breaking large share of funds from Digni, as a result of Norad’s new allocation criteria. Our financial framework has therefore increased significantly. There are strict requirements in place regulating public funding based on an organization’s own share of contributing funds. This affects all projects that receive partial support from Digni/Norad. To allow for the possibility of a greater increase in our share of public grant funding, and in order to be able to accommodate funds from other institutional donors, we need to be more successful with our own fundraising efforts. Mission Alliance’s international work is organized to accommodate growth. This means that we can increase the scope of our work in the future so long as we manage to get additional private donations along the way. In 2018 we made an important decision to start working in Nepal. It was a choice that we believe will have significant meaning for many. We have also decided to develop a new area of concentration within entrepreneurship. Our desire is to contribute in providing safe, reliable jobs to people living in poverty. Through this work we will be able to build on our compe-

tence and experience within microfinance and community development. Entrepreneurship has become a central part of our ongoing work in our new strategy for the coming years. The microfinance work is in an exciting phase. Over the years we’ve built up competence in a complicated area of expertise. This experience can be transferred to new institutions in new countries. Some of our microfinance institutions are also contributing financially to our diaconal work. We are thankful to deliver a positive annual report for 2018 and our hope is that it contributes to providing our supporters with renewed motivation for continued engagement – through volunteering, donations and prayers.

Kind Regards, Andreas Andersen, General Secretary and Helge Simonnes, President of the Board

448 059 The number of people that are directly engaged in our projects and participating in our various programs and initiatives, together with their families and close networks that are indirectly affected by or benefitting from their involvement. This number does not include microfinance loan customers, their families, or microfinance employees. If these individuals were included, then the total would be in the millions.

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who

are we?

mission alliance | who are we? 4

why

do we exist?

Mission Alliance is an independent and diaconal mission organization established in 1901.

Diaconia is the term that best sums up and describes Mission Alliance’s work - it represents evangelism in practice and is expressed through compassion, the fight for justice, inclusive fellowship, and the good stewardship of creation.

issional diaconia expresses and conveys God’s radical love for the

world and demonstrates God’s care for the poor, distressed and neglected.

Fostering dignity in an unjust world This is Mission Alliance’s new vision. In an unjust world where the dignity of individuals is threatened and trampled upon, we foster righteousness and nurture progress. This gives us motivation and determination. With inspiration from our values – close, capable, and brave - we have three overall goals:

Share faith Fight poverty Promote justice This is why we exist. This is why we go to work every day. This is why we have missionaries – hands and feet that work in different cultures and under varying circumstances so that poor and marginalized people can have an improved daily life and a secure future.

5 who are we? | mission alliance

what

did we achieve in 2018?

mission alliance | what did we achieve in 2018? 6

organization and mobilization Mission Alliance is dedicated to facilitating community organizing and mobilization in the communities where we work. Civil society organizations come in different forms. Often, they are local, community-based organizations that represent a

specific geographic area, however they can also be smaller organizations that represent a special interest or people group.

1 613

The number of local community organizations that we work together with, providing courses and training. 767 of these organizations have female leaders and 230 were specifically established to assist people with disabilities.

84 825 311 142

The number of local group members actively involved in changing their communities. 1 319 of these members have received leadership training. The number of people that are directly affected by our projects. This includes individuals that were members of loan or savings groups, people who received vocational or skills training, and all others that were project participants directly involved in our initiatives. Our projects also have indirect beneficiaries. The total number of indirect beneficiaries in 2018 was 875 532.

philipphines

organization of local community businesses. One of the challenges in development work is providing opportunity for income. Mission Alliance contributes to this end by offering 7 what did we achieve in 2018? | mission alliance

skills training and assistance in starting local businesses. There’s a lot to be done when you begin a new business, but intentional community organizing allows the local community to gather together, share and benefit from each other’s knowledge, experience and contacts.

school and education School and education are essential tools for people to rise out of poverty. A large part of our work with schools is being supported by donors like you through our child representative program. In some countries, we build schools and housing for

teachers. All children have a right to education, and Mission Alliance is especially concerned with providing access to education for the vulnerable and marginalized.

899

The number of schools and kindergartens that Mission Alliance worked together with in 2018. Education is important, beginning from a young age. Mission Alliance supports kindergartens, schools, extra-curricular activities and grant programs for students. Mission Alliance also works with inclusive education, integrating people with disabilities into the community.

106 890

The number of students involved in Mission Alliance projects. 37 265 children have received education on children’s rights, and 14 258 teachers have received further education and improved their competence as a teacher.

liberia

a boost for the school center in garplay. By building housing for the teachers at Garplay, Mission Alliance has equipped the school center with the human capacity they needed to provide quality education to their 700 students. It wasn’t easy

Education makes up

31 % of our work.

for Garplay to attract enough teachers to their school. Teachers often stopped showing up because it was too difficult for them to find housing in the area, which led to many of the classes being unsupervised and without a teacher for multiple hours a day. The school center now has a new teacher complex on site with four fully-equipped apartments and they have begun to see change. mission alliance | what did we achieve in 2018? 8

inclusion People with disabilities are one of the most discriminated against and marginalized groups of people. Based on the irrefutable worth of all people, Mission Alliance works to ensure that peo-

ple with disabilities are included as equally worthy members of society.

242 496

The number of people that have received awareness training on the importance of inclusion and equality. Through our diaconal identity, we are responsible for asking: “who are the most marginalized and vulnerable people or groups here?”. The answer varies from country to country and from place to place. Women and children are particularly affected by poverty. People with various disabilities are especially susceptible to discrimination and marginalization.

vietnam

courses on inclusive education. Mission Alliance Vietnam is expanding their work with disabled people to the province of Can Tho. We’ve previously helped establish local organizations for people with disabilities but beginning in 2018 we expanded our efforts and began supporting inclusive education as well. Practically speaking, this means that we support 9 what did we achieve in 2018? | mission alliance

kindergartens and primary schools so that children with disabilities are able to attend, and will be included at their local school. We have had a huge success doing this in other provinces. An important part of the project is building the competence of the teachers. Teachers from five schools participated in the first teacher-training course we held, and they learned about the rights of children with disabilities. The next course we hold will focus on the various methods available for teaching inclusive education.

water, health and sanitation Diseases caused by contaminated water take the lives of many each year. Access to clean drinking water and proper

are aslo used for washing clothes and going

hygiene are the foundation for a good quality

to the bathroom. In some locations where no

of life and health. In many places in the world,

water source is accessible, people collect

people lack access to both clean drinking

rain water in large containers outside their

water and toilets. Small streams are often the

home. Investing in an irrigation system is the

only available source of drinking water but

only solution they have to cultivate their land.

75 754

The number of families that have gained access to clean water in 2018. In countries like Liberia, two-thirds of the population lacks access to clean water. Building additional wells in villages has allowed the residents to use their time going to school and work instead of fetching water.

45 595

The number of families that have gained access to a latrine. Nature is often used as a toilet, polluting the water in nearby streams and causing diseases to be spread. Additionally, young girls are left vulnerable when they go out in nature to use the toilet, so building latrines has led to a decrease in violence against women.

bolivia

drinking water for totora and ulamaco. Totora is a small settlement in Luribay county. For many years, people have been moving away from the settlement and as a result the average age of its inhabitants is quite high. The local school has less than 10 students enrolled.

One of the reasons that people are moving out of Totora is because they don’t have access to a clean source of water. The settlement contacted Mission Alliance and applied for support. A plan was drawn up, and we agreed to work together with the community. In the first phase of the project, five water sources were placed in various locations within the settlement and all 36 families now have access to the water they need. mission alliance | what did we achieve in 2018? 10

employment and income Sustainable development entails cooperation between social development and economic development. Mission Alliance supports projects that strengthen food security and income generation. Mission Alliance’s partner countries have a significantly young popula-

tion and a generally high rate of unemployment. To achieve sustainable development it is crucial that youth and young adults have employment and income.

22 744 974 59 830 4802

Households with increased income

New business ventures started in 2018 Members in loan and savings groups

Individuals that completed training in business operations and occupational skills. As a result of the efforts and projects focusing on this issue, local inhabitants have a sustainable income level, agriculture and animal husbandry is being carried out in an environmentally friendly and sustainable way, and the percentage of young adults with employment and a stable income has increased.

agricultural training

cambodia

results in increased income. Ann Sar used to work as a construction worker in Phnom Penh. The lot of land he had was not large enough to cultivate food for his family. A few years ago, he decided to travel home to his 11 what did we achieve in 2018? | mission alliance

province for a fresh start. Ann received training in agricultural techniques and was provided with financial assistance to buy chickens and a clean water supply. Mission Alliance’s partner has provided Ann with tips and advice on how to increase his production and income. “I produce enough to sell at the market, now I’ll be able to send my grandchildren to school and pay off our debt”, says Ann.

church partners Mission Alliance is a multi-denominational organization that works with various types of church communities around the world. We do not build or establish our own churches or congregations, but instead work alongside the local churches that exist already. In many places in the world the church is the best and only civil society or-

ganization in the local community, and local congregations are therefore an important part of the community. The church often has a strong influence among the people and a key role in the local community.

783

The number of local churches that we work together with. 385 congregations have implemented diaconal partners in 2018. Local congregations and church communities are natural partners for Mission Alliance. As a diaconal mission organization, we share our Christian mission with the churches in the countries where we work. The churches represent a sustainable structure whose existence is independent of Mission Alliance and can implement projects in the same way as other local, community-based organizations. In some countries like Brazil, all project work happens through churches, local congregations, or church networks.

brazil 12

fellowship networks inspire pastors. Through pastor support networks, Mission Alliance encourages and inspires new congregations in Brazil. Pastor Paulo Gomez in Sao Paulo, who leads the Mission Alliance partner congregation Igreja Cristao da Familia, has been inviting 20 different pastors to come together weekly for coffee, prayer and discussion on the issues

that their communities face. This pastoral fellowship is giving life and energy to the new pastors and their congregations and is helping them realize their diaconal callings. Through these networks, congregations in the same geographic areas help each other to make a difference in their communities and to inspire each other in daily life and service. “We desire to show the Kingdom of God through each other and to ignite a spark in the local community” explains Bebeto Araújo, the leader of Mission Alliance in Brazil. mission alliance | what did we achieve in 2018? 12

climate and environment Greenhouse gas emissions caused by humans are warming the ocean, melting the snow and ice, and causing sea levels to rise. The consequences are huge for both nature and humanity – especially in poor countries. The poor are extra vulnerable when it comes to climate change. Those that are

least responsible for greenhouse gas emissions are the ones who are most affected by the consequences, for example with changing weather conditions.

19 394

The number of people that have received awareness training on environmental threats and climate change.

Many of Mission Alliance’s projects are in country villages where the majority of the local population works as farmers. Most of the farmers have been negatively affected by climate change. These farmers are receiving training from their local community-based organizations on how to adapt to these challenges.

vietnam

climate-smart partnership On Tan Phu Dong island we’re testing out various models of climate-smart agriculture with the local farmers. We recently visited an agricultural cooperative where the farmers work together to test the alternating cultivation of shrimp and rice. Their 13 what did we achieve in 2018? | mission alliance

experience has proved both positive and negative, but overall this new model has led to more stability and less loss. Because of climate change and unpredictable weather this is a well-suited agricultural model. Mission Alliance will continue to support the small cooperatives in Tan Phu Dong, helping develop climate-smart agriculture models and assisting with product branding to ensure that farmers sell their organic products.

where

do we work?

Mission Alliance works primarily with poor and vulnerable groups.

ecause of our diaconal identity we have a responsibility to ask “who are the most vulnerable and disadvantaged people or groups?” The answer varies from country to country. Women and children are particularly affected by poverty. People with disabilities are especially exposed to marginalization and discrimination. In many places, ethnic minorities and indigenous people are deprived of their rights and subject to discrimination and poverty. Diaconia is the term that brings together and describes Missions Alliance’s work. The overarching goals for our work are to share our faith, fight poverty, and promote justice.

ECUADOR Mission Alliance works in vulnerable parts of the city with bad infrastructure, and high rates of violence and drug abuse – even among children as young as 6 years old.

BOLIVIA

BRAZIL

A significant per-

The favelas in

centage of the popula-

brazil are complex areas,

tion are indigenous people

where underprivileged

whom have been oppressed

children and teenagers live

and discriminated against

in an environment of high

for hundreds of years and

unemployment, substance

often live in difficult

abuse, violence and

conditions.

exploitation.

mission alliance | where do we work? 14

SIERRA LEONE Sierra Leone has suffered a long, bloody civil war along with their neighboring country of LibeCHINA ria. During the war, schools, Mission Alliance’s projehealth stations and hoscts in China are directed topitals were burned wards the vulnerable groups down. of society: Poor farmers, minorities, and people with disabilities.

PHILIPPINES Half of the population are under 10yrs old. Many children quit school early. The Philippines are prone to natural disasters, and the poor often lose their source of income.

NEPAL Nepal is Mission Alliance’s newest partner country. Our local partner is United Mission to Nepal.

LIBERIA In Liberia, twothirds of the population have no access to clean water and half of the population under 25 years have not received an education.

15 where do we work? | mission alliance

CAMBODIA Wealthy urban citizens get richer while farmers in the country suffer in poverty. The country is struggling with commercial development. The largest industries are textile factories and tourism.

VIETNAM Farmers in the Mekong region have experienced dramatic crop loss due to climate change. Mission Alliance is committed to supporting climate change resilience in Vietnam.

gender and equality Poverty, climate change, conflict, inequality, and economic downfall affect women to a greater extent than men. Women make up the majority of the poor and are more vulnerable to poverty because they are denied formal rights in many

places in the world. As a goal, we aim to strengthen and empower the position of women and girls in the world.

249 507

The number of people that have received awareness training on gender and equality. Equality is a human right. Being conscience of the gender perspective in our work ensures that women and men and girls and boys receive access to and control over their resources and opportunities. Gender equality is one of our crosscutting issues – a way to ensure that we contribute to positive change for both men and women. In many of the countries where we operate we actively work to reduce gender-based violence and other forms of gender-based discrimination, in both households and communities.

ecuador

center for victims of violence Mission Alliance supports a safe house center for women who have been victims of violence. The center, which is connected to our MA office in Ecuador, offers counseling and legal aid. In Ecuador, 61 % of women have been the victim of emotional or sexual abuse,

and the majority of these women have experienced abuse from within their own families. Sharing our facilities with CEPAM has allowed their conselors to build close relationships with the families in our area. In the four months that the center was open before Christmas, they welcomed in 498 women and 105 men – a total of 603 individuals. We are looking forward to providing help and support to even more people as they flee from abusive relationships. mission alliance | what did we achieve in 2018? 16

microfinance AMAS is a small and vulnerable enterprise, in regard to both capital and people, and has used 2018 to find good solutions to the evident challenges they face. The board in AMAS has begun searching for external capital in order to make more robust investments. They’ve been working with solutions such as the trust fund model – where one invests money in the private market and assumes all management responsibility. This allows them the possibility for substantial growth and eventually the opportunity to expand their work in additional countries. AMAS desires to make a greater impact. From the get-go, AMAS’s goal was to be self-financed through dividend and management fees from the bank. This has not been successful. In Bolivia, capital exports have been a challenge and foundations like Diaconia FRIF are not permitted to take out dividends. This is also the case in Vietnam. Banco D-Miro in Ecuador has begun earning money, but the agreement with lenders in regards to restructuring meant that they were unable to take out dividends in 2018. amas employees: (2018) Svein Arne Lende, CEO/Manager Christopher Andersen, CFO/Finance Manager Hugh Sinclair, COO of AMAS Group Thomas Klungsøyr, Investment Director Kjetil Abrahamsen, Marketing Manager

board: Lars Langsrud, Chairman, Hilde Høksnes, Roy Mersland, Magne Gundersen, Oddvar Rønsen, Jørgen Haug, Andreas Andersen

17 microfinance | mission alliance

The bank in Liberia has not yet began earning money, so they are still dependent on Mission Alliance. Mission Alliance, however, considers AMAS and the four banks as crucial enterprises – in regard to both turnover and as important tools in the fight against poverty.

Number of Number of

Par 30

% ,41

Par 30

Number of Number of

savingssavings accounts accounts

43 822 43 822

% ,41

Par 30

0,0 9

Par 30

Late Late payments: payments:

banco d-miro

savingssavings accounts accounts

Late Late payments: payments:

4073 4073

diaconia frif

Number of Number of

loan customers: loan customers:

2727 325 325

Number of Number of

loan customers: loan customers:

6666 514 514

Total lending Total portfolio: lending portfolio:

USD 95 USD 036 95369 036 369

USD 157 USD202 157827 202 827

2,2 1

Par 30

2,2 1

Par 30

% 94

Par 30

Number of Number of

savingssavings accounts accounts

70 173 70 173

Late Late payments: payments:

banco d-miro achieved positive results in 2018. The bank has good financial indicators and the financial authority in Ecuador provided quality feedback on how AMAS followed up with the bank post-earthquake. Banco D-Miro has obligations in regard to the down payments over the next few years. In 2020, 20 million USD in loans is due to be paid back to international loan providers. This challenge presents us with three options: Increase the percentage of local saving, attract new lenders and normalize the relationship with existing lenders, or renew and extent the agreement. AMAS is aiming to strengthen the bank in an increasingly competitive market.

Late Late payments: payments:

diaconia frif has another good year behind them and was once again named Bolivia’s best financial development foundation (IFD). They’re actively working to transform Diaconia from a foundation to a bank, but the process towards becoming a regulated bank institution is moving slowly. The first step in becoming an established bank is applying for a savings license. However, changes to the regulations have resulted in unclear signals and have shaped uncertainty. Diaconia has also begun an exciting innovation project in 2018. The project is working with technological solutions for credit processes, among other things. microfinance | mission alliance 18

diaconia mdi

Number of Number of

loan customers: loan customers:

227 4343 227

Total lending Totalportfolio: lending portfolio:

Number of Number of

loan customers: loan customers:

1042 1042

Total lending Totalportfolio: lending portfolio:

USD 12 USD 17612 796 176 796

Par 30

0,0 9

Late Late payments: payments:

mom is a well-managed bank with no appreciable loss. MOM has many loan customers but provides relatively small loans. The challenges MOM faces are Number of Number of due to the fact they do not have a valid loan customers: loan customers: bank license. Due to new bank regulations, it is not possible for a foreigner to own MOM. Mission Alliance has therefore decided to transfer ownership when Total portfolio: lending portfolio: MOM applies for lending aTotal license. The Women’s

27 27 325 325

USD 95 USD 036 95369 036 369

Union will be the new sole shareholder in the bank. Although Mission Alliance will no longer be the legal owner of MOM, we will still provide profession support and have access to loan services. Par 30

% % 19 microfinance | mission 94alliance 94 5,

Par 30

% ,41

Par 30

Number of Number of

savings savings accounts accounts

43 822 43 822

% ,41

savings savings accounts accounts

4073 4073

Late Late payments: payments:

with the presidential election in 2017 came great expectations for change in Liberia. These expectations have not yet been met, and we are reminded daily of Number of Number of how difficult it is to run a bank in Libeloan customers: loan customers: ria. In 2018, Diaconia MDI had modest growth. There are multiple aspects of the local society that make business challenging: Loan defaults have increased Total lending Total portfolio: lending and there is a high turnover of bank staff.portfolio:

6666 514514

USD 157 USD 202 157827 202 827

In the future, the bank will work with larger companies, workshops and agricultural enterprises – scalable measures that are capable of generating wealth creation in the community. Par 30

Par 30

2,2 1

Number of Number of

2,2 1

0,0 9

Par 30

USD 855 USD352 855 352

mom

Par 30

how

we work

ission Alliance works in 9 countries in South America, Asia and Africa. We have expatriates in most countries, and in most cases we work through our own country offices, together with many strategic partners who have local knowledge and competence. We work together in a responsible and trustworthy way, abiding by key standards and principles to ensure quality in our work.

mission alliance | how we work 20

diaconia We will ensure that the needs of the most vulnerable are met. Through our projects we want to contribute to an inclusive society that listens to and provides space for the most vulnerable and outcast in the community.

integration

local ownership

We take into consideration the unique challenges faced by our target groups, including spiritual, social and economic difficulties. We want to contribute to civil society organizations, municipalities, and churches finding solutions to the needs and questions of the local residents.

We believe that people are the experts of their own lives! They know best and have the right to decide their own priorities and make decisions for their own development. Ownership is the key to project sustainability.

responsibility We want good relationships with the target groups and local partners. This ensures transparency and open communication, encouraging feedback and meaningful development.

competence Together with our partners and local communities, we want to strategically solve challenges linked to poverty and injustice. We need systems in place to gather relevant data, participate in networks and ensure that local communities are competent in implementing projects.

equality

empowerment

Women and girls are generally more vulnerable to poverty and discrimination. We believe that all people have a right to be heard, respected and to have access to information regardless of their social status, gender or ethnicity.

People and local communities should be able to influence their own lives and development. We can contribute to this by offering trainings and capacity building.

justice Mission Alliance practices the justicebased approach in our work – directing our attention to the causes of poverty and injustice instead of just dealing with the symptoms.

21 how we work | mission alliance

sustainability Sustainability is the key to ensuring that that the long-term effects of a project persist even after Mission Alliance leaves the area. To guarantee sustainability there needs to be a healthy relationship between context, needs and organizational capacity (at all levels).

Norway’s first

sponsorship program is 60yrs old Mission Alliance's child representative program (CRP) began in Taiwan in 1959, after Norwegian missionaries were inspired by the American organisation World Vision. Nearly all of our first sponsors lived in Stavanger.

1959

Mission Alliance started the CRP program in Taiwan, using our work with children who had polio as a starting point. The price of being a sponsor was based on the cost of polio treatment: 70 crowns a month, which is about 800 crowns a month today.

1976

The sponsorship program was introduced in the Philippines and grew rapidly in Manila. It is the oldest active CRP program Mission Alliance has today.

1979

Mission Alliance started working in South America, specifically Bolivia, and the CRP program was an important part of our work from the get-go.

Mission Alliance has Norway’s oldest sponsorship program, and since 1959 we’ve had child representatives in many countries.

1992

Forty years after being banned from China, Mission Alliance was permitted to continue the work we began in 1901. We established CRP in China.

1994

The sponsorship program was started in Ecuador.

mission alliance | child representative program 22

T an s fo rm