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Myanmar Access to Rural Credit (MARC)

Pact Global Microfinance Fund-PGMF

Discussion on Fundamentals of
Progress Out of Poverty Index
(PPI)
Reference:
Training Notes on Fundamentals of
Using the PPI by Grameen Foundation
To Myanmar Access to Rural Credit
September 10-12, 2014
Yangon, Myanmar

Project objective & Target beneficiaries


MARC project
Improve the livelihoods and food security of 54,000 rural poor,
marginal farmers and non-farming individuals
LIFT
One of the LIFTs outcome indicators is to increase the income
of rural households and LIFT also mentioned some important
outputs in its strategy such as Increased sustainable
agricultural production by small holder farmers Increased
employment in non-farm activities for small holders and
landless and Increased access to affordable financial
services by small holders and landless.

At the end of the discussion, the participants will


be able to:
Explain the relationship between PPI and Social
Performance
Practice the use of PPI in the field

Social Performance

Social
performance
management
is standard business
practice and considered
fundamental to
achieving the social
promise
of microfinance.

Mission
Social
Performance
Financial
Performance
Performance Management

Measuring SP using the PPI


**

Goals
Objectives
Range of products and
services

System use
Service delivery
Human resources

ctcStPSM
TraTinraininging
*Graphiiccffrroom
mIm
Impp-A-A
PM

What is your Mission?


Mission statement

SPM Results

Write your own Mission


Statement

Are we reaching our


TARGET CLIENTS?

Analyze its
components by
answering the
questions on the right

Are we MEETING THEIR


NEEDS?
Are we
CHNAGING their
LIVES?

Measuring SP using the PPI


**

P
P
I

Goals
Objectives
Range of products and
services

System use
Service delivery
Human resources

ctcStPSM
TraTinraininging
*Graphiiccffrroom
mIm
Impp-A-A
PM

The Universal Standards for SPM


There are 21
standards,
organized
into six
sections.
They bring
together
many of the
existing
initiatives in
the field

PPI
PPI helps
an
institution
monitor its
social goal
of reaching
the poor
clients

Measurement is Key to Managing


Social Performance

Progress out of Poverty Index by


Grameen Foundation

2 common ways to measure poverty


Direct measurement
Use of indicators such
as income, household
assets, calorie intake,
etc.
This methodology is
difficult to validate
and collect

Indirect
measurement
Use of proxy indicators
such as condition of
the house, access to
services
Experts scorecard and
the PPI are examples

What is the Progress out of Poverty


Index (PPI)?
PPI is an indirect poverty measurement tool for
organizations and businesses with a mission
to serve the poor
Inexpensive and easy to collect
Derived from representative national
household income and expenditure surveys
Comprised of simple, non-financial indicators;
easily verifiable; takes 3-5 minutes for field staff to
collect

Benefits of using the PPI


Measures poverty outreach of the institution
client poverty levels
Support product development and its review to
benefit the poor
Track changes in clients poverty levels over
time
Report compliance to social performance
standards i.e. SPTF, MiX market, donors

Poverty outreach
80%
65.3% 67.1%

70%

% Living Below Poverty


Line

60%

50%
40%
30%
20%
10%

7.2%

10.6%

10.1%

14.1%

0%
Below NPL

Below $1.25/day

BTPN Clients Poverty Rates

Below $2.50/day

Indonesia Poverty Rates

The PPI Components

Progress out of Poverty Index by Grameen Foundation

50

What happens
If you change a
question in the PPI?
If you change the
scoring in the PPI?
ITS BROKEN!

How to use the PPI?

53

PPI collection process

PPI Fundamentals: Basic use


Indicators
Indicator
1. How many people aged 0 to 17 are in the household?

2. What is the household's principal occupation?

55

Client Response

Points
Possible response

Five or more
Four
Three
Two
One
None

A.Labourers (agricultural, plantation, other farm), hunters,


tobacco preparers and tobacco product makers, and other
labourers
B. Others
C.Professionals, technicians, clerks, administrators, managers,
executives, directors, supervisors, and teachers

Points
0
4
8
13
20
27

Total

8
14

PPI Fundamentals: PPI score


Possible response

Indicator

1. How many people aged 0 to 17 are in the household?

2. What is the household's principal occupation?

Five or more
Four
Three
Two
One
None
A. Labourers (agricultural, plantation, other farm), hunters,
tobacco preparers and tobacco product makers, and other
labourers
B. Others
C. Professionals, technicians, clerks, administrators, managers,
executives, directors, supervisors, and teachers

Points
0
4
8
13
20
27

Total

8
14

A. No

B. Yes

A. Firewood and chips, charcoal, or none


B. Others
C. LPG

0
5
17

5. Does the household own a television?

A. No
B. Yes

0
6

6. Does the household own a bicycle, scooter, or motor cycle?

A. No
B. Yes

0
5

7. Does the household own a almirah/dressing table?

A. No
B. Yes

0
3

8. Does the household own a sewing machine?

A. No
B. Yes

0
6

9. How many pressure cookers or pressure pans does the household


own?

A. None
B. One
C. Two or more

0
5
9

10. How many electric fans does the household own?

A. None
B. One
C. Two or more

0
5
9

3. Is the residence all pucca (burnt bricks, stone, cement, concrete,


jackboard/cement-plastered reeds, timber, tiles, galvanised tin or
asbestos cement sheets)?
4. What is the household's primary source of energy for cooking?

56

Total:

4
5
6
0
3
0
0
5
31

Thank You
Data Entry and analysis series will be completed by
MARC team for Yr-2015- PPI.