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% pop. below % pop. below poverty line $1/day (Table 1.1) (Table 1.1) 60% 51.70%
Trickle Up Mali
Friendship Bridge Guatemala
FFH/RCPB Burkina Faso
Pro Mujer Peru
35% (200001); 24% (2004-05)
188.8.131.52 Geographic target area within country rural provinces Umutara, Gikongoro, Gitarama, Byumba, Butare and Kigali Ngali (Rural Kigali) Mali, a landlocked country in West Africa that covers 1.2 million square kilometer, has an estimated population of 11.4 million, which is growing at 2.2% per year. The overall population density is only 10 people per square kilometer. Over 80% of its population is rural and 46% is under 15 years old. Almost 60% of Mali's land area, corresponding to the three northern regions of Timbuktu, Gao and Kidal, is semi-arid or arid. Two of Africa's largest rivers, the 900-kilometre Senegal River and the 1 600-kilometre Niger River, flow through the country. In addition to fishing and dry season grazing areas, both rivers have vast floodplains where crops are cultivated; crops are also grown around permanent lakes and depressions. WEP started out in 21 of Nepal's 75 districts in Southern Nepal: these include 19 (all but one, Dang) districts in the Terai as well as Surkhet and Ilam (Hill districts). Almost the entire target area is rural and densely populated. The Terai is the most densely populated region of Nepal (254 persons per square kilometer, versus 125 for country); this population density has almost doubled in the last two decades as a result of the north-south movement of the population and immigration. The Terai belt accounts for almost 60 per cent of Nepal's population.
Guatemala is ranked 118 in the human development index. According to the World Bank, 56.2% of Guatemala’s population lives below the poverty line. Poverty is widespread in Guatemala; but the indigenous farmers are the poorest. The poorest regions in Guatemala are the ones heavily populated by indigenous people, such as Alta y Baja Verapaz, Totonicapán, Sololá, Quetzaltenango, Huehuetenango, San Marcos and El Quiché. 89.5% of Guatemala’s indigenous population is poor; 76% is extremely poor; 10.5% classifies as not poor.
Burkina Faso is a landlocked country in the Sahelian region of West Africa. Its population of 13.2 million inhabitants occupies a territory of 274,000 square kilometers. Much of the population is concentrated in the Central Plateau region and around Ouagadougou
Nepal is one of the poorest countries in the world, with 40% of its population living below the poverty line. Located in southern Asia, Nepal is landlocked and strategically wedged between two powerful neighbors, China and India. At close to 150,000 square kilometers, Nepal is slightly larger than the state of Arkansas. Geographically the country is divided into three distinct regions, the tarai flat plain of the Ganges River in south, the central hill region, and the rugged Himalayas in north. Mountains cover 75% of Nepal, which is home to 8 out of 10 of the world's tallest mountains, including Mount Everest. The estimated population of Nepal in 2005 was more than 27.6 million, with a growth rate of 2.16% and a life expectancy of 60 years.
According to World Bank, out of a total world population of 6 billion, a total of 1.2 billion people, live on less than $1 per day (World Bank, 2004). The majority of them live in Asia. Poverty is considered affecting over 40% of the population of South Asia. India alone is said to host about one third of the world's poor. 70% of India's over 1 billion inhabitants live in rural or semi urban areas. 26% or 260 million people live below the poverty line of $1 per day (World Bank, 2004). Poverty and rural development remains the number one issue in India. Government estimates show that over 250 million people are left without proper access to credit despite a network of 33 thousand rural and semi urban branches of commercial banks, 14 thousand branches of Regional Rural Banks (RRBs) and 92 thousand outlets of cooperatives (Planet Finance, 2002). The poorest people very often do not comply with the norms that banks set for accessing credit. They neither have salary certificates nor the required collateral to show as security against the loan. In India, the poorest citizens access credit mostly through informal channels such as the village moneylenders who lend at very high interest rates whereby the result is that the poor therefore remain perennially debt-ridden which ultimately results in them loosing their dignity. To date in India, over an estimated 8 million poor people (mostly rural women) benefit from microfinance services (Chakrabarti, 2004), thereby leaving a vast unmet demand for developing credit, savings and insurance activities which is termed as microfinance services targeted at what is until today referred to as the nonbankable sector. The perpetual dependence of the rural poor on various informal sources of credit, widespread unemployment, illiteracy and nonavailability of technical support to such households demonstrate the high level of demand for credit. Estimates of the demand for credit in the rural areas, particularly among the unorganized workforce and the women vary from at least US$ 3.3 billion on the basis of a minimum need of US$ 44.4 per family to US$ 11.1 billion (Planet Finance, 2002). The latter estimate envisages that approximately 75 million households
The Livelihood and Economic Enhancement of Poor (LEEP) program of CCF India operates in 54 Districts in 16 States and Union Territories (UT). Collectively, the states where LEEP operates represent 68.9% of the population of India. A map which shows the states where CCF India operates is included as Appendix 1. At the current level of funding, each of LEEP’s 74 partners serves about 1,000 participants that are typically located in a clustered area of 20-30 villages.
Peruvian territory covers a surface area of 1.285.216 km². A total of 52.1% of the population lives on the coast, while 36.9% live in the Andes and 11% live in the Amazon. The Peruvian population currently numbers 27.2 million people. The average population density is 21.2 inhabitants per square kilometer, with a growth rate of 2.6% a year. As a result, the Peruvian population is forecast to increase by more than half a million people per year. In Peru, state power has been sub-divided into 24 regions, with the capital being the Lima Region. Pro Mujer began its activities in Peru in the Puno Region, which is located in southern Peru (near the border with Bolivia). Pro Mujer currently works in four regions (Puno, Tacna, Moquegua and Apurimac), with activities in seven branch offices.
Behind the Veil targets rural embroiderers in specific districts of three provinces: Multan in Punjab; Quetta in Balochistan; Interior Sindh: especially Thatta and Hyderbad. The program links women to buyers in urban areas of these districts as well as to markets in Karachi (Sindh) and Islamabad (Punjab).
ABA is active in the governorates of Alexandria since its inception and, since 1997; it expanded its geographical coverage to other neighboring governorates: Kafr El Sheikh, Behira, Matrouh and Menoufia.
Kenya, Nyanza Province, Suba District: Administratively, Suba district is divided into five administrative divisions, Mbita/Rusinga Island; Gwasi; Mfangano; Central and Lambwe. The district covers as area of 1,055 square kilometers, of which three quarters is covered by Lake Victoria. The district is predominately rural, with a mix of small scale farms and fishing communities in the divisions bordering or part of Lake Victoria. Kenya BDS operates on 17 beaches on Rusinga and Mgangano islands: Rusinga (Nyagina, Luanda Rhombo, Litare, Kolunga and Nyachebe, Gumba, Tabla), and Mfangano (Sena, Wakula, Nyawalongo, Milundu, Konyahera,Yokia, Ugina, Mauta, Mrongo and Nyakweri). The program serves rural island communities. Rusinga Island can be reached by a causeway linked to Mbtia Point the most urban area in the district; however the roads to Mbtia are poor and often unaccessible during the rainy season due to flooding. Relative to other districts in the Province Mbita is more of a small town than a city and offers few services.. Mfangano island is reached by boat or air. From both islands it takes approximately 1.5 days to travel to urban areas and back, including the Homa Bay district which borders Suba district and is the location of the nearest bank and government health center.
184.108.40.206, 220.127.116.11, 18.104.22.168 Poverty data on target area 65.7% below national poverty line; 45.8% in extreme poverty; Extreme poverty by province – Umutara (41.9%), Gikongoro (69.7%), Gitarama (44%), Byumba (56.1%), Butare (64.4%), Kigali Ngali (59.9%) Mali is one of the world's poorest countries and an estimated 88% of the poor live in rural areas. Women are more affected by poverty than men; their access to health services is extremely precarious. Of women over 15 years of age, 80% are illiterate and cultural norms often limit their access to information, resources and participation in decision-making. Chronic hunger affects at least one fifth of the population and malnutrition is widespread. TU operates in three of the four regions with highest poverty incidence: Mopti, Timbuktu, and Gao. The choice to target Northern Mali was based not only on the fact that this region is the poorest of the country, but also the least served by microfinance (and other development) programs. Mopti is the region with the highest incidence of extreme poverty (38.1%). Timbuktu also has a high rate of extreme poverty (26.4%), whereas Gao has a relatively low rate of extreme poverty (11.1%).
The Nepal Living Standards Survey (NLSS) was conducted in 1996 and again in 2003-4. Central Bureau of Statistics conducted Nepal Living Standard Survey over all Nepal in 1996 with introduction of ultra poor. The survey was comprehensive and also micro nature. The survey measured 42.0% as national average of poverty incidence in 1996 out of which the poor was 24.9% and the ultra poor was 17.1 % regarding the defined poverty line. The poverty line is set to the rupees per person a normal household will need to buy a normal basket of food that contains 2124 kcal per day, plus normal additional spending for a poor household. The poverty line varies between regions depending on local prices. In rural Eastern Terai the poverty line is 6,000 rupees, which for a six-person household means 3,000 rupees per month. A normal wage in Kathmandu for casual workers is now in the range of 100-200 rupees, and in rural Terai it is in the range of 50-120 rupees. As casual laborers do not work every day, a poor household will need at least two working members, who are employed large parts of the year to cross the poverty line. The Women Empowerment Program targeted all but one of the Terai districts. Poverty data by district are not available. The most recent Nepal Living Standards Survey (NLSS) was conducted in 2003-4, and found that 31% of the total population was living below the poverty line, with a slightly higher figure, 35%, for the rural population. The poverty headcount rates in Rural West Terai and Rural East Terai were 38% and 25% respectively.
The TU program targets Mali's Northern rural regions of Timbuktu, Gao and Mopti. Despite their productive potential, communities in northern Mali are the poorest in the country. Poverty in the northern regions is characterized by environmental degradation, lack of infrastructure and chronic food deficits. The conflicts in the north that occurred during the 1990s have also led to insecurity, which perpetuates chronic poverty. The rural poor are especially vulnerable to the fragile environment; many are food insecure. With few assets or access to physical or financial resources, they depend on income-generating activities with low productivity. In addition, they have limited access to basic social services, primary health care, safe water, useable roads, electricity and communication services.
The national poverty line in Burkina Faso is defined as the amount of income needed to satisfy a certain level of well-being. In practice, it is computed to ensure the caloric consumption required by a normal adult (2,300 calories). The following table provides poverty measurement data from the three most recent household surveys conducted by INSD. While urban poverty has been increasing, the vast majority of the poor can be found in rural areas, while over half of the rural population lives below the poverty line. In 2003, the regions most affected by poverty (in terms of incidence) were: Northern; South Central; Central Plateau; Boucle du Mouhoun; East Central; and Southwestern. When looking at contribution to overall poverty, the regions that contain the greatest number of the poor are the Boucle du Mouhoun and Hauts Bassins. RCPB has near-complete national coverage, and will expand to the three remaining provinces by 2010. The regions described above are already covered. The organization has chosen to make CEE a standard component of its product offerings when opening new cooperatives. The network's expansion model takes into consideration the eventual profitability of cooperative sites, in order to maintain the overall financial viability of the network. The following information applies to the country as a whole: 27.2% of the population lives below a dollar-a-day, while 71.8% lives below two dollars-a-day. Rural / urban differentiation on these measures is not available. 46.4% of the population lives below the poverty line (52.3% in rural areas); the median below the poverty line is not available.
The rural hill and mountain regions of Nepal suffer from a heavy concentration of poverty. Many of these areas are not accessible by road and have little or no infrastructure. Most of these areas are also under the control of Maoist rebels and therefore inaccessible to government relief and development programs. This combination of factors results in chronic food deficits in the hills and mountains. While extreme poverty has typically been a rural problem in Nepal, with the Maoist insurgency, many poor people have migrated to cities, thus compounding the problem of urban poverty. The majority of Nirdhan Bank's clients live in the tarai lowlands of south central Nepal, a region which is relatively better off than the western hills or the mountains. However, Nirdhan has expanded its operations and developed specific poverty focused products for the rural hill regions of central Nepal. Nirdhan is currently limited by the Rastra Bank to operating in 10 regions. As soon as they receive authorization, they plan to expand their area of operations to include more rural hill regions. Nirdhan Bank currently operates in ten districts with a total population of about 6,000,000 people.
Poverty has been endemic and persistent in Tamil Nadu. The percentage of people below poverty line declined from mid-1950s to early/mid 1960s, but went up later. From the early 1960s to 1980s, about 50% of Tamil Nadu population was continuously below the poverty line (Tamilnadu People's Forum for Social Development, 2001). In 1993-1994, Union Planning Commission estimates, the poverty rate has come down to 35%. Despite this positive progress, rural and urban disparities persist. While in 1973-1974, rural poverty (57%) was higher than urban poverty, in 1993-1994, urban poverty (39.8%) exceeded rural poverty (32.5%). The situation of the urban poor in slums has steadily deteriorated, leading to serious deprivations and dire lack of basic services in slums. Almost 25% of urban people in Tamil Nadu live in slums that grow at about 4.5% per annum (Tamilnadu People's Forum for Social Development, 2001). According to the Ninth Five Year Plan of Tamil Nadu (1997-2002), Tamil Nadu is an educationally advanced state with a general literacy rate of 62.66% compared to the national average of 52.21%. It ranks third among major states with regard to general literacy and in female literacy rate. However, according to the NSS Organization survey conducted in 1998, there is disparity due to gender: 80% of the males are literate whereas only 60% of the females are literate. There is also disparity due to social status of the population. The literacy rate for the dalit, especially female dalits is lower than the state average: 39.5% for dalits and 29.5% for dalit women, while the state average is 63%. Although poverty is persistent and prevalent in the state of Tamil Nadu, it is not the extreme poor state. ASA is planning to expand its services to serve the unmet demand of the poorest in the neighboring states.
The poorest areas in India are those clustered in the Bimoru States, whose populations are highly represented by indigenous tribes. Traditionally, CCF-India has worked, with the exception of the North East and Kashmir, all over the country. In July 2004, CCF India undertook a major study, e.g. Identification of Backward Areas in India, to help it identify those districts most in need of interventions. District level analysis was chosen over State-wide, to allow for a more precise identification of target areas. Identification of backward districts assured that a poor district would not be excluded on the grounds that the State it was in is relatively more developed. The exercise was also useful in identifying clusters of backward districts that are spread across more than one State, making operations more efficient for CCF. Only state wide data, provided in section 22.214.171.124, is available for those falling under the national poverty line. Consistent with CCF’s child centered focus, the ranking methodology selected indicators that could provide insights into the “capability deprivations that are central determinants of the status of people and especially children.” The following are the indicators CCF-India used to develop an index of development and subsequently rank the 225 poorest districts in the country. Health Infant survival rate. Education Female literacy rate Income Monthly per capita expenditure Social Status Sex ratio among children; % of Scheduled Caste /Scheduled Tribes Access to facilities/markets % urbanization The study revealed that nearly three quarters of the most backward districts (54 out of 75) are in the three Bimoru States of Madhya Pradesh, Orissa, and Uttar Pradesh. If Rajasthan is added, two thirds of the backward districts are covered. Finally, if Chhattisgarh and Jharkhand are added, 144 of the 150 most backward districts are covered. The resulting rank order of backwardness was used to cluster districts into operationally manageable units. At the end of the process, CCF- India – and by relation LEEP, identified 122 districts or 54% of the total 225 most backward as priority districts for program intervention.
Figures from the National Statistics Institute , (INEI) show that poverty in Peru is very significant given that 45% of the population is considered poor and more than 16.1% is considered extremely poor. By geographic region, the greatest poverty levels continue to be located in the jungle and the highlands, with 63.4% and 56.6% respectively, while on the coast the level is much lower (28.7%). At a department level the poorest departments in the country located in the highlands or in the jungle are: Huancavelica 88.7%, Ayacucho 78.4%, Puno 76.3%, Apurimac 74.8%, Huanuco 74.6%, Pasco 71.2%, Loreto 66.3%, Cajamarca 63.8%. / According to the poverty map, the regions of Puno and Apurimac have poverty indexes that indicate that between 40% and 60% of their populations live below the poverty line, while in Tacna and Moquegua 20% of the total population lives below the poverty line. In the past two decades, trend of migration has begun from Andean zones toward urban zones considered to be trade centers such as Tacna, Arequipa, Moquegua and Ilo, expanding the urban structure of these cities and forming new peri-urban or urban marginal zones with low human development indexes. / Of the 24 regions, two regions (8.3%) have more than 60% of their total population living below the extreme poverty line. Moreover, there are seven regions (29%) which have between 40% and 60% of their total is below the extreme poverty line; six regions (25%) have between 20% and 40% of their population below the extreme poverty line and nine regions (37.5%) have less than 20% of their total population below the extreme poverty line. Poverty rates by geography, 1999: Baluchistan and Sindh: 25%, Punjab: 33%, NWFP (North West Frontier Province): 33-45%, AJK: 25%, Jammu & Kashmir: unknown. Program Sites and level poverty rates (1999): Hyderabad, Sindh: 25% Thatta, Sindh: 25% Quetta, Balochistan: 25% Multan, Punjab: 33% National poverty rate: 35% (This is from a different report and may not be completely comparable)
The EHDR  found that poverty is localised and masked by averages. The distribution of wealth groups between rural and urban settings was significant. The poor live in primarily rural areas; the majority have no social security, are significantly not connected to the piped water, not linked to sewage system and drains, have no flushes and their households are poorly equipped (74% of the poorest households have no refrigerator). Over a third of the heads of households in the poorest quintile are agricultural workers (36.2%) and another 11.3% are peasants farming their own land. Almost half (47.2%) are ultra poor rural households. Poverty is found to be concentrated in Upper Egypt. ABA-SME was created by an association of businessmen from Alexandria to help the development of the governorate. Obviously, its first area of activity was the governorate of origin it self. The expansion strategy was guided by geographical proximity to Alexandria rather than by level of poverty of the areas. When it was possible to expand activity, ABA-SME has chosen the surrounding governorates for evident reasons of easier operational follow up of the branches. As a consequence of a past law confining association’s activities to one governorate, the majority of MFIs are specialized by geographical area. Only banks have a national coverage. ABA-SME’s target area falls within an area where the poverty incidence is not the most severe. 4 to 10% of the population of Alexandria, Kafr Echeikh, Behira and Menoufia are considered to be poor. While between 10 and 25% of Matrouh’s population are considered to be poor. With half the national proportion of poor population and compared to the poorest region of the country (Upper Egypt), the target area (mainly Alexandria and Kafr El Sheikh) seem to be less affected by poverty. Though, with a Gini coefficient higher than Menoufia and Behira, these two governorates show inequalities in the income distribution. Even though Alexandria seems wealthier (or less poor) with the lowest percentage of poor population among the four governorates, it has the second highest share of ultra poor. The hypothesis of inequlity in income distribution is confirmed by a Gini coefficient, by 3 points higher than the national level. Menoufia and Behira, the more rural governorates (table 2) show an assumed correlation between rural areas and incidence of poverty. Behira seems to have a homogenous poor, rural population while Menoufia has a better off, also homogenous population.
Per the poverty mapping, Nyanza Province contributes the third largest number of very poor people to Kenya's total. Similar to the Western Province, which is the poorest province in Kenya, between 60% to 70% of the population (headcount index) in the vast majority of the districts in Nyanza Province live below the national poverty line. The design for the omena value chain program balances poverty targeting with economic potential and the promise of scale in terms of the numbers of very poor women it could work with. This enables the program to target the very poor effectively by integrating them into a profitable industry and providing significant increases in their incomes. It also allows for greater expansion of the program, since by partnering with the private sector the program operates with few subsidies, while reaching larger numbers of the very poor through private investment. Suba district was of interest given that it is one of the poorest districts in Kenya. Equally important was the role that the district plays in Kenya’s profitable fishing industry. The district supplies 25% of the total fishing catch for Lake Victoria and is the largest source of fish for Kenya, pumping over 3.5 billion KES annually into the Kenyan economy. Fishing provides 10,000 direct jobs in Suba district and another 20,000 indirectly. The main fish harvested from Lake Victoria are nile perch, tilapia and omena, otherwise known as minnow. The omen value chain was ultimately choose for the program, since it would enable very poor women working at a near subsistence level drying and selling omena to upgrade to commercial production. Another important factor in choosing to work in the omena value chain was the presence of the firm Promisdor, which offered the women affordable financing and a guaranteed market for their product if they would agree to meet its quality and delivery standards. This lowered the risk for the women to upgrade their production while providing them with the needed investments. It also ensured the sustainability and expansion of the program since it is driven by the business relationship between the women and Promisdor.
126.96.36.199 Determining factors about poverty rural location, household headed by widow or children, lack of education, ill health, lack of access to clean water, land ownership, conflict Despite their productive potential, communities in northern Mali are the poorest in the country. Poverty in the northern regions is characterized by environmental degradation, lack of infrastructure and chronic food deficits. The conflicts in the north that occurred during the 1990s have also led to insecurity, which perpetuates chronic poverty. The rural poor are especially vulnerable to the fragile environment; many are food insecure. With few assets or access to physical or financial resources, they depend on incomegenerating activities with low productivity. In addition, they have
limited access to basic social services, primary health care, safe water, useable roads, electricity and communication services.
The main determinants of poverty are discrimination of indigenous populations, civil war and natural disasters affecting the country. Poverty is manifested by low literacy rates, high levels of malnutrition, poor housing conditions and limited access to basic services, such as health care, secondary schools (junior and high school) markets and infrastructure. Household size may indicate a family’s vulnerability to poverty as well.
Based on ASA's experience, the main indicators of poverty include: caste, gender, education level, amount of land and animals owned, location and economic sector of income generating activities. The first two are main causes of poverty.
Traditional poverty indicators tend to focus on income or financial deprivation. CCF’s DEV (deprivation, exclusion and vulnerability) framework considers the broader range of social and economic factors. Within the poor communities where CCF-India works, the factors used in the PWR process to indicate poverty include: # of children, # of disabled/chronically ill dependents, size of land parcel owned, female head of household, attendance of school aged children, quality of home. If one looks at the determinants of poverty, the focus shifts to issues of land ownership, lack of water, social status in a rigidly stratified, caste based society, low levels of education that lead to high levels of illiteracy, limited access to markets, information and social services, high population growth rates, and dependence on the agriculture sector which has low returns.
Diverse factors, both external and internal, determine poverty, where quality of life indicators are very low. In these parts of Peru, poverty is very difficult to overcome because of the diverse factors that explain it, including low productivity, child malnutrition, migration, lower access to and poor quality of education (particularly in Andean rural zones), lack of access to infrastructure and basic services, cultural barriers, climate factors, etc.
As a whole, the poor experience: Lack of services: electricity, water, sewer, telephone, health care / Remoteness and/or urban squalor / Social structures and constraints that support exploitative economic practices / Low Education levels, low literacy levels - especially for women / Low access to land, often through feudal systems in which the landlord retain property rights. Women's right o own property is not widely recognized. / Poor health, low access to health care / Market disruption due to insecurity, political factionalism and/or natural disaster. For the program target group, in addition: Gender: low education, home confinement, domestic violence, arranged marriages, lack of access to and control over resources, lack of mobility, lack of autonomy to pursue economic activities, and isolation from markets
The government in developing its poverty baseline uses food and non-food expenditure (schooling, health, transportation and rent) s at the household level, which also accounts for regional price differences. The government also more broadly tracks a number of social indicators to determine a households or a province economic well-being including: life expectancy, school enrolment, household incomes, access to health care and banking services, postal services, security and electricity.
Case Study CARE Rwanda
188.8.131.52 Mission & Vision CARE’s mission is to serve individuals and families in the poorest communities in the world. CARE’s vision is to seek a world of hope, tolerance and social justice where poverty has been overcome and people live in dignity and security.
Trickle Up Mali
Trickle Up empowers people living on less than a dollar a day to take the first steps out of poverty, providing them with resources to build microenterprises for a better quality of life.
Pact's mission is to build empowered communities, effective governments and responsible private institutions that give people an opportunity for a better life. We do this by strengthening the capacity of organizations and institutions to be good service providers, represent their stakeholders, network with others for learning and knowledge sharing, and advocate for social, economic and environmental justice. Interdependence, responsible stewardship, inclusion of vulnerable groups, and respect for local ownership and knowledge are core values across all of our programs. Pact's mission is to help build strong communities globally that provide people with an opportunity to earn a dignified living, raise healthy families, and participate in democratic life. Pact achieves this by strengthening the capacity of grassroots organizations, coalitions and networks and by forging linkages among government, business and the citizen sectors to achieve social, economic and environmental justice. Pact envisions an interconnected world in which relationships of trust and mutual benefit among the state, the marketplace and communities provide the inspiration and foundation for taking actions to end poverty, ensure justice and achieve greater equity.
Friendship Bridge Mission: Friendship Bridge provides microcredit and Guatemala education to help women and their families create their own solutions to poverty. Vision: FB vision is that all those living in poverty will have full access to financial and educational opportunities (and other economic and social resources) so they have the freedom to choose what meets their needs. Beliefs: Microcredit helps impoverished women reach economic independence. Education for women and children is an important tool for development. Health education enhances personal, family, and community well-being. Respect for the spiritual and cultural roots of communities is fundamental. Participatory techniques incorporate each client's voice. Women are leaders for change in their families and communities. Effective programs are created through listening.
FFH/RCPB Burkina Freedom from Hunger's Vision is a world free from hunger. Faso Mission Statement: "Freedom from Hunger brings innovative and sustainable self-help solutions to the fight against chronic hunger and poverty. Together with local partners, we equip families with resources they need to build futures of health, hope and dignity."
Save the Children believes in a self-help philosophy with a mission of providing communities with a hand up, not a handout. SC works with families to define and address the problems their children and communities face and utilizes a broad array of intervention strategies to ensure the sustainability and efficacy of all its programs. Programs seek to make lasting, positive change in institutions, behaviors or policies that affect human well-being. This is accomplished be enabling individuals, communities, and institutions to adopt new behaviors and systems that promote change and endure beyond Save the Children's involvement. Save the Children recognizes, promotes and supports sustainability at four levels within its programs: institutional, financial, behavioral and policy. N/A Too many of the world’s children suffer the debilitating effects of poverty and violence. Children have the right to experience life with as much joy and hope as possible. Christian Children's Fund creates an environment of hope and respect for children in need in which they have opportunities to achieve their full potential, and provides children, families and communities with practical tools for positive change. CCF Beliefs: • all children deserve an environment of hope, respect and understanding; • that poverty is a personal experience for every child and this insight and sensitivity guides all of our actions; • it takes a global perspective and collaborative effort in order to substantially impact the issues of poverty that are facing children today; • we must work together to create an environment of understanding towards all children embracing cultural and religious differences; • that all our actions must be guided by the utmost integrity and transparency; • that we are accountable for all funds we receive, and we will always be upfront and honest with our donors and stakeholders and use these funds in the most efficient and productive manner.
ASA India CCF India
Pro Mujer Peru
Pro Mujer is a nongovernmental women's development organization (NGO). Its mission is to empower women to improve their social and economic conditions. The success of Pro Mujer is thanks to its service model that has been demonstrated to be highly effective, maintaining a superior quality. Pro Mujer provides loans and training for Latin American women who are the owners of small businesses but do not have access to loans from major banking entities. Unlike other NGOs and MFIs, Pro Mujer is focused on providing services to clients who earn less than $2 a day. Pro Mujer seeks to provide women with the financial services and training they need to be successful in their business and achieve a better quality of life. Pro Mujer believes as part of its vision that, in order to achieve the full development of nations, the value and potential of women must be taken into account, ensuring that women exercise active roles in all processes of personal and community development. "As an association of Christians, in business MEDA Mission: and the professions, committed to applying biblical teachings in the marketplace, MEDA members share their faith, abilities and resources to address human needs through economic development." / MEDA Vision: "...that all people may experience Christ's love and utilize their abilities to earn a livelihood, provide for families and enrich their communities."
ABA Egypt Kenya BDS
N/A The Kenya Business Development Services Program (Kenya BDS) is a 6-year micro- and small-enterprise (MSE) development program funded by the United States Agency for International Development (USAID) and managed by the Emerging Markets Group. The objective of Kenya BDS is to increase growth and incomes among rural MSEs through: 1) access to markets; and 2) access to commercial skills and resources to compete in those markets. The program achieves these goals by working in subsectors of high growth potential for microenterprises. The program uses value chain and subsector analysis to identify critical market inefficiencies along the value chain, which it then seeks to address. The objective is to build the competitiveness of the targeted value chain through interventions that increase its efficiency and better meet the demands of final markets.
184.108.40.206 Primary target group & development 220.127.116.11 Specialized in focus MF/MED or multi-sector CARE targets individuals and households in the Interventions include: poorest communities in the world. education, economic security, health and HIV/AIDS, environment and land management
TU supports very poor people, with a strong focus on women and people with disabilities. TU's current geographic focus comprises West Africa (Mali and Burkina Faso), East Africa (Uganda and Ethiopia), South Asia (India and Nepal), and Central America (Guatemala and Nicaragua). TU's primary development focus is microenterprise development for the very poor.
TU employs a grants-based MED approach to assist very poor households in implementing (expanding, improving, starting) a microenterprise, and also assists Trickle Up beneficiaries in managing their own savings groups. Pact’s livelihood promotion programs target poor Pact does not specialize in and vulnerable sections of the populations. one single approach in Depending on the local program context, these microfinance or can be women, the rural poor, and other microenterprise development, vulnerable groups, who are being reached with but instead has built up microfinance, microenterprise development, expertise and capacity in education/literacy or health services, to name the various models of MF and most prominent ones. MED, as well as in noneconomic development areas.
FB´s goal is to reach poor women. The majority of clients are indigenous women who live in rural areas and in the outskirts of urban areas. They are micro entrepreneurs, micro producers, micro rural merchants who have no access to the formal finance system because of cultural, financial and geographic limitations. Most of the borrowers invest their loans in the development of their artisan production, livestock, agricultural, or merchant businesses. The development of new markets is based on the criteria of geographic expansion and greater penetration our already existing markets.
FB is committed to providing both financial as well as nonfinancial services, primarily in the area of non-formal participatory education for women and educational support for the children on FB’s clients.
Freedom from Hunger focuses its efforts on the chronically hungry poor and frames its work in terms of outcomes. All programmatic activities (inputs) address directly or indirectly the three components of family food security - availability, access and utilization. Freedom from Hunger targets its programs toward women, particularly very poor women, as entry-points to the household with particular responsibilities toward the well-being of young children. Programs are primarily designed for rural areas, but also reach peri-urban areas. Freedom from Hunger has chosen to concentrate on a few regions of the world with large numbers of chronically hungry people, relative political stability, and existing civil society organizations with which to partner: South Asia (particularly India) and Southeast Asia (particularly the Philippines), West Africa and East Africa, the Andean Region of Latin America, and Mexico.
Freedom from Hunger promotes the integration of services: the provision to the same program participant of a bundle of financial services, behavior-change education sessions (training in the areas of health, nutrition, microenterprise development, household financial management) and healthprotection products and services.
SC's primary target group is children, their families and their communities. SC works in a range of development sectors, including health, education, HIV/AIDS, emergency response and food security, in addition to providing economic opportunities.
Save the Children supports both specialized and multisectoral partner institutions. SC and its partners implement best practice microfinance programs and strive for full financial sustainability within seven years.
N/A Children are the target population of all CCF programs. Since improved family income is so central to child wellbeing, the MED target group is families living in CCF supported communities, especially mothers. CCF’s approach to MED is to strengthen parents’ income-earning capacity through some combination of micro-credit, technical assistance, and skills or business training. CCF focuses on fostering family selfreliance, responsibility, and creating a sustainable livelihood capacity. The following key principles guide CCF microfinance programs: • Target services to the poorest and most vulnerable, focusing particularly on women. • Use mutual guarantees rather than physical collateral for loans. • Expect full and on-time repayment of loans. • Offer initial loan sizes that are appropriate to the borrower’s capacity and needs. • Microfinance activities achieve full financial sustainability in less than 7 years, and spin-off from CCF to become autonomous MFI partners. • Maximum integration of MED with other sector programs such as HIV/AIDS and emergency response programs. • Establish systems to monitor the impact of MED on families, especially children.
N/A CCF, Inc. does not advocate a single/preferred microfinance methodology or approach. The role of the international organization is to provide quality standards which all MED programs are expected to meet. Some CCF programs focus exclusively on microfinance, others do only non-financial services, and yet others do a blend. The subject of this case study, LEEP India, is an example of a blended microfinance and nonfinancial services approach.
Pro Mujer serves low income women who do not While many NGOs offer only have the opportunity to develop the skills credit and a few also offer necessary to compete in the formal sector market, training in business skills, Pro and at the same time have limited access to Mujer stands out among the banking services and private funds. In order to few NGOs that successfully generate income, these disadvantaged women opt combines loans, business to create their own micro businesses. In order to training and basic health open these businesses, they need access to education. funding, therefore improving their quality of life as well as their abilities and self-esteem.
MEDA targets the economically active poor with Exclusive MF/MED approach … economic development programs. They believe in although MEDA is involved in offering a "hand-up" rather than a "hand-out." developing some health markets, for example for insecticide treated mosquito nets.
N/A Emerging Markets Group (EMG) is an integrated development consulting firm that provides services to international donor agencies and sovereign governments. EMG offers solutions in financial services, private sector development, agribusiness, trade, infrastructure, health care, sustainable tourism and public sector reform.
N/A For the Kenya BDS program, an exclusive MF/MED approach is used, with Kenya BDS facilitating microenterprises commerical access to market linkages, products and services that enable them to sell into higher value markets.
18.104.22.168 MF/MED Model Emphasis on (1) savings-based microfinance schemes and (2) participation in high-return agricultural subsectors and (3) community solidarity based emergency preparedness. CLASSE-Intambwe Model is in large part based on CARE’s original Village Savings and Loan Association (VS&LA) Model, creates Accumulating Savings and Credit Associations (ASCAs). CARE Rwanda’s CLASSE-Intambwe Model is in large part based on CARE’s original Village Savings and Loan Association (VS&LA) Model, developed initially by CARE Niger. This approach creates Accumulating Savings and Credit Associations (ASCAs), selfselected groups of people, who pool their money into a fund from which members can borrow. The money is paid back with interest, causing the fund to grow and increasingly meet members’ financial needs. These Savings and Loan Associations (SLAs) become entirely self-managing and typically open a group account with a local bank. SLAs usually include between 15 and 30 members. They receive a training program according to the “CLASSE-Intambwe” methodology. In contrast to most of CARE’s VS&LA programs worldwide, up to 30 individual SLAs within a region form an Intergroupment (similar to a federation), which acts as an intermediary to obtain loans from the local Banque Populaire. TU provides both enterprise development assistance (business training, facilitating access to markets…) and access to finance (through conditional seed capital grants, encouraging savings including formation of savings groups and access to microcredit).
Pact’s approach to economic challenges faced by the poor depends on local country context and ranges from savings mobilization, microenterprise development, and marketbased livelihoods development activities that increase household income. This approach aims to provide sustainable financial services, which can be savings-led or focused on microcredit. In Myanmar Pact is running a large traditional MF program (credit-led). This approach uses a group lending methodology and stimulates small business ventures through a range of small business support services. The savings-led approach (as it originated in WEP and continues to evolve in WORTH) helps poor people (usually women) establish and operate their own village banks and acquire skills in managing micro- and small enterprises. In other cases Pact practices market-based livelihoods development, assessing and developing a market for local products, improving the local production capacity and strengthening supply channels.
FB offers credit services using the trust bank methodology, with group guarantees. There is a mandatory savings component to the credit services, where clients save at least 10% of their loan. They are eligible to receive their savings at the end of their loan cycle. These credit services are paired with education in business development and money management courses as well as health and personal development curricula. This methodology is based on the belief that spiritual and personal empowerment is as important as economic empowerment especially for women.
Freedom from Hunger's Credit with Education methodology originally combined a modified village banking model (adding Grameen-inspired solidarity groups to the FINCA model) with group-based, non-formal education on a variety of topics. Over time, Freedom from Hunger's improvements and implementing organization innovations have broadened the financial service component options to encompass a variety of lending and guarantee models. A common feature of these variants is regular group meetings of participants, which provide the platform for training sessions and other development interventions. A recent and more significant variation involves the formation of savings groups, who intermediate their own savings without external grants or loans - these groups also receive training sessions. These products offered by a wide variety of institutions (NGOs, non-bank financial institutions, rural banks, credit unions, credit union federations, regulated financial institutions), either as a sole or main product offering, or as a specialized product line.
SC's model is to improve the economic security of needy children and their mothers by building sustainable MFIs that provide access to financial services for poor female entrepreneurs. Where credible local partners exist, SC works with them to build their capacity both technically and institutionally. In countries where there is no credible MFI partner, SC facilitates the creation of one, usually transferring staff to the newly created institution after several years of direct management. Although Save the Children uses Group Guaranteed Lending and Savings (GGLS), or poverty lending, as its primary methodology, it works with partners who use a variety of methodologies, such as Grameen replicas and village banks. Most SC partner MFIs serve a client base that is 100% women.
N/A CCF programs do not follow one specific lending methodology, and experiences vary with local context, i.e. solidarity lending (Afghanistan, Sri Lanka, Thailand and Sierra Leone), self-help groups (Timor Leste and India), village banking (Guatemala), and credit unions (Senegal).
The Pro Mujer model is made up of three principle elements: group microloans with mandatory savings; training in basic business skills, health and self esteem; and access to high quality, low cost health services. The principle group product is called communal association credit, and is rooted in communal banking and the Grameen model. Pro Mujer also offers seasonal loans, educational loans, solidarity group loans and individual loans. Pro Mujer is in the process of developing several new products through a donation from the Bill & Melinda Gates Foundation that include loans for young people, agro-commercial loans, housing loans, loans for men, loans for salaried workers and loans for clients with high business potential.
MEDA's Production and Marketing Linkage strategy is a pro-poor value chain development strategy. MEDA conducted a market assessment to select the embroidery value chain as an appropriate value chain for reaching marginalized, low-income rural women. They identified viable consumer market opportunities, and addressed the product and market linkage constraints for the target women in reaching these markets. The results have been higher quality, more marketable products, that get higher prices, and more reliable supplies at affordable cost and/or on credit. MEDA has established a sustainable and growing market system. N/A Kenya BDS uses the value chain framework to design and implement its program. Within the framework, the interventions used are determined by the value chain analysis and program design process which ranks the most critical constraints and opportunities in the value chain. Potential interventions to address these constraints and to leverage these opportunities vary depending on the results of the analysis, but may include all or some of the following: access to commercial material inputs, services and technical assistance; access to commercial financing and savings services; business skills development; group or cluster development, collection and marketing (branding and certification for domestic and international markets); embedded service* facilitation between lead firms and microenterprise producers including financing; advocacy to national and local government.
Case Study CARE Rwanda
22.214.171.124 Name of the 126.96.36.199 organization or Geographic area 188.8.131.52 Specialized in institution of operations (MF/MED) or multi-sector RESAFI in capital and all MF/MED capacity building provinces
Union des Banque Populaires de Rwanda
Nationwide, 148 People’s Banks, at least one in each district
Financial Services (savings and loans)
Trickle Up Mali
Sahel Etude Action pour le Développement (SEAD)
14 rural communes Multiple sectors: economic and 1 urban activities, agriculture, commune (Gao) in handicrafts/artisan support, three 'cercles' of the livestock, irrigation, Gao Region environment, training and research, education, health, technology Most partner Mostly not specialized in MF or organizations are MED local (ranging from district – to village level)
Friendship Bridge Friendship Bridge- Guatemala; Guatemala Guatemala Departments of: Sololá, Suchitepéquez, Quiché, Chichicastenango, Nebaj, Quetzaltenango, Chimaltenango, Totonicapán, Sacatepéquez, Rethaluleu
FFH/RCPB Burkina Réseau des 42 of 45 provinces Faso Caisses Populaires have at least one du Burkina cooperative
Financial services institution
Nirdhan Utthan Bank Ltd.
Ten districts (out of Specialized microfinance 75): Rautahat, Bara, services Parsa, Chitawan, Nawalparasi, Rupandehi, Palpa, Kapilbastu, Dang and Banke
The Activists for Tamil Nadu, Social Alternatives Southern part of (ASA) India
ASA - Rights based Issue based development programs / GV - Microfinance
16 States and Union LEEP India will be specialized Territories of India in microfinance, with CCF India’s partners providing the complimentary TA services. CCF is multisectoral, child sponsorship agency. Livelihood and MED activities are conducted under the LEEP program.
Pro Mujer Peru
Pro Mujer Inc
Peru, provinces Puno, Juliaca, Moquegua, Ilo, Tacna, Abancay
Entrepreneurship and Career Development Institute (ECDI)
ECDI's head office is ECDI has evolved a more based in Karachi but pronounced focus on BDS activities and market development in recent interventions are years but its traditional areas undertaken all over of concern have remained Pakistan. women entrepreneurship promotion, technology dissemination, capacity and vocational skill enhancement. All interventions have a rigorous gender sensitization focus and aim to empower women to take control of their lives and destinies.
Alexandria Governorates of Business Alexandria, Association - SME Menoufiya, Bahira, project Kafr El Sheikh and Matrouh
Specialised in financial services (microcredit)
Operates across Private firm, which sources several countries in product from microenterprises Africa, both among others producing and marketing its food products which include dairy, beverages & food enhancers (flavoring, sauces, etc.)
184.108.40.206 Beginning of MF/MED activities 2001
220.127.116.11 Principle activity VS&LA capacity building, BDS, advocacy, M&E
Since 2004, when TU partnership began Food security, education, health
At time of WEP introduction
Nov-98 Credit with education programs for women and educational support for their children
1993 Savings and lending cooperative
Mar-93 Savings, Loans, Insurance and Money Transfer
1993 1. Credit 2. Savings 3. Insurance 4. Business loans (Individual loans) 5. Loans for poorest segment (special loan/multipurpose loan)
2008 LEEP India’s core business will be microcredit. TA will continue to be provided by partner NGOs supported by CCF-India. CCF India’s core business is child development. LEEP programs core business is family livelihood enhancement through credit and technical assistance.
Apr-00 Loans, savings, health plans
Small and microenterprise development since 1990 including management, leadership and entrepreneurship development training targeted at specifically at women. Research and advocacy (including at important policy forums) on related gender and development issues since inception. Since 2002, BDS market assessment in an organized and concerted fashion although earlier projects had done some work in three subsectors: frozen foods, vegetable dyeing and handmade paper.
Capacity development of individual women entrepreneurs, institutional strengthening of other development agencies, research and resource development all centered around the promotion of women and their economic and social empowerment
18.104.22.168 Number of 22.214.171.124 Target population clients/participa nts – MF/MED – MF/MED SLAs, local CBOs N/A
Rural and urban savers
Poor rural women
Varies upon capacity
Rural, indigenous, poor women
RCPB serves adult community members who live or work in its catchment area. The target market for the Credit with Education products are poor and very poor women in rural and peri-urban areas
454,550 cooperative members, representing 954,761 men and women clients Of these, 66,706 are CEE clients, 2,721 are ACI clients and 1,444 are CFMU clients
40% of the bottom poor
74,731 (As of June 2006)
poorest of the poor community in tamil nadu at present. ASA-GV may expand to other states in future
Total members 203176 / Total borrowers 186328
Primary target: Families of CCF- India’s enrolled children Secondary target: All poor families in the villages where CCF-India’s enrolled children live
Primary clients: 70,000 Total clients: 350,000
Middle class women Other than the entrepreneurs and poor rural current project, artisans as well as micro and over 2000 small businesses. / Institutions individual women such as NGOs, social security entrepreneurs organizations, government trained and employees, service providers developed; and such as MFIs / Earlier there 180 MED trainers was a stronger urban focus of developed interventions, but this has radically changed in the last 5 years.
Existing Small and micro enterprises / poor women
126.96.36.199 Mission and Vision RESAFI’s mission is to ensure sustainability and replication of the community saving and loans methodology initiated by CARE International in Rwanda in 2002, and to take all necessary actions to expand and consolidate this model through human, material and financial resources.
To develop savings and loans products, promote economic and social wellbeing in partnership with its shareholders, and to serve the community at large. Subsistence farming is still a way of life for many and the government is keen to encourage a move away from this, towards more commercial farming. In order to get involved in more value-add activities the rural communities need access to more micro-financing.
SEAD' mission is to contribute to the well-being of both the sedentary and nomadic populations, particularly women and destitute children in the North of Mali through technical support and assistance to local communities in areas of education, production, mobilization of internal and external resources.
Vision: Women and their families can find their own solutions to poverty through access to credit and education services. Mission: Provide a financial service model, “Microcredit Plus” tailored to the needs of Guatemalan women.
RCPB Mission statement: "To help improve the living conditions of the working peoples of Burkina Faso, through: the mobilization of local savings, the development of reliable and profitable cooperative savings and credit entities, the promotion of appropriate and accessible financial services, democratic administration and management according to cooperative rules and principles, while a focus on and respect for humankind." RCPB Values: Respect for individuals, Respect of the principles of honesty and integrity, Respect for the common good, Respect of law and regulations, Respect of the organization. RCPB commitments: Pay attention and listen to members, Be available and equitable toward members, Fight poverty and relieve misery, Strive for excellence and availability in work
Nirdhan Bank's vision is to reduce poverty in Nepal by enabling poor people to contribute equally to a prosperous, self-reliant rural society through selfemployment and social awareness. The bank's mission is to extend financial services and to improve the social awareness of the poor.
ASA-GV's vision is "A value based, poverty free, productive, prosperous, humane and sustainable "Grama Vidiyal" Family." The internal vision is to become "an organization owned by members and managed by professionals" in the medium term and to be "an organization owned, managed and used by women" in the long term. The mission is "To empower women of the poorest families socially, economically and politically through networking them into community institutions and through efficient poverty alleviation and microfinance program". The overall approach of ASA-GV can be summarised as "from women to families and from families to society" identifying women as the poorest and worst hit by poverty.
CCF-India is a partnership-based child development organization representing the voice of deprived, vulnerable, marginalized and excluded children in some of the remote and hard-to-reach places in India, regardless of religion, race, creed and gender. CCF-India strives to improve the well being of vulnerable children by empowering the community to undertake and manage holistic child development programs and by networking with other stakeholders. The following is the vision and mission of CCF-India, which currently houses LEEP. As CCF-India implementing partners will be share holders of LEEP India, these child centered values will be reflected in its mission statement as well. Vision: An India where the disadvantaged, discriminated and excluded child is supported and enabled to grow up playing an active and positive role within family, community and nation. Mission: To place the child at the center of its activity ensuring that the programs which surround the child are of the highest quality and that recordable difference is made to the quality of life of a large number of children. The programs to be of such quality that they can serve to inspire others including the Government to improve the implementation of child centered development initiatives. All programs, including MED, must make a direct link to child wellbeing. This emphasis is reflected in the goal of the Livelihood and Economic Enhancement Program (LEEP): “Livelihood and economic enhancement of poor families for improved wellbeing of their children.” The mission is: To provide women who have limited resources with integral services: financial services and personal development services that contribute to their development and that of their family and community. The vision is: The social objective of the Institution is to help women become more effective in their personal development and in the development of their children, families and society.
ECDI's vision is an equitable society that creates space for and empowers women to attain their socioeconomic potential. ECDI's primary mission is the creation of an enabling environment for the equitable socioeconomic development of women and youth in Pakistan through the enhancement of their entrepreneurial and managerial skills. The organization's mission is directed towards its emergence as a recognized leader within the MED and BDS fields in the Asia-Pacific region. ECDI offers specialised programs in entrepreneurship, BDS market development and career counselling for women and youth in Pakistan. It is deeply committed to education, training, research and field activities that allow it to support individuals, businesses and communities by advancing their income-generation capacities.
The institution aims to develop and promote existing small and micro enterprises, to raise the income of SMEs, to help the transformation of SMEs from the informal to the formal sector, and ultimately contribute to solving the radical and chronic unemployment problem. The different grant and credit products offered by ABA help to graduate poor people to microcredit. Its approach is summarized in their leitmotif "reaching down … scaling up".
Promasidor's vision is as follows: Quality - Our customers demand and deserve quality products. We must fulfill our promise to provide products and service of consistently high quality. Values - We need to demonstrate the highest standards of corporate governance and corporate and social responsibility throughout the Group. We have clear obligations to consumers, suppliers, our employees and to the communities in which we operate. These obligations are respect, integrity and openness. Profitability - We will sell products where we can be profitable. If circumstances within the operating environment limit the potential to generate profits, the company cannot invest, grow, motivate, develop and reward our people and stakeholders.
188.8.131.52 Objectives To provide technical assistance to SLAs; o Promote formation of new SLAs; o To coordinate exchange of experiences on savings and credit among SLAs and their members; o To advocate on behalf of the SLAs towards government and bank institutions; o Provide training and materials to SLAs; o To collaborate with CARE, the public sector and private sector as a consultative body community microfinance programs.
1) to provide members with an opportunity to deposit their savings in regulated and safe conditions; 2) to offer credit to members to meet their economic needs and to be paid back according to fixed terms established in a loan contract ; 3) to admit hardworking and earnest low-income people as members ; 4) to promote a spirit of initiative and local work through prudent use of credit and savings; 5) to combat usury and speculation.
SEAD's overarching objective is to contribute to sustainable development and autonomous advancement of local communities, by organizing the sedentary and nomadic communities of Northern Mali, technical and institutional assistance to those communities, supporting mobilization of internal and external resources, facilitating communication and collaboration among all stakeholders in the area.
Many of the local NGO/CBO partners are engaged in community mobilization on a range of issues, such as irrigation, forest management, farming and health.
I. Micro-finance Plus programs: A. Financial services 1. Provide a variety of financial and educational services tailored to the needs of 35,000 clients across Guatemala by 2011. 2. Reach the poorest sectors with products attractive to them; 100% of our future clients below the poverty line and 30% of them below the line of extreme poverty. B. Non-Financial Services 1. Women’s education: Ongoing learning for borrowers a) Offer interactive learning activities on topics of relevance and interest to all FBG clients. A core curriculum around health, business development and money management as well as personal development and education. b) Facilitate discussion spaces and critical analysis that provide tools for clients to take actions to improve their lives at the family and community levels. 2. Children’s Education a) Encourage and support the formal schooling of our clients children’s through scholarships and learning centers. b) Work with FBG clients to identify and encourage ways to support their children’s success in school. 3. Fair trade and specialized commercialization a) Work with clients to improve quality of their products and achieve access to markets b) Develop cultural tourism programs 4. Donor education a) Offer meaningful spaces for learning and reflection for the participants in FB’s insight Tours 5. Impact: continually evaluate who our clients are and the impact FBG’s programs have on their lives: poverty alleviation and empowerment. II. Administration Maintain and keep developing a well-organized and efficient institution with well-trained and empowered staff and clientele. III. Finance 1) Expand our sources of funding in order to satisfy our needs as an institution. 2) Achieve financial sustainability by 2009.
RCPB is currently finalizing a 2008-2010 business plan that calls for complete national coverage by expanding into the last three untouched provinces, growing total membership (not counting the individual clients belonging to member groups) to 783,000, and restructuring and streamlining the network to ensure better service delivery to the members.
Nirdhan Bank's goals are to reach a maximum number of poor households, to develop a wellmanaged institution and to enhance women's self-respect. Their objectives are: to focus on bottom 40 percent of population, to maintain simple loan process, to require compulsory group training and savings, to seek homogeneity of group members, to promote collective group liability and to integrate financial and non-financial services.
?The objective of ASA-GV is aimed at achieving the mission and vision with optimum utilisation of resources. ASA-GV is following the integrated approach to poverty alleviation taking MF as entry point and utilising the platform created for social and political empowerment of women. The members are federated at various levels, which form the backbone of the microfinance activities. The federation formed is active in lobbying and advocacy as well. The official organisational structure and the parallel federation structure of the members together form the vehicle for the services rendered by ASA-GV to the members. ASA-GV uses internationally accepted tools like Housing Index to target the poor and avoid non-poor in the program. Objectives include: To work for the upliftment of socially and economically deprived sections of the rural people, To on-lend / lend to Grama Vidiyal SHGs groups formed for activities undertaken for the Environmental, Economic and Social upliftment of its members, To work for the sustainable development of the society through community organizing, capacity building by providing education, housing and addressing local issues, To create employment opportunity through micro credit and enterprises development, To work for the holistic empowerment of the women and the community, To involve in lobbying and advocacy for micro and macro issues.
CCF-India's comprehensive community development approach helps families improve their economic status and cope with emerging health and survival challenges. CCF-India's program focus areas include: • Health: Interventions related to reproductive and child health, nutrition, HIV/AIDS, tuberculosis, malaria, disability, water and sanitation. • Education: Ensuring universal primary education for all children under 14 years of age in communities where we work, and early childhood education. • Livelihood: Target families to increase their income through investment and support services. Microfinance, combined with extensive technical assistance, is an integral part of addressing these challenges. • Emergency Response: Because children are the worst victims and most likely to be exploited during an emergency, CCF-India responds to both localized emergencies in CCF communities like house fire and death, as well as National disasters like the Tsunami, earthquakes, cyclones, etc.
1)To make positive changes in the personal, business and social development of the clients and their families. Microcredit and personal services constitute a means of reaching superior objectives such as the development of businesses and social development. 2)Healthy growth of the portfolio, which is a product of both the expansion to new regions and the development of new products. The portfolio will increase by 30% in 2006, by 34% in 2007 and by 28% in 2008. 3)Maintain the profitability of financial services and ensure that the personal development services are permanent and sustainable. These final elements differentiate Pro Mujer Peru and therefore the organization recognizes the importance of guaranteeing their permanence and expanding Pro Mujer's coverage of clients. 4)To increase participation in the national market, both in terms of coverage and depth, going from the 2 current regions to 5 regions in 2008 and providing more products per client. 5)To strengthen the image of PMP as an efficient, transparent, prestigious MFI and leader in the market, this is the time to project an institutional image in financial media, among investors, international cooperation, academics and with peers in the microfinance industry, making public Pro Mujer's results and achievements.
ECDI believes that entrepreneurs are not just born but can also be developed through wellconceived interventions. Contingent on this belief, the broad objectives of the institute are: To support the development, promotion and expansion of small and micro-enterprises owned and managed by women; To advance the managerial and leadership capabilities of existing micro and small-scale women entrepreneurs and expand the social base of the Pakistani women entrepreneurial genre; To contribute to new knowledge and insight in MED and BDS development and practice through research and pilot projects; To advocate for greater policy and resource focus on women through awareness-raising and sensitization on a range of gender and other developmental concerns; and To enhance the number of motivated, competent women entrepreneurs in the country through concerted education and training programs; To promote the fair integration of women, particularly those from rural areas, in mainstream markets by piloting and documenting new approaches to market access and disseminating best practices in the area; To enlarge the existing cadre of local trainers and community motivators to undertake women entrepreneurship development; To network with similar organizations and institutions to share learning and accomplish common goals.
ABA-SME's main objectives are to promote existing small and micro enterprises, to raise the incomes of SMEs and to help their transformation from informal to formal.
184.108.40.206 Training/awareness raising Professional training provided by CARE to the personnel of partner people’s banks. The staff of participating BPs attend annual trainings organized by UBPR and CARE to discuss specific circumstances and needs of the new clientele of SLAs who are much poorer than typical BP members. In addition to this training, which is attended by BP managers and credit officers, UBPR regional representatives monitor and support implementation. Professional training provided by CARE to the personnel of partner people’s banks. The staff of participating BPs attend annual trainings organized by UBPR and CARE to discuss specific circumstances and needs of the new clientele of SLAs who are much poorer than typical BP members. In addition to this training, which is attended by BP managers and credit officers, UBPR regional representatives monitor and support implementation. SEAD and other Trickle Up local partner NGOs in most cases already work with very poor communities. Trickle Up also trains partner NGO staff in the importance (for the TU mission) to reach the very poor and how to reach the very poor by using a TU designed poverty targeting tool. N/A: no training on mission and poverty outreach. EWs were trained to train and assist the women groups as they progressed through the WEP training manuals, from forming a strong group to starting regular savings, lending out accumulated savings among members and improving microenterprise activities.
Staff is hired with a strong social mission as a significant art of their job and their qualifications going into the job. Mission and vision are clearly explained when a loan officer enters the job. Training is usually done both in the central office going over policies and procedures as well as mission and vision for the organization. Then loan officers are placed with another loan officer to observe and learn from a more seasoned loan officer. Follow up training is done both through meetings and exchange opportunities in other branch offices to identify common challenges and different strategies to overcome them. Incentives are used to encourage reaching the poorest clients through average loan size. Additional incentives could be considered to encourage reaching to more rural and hard to reach areas. In 2008, it is planned to make a more concentrated effort to reach the poorest clients with a special loan product that better fits their needs as well as stronger training in business development.
When Credit with Education was first introduced to the organization in 1993, senior managers, and Federation- and Regional-level Directors participated in a workshop designed and facilitated by Freedom from Hunger staff. This workshop engaged participants to analyze the benefits and challenges for the institution to adopt the new line of service. In particular, RCPB was able to reflect on the opportunity to reach an unserved client segment: very poor women living beyond the cooperatives' traditional catchment area, or unable to avail the services offered by the cooperatives. Staff recruitment within RCPB is centralized: the Federation fills all open positions for the entire network, and conducts initial staff training. Further in-service training is provided at the Regional level. Training on CEE is focused on direct implementers (animatrices and coordinatrices), while cooperative Managers and Directors receive an orientation to the product, its objectives and procedures. The field staff (animatrices and coordinatrices) are initially trained using curriculum developed by Freedom from Hunger, with local adaptation to the institutional context. The CEE Program Manager and the Federation's training department facilitate the training. Animatrices then typically shadow veteran colleagues in order to better assimilate the field realities and subtleties of their duties. Over time, field staff receive in-service refresher trainings, as well as trainings on additional educational modules. These trainings take place at the regional or federation level, depending on how well the training is assimilated at the regional level, and how widespread the need for a particular topic is. Cooperative Managers receive an orientation to the CEE methodology, such that they are able to monitor the animatrices and their performance. Directors are also sensitized to the product, in particular Credit Committee members who must delegate their loan approval authority to field staff in order to ensure rapid group recapitalization at the end of a loan cycle. These trainings are performed by the area's coordinatrice, or by the CEE Program Manager, using a scaled-down version of the MOT. At this level, greater emphasis is placed on increasing membership by reaching out to underserved populations, than on the fact that these are "very poor" populations.
Staff training at Nirdhan is centralized in the headquarters-level training department. Having passed through the examination and interview process, recruits spend a week at headquarters for an introduction to the bank and its operations. They are then posted to a branch office for six months of on-the-job training. Recruits are partnered with senior field assistants who guide and monitor them closely. After six months, trainees are either let go or are promoted to the status of full-time staff. Although the focus of training for field assistants is practical, there is also important classroom based training on the Nirdhan lending methodology, policies, and procedures. During these training sessions new staff are introduced to the goals and mission of Nirdhan and are sensitized to the importance of serving poor clients. Nirdhan managers are usually hired from within, so they have already been trained on Nirdhan's poverty mission and are experienced in the bank's operations. Additional training for managers is provided through regional workshops and seminars organized by Grameen Trust, CASHPOR and other group lending institutions.
ASA-GV has a separate training department consist of two senior management staff with two training co-coordinators. The team takes care of the trainings for staff in all level. As per the following table different level of staff are getting different kinds of training. Board members and senior management team are regularly attending different national international level training, workshops, conferences and visiting different organizations for updating the program and MF sector. The divisional managers and the zonal managers and the core team members are acting as resource persons for the training to the field level staff. Some special guests professors from management institute and colleges are invited for special trainings such risk management, personality development, communication skill, etc. ASA has been adapting an integrated approach to its economic empowerment and Community Development programs. The community is being organized using microfinance as the entry point activity. The sustainable delivery of the services focusing on socio-political empowerment of women largely depends on the platform formed by credit programs. Hence there was a potential threat to view the activities merely as a credit program. ASA realized the need for increasing the focus on development programs, so as to keep pace with the growth of credit services. ASA aimed at achieving this objective by training its staff and women leaders on effective integration of credit and credit plus activities.
No specific staff training or sensitization on poverty outreach is required because it is the mission of the NGO. CCF-India’s strategic plan is based on a commitment to work in the poorest districts in India, which were identified in a study it commissioned. Once the priority districts were selected, CCF-India searched for partners who had a presence in the target districts, and were capable of implementing its programs. Poverty is the key criterion that identifies 1) the poorest communities within the district and 2) poor families within those communities. CCF undertakes a regular induction program of its partners, where poverty criteria are explained, along with how to use tools to identify poorer members of the community. CCF area field staffs monitor the families/children actually enrolled for the sponsorship program to verify application of the poverty outreach policy.
The training that is provided does not place emphasis on reaching the poorest clients. It places fundamental emphasis on knowing the population, processes and techniques to reach clients, the loan conditions and above all how to manage the loan methodology. This training is done both in the field (practical) and in the office (theoretical). The training for the Board and other management positions is similar. It includes a practical part about the products and services that the organization provides and about the population and clients we work with, and it also includes specialized training. There is no training for followup.
All staff hired is oriented on ECDI's mission and work and it is ensured that they understand and subscribe to its values. Capacity-building and inhouse training is a regular feature of general staff development initiatives. Training is delivered by ECDI's cadre of professional trainers, although external agencies/programs are also tapped into as and when required.
The sensitisation with respect to reaching the poor starts with the first steps of the recruitment process. The applicants receive a leaflet with all the info about ABA, its mission, the different products, and their benefits. There are also statements from 3 different persons about ABA's work and its social and economic orientation: a religious leader, the first imam of al azhar mosque, the minister of co-development and a USAID representative. All the staff whatever their hierarchical level is, are aware of the mission, and support the depth of poverty outreach strategy with a religious sensitivity. Even though the social value of their work with the poor is acknowledged, the more we go down on the hierarchy the more the religious pride for their work is predominant to the social value. Training is mandatory and is an ongoing concern for staff and managers, not including BOD members, as they are not participating by any means in day to day management. The field staff receive training when hired. Besides the practical aspects of the work, it is supposed to include sensitization for the specific features of the clients. It is provided by the management. They start with 10 days classroom training on mission, vision, formalities, the target group, their features, the specificities of this part of the market, how to evaluate the quality of their work... This is followed by 50 days of on-the-job training, 20 of which the coordinator is accompanied by the branch manager and the last 30 she does the work but under the control and supervision of an experimented coordinator who will report about her performance. Refreshment programs are conducted later and more advanced training is given for senior field officers. Apparently the training does not insist enough on specific poverty outreach areas as many coordinators do not remember this aspect. The primary focus is the on-the-job training, which is a practical training (dealing with old clients, prospecting for new clients, procedure for a first loan and for a renewal) done with the branch manager. As coordinators get their knowledge on the field, their awareness of the mission and poverty outreach aspects are better stressed when the branch manager is sensitive to this importance and keeps reminding his staff about the social value of their work. This transmission is linked to the personality, motivation and commitment of the branch manager and the experimented supervisors.
The Field Extension Officers (FEO) were trained by a contractor* hired by Kenya BDS in how to work with the women to form and operate groups (group formation, leadership, bookkeeping and loan management) as well as the technical aspects of drying fish per the quality standards required by Promisador. The training materials and training of trainers for the FEOs was based upon a training manual that Kenya BDS had used successfully in working with Kenyan Tree Fruit Farmers. In the initial program training was not provided to Promasidor's local management in how to manage the newly hired FEOs and administering the loan program. In the second phase starting in the Summer of 2007 these identified training needs are being addressed. Additionally the FEOs are receiving additional training and support in how to work with the women and disbursements and collections of credit.
Case Study CARE Rwanda
220.127.116.11 MF/MED model products and services Savings: mandatory passbook savings, term deposits, retirement savings, home purchase savings / Loans: agriculture, livestock, trade, transport, equipment loans (12-13% interest); emergency credit, salary advance loans, lines of credit / Microcredit: to individual microentrepreneurs (14% annual interest rate) as well as solidarity groups (13% annual interest rate) / Funds transfer: domestic and international (Western Union) / Foreign exchange / Automated Teller Machines (ATM). N/A N/A FBG has one main loan product using the trust bank methodology. The loans are mostly for 6 months with an average loan balance of $185. The interest rate is 24% flat per year. Meetings are held every 28 days. There is a mandatory savings program that averages 10% of the loan amount or around $18 per client. This savings is returned at the end of the loan cycle.
Trickle Up Mali PACT Nepal Friendship Bridge Guatemala
FFH/RCPB Burkina The foundation of RCPB's activities is deposit Faso services for its members. The average savings as of 31 December 2006 was $418 per member (account) or $199 per individual. Ordinary saving accounts (sight deposits) have no minimum or maximum balance, transaction size or transaction frequency. Members make deposits and withdrawals in person at the cooperative or its service point during opening hours. Ordinary savings are not remunerated. Term savings of 3 months or more are remunerated at 1.5% to 2.5% percent, but these represent less than 2% of total savings. All of RCPB's loan products have a compulsory savings requirement, which can be met by freezing a set amount upfront or having an automatic monthly deduction from one's salary deposit.
Nirdhan uses three financial services models: group lending and savings (individual loans with solidarity group guarantee), village bank lending and savings (self-reliance group) and individual lending and savings. Nirdhan offers a wide range of loan products including general loans, agricultural loans, business loans, tube well loans, sanitary loans, housing loans and microenterprise loans. Maximum loan size for these different products ranges from $43 for an agricultural loan to $1,430 for an individual loan. Average loan size across the portfolio is $110.
ASA-GV offers collateral free loans to women belonging to poor families mainly for income generation purposes. Consumption and housing loans are also provided taking into account the need and circumstances. These loans are given on the basis of group guarantee. Repayment is also ensured through weekly centre meetings in small affordable installments. ASA-GV is also offering savings facility to its members. Savings and credit are offered during the centre meetings, which is usually conducted by the FM every week. Each centre has twenty members who will elect their leader. During the centre meetings the elected Centre Leader (CL) will collect the instalment due and hand it over to the FM, who will update passbook. Various issues related to MF as well as others are discussed during the meetings. The FM will update the database in the office after conducting the mandatory loan utilisation check.
Pro Mujer Peru
See section 5
As an NGO and following the Egyptian law, ABA can only provide credit.
Promisdor the lead firm participating in the program offers two forms of financing to women's groups: No-interest loans for the materials to construct fish drying racks - The women are charged at cost for wire mesh, nets, transport and skilled labour to construct the racks. They then repay the loan gradually over one to two seasons, with a portion of the loan subtracted from the sales price each time they sell dried fish to Promisdor. Loan size range between 1,100 KES to 3,100 KES per rack, with an average size of 2,170 KES. / No interest loans for working capital to purchase fresh fish Individual women in the groups were initially offered no interest loans of up to 3,000 KES with which to buy fresh fish. The loans was to be repaid within seven days through deductions from their sales to Promisdor, when the company's agents pick up the dried fish. Future loans are provided on an asneeded basis with the same terms. / Savings Accounts - A requirement of participation in the program is that all groups have a registered group savings account with a local bank or microfinance institution. Kenya BDS links those groups not already holding an account with the Co-Bank of Kenya, which has a branch in the Homa Bay district. Kenya BDS is not involved in setting the terms for the savings accounts.
18.104.22.168 Description of the principle 22.214.171.124 Selection and objective group eligibility criteria Very poor people are only a small but No formal selection or growing minority of the People’s Banks’ targeting is employed. customers. The following represents a client distribution according to professional background: civil servants (17%), teachers (6%); traders (16%); farmers (28%); small entrepreneurs (4%); other (29%). BPR members are predominantly wage earners and salaried people.
N/A N/A There are 13,803 clients with loans. All clients are women. The average client has an income of $1.95/day. The majority of clients (approx. 75%) are of Mayan descent. FBG’s clients do not have access to formal credit because few of them have possessions to offer as a collateral. Moreover, because many of them live far from urban or semiurban areas, they do not have physical access to banks because of the distance. Illiteracy is another reason why FBG’s clients do not have access to credit, because they are not able to fill out the paperwork necessary to establish a working relationship with a bank. As of 31 December 2006, 954,761 persons were benefiting from RCPB's services (and being cooperative members, were all savers). Of these, 540,382 belonged to groups (Credit with Education or other groups) and 11,375 were moral members, bringing RCPB's cooperative membership to 454,550, of which 108,788 had active loans. RCPB clients are 72% men and 28% women, and mainstream clients come from modest and lower-middle-class backgrounds: farmers, small business owners, salaried workers, artisans, professionals. Groupings other than CEE/ACI/CFMU groups are organized around joint or similar economic undertakings.
N/A N/A All clients fill out an in-take form with demographic information, poverty levels, family and housing situation and education levels. There are no eligibility requirements to join FBG program, just a copy of your government issued identification card and a willingness to work with a group guarantee loan.
RCPB membership is open to all adult men and women who reside or work in the geographic area served by a cooperative. Moral members and groups can also join. All members can apply for loans starting three months after joining, with a few exclusions related to poor repayment records, salary direct deposits outside of the cooperative, police records, and old age in the case of large loan requests.
Nirdhan's main target group is poor entrepreneurs in underserved areas of Nepal. All of Nirdhan's clients are women and are typically among the poorest women in the villages that the bank serves. The bank's strategy is to recruit first time clients among the 38% of the population who are below the poverty line. The vast majority of its clients are unable to read or write and many work as agricultural field laborers. Average land holding among its client is 0.3 hectares. The main economic activities of Nirdhan's clients are livestock, gardening, petty trading and food processing.
Nirdhan uses a set of simple means testing criteria to select poor clients and to measure changes in poverty among repeat borrowers. Loan officers visit each potential client before they receive a loan and fill in a 6 page questionnaire regarding their household and income. When processing applications for repeat loans, loan officers fill in an abbreviated 2 page questionnaire.
ASA targets poor villages in blocks and Before ASA-GV could start its districts that are not currently served by operations, a comprehensive alternative micro finance programs. In needs assessment survey will other words, ASA does not compete in be conducted utilising the the geographic expansion areas of other senior staff members and NGOs. The target villages and women social auditors. The survey will participants are identified through a be conducted using cost-effective targeting tool developed Participatory Rural Appraisal by ASA sixteen-point housing index and (PRA) as the tool to collect participatory rapid assessment (PRA) data from various sources wealth ranking technique. The such as district collector, preferred client lives in a house that Office of the Village scores less than 4 points on the ASA Administrative Officers (VAO), housing index. This is typically a mud Panchayat leaders, Block house with walls of less than 4 feet offices, Taluk head quarters, having a temporary roof made either of villagers and local leaders etc. thatch or old tiles. The typical poorest A new branch office will be client household is a member of a established after assessing scheduled caste/tribe and is composed the potentials. The staff of husband, wife and four children members of the branch will be ranging in age from a few months to 10 given a orientation training for or 12 years. Special preference is given a couple of days about the to female-headed households among outcomes of the needs the poorest. Client households have less assessment survey, which than .5 or less acre of wet land, or 1.5 or would help them to gain less acres of dry land and maximum of specific knowledge about the annual income (RS 12000.). Most clients area to be covered by their belong to the lowest caste (dalit). branch office. The member mobilisation and the community organisation will be initiated to identify the potential women members who could really be benefited from the MF initiatives and developments efforts of the organisations. The members are being identified using internationally accepted tools such as housing index, wealth ranking and food index etc. These members are then approached for forming groups who are then trained for a week, which is called Compulsory Groups Training (CGT). A Group Recognition Test (GRT) is then conducted to measure the readiness of the group for MF and other services. N/A N/A
As of 31.03.07, there are 34,510 women with active loans (with loans and savings). There are 2,112 clients who only have savings, and 99.9% of the clients are women. We do not have detailed information about social status, professional activities, type of businesses or ethnic groups, but we can estimate that 20% are dedicated to production activities and 80% to trade.
PMP does not have eligibility criteria for its clients. Institutionally, the intervention zone is selected based on the size of the market, the poverty level and other factors, such as the presence of women, domestic abuse, health conditions, etc. The system itself provides a natural selection mechanism because it demands that women commit a certain amount of time in order to participate in the meetings and training sessions.
Prior to this program, ECDI targeted middle class, educated, mobile and urban women hoping to start businesses. Now, their main target group is the poor, particularly the homebound and rural poor, and they work with working poor women as intermediaries.
There were no standard selection criteria - it depended on the specific program.
The main loan product (SME individual For loan products the lending programme) targets micro and eligibility requirements small enterprises that have up to 5 and depend on some formalization 6 to 15 employees respectively. In 2007, steps of the existing business. it represented 93% of the total They are tied with assistance outstanding portfolio and 45.55% of the and business development total active clients. The average SME services to the clients to loan size and term are 3145 EGP and 10 accomplish them. For TSEP, months respectively. Only 17% of SME the person asking for the clients are female. SME clients are grant should not have income active more in trade (48%) and services besides public aid, is in a (34%). Manufacture (14%) and food difficult social situation (4%) are the least represented among (female headed HH with many the clients activities. children, sick husband unable to work, may have nutrition problems…), and the existence and willingness to put into practise a business idea or expand a nascent one. For the Blossom loans requirement are similar to TSEP but favour future clients with an existing business for the family and less experienced living difficulty. They have also to comply with the eligibility criteria in Table 3.2 if they want bigger loans or when they graduate. Development path are the former Blossoms clients that have been in the programme for a certain number of cycles. It is a way to encourage them to graduate to individual loans. They are not allowed to stay more than 6 cycles in the programme. Men are allowed in the groups but have to be supported by at least a woman from the group. Eligibility verification is done through field visits. For SME loans, the extension officer checks the conditions of the business and the activity (raw material indicating that there are orders, business open, are there clients…). He also asks for supporting documents (attesting identity, ownership of assets, fiscal and social security status…). For the group loans the verification concerns the infrastructure of the household (water supply, latrines, equipment…), area of living (shantytowns...). As
As of June 2007 the program is working There is no selection or with 642 women in 27 groups. eligibility criteria. Women self-select and agree to form a group and to register the group with the Ministry of Culture and Social Services.
126.96.36.199 Use of tools to evaluate the poverty level The Banque Populaires do not use a poverty tool.
N/A N/A FBG has partnered with FINCA International to pilot their FCAT, which is an assessment tool for measuring poverty and various other social indicators of a sample of FBG clients. This tool was used in both 2006 and 2007. The FCAT captures information on clients on demographics, poverty status from the perspective of expenditure data, business development indicators, assets and ownership, social metrics around education levels, illness, insurance, health care, food security, urban and rural data. The FCAT is used once a year. In addition, FBG has implemented a client in-take form that includes poverty indicators, demographics and education levels for all incoming clients and a percentage of renewing clients on an annual basis as well. Once the database in fully functioning, this will provide an additional check on who FBG clients are impact measures over time. N/A
Nirdhan uses several methods to assess the poverty of its clients. Their principle method is a linked system of client surveys, means tests and client monitoring. Information gathered by loan officers is fed into a Client Data Monitoring System. The client survey collects information regarding a potential client's living standard, type of house, land ownership, earnings, employment and loan history. The means test form collects similar information, but is more comprehensive and more detailed. Additional data include the family history of the client, the educational status of their children, land ownership, food sufficiency, employment status, annual earnings of the family, type of house the client lives in, type of roof of the house, source of drinking water, latrine, household goods, electricity and water access, kitchen gardening, cattle farming and loan history. Client monitoring forms contain the same basic information regarding client economic status and are completed at the beginning of each new loan cycle. This combination of assessment tools helps Nirdhan to select poor clients and to monitor their changes in socio-economic status. Nirdhan occasionally uses other more comprehensive tools for measuring poverty outreach such as in depth impact poverty impact assessments implemented by outside consulting firms. Nirdhan has funded these assessments an average of every 5 years, with an initial poverty assessment study implemented in 1996 and follow up studies in 2001 and 2006. Although these types of studies are too expensive to implement more frequently, they offer a valuable periodic reality check regarding Nirdhan's progress in reaching the poor.
ASA has been using a combination of several proxies to assess the poverty level of potential clients. They include: housing index, monthly household income per capita, caste, geographical distribution of membership, economic sector
PMP carries out periodic evaluations (at least two times a year) to measure the poverty level of its clients and confirm it is reaching its target population. This evaluation is based on a sample rather than the entire client base, and is carried out during a different period than when clients enters PMP ( meaning that it does not necessarily coincide with their entry into PMP). The method consists of a survey to determine clients' income and spending level, which is classified as less than $1 a day, between $1 and $2 a day, and more than $2 a day. Different groups are compared (clients who have been in Pro Mujer for less than 1 year and clients who have been in PMP for a longer period) in order to evaluate whether their participation in PMP has generated any changes in their income or spending. Other health and education indicators are also evaluated. No.
Poverty of clients is assessed but not through a formalised method. ABA relies on the judgement and experience of their staff. A non formal balance used by TSEP volunteering staff is the threshold of 100 EGP per month per household member, in terms of income.
Not directly. Women self-select for participation in the program. However, the program operates in one of the poorest regions in Kenya and prior to the Kenya BDS intervention most of these women operated at subsistence level.
Case Study CARE Rwanda Trickle Up Mali PACT Nepal Friendship Bridge Guatemala
FFH/RCPB Burkina Faso
Pro Mujer Peru
188.8.131.52 Associations none outside of CARE N/A Some local NGO partners also implement local development programs in partnership with district authorities and other INGOs such as CARE, PLAN, etc. FBG is currently working together with other organizations to provide a more integrated service to our poor clients. One of our strongest alliances is with Mercado Global, which is training 40 of our artisans clients in various aspects of textile production. Kiva is another partner organization. Kiva acts as a liaison between, a poor woman willing to receive credit and a person willing to invest their money at 0% interest rate in a microcredit program. Cultural Explorer is a tourism agency with which we have recently begun to communicate. Aprofam and FBG have similar missions in the area of health education and target the same segments of the population them; we coordinate with them in the area of women’s reproductive health. In April of 2007, FBG joined forces with MFIs from Central and South America to consolidate an informal “Financial Education Network” under the auspices of a workshop sponsored by CityGroup and MicroOpportunities, and facilitated by Freedom from Hunger. In October we will collaborate in a workshop in Nicaragua organized by several of the network partners, with the goal of adapting several of the FFH modules to the Central American context in a format that will be useful to all of the participating organizations. FBG has also partnered with Johns Hopkins University to provide graduate student interns to help improve the market study used to identify geographic target areas for FBG. As mentioned above, FBG has partnered with FINCA to pilot their FCAT or client assessment tool to better understand FBG clients and their needs.
RCPB enjoys a long-standing partnership with Développement International Desjardins (DID), which has supported the network technically and financially from its inception. The focus on institutional strength and viability promoted by DID have made it possible for RCPB to diversify its product offerings toward the very poor in more rural areas. Nirdhan has long standing relations with Save the Children and Plan International and both Save and Plan have provided resident technical advisors to Nirdhan. The CEO of Nirdhan is an active member of Save the Children's microfinance network. Nirdhan is currently promoting the creation of a Nepalese association of microfinance development banks.
Partnership with Ford Foundation: Ford Foundation, which has been supporting the development initiatives of ASA for almost the last two decades, has also extended support for the transformation efforts of the microfinance program during 2004-05, with the prospects of partnering with ASA-GV for future growth. The partnership with Ford Foundation comes with a support of Rs.10 mln over two years, which will be used to improve the Capital Adequacy Ratio (CAR) of GV. Ford Foundation has also provided grant support for transformation training to staff as well as members, as well as for election of SHG leaders, and for preparation of account books and accounting statements for the SHGs. Strategic Partnership with SIDBI: Small Industries Development Bank of India (SIDBI), one of the foremost financial institutions supporting microfinance in the country, has been one among the major supporters of ASA-GV's microfinance program, with SIDBI's loans for onward lending forming the highest proportion of ASA-GV's total portfolio, during the past two years. During 2004-05 the partnership with SIDBI reached new heights with their generous support for onward lending at lower interest rates, soft loan for transformation as well as additional support for capacity building. High-Growth Partnership with Grameen Foundation: Grameen Foundation USA (GFUSA) is a global non-profit organization that combines microfinance, new technologies, and innovative thinking to empower the world's poorest people to escape poverty. Grameen Foundation has been a strategic partner for a long time, actively supported investment in transformation and the relationship was strengthened further through a "high growth partnership" agreement signed between ASA-GV and GFUSA. The support for high growth will be in the form of funds for onward lending, and support for capacity building. Partnership with Unitus: Unitus is a not-for-profit organization based in US, with the mission of accelerating the growth of microfinance institutions (MFIs) across the world. The Unitus partnership with ASA-GV comes with support for software, training and staff development and other capacity building support in addition to facilitating transformation. LEEP is based on a partnership model. Within the priority districts that CCF-India has identified as being the “most backward” or in need, local NGO partners who share CCFIndia’s mission are identified. The scale of CCF-India’s operations, e.g. serving 1.02 million children, makes the use of partnerships a necessity. It allows for quality programming in the context of intimate familiarly with the local context. Management and accountability are decentralized to the local level. Partnerships are entered into through an elaborate process of screening and negotiations. Partners not only benefit from the funding, but the relationship strengthens their organizational capacity. For LEEP, partners are rated as category A, B or C, each of which has its own development challenges and needs. It is the long-term plan that all partners become “A” category implementers. The partnership/grant model is sustainable in the sense that CCF-India has been working for 55 years, and the level of sponsorship funding is a reliable source that continues to grow. PMP does not define this type of relationship as a partnership but as a strategic alliance. This aim of these alliances is to establish relationships with other institutions, whether they be public or private, in order to be able to offer complementary services that PMP does not provide. These alliances could be with a bank that administers the clients' savings, with healthcare providers to whom we can refer our clients, or other institutions that provide specialized training to provide our clientele with technical assistance. These alliances have evolved and become fine tuned over time, and have also fundamentally been with healthcare and specialized training providers because PMP offers integral services through outsourcing with these institutions. It has never offered these services directly. Currently we have alliances with public institutions such as: Ministry of Health (MINSA), National University of the Altiplano, Ministry of Labor and Social Promotion, Ministry of Education (Pronoi and Priet Program). And with private institutions such as: INNPARES, Technology University of the Andes, Andean University Néstor Cáceres Velásquez.
The partnerships between MEDA and ECDI and then between ECDI and private sector businesses in the value chain are the main partnerships at work in this program. ECDI is in the process of forming relationships, and building on existing relationships, with microfinance institutions to offer credit to sales agents. They are also beginning to look more at whether and how women are accessing social services - education and health, for example - that will enhance the impact of increased income.
ABA-SME established many partnerships with charity NGOs to better serve the poorest through the TSEP product. This partnership is seen as a win-win-win situation. ABA increases its outreach to the poorest with an additional filter (that insures the beneficiaries are needy), with a reduced cost since the NGO makes the first selection, screening and advertises that ABA selects only the ones with a business idea. The charity NGO gets an additional service to its beneficiaries and helps them get out of this vicious circle by providing them with entrepreneurship opportunities. The charity NGO will so be able to address the needs of other persons unable to work and in a worse social situation. The beneficiaries have the grant help, access to business minded staff that interact with them, provide them with the basic observations and constructive criticism on their business ideas. They also have the possibility to graduate to poverty lending, expand their business and get out of the aid circle, although the possibility to access group loan was not advertised enough with all the TSEP beneficiaries and even with some of the partner charity NGOs. The NGOs are thoroughly selected. Clarity of mission and a good track record are a must. ABA-SME reviews their audited accounts, a list of their staff and their activities before starting the collaboration. Yet they don't provide them with trainings neither are linked by a formal contract. ABA has another partnership with the governmental institution organising literacy classes. The classes already exist and are sponsored by the government but both organisation of the courses and attendance rate are perfectible. ABA gives monetary incentives to teachers and personnel of the schools so they are more effective and motivated. They also give food incentives to the Blossoms clients to encourage them to attend the classes.
For the Omena project, Kenya BDS partnered with the private firm Promisdor. Promisdor was planning to enter into the export market for dried Omena (minnow) in Malawi and needed a secure, high quality supply. Kenya BDS entered into the partnership, since it allowed the program to provide women fish dryers with a link to a stable, high value, guaranteed market for their fish. The partnership also enabled Kenya BDS to base the program on commercial terms, since by partnering with Promidsor, it allowed Kenya BDS to provide the women with the needed technical assistance and commercial financing to upgrade their production sufficiently to sell into the higher value export market. Kenya BDS worked with a local firm contracted by the program to identify women for the program. The women were trained in the financial and business management skills they would need to professionalize their operations, as well as in how to process the fish to the grade required by Promisdor. The women were trained by agents who were initially trained by the local firm and paid by Kenya BDS. After three months, the agents were transferred to Promisdor's permanent payroll. One year into the project the local firm still has one full time staffer that works with the Promisdor agents and the women. The plan is to phase out this staffer in year two and to graduate all work with the women to the Promisdor agents. As discussed in this section and previous, Promisdor provides the women with a guaranteed market and price. Promisdor also provides the women with market information and training in terms of the size and quality of fish it desires and how to dry the fish to meet these standards. Promisdor assists the women to upgrade and increase their total production through interest free loans for drying racks and working capital to purchase fresh fish for processing. To date and as will be discussed more in later sectors the program has had mixed results with the women providing up to 50% monthly of the quantities which Promisdor requires. There have also been some challenges in loan repayments by the women and in developing quality agents for Promisdor. It is also not evident that midevel management in Promisdor completely support the program. Despite these challenges both Kenya BDS and Promisdor's senior management and owners remain committed to the program and will continue to collaborate in its second year. Promisdor also remains committeed to providing interest free loans to the women and paying the agents' salaries with no ongoing subsidies from Kenya BDS.
Case Study CARE Rwanda
Trickle Up Mali
184.108.40.206 Which poverty indicators are collected? Client poverty is not assessed routinely. However, several funded projects have required baseline and end-of-project measurement of certain client data, such as age, gender, main source of income, land ownership, meals consumer per day, education, etc. While some might be strong indicators of poverty, poverty data as such as not obtained. These are the poverty scorecard questions. Note that answer choices are not included: How many family members are 17 years old or younger? How many children ages 6 to 14 attend school? What is the highest educational level that the female spouse/head has completed? How many members of the household work in agriculture, animal husbandry, fishing, or forestry? How many members of the household hold a salaried job? What is the main construction material of the residence’s roof? What is the main construction material of the residence’s floor? What is the residence’s main source of lighting? What is the main source of drinking water? What is the main fuel for cooking? What toilet arrangements does the household have? How many rooms does the household occupy? Do you have an improved wood-burning stove? Is there a kitchen? Does the household own any plows, harrows, grain mills, tractors, motorized pumps, motorized cultivators, or vaporizers (pumps for cotton)? Does the household own any handcarts, bicycles, or motorbikes? Does the household own any radios? Does the household own any televisions? Does the household own any telephones? Does the household own any fans? Minimum possible score (most likely poor): 0 Maximum possible score (least likely poor): 41
PACT Nepal N/A Friendship Bridge The most significant poverty indicators gathered by Guatemala FBG are though the FCAT assessment tool. The indicators gathered are: household information, education levels of clients, literacy, asset information, housing type, access to water, sanitary facilities, cooking fuel, access to electricity, access to insurance, access to medical services and use of medical services, prenatal care, poverty levels by expenditure data, urban and rural and children’s education information.
FFH/RCPB Burkina Two poverty indicators were used in the 2003 HMQ Faso study: 1) The level of household food security during the twelve months preceding the interview. While the concept of food security is universal, this indicator must be adapted to the national (if not regional) context to ensure relevance to culture and to dietary habits. 2) The daily consumption per capita during the previous twelve months, computed from annual expenditure data in specific categories. Both indicators offer interesting insights into different aspects of poverty. While the consumption indicator is more sensitive across a wide spectrum of poverty levels, the food security indicator readily identifies severe poverty and provides gradations within that range.
Nirdhan gathers a comprehensive set of poverty data for each new client which is entered into their Client Data Monitoring System. A means test survey collects information regarding family history, educational status, land ownership, food sufficiency, employment status, annual earnings, type of house, type of roof, source of drinking water, latrine, household goods, electricity and water access, kitchen gardening, cattle farming and loan history. Changes in client poverty status are monitored each time they apply for a new loan. Underemployment, income sources, land ownership, asset ownership, income level, access to markets, access to banks, access to doctors and clinics, proneness to natural disasters
LEEP uses two types of poverty indicators, one is an absolute, universal measure of whether a family is above or below the poverty line (APL or BPL), and the other is a set of indicators that provide a relative measure of the poverty of the participant’s family in relation to its position within the community. The absolute measure of poverty is the appearance of a family on the government’s list as being BPL. At the community level, relative poverty looks at indicators of vulnerability, like female headed households, above average number of dependents, or family member with a disability or chronic illness that requires special care. The community also considers the assets of the family, like land owned, condition of house, animals, appliances, and any forms of transportation, as mobility is a major indicator of wealth. The final indicator is the existence of a regular job.
Pro Mujer Peru
Pro Mujer Peru seeks to measure the impact of our integral services on poor women. As a result, the first study of social indicators, developed in coordination with the Pro Mujer Network, took place in 2005. Five indicators were prioritized: Per Capita Spending, Access to Health Services / Health Culture, Employment Generation, the Growth and Development of Children, and Participation Social Organizations. This information was gathered through the application of a structured survey, based on the specific selected indicators. For its application, a sample was established marking a differentiation between the group of long standing clients and the group of new clients. The operations staff participated in the application of the survey. One of the objectives of PMP's strategic plan is to periodically measure PMP's impact, identifying specific social impact indicators which will allow us to have a clear vision of the influence we are having on women's lives, basically determining the transcendental changes that we seek to achieve through the integral services we provide. However, it must be emphasized that we are aware that PMP's intervention is not the only element that has an impact on these changes. Therefore we have selected specific, prioritized indicators in areas where we have placed the greatest emphasis. This work is carried out every two years. As such, the second evaluation will be carried out in 2007.
Embroider sales and empowerment data.
For TSEP, here is the list of questions asked for in the form: - Family composition - The income of all family members being part of the same household. - Age of the household members - are they student or worker Social situation - Succinct description of the house (location and infrastructure). The decision process relies on a subjective appreciation of the overall poverty level of the household. An appreciation of the income level per household member is also used without being systematic and formalized.
4.1 220.127.116.11 What poverty assessment tool is used? N/A 18.104.22.168.1. For client monitoring? N/A
Judgmental Poverty Scorecard
N/A Data from the FCAT (FINCA Client Assessment Tool) is collected once a year by outside consultants through an interview process with a random sampling of the client base. FBG is implementing a new tool that will collect similar data around poverty indicators when a client enters FBG and a random sample of current clients annually. This will be analyzed on an ongoing basis, but has only started to be implemented this year.
N/A Understanding who our clients are based on FBG’s mission of serving those living below the poverty line and at least 30% living in extreme poverty.
The HMQ study in Burkina Faso administered two N/A poverty measurement tools to the same population sample, related to the two poverty indicators selected. 1) A Food-Security Scale (FSS) adapted by Freedom from Hunger from an existing U.S. Department of Agriculture FoodSecurity Scale. The USDA's FSS was originally developed for use in the United States, and had already been adapted for use in Mexico. This tool characterizes a household's level of food security using a series of predetermined individual interview questions that query the respondent about his or her household's food consumption during the previous twelve months. In Freedom from Hunger's adaptation of the tool, nine questions query respondents on the occurrence of specific measured levels of food insecurity during the period; eight of these questions have a followup that seeks to qualify the frequency or chronic occurrence of these conditions. This dual scale (occurrence and frequency) helps identify progressively higher levels of food insecurity among respondent households, and ultimately registers the most severe food insecurity that occurred at any time during the year (other than very rarely). 2) The LSMS consumption module from the Living Standards Measurement Survey developed by the World Bank, which in its entirety was used to construct the $1-a-day and $2-a-day international poverty lines. The questionnaire used in this study included the following sections: Household roster, Education for each household member, Food and cooking fuel, Food as payment for employment, Food consumed from own business, Non-food items, Daily expenses, Health, Dwelling expenses and services, Remittances, Durable goods. For both tools, it is critically important to word the questions in a way to take into account local dialects, practices and values. Local enumerators performed a first adaptation of each tool's questionnaire, after which the tools were tested with a focus group of CEE clients sharing similar characteristics with the sample, before questionnaire finalization. Both questionnaires are individually administered by an enumerator. The consumption module tool can take over an hour to administer, especially if large household rosters must be created, and is sometimes administered over several sessions to prevent response quality drop-off. The FSS can be administered in ten to fifteen minutes. The FSS's sensitivity is restricted to the "very poor" end of a range of poverty levels, while the consumption module's sensitivity applies to a much broader range.
Again, ASA uses Housing Index as the primary tool for poverty assessment. In the meantime, ASA has participated in the pilot testing of the Progress out of Poverty Index (PPI) of GFUSA and Poverty Assessment Tool of USAID/IRIS. The latter two are not fully institutionalized in ASA. In the case of Housing Index, it is a participatory process. It is explained in Section 3.
Data on Housing Index among new members is used for monitoring the performance on outreach to the target clients: Increase in the proportion of new members falling in less poor category would indicate management to take a closer look at whether or not the target group of poorest has been reached. Also, when compared over time, data on Housing Index of the same member indicates change in the asset level of the member, hence impact indicator.
The Government BPL List
It is the explicit goal of LEEP to ensure that For the absolute measure, LEEP measures poverty every family is earning at using the Government of India definition, e.g. Rs. least Rs.18000, which 18000 income per year. As part of its poverty would move them from eradication program, the government uses survey BPL to APL. In this data to maintain a community specific list of context, the poverty line families that are defined as being BPL. becomes a universal monitoring tool that Participatory Wealth Ranking (PWR) measures the success of participants. Monthly With the PWR indicator, it is the relative poverty income diaries are used vis a via the other families in the community that to monitor how much matters. Household characteristics combined with income is being asset ownership are used to determine a families generated. If income is wealth, or lack thereof. The process concludes not reaching the with a ranking of who in the village is the poorest, anticipated target level, in relative terms. While there are similarities, LEEP assumes each PWR index is based on what the community responsibility for feels is important. investigating and addressing the cause. CCF-India finds it is important to use both the The term used by LEEP absolute and relative tools. The government BPL staff to describe this list is particularly useful in identifying monitoring process was communities with large concentrations of poor “aggressive.” families, and helps prioritize selection. While the BPL list is a good starting point, one of the dangers is its objectivity, i.e. the political considerations that affect how/if one gets on the list. Experience has shows that in a given community, only 60% to 70% of the poor get identified. The PWR tool catches those cases where a misclassification may have occurred, i.e. poor but not on the government list. The PWR also acts as a crosscheck of government data.
In order to measure the social impact of PMP on its Pro Mujer Peru considers clients, we obtain information from two the poverty information populations in different phases in PMP. The two or data to be populations of this study include those clients that fundamental. In order to are entering PMP for the first time and those select or make a decision clients who have finished the eighth cycle. These about entering a new two populations are called the control group and market, one of the the experienced group and are defined as follows: principle indicators we - The control group: The control group includes consider is the poverty clients who are entering Pro Mujer for the first level, as our mission is to time. These clients have not yet received the reach and serve poor benefits of being PMP members and therefore women in order to form a control group for the purposes of the study. contribute to improving - The experienced group: The experienced group their standard of living so is a group of clients who have finished a minimum that, with their work and of 8 cycles (three years) as members of PMP or access to opportunities, more. All of these clients have more than three they can gradually leave years with PMP. The design of this study assumes poverty behind. When that with this amount of time in PMP, it is possible Pro Mujer Peru selected to see evidence of changes in the lives of our the different clients. In order to obtain the necessary departments where it information for this study, the Pro Mujer Cycle 1 currently works, one of Client Data File is applied to all clients who are the principle aspects it entering PMP for the first time, or the control took into account was group. For the experienced group, the Pro Mujer the poverty indicator. Cycle 8 Data File is applied. These two files were The first department designed to gather general information as well as where Pro Mujer Peru household, business and health data. These two began operating, Puno, files allow PMP to gather information about the had a rate of 77.3% economic and social situations of the two client poverty and 50.7% groups within PMP. Additionally, a survey is extreme poverty. Later, conducted which is applied only to a sample PMP opted for the population. This survey is aimed at expanding department of Tacna upon the information, obtaining a broad amount of with 34% poverty, and information on the indicators to be measured. The Moquegua with 28.5% Client Data files are applied by the operations poverty and 7.6% staff. The survey is applied with the support of extreme poverty. students in their final years of social science degree programs in the university. The application of the survey takes longer and is only used for the purposes of the study, something that is different than the application of the file, which is part of the regular responsibilities of the staff. It is important to mention that Pro Mujer does not have a system or software that allows it to register all this information. However, it is developing software that will allow it to do so. As a result, the process takes longer as this information is processed only for the impact indicators study and only for the sample.
It is an impact assessment tool developed for the program.
Yes. For example, if sales are low in some areas, program managers might pay more attention to these sales agents, identify challenges and help to resolve them through training, creation of additional market linkages, etc. Where sales are high and possibly unmanageable, the program might help to introduce more sales agents to the area, etc. Poverty data is not explicitly used for client monitoring. Coordinators might keep this information in mind while dealing with the client, but this is not systematized. For TSEP, the creation of an income generating activity is the monitoring base. The time frame between the first and second installment is too short (3 months) to allow for a proper monitoring.
No poverty assessment tool is used
22.214.171.124. How are poverty data used by organization? 126.96.36.199.3. For client 188.8.131.52.2. For client screening? targeting? N/A N/A
Before ASA-GV could start its Housing Index is the primary operations, a comprehensive needs targeting tool for ASA assessment survey is conducted utilising the senior staff members and social auditors. The survey is conducted using Participatory Rural Appraisal (PRA) as the tool to collect data from various sources such as district collector, Office of the Village Administrative Officers (VAO), Panchayat leaders, Block offices, Taluk head quarters, villagers and local leaders etc. A new branch office is established after assessing the potentials. The staff members of the branch are given a orientation training for a couple of days about the outcomes of the needs assessment survey, which would help them to gain specific knowledge about the area to be covered by their branch office. The staff member then gathers information on potential members using Participatory Wealth Ranking. Once potential clients are identified, the staff member visits the house of the potential client to gather info on Housing Index.
A major purpose of the poverty assessment tool is client targeting. First, priority LEEP is one component in the integrated districts are identified as package of health, education and having the highest proportion livelihood programs delivered to a CCF of people living in poverty. community. The entry point for a family Within these priority districts, is eligibility for child sponsorship. Once NGO partners identify clusters a family is selected, a parent is eligible of communities that have the to participate in LEEP, e.g. the livelihood highest concentration of poor. support program. Resource limitations Finally, the selected have necessitated the rationing of communities participate in a participation to CCF enrolled families, ranking process that identifies who by the community’s definition are those most in need. The the poorest. As resources grow in the families emerging from this future, non-sponsorship families in the process become CCF community will be able to participate, sponsorship families, LEEP but they will always be required to be participants, and ultimately BPL at the point of entry into the loan clients. program. In theory, all those living below the poverty line would appear on the government list. CCF-India understands that there are political considerations that can influence appearance on the list, and inclusion is not always objective. In reality, CCF estimates that 70% of the poor actually appear on the BPL list. That means that are some 30% who qualify, but are not properly identified. CCF-India compensates for clear cases of list exclusion, but considering the BPL status in conjunction with the PWR described below.
The use for screening is limited since When targeting TSEP the eligibility criteria a TSEP grant beneficiaries, ABA cooperates depends on the subjective assessement with charity associations by an ABA employee of the household's which are usually set up in income level. this is supplemented by poor neighborhoods. The other qualitative indicators, such as targeting is then based on the condition of the house, household evaluation of the area and the members are students or workers ect. partner associations and not However no formalized systems, such as of the individuals. Only about ranking or scores, are used. A similar 10% to 20% of the TSEP qualitative approach is used for Blossom beneficiaries do not come to product. The quantitative use of data for ABA through screening is only applied for the non associations.They either hear poverty oriented loan product. about TSEP from relatives or neighbors and present themselves to the headquarters or are identified and sent by Blossoms coordinators. In both situations the screening is more costly, takes more time and energy from the team. They need to go on a field visit to only one beneficiary while for associations' they see on one day all the beneficiaries proposed by the association as they are usually in the same neighborhood. N/A N/A
by organization? 184.108.40.206.4. For impact monitoring/assessment? N/A
220.127.116.11.5. For other uses? N/A
N/A Maintaining poverty levels of clients overtime, FBG will be able to assess impact of programs on FBG’s ultimate goal of poverty alleviation as well as designing products and services specific to different poverty levels.
N/A Definitely use the information from poverty assessment in fundraising, P/R and donor education.
As explained earlier, a change in Currently, it is not the Housing Index for repeat used for funding clients over time is used as an raising, PR, etc. indicator for tracking the change in the asset level of clients. Currently, it is not used for product development.
The findings coming from the PWR not only indicate that a family is in the poorest category (the face of poverty), but provide insight into why the family is there (the root cause(s) of poverty). CCF-India works to influence a wide range of determinants of family poverty. As such, it collects a range of data covering health, education and income using CCF, Inc’s. Annual Impact Monitors and Evaluation System (AIMES) tool (see Appendix 2 for consolidated statistics). The link between poverty monitoring/assessment and LEEP product development is quite simple, e.g. if the program does not move clients APL – revisit the design. At this point, LEEP is satisfied with the progress that is being made, and is content to continue to make minor refinements to its existing loan products and services.
Child sponsorship funding is most effective when a personal link between the child and a sponsor is established. Anecdotal examples of how the lives of the child’s family and community have been impacted by program interventions typically appears in fundraising materials, annual reports and other publications of CCFIndia.
Fundraising, public relations, staff motivation, fulfilling existing obligation to donor.
Poverty data is not used for impact TSEP is presented to monitoring or for product external partners, development. national and international stakeholders (not the poverty data per se) as a poverty oriented product integrated in the "reach down, scale up" philosophy and strategy of the institution. The stress is put on the number of graduates to Blossoms product
Case Study CARE Rwanda
4.2.1. Poverty distribution results by internal poverty data collection method N/A
Trickle Up Mali PACT Nepal
Friendship Bridge N/A Guatemala
FFH/RCPB Burkina N/A Faso
Save/Nirdhan Nepal ASA India
N/A % of entering clients defined as Very Poor (Housing Index score of less than 4): 58% / % of entering clients defined as Poor (Housing Index score of 5-8): 37% / % of entering clients defined as less poor (Housing Index score of greater than 8) : 5%
Pro Mujer Peru
Results for moving families APL are currently only available at the NGO level. The new MIS will allow soon allow for analysis of overall performance. Currently, knowledge about a specific family is know and monitored by the Technical Specialist. If progress is not being made, the family is identified for follow-up. As a result of the study of social impact indicators it was determined that 35% of the households of new clients are in extreme poverty, compared with 25% of the households of longstanding clients. Another important piece of data is that new clients live on $1.26 per day, while long standing clients live on $1.50. N/A
The clients' proportion for each of the poverty categories is the clients' proportion for each of the credit products provided by ABA. In July 2007, the SME active clients were 46% of the total clients (31 043) while group lending active clients (including development path and Blossoms) were 36 072 (54% of the total). the number of TSEP beneficiaries is not available monthly. Since inception of the different products, the proportion of SME clients compared to overall is 54 per cent, the proportion of group loans clients is 44 per cent and the proportion of TSEP clients is 2 per cent. N/A
4.2.2. Poverty data from a recent poverty and/or impact assessment stud A study done in Nshili District in Gikongoro Province, where CARE Rwanda is assisting 68 SLAs (with sl members) provides the only data on the proportions of CLASSE SLA members according to the various Poverty Assessment poverty categories. Data for Nshile CLASSE SLA members and Banque Populaire obtained by CARE during a survey in 2005. According to Table 1.3. (national poverty statistics), 70% o Gikongoro are extreme poor, and another 5% live below the national poverty line. If the assumption c the PPA poverty ranking data could be superimposed on the data of the national poverty survey, then PPA categories (the abject poor, very poor and poor, who make up 58% of Gikongoro’s population) as approximately 1/3 of the next category (12% is approx. 1/3 of the 33% resourceful poor) would belong poor as defined by the national poverty survey. In other words, at least 26% of the CLASSE SLA memb (which might not be representative for all of Gikongoro Province) are extreme poor, whereas it is impo determine what proportion of the remaining 74% are extreme poor or poor. Note that the CLASSE pro significantly poorer than clients of the Banque Populaire in Nshile District. Without attempting to relate the relative poverty categories of the PPA to the absolute national pover based on PPA poverty categories looks as follows: 1) 9% of CLASSE members in Nshile district belong to the Umutindi or ‘very poor’. This group is physic working on land owned by others, although they themselves have either no land or very small landho livestock. 2) 17% of CLASSE members in Nshile district belong to the Umukene or ‘poor’. These households have housing. They live on their own labor and produce, and though they have no savings, they can eat, ev very nutritious. However they do not have a surplus to sell in the market, their children do not always they often have no access to health care. 3) The majority (74%) of CLASSE members in Nshile district belong to the Umukene wifashije or the ‘r This group shares many of the characteristics of the Umukene but, in addition, they have small rumin children go to primary school. N/A The following data are obtained from external evaluation by Jeffrey Ashe in 2001. This report distingu poor (45%), the emerging poor (35%) and the better-off (20%) reached by WEP. A partnership with FINCA International using their FCAT in July 2007, FBG was able to sample 433 of F Clients were sampled in all 5 of FBG’s branch offices (Lake Atitlan region, Chimaltenango, Quiche, Ne region). The results are shown below. Gathering information about poverty using indicators
The facts collected about poverty were collected by FINCA International in a time span of 5 weeks dur June and July 2007. The FINCA International consultants used the Client Assessment Tool or FCAT, a st and USAID approved tool, to interview 433 clients. This equates to 3.5% of FBG’s clients
Education, literacy, health, housing infrastructure, alimentary security and vulnerability were the six s measurements used by FINCA International to analyze FBG’s clients the poverty level.
The survey uses qualitative and quantitative indicators. For instance education and literacy are measu of years the family members have been enrolled in school and in until what grade they studied. Healt different ways, for instance: if any member of the family has gotten sick in the past 30 years, if the fa medical attention and where, if the mothers received prenatal medical services during their last pregn clients have social security. Questions regarding the housing infrastructure analyzed the materials us
The HQM study took place in July 2003. Hugo Melgar-Quiñonez worked with local research firm CEDR Center of the University of Ouagadougou) and received logistical support from RCPB and CIF. Twelve supervisors, and three data-entry teams a local team of surveyors. The surveyors were selected for h Bachelor's degree in a relevant field, fluency in local languages, and were trained on the survey's con They participated in tool adaptation and refinement. The surveyors administered each of the two too 330 respondents, 210 of which were CEE clients and 110 non-CEE clients. The study area, chosen in c RCPB, surrounded Ouagadougou and included rural villages, which is representative of the various loc operates (69% of respondents reside in rural areas; 31% reside in peri-urban and urban areas). Credi randomly selected in the area, and 8 to 10 clients were randomly selected in each of these Credit Ass result, they were representative of RCPB's overall CEE clientele. If anything, their relative proximity t with more developed infrastructure and markets would suggest that they might be less poor than RCP clientele. 4 to 5 individuals were then selected in the Credit Association's vicinity. These individuals w not be participants in any microfinance program, and were sought out to be poorer or better-off than on their income-generating activities (for the purposes of testing the sensitivity of the tools at various The CEE clients surveyed had been in the program on average for 4.4 years. Non-clients were survey wider range of poverty levels in an effort to assist the correlation work. Food security data results: Thr clients in the sample were food-insecure. The breakdown of the food-insecure group according to the point indicates that over half of the clients in the sample were severely food-insecure. The difference levels between incoming clients and more "veteran" clients was not statistically significant. The mean day per capita for clients was 397 CFA (US$ 2.32) with a standard deviation of 666 CFA. When clients disaggregated by rural and urban dimensions, there was a striking difference in the mean expenditure between rural clients (mean: 298 CFA - US$ 1.74) and urban clients (mean: 620 CFA - US$ 3.63). One in the sample were under the dollar-a-day line, while 70% were under two-dollars-a-day, indicating th the clients were located between the dollar-a-day and two-dollars-a-day poverty lines. Less than half under the nationally-defined poverty line. The higher poverty incidence among rural clients than amo was statistically significant for all three poverty lines. The food-security and consumption data give qu interpretations of the level of poverty of CEE clients in this sample. This is perhaps unsurprising, sinc of different dimensions and calculations of poverty. The reader may decide which dimension (and me dimension) better represents the true experience of poverty in Burkina Faso. The rural / urban compa at a minimum that RCPB is effectively reaching out to poorer clients to focusing its CEE service into ru
N/A In 2004, a cross sectional study was conducted by Hishigsuren (2004) to assess the changes in the po ASA during the rapid scaling up. The study used a mixed method consisting of surveys with 420 curre clients, 18 focus group discussions with 216 current and former clients, interviews with 3 front-line sta members, 3 representatives of funding agencies and two groups of management staff (20 in total). / A computed in each dimension to find out whether there is any drift considering the direction of change the first domain called Depth of Outreach determine whether ASA has moved up the market and start off people after the scaling up. The indicators in the second domain, Quality of Outreach, measure wh any change in the quality of service and the level of members’ satisfaction with the services of ASA. In third domain, Scope of Outreach, measure if there is any change in the number and type of services o to scaling up. Then, an average percent change is computed based on the percent changes of each in After computing the average percent change at an organizational level, individual percent changes ar three branches selected for the study to represent rural, semi-urban and urban branches of ASA. This reveal whether there is any mission drift due to the branch characteristics – whether urban branches mission drift than rural branches, or vice versa.
LEEP has not had an independent impact assessment. This exercise is seen to be more instructive aft passes the five-year benchmark. Five years is selected because by that time the first participants sho raised APL. Data will allow for analysis of the performance across the various priority activities.
The specific objective of the social indicators study was to measure PMP's social impact on our clients identified five indicators to measure areas where we have the greatest impact rather than focusing on expanding the poverty data. However, in the 2007 study we are considering expanding or having broa about the poverty data, based on indicators that the National Statistics Institute considers or measure not yet have this information. The Social Impact Indicators study is developed by the Services Manage internal personnel. The first study was carried out in 2005 and the second one is currently being unde social impact indicators study is based on a population of clients that was current in 2005 when Pro M regional offices, in Puno and Tacna, and a total population of 24,134 clients as of July 2005, where 9,6 Tacna and 14,470 to Puno. For the study, a sample was taken of 305 new clients and 538 longstandin Mujer Peru. The sample was representative considering that it was applied based on a formula with a error. The program primarily pays attention to sales from embroidery work. In general, buyers provide inpu are the profits. The program does not have a baseline sales figure. The baseline for most embroidere close to 0, with many operating at a loss. During market research, the program documented the aver of several very active embroiderers, and this forms as a baseline for more active embroiderers. Sales number of embroiderers is reported by sales agents to the program. They have little incentive to repo incorrectly. The overall sales data is divided by the number of embroiderers selling to get an average the over 9,000 embroiderers reached are "active" at this point, and the second sales figure reflects sa active producers. Figures are gathered in Pakistani Rupees and converted at the exchange rate at th report. Sales data is collected from all sales agents and, thus, all clients. Empowerment data is gathe 120 of the 9,330 clients from all 3 regions. Baseline annual sales for least active embroiderers: 0 or op Current program average annual sales from embroidery, all clients: $148. Baseline average annual sa embroiderers: $72 . Current average annual income for active embroiderers: $260. An "active" embro who embroiderers for over four hours per day.
4.2.3. Poverty Data obtained through use of USAID certified poverty tool N/A
N/A N/A N/A
N/A ASA participated in the practicality testing of USAID poverty assessment tool. However, because it was a practicality testing, ASA was told that the findings cannot be used to report the poverty level of its clients.
No study using a USAID certified poverty tool has been completed.
Case Study CARE Rwanda
Trickle Up Mali
PACT Nepal Friendship Bridge Guatemala
FFH/RCPB Burkina Faso
Save/Nirdhan Nepal ASA India
Pro Mujer Peru
4.3.1. Does the organization use a poverty targeting tool? Geographic targeting: poorest districts within selected Provinces; most vulnerable sectors within the selected districts; most vulnerable cellules within the selected sectors. Within geographic target area, typically already existing associations are targeted, especially if they are excluded from the formal financial system (which is almost always the case). Furthermore, associations are targeted based on criteria pertaining to poverty of their members: households with less than 0.5 hectares of land Isolation and/or self exclusion Difficulty to afford school fees and medical costs Limited social capital Small land (> 0.5 ha) No livestock No access to credit. Some programs specifically target widows and female-headed households; people living with HIV/AIDS; orphans and other vulnerable children (OVCs). Since for the most part existing associations are targeted, some of the most vulnerable people might not be reached, however, as they are more likely to be excluded by these groups and/or might exclude themselves.
Geographic targeting is the first step. Trickle Up has programs only in the poorest regions of Mali: Timbuktu, Gao and Mopti. Within those regions, very poor people are in the majority, and Trickle Up works selects suitable partner agencies with a mission that is compatible with Trickle Up (especially in terms of reaching the very poor) and with sufficient organizational capacity. Excessive costs or lack of suitable local NGOs are sometimes an obstacle to reach the very poor in the most remote areas within those the abovementioned three regions. TU partner agencies use a participant selection tool, which focuses of three areas: poverty, commitment/motivation, entrepreneurial ability
N/A FBG uses primarily geographic targeting tools as well as tapping into their local network of field staff to identify extreme poor clients. The geographic targeting uses rural, indigenous and poverty maps to identify strategic areas for FBG outreach.
RCPB relies on geographic and gender targeting, and uses a product whose entry conditions and features are appropriate and attractive to very poor clients. During community promotion events, the animatrice encourages wide participation, and explains that the service is designed for poor women. The animatrice is trained to focus on women who have income-generating activities, but lack the financial resources to grow them. She also informally assesses the women's living conditions, and the health of their children. Nirdhan's poverty targeting tools are described above in the sections 18.104.22.168 on client selection and eligibility and 22.214.171.124 on poverty assessment. Clients are categorized by relative poverty levels based on how much land they own. The above mentioned Housing Index is used as the targeting tool. In addition, geographical targeting and Participatory Wealth Ranking is used to identify target communities. Also, ASA's products and services are tailored towards very poor women, hence they serve as an indirect targeting.
There are several levels of poverty targeting, beginning with the district targeting analysis done for the country strategy and determines the districts where CCF-India works. Then within the districts vulnerable communities are identified based upon the NGO partner analysis of need. Finally, the PWR tool is used to identify the poorest families in the community for enrollment.
Pro Mujer Peru has not developed a specific or special tool to evaluate poverty as we take into account the parameters established by the INEI . However, it is important to mention that based on the institutional mission of reaching all poor women by providing them with access to loans and training, Pro Mujer Peru aims to take its services to rural populations, since rural areas display the highest poverty levels. For this reason, we are developing a loan product that takes into account the economic dynamic of this part of the country. This service will also be integral, which is to say it will include training and human development services. As a result, with this new product and new intervention strategy we will be reaching the very poor.
No poverty assessment tool is used. The targeting for any of the products is done through a geographical targeting. For Blossoms, for example, the coordinator as well as the branch manager, live in the same area where they work and they know the areas where eligible population is settled. There is no quantitative level of poverty assessment. The group lending methodology as well as the low amount of credit granted and the gender are supposed to help also targeting the poor population. For TSEP, the targeting is done through the partner charity associations on a geographical and activity basis. The targeted population is the poorest and most vulnerable sectors of the population particularly women and unemployed young people. In practice, 95 per cent of the recipients are women. As already mentioned, the TSEP team applies a threshold of 100 EGP per family household and per month. Combined with other indicators such as the amounts of bills that the household is able to pay, the income estimate helps to roughly evaluate the poverty situation of the household.
See section 126.96.36.199, which discussed the program's targeting strategy and how poverty was taken into account.
4.3.2. What is the client poverty target level? Geographic targeting: poorest districts within selected Provinces; most vulnerable sectors within the selected districts; most vulnerable cellules within the selected sectors. Within geographic target area, typically already existing associations are targeted, especially if they are excluded from the formal financial system (which is almost always the case). Furthermore, associations are targeted based on criteria pertaining to poverty of their members: households with less than 0.5 hectares of land, widows and female-headed households; people living with HIV/AIDS; orphans and other vulnerable children (OVCs). Since for the most part existing associations are targeted, some of the most vulnerable people might not be reached, however, as they are more likely to be excluded by these groups and/or might exclude themselves.
In order to be eligible for the program, a minimum score of 8 is required.
N/A FBG has a target level of 100% of incoming clients live below the poverty line and at least 30% live in extreme poverty.
As explained above, those who are given Housing index score of below 4 are defined as the Poorest.
The effective cut-off line is the government’s BPL list. The objective of LEEP is to move families from BPL to APL or Rs. 24000.
Program leaders estimate that the level is 2 of 5 with 5 being wealthy, 1 being destitute. Critical to program success is the fact that clients have a marketable skill.
The Blossom operation manual, which serves as a basis for training coordinators,that to be eligible for a group loan "Women head of households with limited income sources. Priority to be given to divorced, widows and the ones that are taking care of an invalid husband". The poverty level is not formally defined by a cut-off level of income for example. For TSEP, for which an operations manual does not exist, the cut-off is "an insufficient income" which is evaluated according to the observations and experience of ABA's agents. They rely on the declaration and the papers provided by the beneficiary. For exemple, phone and electricity bills give an idea about the level of consumption and the payment capacity, which helps deduce a level of income. Finally coordinators assess the area in which the beneficiary lives, as well as house conditions. The experience of the audit team made them set up an indicative cut-off of 100 EGP (17$US) per month per household member. This is not formalized and not followed by everyone.
4.3.3. Staff use of poverty targeting Probably the most important incentive for BP credit officers in serving very poor clients is the existence of the Intergroupments. The Intergroupments are trained to review credit applications from their SLA members before they are submitted to a Bank’s loan officer. This significantly reduces the work and risk taken on by loan officers. Moreover, loans to SLAs are guaranteed by funds provided to the Banks by CARE. Repayment rates have been consistently high and have helped the Bank gain confidence in lending to SLAs and use its own funds in addition to CARE guarantee loan funds.
Partner NGO field staff have been trained in using the participant selection tool, and understand about the importance of reaching the very poor to the mission of Trickle Up. If local partner NGOs do not already have a strong focus on the most vulnerable community members, the Trickle Up program and support enables organizations to do so. There are no explicit staff incentive schemes to reach the very poor. Reaching the very poor is a commitment by local partner NGOs, which is also formally addressed in the agreement between each partner NGO and Trickle Up. N/A Staff is trained in identifying geographic areas and is also hired based on their level of commitment to serving the poor. There is also a commitment within FBG to have at 25% of field staff that are former clients of FBG. This increases the sensitivity to serving the poorest and allows for greater internal resources in identifying the poorest.
Animatrice training includes practicing community promotion activities. RCPB does not currently use an incentive system. Animatrice performance is evaluated according to total outreach, interest revenue generation and delivery of education sessions. Evaluations do not specifically address poverty outreach. N/A
See Section 188.8.131.52 and 184.108.40.206
Participatory wealth ranking staff training of field staff is done by NGO partner. CCF-India initially trains the NGO project team leaders so there is consistent application of the tool among partners.
Pro Mujer Peru personnel, from the management to the board of directors, identify with the institutional mission and take our products and services to the very poor. All new personnel are provided with specific training on this issue. They are aware of our mission and who we work with from the day one. This information is imparted through videos, client testimonies and work in teams in order to contribute to improving the lives of many women. We show them our greatest rewards, which are the grateful smiles of the women, mothers and entrepreneurs. During the organziation's annual anniversary celebration, a motivational video is developed which includes testimonies from our clients, the perspectives and appreciation of the local and international boards of directors and of the media which has identified Pro Mujer Peru as a leading institution that is changing the lives of poor women in Peru in a positive manner through differentiated, integral and efficient services, promoting values like solidarity, responsibility and the ability to overcome. Given that Pro Mujer Peru understands that economics are neither the sole cause of poverty nor the only way to leave it behind, the organization provides integral services, training and access to health services. As a result, the branches respond to goals not only regarding loans but also regarding the personal development services. These indicators include the number of clients with motivational sessions on issues of personal development, the number of clients with a health plan, the number of clients served by healthcare services, the number of families served by healthcare services, the number of children served by healthcare services, the number of people served overall, and the number of clients who access occupational and technical courses. These goals are registered and reported together with portfolio and client goals and form part of the performance evaluation of each branch, and thus the evalution of the operating staff.
How is staff trained in poverty targeting? This is done informally through inspirational program leaders. ECDI hired new staff to work directly with the poor, while existing staff worked more with urban sales agents and more sophisticated businesses in the chain.
Staffs receive training before starting in ABA, through one week sessions, followed by one week in the field and then 2 months of work on the field monitored by senior officer. There is no training per se on poverty targeting. For the coordinators in charge of the poor population through group loan products, the training is much more oriented to the operational aspects. The training does not include board of Directors members, as they are not participating by any means in day to day management. It is also expected that they don't have time or these activities. Sensitisation sessions should be organised for them mainly memers of Zakat Committee, mother committee of the project. This may help board members understand the difficulties of transforming ideas into actions on the ground. It may give them a better sense of what is happening and they can be of a better advice for the operational audit team. Training for the NGOs is also missing and could help ABA-SME transmit on a formalized way the right information to the beneficiaries through the NGO. There is no incentive scheme for poverty outreach. The most important reward for some of the staff is the good they are doing. In the meantime, most of them point out their small pay. It may be another explanation to the small number of TSEP beneficiaries. The easiest way to set up incentives is by number of grants awarded. It is found by ABA-SME management to be dangerous as it might encourage the team to give away grants to not needy people in order to reach the set up performance level. To be efficient, incentives should be in a set, both quantitative (number of grants) and qualitative (level of poverty). The loan officers for group loans products are rewarded according to their portfolio at risk and the number of active clients. On average, their pay is based on 50% incentives. Field Extension Officers are paid based on their performance in terms of the number of tons of fish they collect from the women.
4.3.4. Issues with poverty targeting N/A
Often demand for participating in Trickle Up's microenterprise program is much higher than available resources, which is one of the reasons that other selection criteria (motivation, entrepreneurial ability) are used in addition to poverty criteria. Poverty selection criteria might be more or less relevant depending of the poverty level of the target area. In relatively well-off areas, selected participants might be better off than those selected according to the same criteria in a very poor area. Until now Trickle Up has not been able to test the accuracy of the poverty selection tool. Planned poverty assessment by using a recently developed poverty scorecard for Mali will allow for comparing poverty levels among different partner NGOs and target areas. N/A N/A
One of the main challenges with Housing Index as the poverty targeting tool is that it does not work the same way in urban areas as it does in rural areas. Also, the housing conditions are changing as the government provides free housing to the poor (which are in relatively good condition). ASA is looking at other cost effective and reliable poverty targeting tools that can be adapted to the context of ASA The objectivity and reliability of the BPL government list, used as the initial screening tool to determine family eligibility, has been questioned. The NGOs have found cases where those know to be poor in a community are not on the list, and vice versa. These obvious cases of misclassification bring the selection process into doubt. To compensate, the NGO partners do not use the BPL list alone, but combine that information with the PWR results when selecting families.
From the researcher's perspective, the M&E tool has several issues: It is not a poverty targeting tool and does not report comparable, statistical poverty levels. The data is gathered, but not fully analyzed. This is partly due to lack of resources, but also because program management is more motivated by and focused on empowerment information, rather than statistics. Statistics are produced for the donor, and are of limited quality anyway due to the circumstances of the clients and the limitations of available tools. There is no baseline data collection, and no national statistics are provided for comparison, so it is difficult to compare the results with other programs in other contexts. Having said this, there are no easy answers to most of these challenges. Targeted households are very socially closed and secretive, particularly at the beginning of the program and at the beginning of their interaction with the program. The women themselves could not report their household incomes, although they probably could report consumption patterns. However, this type of survey requires more skill and time than the program ahs at present. Additional resources would at least facilitate better processing of existing data.
Case Study CARE Rwanda
Trickle Up Mali
Friendship Bridge Guatemala
FFH/RCPB Burkina Faso
Save/Nirdhan Nepal ASA India
Pro Mujer Peru
5.3.6. Empowerment and Confidence Building Savings and Loan Associations are designed to build the confidence of members, by encouraging them to save, take small loans to start or expand new income activities, and collectively reach certain savings goals (such as purchase of a goat for each member, etc.). In addition, SLAs open a bank account and learn about bank procedures, while many also manage to receive a bank loan. SLA members set their own rules, including weekly savings amount and internal interest rate for loans from the group fund.
A major element of the BDSFs is confidence-building and empowerment for group members. Though clients are not involved in product and service design at the TU Mali-level, they take ownership of their BDSFs through leadership positions on committees, group decision-making and creation of their group's by-laws. Those who are selected as BDSF representatives and participate in regional and sub-regional meetings build further confidence through those meetings. Anecdotal evidence suggests that clients do have more negotiating power in business transactions, especially when making group investments. As the name of the program implies, women’s empowerment is the overall objective underlying the three components of the WEP approach: literacy training, legal rights awareness and advocacy, and increased access to economic opportunities. Improved literacy increases self-worth and opens up new opportunities. Women are not given any handouts; they engage in an appreciative inquiry process, facilitated by empowerment workers, to take control of their lives by saving and increasing their incomes. They do not depend on an outside institution for these services, and set their own rules for savings and credit. Women are also encouraged to discuss their circumstances and to take collective action to make positive changes. Women’s empowerment in WEP is not a hollow claim based on access to credit for women, but is at the core of the project’s design. Training manuals focus on empowerment, and empowerment workers are trained in empowerment exercises, such as confidence building, understanding empowerment, forming a sisterhood, making decisions, initiating collective action, eliminating violence against women… Access to savings and loans is only one part of empowerment. FBG trust banks are set up so that there is a board of directors elected for each loan group. This board is responsible for starting the meeting and collecting all repayments. Loan officers are not allowed to touch the money. The board counts the money in front of the group and makes the deposit into the bank. The group as a whole has several committees that are designed to help with various decisions that the group as a whole need to make, i.e. where to meet, should they charge a late fee on those arriving late to the meeting, how to collect on late payments. This is designed to empower the group. Many of the educational trainings require the women to speak in front of their loan group encouraging women to find their voice and confidence in speaking in front of a group. Clients are also asked to pick a representative to represent their group in the annual assembly of borrowers. There are plans to start a council of advisors at a national level in Guatemala that would include at least two borrowers. All payments are made into a bank. For many clients this is the first time they go into a formal financial institution. This can be very intimidating for a client that may not read or write.
The Self-Esteem module developed by Freedom from Hunger (see Table 5.3.3) contains eight learning sessions designed to help participants value and use their differences and skills, and develop the confidence to set and achieve goals. One session specifically addresses domestic violence. RCPB received this module in 2007 and will add it to its portfolio of modules. In addition to this particular module, specific features in the product design put clients in situations that are likely to increase their confidence and transfer to other areas of their lives: Group members elect the group officers, and some serve as group officers, Group members collectively manage the group's affairs (e.g. bookkeeping, meetings, conflict resolution), Group members voice opinions and think critically in a safe environment while participating in learning sessions. Finally, the clients' increased income and knowledge are expected to translate into greater status and influence in their households, among their peers and in the community.
N/A The following type of activities help to build the confidence of clients: Business Development Services, CC meetings, Cluster leader meetings and Right based programs, Education, Training on non - party local elections, International Women's Day celebration helps client to build confidence. Credit products and credit plus activities of ASA Grama Vidiyal build confidence of clients. A detailed research analysis is conducted for product designing. The newly launched Business Loan product was introduced after conducting Primary research and receiving consultative support from professionals and researchers. Some key parameters for designing the Business loan product were members' businesses, income level requirements and present and proposed cash flows. Members negotiate with Business Loan officers to secure a loan, then prepare business plans to show how the loan would be utilized. This is done in order to explain how the loan would increase the cash flow, savings volumes and repayment capacity of the client. ASA regularly conducts meetings for members and leaders for training and development programs. During these sessions one of the key agenda is to collect feed back on products, satisfactory levels, and suggestions on products, services and other operational policies. All branches and sampled centers are given In-land letters ad postcards that are addressed directly to the CMD for sharing their views, comments, concerns and feedback. ASA also has grievances call attendant at the HO to serve members and staff issues and queries. In terms clients' negotiating power in financial and business transactions, when ASA did impact study, research study on micro enterprise, etc, it was observed that around 20% of the total members (around 200,000) are doing the business on their own, that is the women members themselves who conduct the business. Around 40% of the total women members are taking loan and giving it to their husbands for their business that is the husbands alone does the business. Remaining 40% of the women families are doing joint business, both husbands and wives are jointly does the business. In many families around 40-50% the women members take decision or in other words the women involve in decisions such as education of the girl child, income and expenses management of the family, cash-flow of the businesses, because the women takes loan and give it to the family. In terms of challenges, women members still face challenges related to business development: lack of mobility for marketing the product, marketing at large markets such as national level, international level, branding, labelling, etc. The quality expectations and quality control mechanisms are very much challenging for these kind of microentreprises. Impact on LPG Liberalization, Privatization and Globalization policies very much affect the micro enterprises what the poor are doing. Meeting credit demand of the member community by ASA-GV kind of MFIs would be the challenge for them. The present products offered by MFIs may not be enough for meeting their different (credit, others) needs of the members such as housing, businesses, education, assets, others, etc. Government policies are not very much favourable to the poor and agriculture sector in India, which leads to poor becomes poor richer becomes richer.
Building the confidence of LEEP clients, who are typically poor women, is part of the complete package. TA plays an important role in giving inexperienced women the confidence that they can handle an initial loan as high as $1,250. Many are intimated by this size, and doubt their ability to successfully manage it. Taking the loan is a big risk, and intense technical support is key to showing them how they can earn the revenue to repay the loan. Clients go into the loan empowered with information, and it is important that they do not feel alone after the loan is given LEEP only gives loans for a limited number of priority activities, and CCF-India takes the responsibility for doing the analysis that confirms a priority economic activity can be profitable. This responsibility includes a commitment to provide necessary technical assistance and identification of markets that will deliver the targeted level of income. LEEP clients are subsequently limited to doing the priority enterprise that the NGO in her area has elected, based on a careful analysis of the market. The NGO can suggest priority areas, but CCF ultimately determines if it is viable. Clients are not involved in program design. They are offered the opportunity to do a specific activity, which CCF-India has determined can generate the target income. The focus is on the income to be earned, not necessarily the preference of the client. It is important to note that an additional criteria of the priority area is that is something that the typical poor women could engage in, i.e. builds upon traditional activities and/or incorporates easily learned skills. Where clients do have a voice is when problem areas are identified, and the promised results are not forthcoming. In this case, CCF would look at the quality of the TA (technical advisors have been fired for poor performance), and if necessary the selection of the priority area. The LEEP approach is market led, and there is on-going effort to seek out new activities which have large market potential (i.e. could be done by a large number of families) and are also technically feasible. It is most often the case that the markets for priority activities is outside of the NGO’s program area, and LEEP producers are not familiar with. Most recently Small Orchard (Lemon + Drum stick + Cucumber) was introduced as a new activity and LEEP built its in-house technical capacity for this activity. The economic environment is not static, and LEEP must constantly monitor its portfolio of priority activities. If an existing priority activity does not produce desired results, clients will be shifted. The implication of this market let approach is that activities are promoted that 1) have a viable market and 2) that LEEP has the capacity to provide extensive technical support. This approach is followed understanding that some families who do not have that specific interest may be excluded. Ultimately, the decision to do a few things very well is justified by the desire to assure success and a guaranteed level income. In summary, LEEP priority activities are selected based on: • Assessment of market for products • Ability of activity to be undertaken by large number of people • Availability of technical experts – possibly in large numbers LEEP is designed to give clients negotiating power. For example, clients are trained to understand milk quality testing and measuring procedures. They come to the milk collection centre empowered to protest if they feel they are being cheated. The producers are trained in the testing procedures, and know if they are told they have 1.6% fat content, but in reality they have 1.7%. Since they are all selling the same product, the size of the producer volume also gives the group a negotiating power that they would not have as individuals. In many cases, the guarantee of a higher volume of product of predictable quality can be used to negotiate a higher price. Because diary producers are part of the national grid, the market they face is national. Another aspect of empowerment is helping villages work collectively to voice concerns and demand services from the government. One example sited by SHGs interviewed during the preparation of the case study was complaints of health works not visiting the villages as intended, but sitting at the clinic. As a result of collective action, the government enforced village visitation schedules. Which challenges remain? While progress has been made in marketing, there is still much work to be done. Regardless of the
The program does not specifically discuss or confront women's lack of power or autonomy. Rather, the program activities result in empowerment and increased mobility. And, this was intentional. Gender relations are constrained to the point that direct confrontation can be dangerous and unproductive. Clients were interviewed during the market research phase, and a sample is regularly interviewed by independent program staff (independent of sales agents). At the final stages of the program design, managers held workshops with businesses in the value chain, including embroiderers. However, clients have not been directly involved in program decisions. Sales agents, however, have formed an association and have been more directive about next steps in the program. Clients have more negotiating power than before when they were dependant on male relatives. In addition, the program works to provide clients with a choice of sales agents and cultivates a social enterprise approach to business to help clients have more power in the market. In less viable and accessible areas, it is harder to provide clients with many choices, and society is more hierarchical, so women are more vulnerable in these situations.
Meeting of friends, whenever applicable is a good channel to build knowledge, human capital, network and confidence of poor women. The use of these groups of groups as a platform to get new ideas and impressions from the clients can be also a way to empower them. Unfortunately, clients are not directly involved in decision making related to products and service design. But their requirements are taken into consideration whenever they seem in line with the management possibilities. For example, the amounts of the grants were reevaluated to adjust to the increase in cost of living and so was the size of the first group loan.
In discussing what they like most about the program, the women highlight the financial independence it allows. Many of the women report that selling to Promisdor has enabled them to pay school fees on time and to eat well. Importantly they also noted that they no longer have to depend on others for their upkeep as they now can fend for themselves. Many of the women noted that they are finding ways to free themselves of the practice of Jaboya, or special friendship in which they have to grant sexual favors to fishermen or traders to buy fish and access capital. One group of women intends to use the 36,000 KESs they have saved to purchase their own boat, so that they are completely free of this practice. The women also note that they appreciate the unity the program has established among them and their increased financial knowledge. Relationships with Promisdor and its agents are still developing. Most of the women have visited Promisdor's facilities and interact regularly with the company's agents. However, when it comes to negotiating the terms of future contracts or to expressing concerns, the women still rely heavily on Kenya BDS. This is likely a reflection of the nascent status of the women's groups and that they are still in the process of professionalizing their operations and their outlook. The women are currently are not organized in such a way that they can speak as one voice in negotiations with the firm. This may never be practical within the Kenya BDS program timeline and currently there is no plan to help the women's groups to come together in a larger federated structure. In the second year of the program, Kenya BDS will be working to further strengthen the direct relationships between the individual women's groups and Promisdor and its agents, as well as strengthening the capacity of the firm to more actively manage these relationships. The intent is to develop strong lines of communication and trust between the women and Promisdor and its agents. This should also strengthen the women's ability to give feedback to the firm as needed.
5.3.7. Graduation of very poor clients into mainstream MF/MED services SLA training takes usually 8 months, after which an SLA graduates. Each SLA opens a bank account with a local Banque Populaire, and once graduated, SLAs manage their own activities and money. At that time, SLAs are also able to apply for a bank loan if they can produce a sound business plan and loan application. Not every SLA desires or is capable to apply for a bank loan. In addition to the SLA itself, many of its members also open individual accounts with the BP.
TU is currently exploring a pilot "bridging" pilot with the IFC and ICCO/Terrafina. It would link the oldest entrepreneurs with MFIs. Next step is a project design phase.
Graduating to mainstream (institutional) microfinance is not part of WEP’s design. However, two of the biggest local partners of PACT in Nepal were Grameen-replication MFIs. Their solidarity groups, trained by WEP, were obviously linked to a formal microfinance institution. But that was a peculiarity and not intended as a model for the expansion of WEP.
An initial expectation when Credit with Education was introduced to RCPB was that after participating in CEE for a number of cycles, women would "graduate" to individual membership at the cooperative, and avail RCPB's "mainstream" products. It became apparent after a number of years that despite participation in CEE, women still faced obstacles such as additional documentation and fees to become individual members, a high up-front savings requirement to access credit, as well as the physical distance from RCPB points of service. To respond to these concerns, as well as address the divergent loan size needs of group members that were both straining the solidarity guarantee mechanism and loan size ceiling of CEE, RCPB developed a "transition" product called ACI (Association de Crédit Intermédiaire), designed for existing CEE clients. ACI is a "solidarity group" product with an average of 6.5 members. ACI groups are born from mature CEE groups and typically enjoy larger loan amounts (ACI loans can begin at 75,000 CFA, or US$408), longer loan cycles (up to 10 months) and less frequent meetings and repayments (monthly), while the education sessions provided focus more often on microenterprise management. There are currently 416 ACI groups, compared with 3,416 CEE groups, which indicates that many client needs are met in the CEE groups. RCPB has also introduced another solidarity group product that grew out of the original CEE product, targeting new female clients in urban areas: Crédit Féminin en Milieu Urbain (CFMU). CFMU groups have on average 3.8 members, and also have larger loan amounts, longer loan cycles and less frequent meetings and repayments. There are currently 372 CFMU groups. Both the ACI and CFMU products are implemented by the same animatrices who also offer CEE, based on their area of operation, rather than on product specialization. There is no systematic tracking, and only anecdotal evidence, of clients graduating from any of these three group products (CEE; ACI; CFMU) to becoming individual members in the cooperative. There is some evidence from this program as well as other Credit with Education programs that some "graduates" who become individual members at the cooperative choose to still participate in group activities to meet with their peers, receive education sessions, and take out loans if they find them more advantageous than individual loans. Recently Freedom from Hunger worked with RCPB to understand clients' attitudes and behaviors toward becoming individual members, and developed curriculum aimed at better explaining, promoting and increasing individual membership among group
N/A The business loan product is specially designed for matured clients. The business loan is offered for the members who have matured with the institution for more than 2 years. The initial loan size for regular members ranges from 5000 to 15000 INR. However, the loan size for matured clients, those with the greatest potential to be successful entrepreneurs ranges from 20000 to 50000 INR. Since the loan amounts are high, the weekly installments are also high to repay. So the term of the business loan is set to 2 years. The business loan is not disbursed as a group loan and it is an individual loan product. In this product the member gives their bank account details for a credit check and gives two guarantors as security. Out of 200,000 members, ASA has disbursed around 5000 business loans (disbursed with in the period of six months).Business loan was launched in February 2007.
With an average of 3 years in a community, LEEP is at an early stage in microfinance. Clients are still closely linked to child sponsorship activities, and will continue to benefit during the 12 year life cycle of an NGO in a community. A few clients will generate an annual income of Rs. 24000 (placing them above the poverty line) by the end of the first loan cycle. Typically, it takes 3 to 5 loans for a family to be firmly above the poverty line, and not subject to vulnerability. Within the next year, LEEP will have an MIS operational that generates income data. The problem now is that the data is at the partner NGO level, and is not consolidated. LEEP’s perspective on graduation is that the very poor are already in the NGO’s pool of participants, and LEEP commits to getting them above the poverty line. LEEP is designed for and its success is judged by that accomplishment. Once a client is APL, the need for TA will diminish, and she will be able to continue to access loans through her SHG. An important role for LEEP-India will be to link SHGs to external sources of capital.
Pro Mujer does not have a specific graduation plan nor does it establish limits or a specific timeframe for clients to graduate, as we consider this graduation to be differentiated, individual and natural. As clients improve their socio-economic conditions, the loan demands for their businesses increase. Based on this, Pro Mujer Peru offers other loans for clients so that this differentiation is not forced, but instead real and therefore sustainable. At the same time Pro Mujer Peru understands very clearly that if we reach the population with the highest poverty levels, changes are not immediate or of great magnitude, at least not in the majority of our population. As a result, we have not yet implemented an individual loan or product independent of the communal associations. The "graduation" that the program sees and promotes is of embroiderers becoming sales agents and sales agents working with layers of different community-based sales agents.
ABA-SME does not measure any of the success indicators besides the number of grants disbursed and of graduates: cost, timeline and percentage of graduates remaining in the mainstream activity. As this activity is on a charity basis either for staff, top management or ABA's charity committee, they do not evaluate in monetary aspects, for example, the time dedicated by the Operational Audit staff to the TSEP activity (1 weekd per month for each of the 5 team members) or they do not translate into monetary terms the cost to move someone out of the poorest categories. The follow up timeline is also not stressed. Some of the TSEP beneficiaries receive a grant (either just one part or two) and apply for a group loan months later without any incentive or reminder from the ABA staff. As soon as a former TSEP beneficiary receives a loan, even if it is after one year, the MIS recognizes it and he or she is added to the number of graduates. This is the only measure of success used. The reasons of the delay to apply for a loan are perhaps asked by the loan officer, but are not reported or documented. There is no a deliberate effort to shorten the time between the end of access to TSEP, the graduation and access to the first loan. The exit rate of graduates from TSEP to Blossom is not measured per se. Once they are in a group and get a loan, they are considered as a part of the mainstream activity and not as graduates anymore. Most of the time, even the members of their group do not know or do not care whether they benefitted from grants. They consider them as equals. On the one hand it can be seen as a similar treatment for all clients whatever their background, on the other hand, however, tracking the performances of the specific group graduates group can help the institution understand more their needs and weaknesses and address them on a better way. The procedures for TSEP are not systematized and the program is considered to be purely charity without a follow up concern. The graduates are considered as "a plus". Their graduation does not seem essential for ABA-SME staff. If they don't graduate, they would be considered just as charity recipients and not as a lost entrepreneur or as a cause for fewer revenues for the MFI. The the Charity Committee of ABA, which initiated the TSEP idea and remains its principal backer, seems to stress the graduation process and the empowerment of the poor aspect, (which contrasts with the charity idea). In practice, however, there is some deconnexion between how the charity committee wants the programme to be and the way it is done operationally.
Kenya BDS approach is to not move gradually, but to assist women to migrate immediately into a higher value market in which they sell directly to a commercial exporter. The women receive no direct subsidies to make this migration, rather they are shown a good business opportunity and if they opt in, then Promisdor provides them with the financing they need upfront to increase and improve upon the quality of their production. Within some groups, members have been asked to leave or have left voluntarily if they are not meeting their group obligations. The discussion here of "graduation" does not fit the Kenya BDS program context. The clients do not graduate between different levels of assistance or services. Additionally, a woman opting to no longer engage in a commercial relationship with Promasidor is not necessarily an indicator of drop out rates. Some women may opt to discontinue the relationship, since they have saved sufficiently to move into an even higher value level of enterprise or into another function within the same value chan.