TABLE OF CONTENTS

Title Page.............................................................................................................................0
Executive Summary..............................................................................................................i
1. Context.........................................................................................................................1
1.1. Country Socioeconomic and Poverty Data..........................................................1
1.2. Local context – target area...................................................................................1
2. Organizational Framework..........................................................................................3
2.1. International Organization...................................................................................3
2.2. Local organization...............................................................................................3
3. Description of “Very Poor” Target Group...................................................................5
3.1. Individual and Household conditions..................................................................5
3.2. Socioeconomic conditions...................................................................................5
4. Poverty Targeting and Assessment..............................................................................6
4.1. Poverty targeting..................................................................................................6
4.2. Poverty Assessment data.....................................................................................6
5. Products and Services..................................................................................................7
5.1. Financial Products...............................................................................................7
5.2. Microenterprise Development Services...............................................................8
5.3. Non-financial Services.........................................................................................9
5.4. Design and Product Development:......................................................................9
5.5. Implementation Process.....................................................................................10
6. Results........................................................................................................................11
6.1. Method of measuring results:............................................................................11
6.2. Impact................................................................................................................11
6.3. Cost Effectiveness and Sustainability................................................................11
7. Conclusions................................................................................................................12
7.1. Challenges and Pitfalls/Lessons Learned..........................................................12
7.2..................................................................................................................................12
Appendices........................................................................................................................13
Appendix 1. Contacts and Sources of Information........................................................13
Appendix 2. Socioeconomic and Poverty Indicators: definitions, explanations and
sources...........................................................................................................................13
 PROMISING APPROACHES INMF/MED SERVICES FOR VERY POOR PEOPLE
CASE STUDY FORMAT

Title Page
Title of Intervention
Organization Name(s)
Location – Country
Author(s)
Date
Executive Summary

Main items to be included:

1) Name of implementing organization(s), location, start program;

2) Target group description; number of clients/participants; number of very poor
participants;
3) Targeting methodology;
4) MF/MED methodology – emphasize the innovation related to reaching and/or
serving the very poor;
5) Relevant organizational aspects: leadership, culture, staff development, mission;
6) Results (impact) and measurement methodology;
7) Cost effectiveness and sustainability;
8) Conclusion (SWOT approach)

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1. Context
1. Country Socioeconomic and Poverty Data
Table 1: Country Statistics1
Country
Currency
Amount Year
Population (millions)
Population density per square kilometre
Percentage urban / rural population
Inflation
Nominal Exchange Rate (current, X Currency per US$1)
HDI value
HDI ranking
PPP Exchange rate
GDP/Capita (PPP US$)
Local currency equivalent of $1-a-day international poverty line
National Poverty Line
Population below national poverty line (%)
Population living below $1 a day (%)
Population living below $2 a day (%)
ANY OF THE FOLLOWING RELEVANT?
- HIV prevalence (% ages 15-49)
- Malaria cases (per 100,000 people)
- Children under age 5 with insecticide treated bednets
- other health related indicators (such as health expenditure per
capita, immunization rates, physicians per 100,000 people, et
cetera…)
- nutrition ( population undernourished %, children underweight,
under height %, et cetera)
- adult literacy (male, female)
- youth literacy (male, female)
- net primary enrolment ratio (male, female)
- net secondary enrolment ratio (male, female)
- gender-related development index (GDI) rank
- gender-related development index (GDI) value
UNDP HDR also provide information on
- extreme inequality
- progress towards MDGs

2. Local context – target area

1.1.1. Briefly describe local socioeconomic conditions
1.1.1.1. Geographic reference of location and size of population
1.1.1.2. Local population characteristics (detailed information on target group to
follow in later section):

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See Appendix 1 for definitions, explanations and sources for each of the variables in the table.

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 1.1.1.2.1. ethnic groups
1.1.1.2.2. most important economic activities
1.1.1.2.3. cultural and religious background
1.1.1.3. Natural resources, economic activities, markets, unemployment
1.1.1.4. For rural areas only: most important crops and livestock activities, water
supply (irrigation, rain fed), seasons and number of harvests, land ownership
and contract patterns.
1.1.1.5. Occurrence of droughts, floods, natural disasters or conflicts
1.1.2. Describe government policies aimed at the very poor:
1.1.2.1. Social protection schemes by the government
1.1.2.2. Policies aimed to integrate the very poor, such as anti-discrimination and
affirmative action laws
1.1.2.3. Property and land rights
1.1.2.4. Local government and non-governmental development programs
1.1.2.5. Other
1.1.3. Brief profile of microfinance environment.
1.1.3.1. List microfinance institutions (other than subject of case study) and other
financial institutions/services accessible by the poor. Provide number of
clients, if possible.
1.1.3.2. Describe dominant microfinance models and services
1.1.3.3. Demand versus supply of microfinance services
1.1.3.4. Breadth and depth of microfinance outreach
1.1.3.5. MF/MED initiatives (other than case study) aimed at the very poor
1.1.4. Poverty
1.1.4.1. In which geographic areas of the country is extreme poverty concentrated?
Include both urban and rural areas where extreme poverty dominates most.
1.1.4.2. Does the target area fall within these extreme poor regions?
1.1.4.3. How many people live in target area?
1.1.4.4. If known, what is the proportion of population in the target area living below
$1-a-day and/or within bottom 50% of people living below the national
poverty line?

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2. Organizational Framework
1. International Organization
1.1.5. Name and type of the organization (INGO, multilateral agency, foundation, other)
1.1.6. Organizational background
1.1.6.1. Mission and vision
1.1.6.2. Brief history
1.1.6.3. Type of support: funding, capacity building, direct service provider, other
1.1.7. Development intervention approach
1.1.7.1. Primary target group and development sector
1.1.7.2. Specialized in MF/MED or multisectoral
1.1.7.3. MF/MED model
1.1.7.4. Other sectors

2. Local organization
Table 2. Institutional Background
Issues Observations
Name of the organization or institution
Geographic area of operation
Legal structure
Registration status
Regulation status
Date established
Specialized (MF/MED) or multisectoral
Start of MF/MED activities
Core business (f.i. credit, savings, …)
Business model
Target market – MF/MED
Number of clients/participants – MF/MED
Number of staff

1.1.8. Organizational development

1.1.8.1. Mission and vision
1.1.8.2. Brief history
1.1.8.3. Objectives
1.1.8.4. Organizational culture, leadership, innovation
1.1.8.5. Organisational structure, roles and responsibilities (diagram may be helpful)
1.1.8.6. General qualifications of staff
1.1.8.7. Training/sensitization (of staff, managers, board) related to poverty outreach
1.1.8.8. Governance
1.1.9. MF and MED services
1.1.9.1. MF model and products/services. If applicable, include average and
minimum/maximum loan size, type of savings, average savings, et cetera.
1.1.9.2. Description of main target group (if not the very poor): poverty level,
gender, social status, professional activities, ethnicity, other

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 1.1.9.3. Selection and/or eligibility criteria and method
1.1.9.4. Use of poverty assessment tool? Which method?
1.1.9.5. Job description of field staff who interact with program participants related
to financial services (loan officer, deposit collector, …)
1.1.9.6. Staff incentive schemes
1.1.10. Resources
1.1.11. External assistance (donors)
1.1.12. Relationships (networks, partnerships, member organizations)

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3. Description of “Very Poor” Target Group

1. Individual and Household conditions

1.1.13. Gender
1.1.14. Age
1.1.15. Disability and chronic disease
1.1.16. Culture or religion
1.1.17. Ethnicity
1.1.18. Membership to socioeconomic groups, such as caste and class
1.1.19. Household type, composition, marital status
1.1.20. Literacy
1.1.21. Education
1.1.22. Economic or political instability
2. Socioeconomic conditions
1.1.23. Refugee or IDP status
1.1.24. Natural disasters: type, frequency, effect
1.1.25. Economic conditions:
1.1.25.1. Employment level
1.1.25.2. Income Sources
1.1.25.3. Land ownership
1.1.25.4. Asset ownership
1.1.25.5. Income level
1.1.26. Geographic conditions
1.1.26.1. rural/urban, remoteness
1.1.26.2. access to markets
1.1.26.3. access to banks
1.1.26.4. access to doctors and clinics
1.1.27. Major vulnerabilities and risks encountered by target group. What are common
coping mechanisms and how do these related to services/products offered by the
organization? (refer to section 4 for detailed description of products, services, and
delivery mechanisms)

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4. Poverty Targeting and Assessment

1. Poverty targeting
1.1.28. Number and definition of “very poor” clients used by local organization.
1.1.28.1. How does the organization label its “very poor” clients? (ultra-poor, poorest
of the poor, poor, …)
1.1.28.2. How many clients labeled as “very poor” entered the program during the last
12 months? What percentage is this of total number of new clients recruited
during same period?
1.1.28.3. What type of poverty-related client data are collected when new
client/participant enters the program? Are any descriptive statistics available
for these?
1.1.29. Does the organization use a poverty targeting tool?
1.1.29.1. If so, what method is used? And describe whether the method assesses
absolute or relative poverty.
1.1.29.2. What are the poverty criteria and indicators?
1.1.29.3. Process, Time, cost, etc.
2. Poverty Assessment data
1.1.30. Does the organization use a poverty assessment tool?
1.1.30.1. If so, what method is used? And describe whether the method assesses
absolute or relative poverty.
1.1.30.2. What are the poverty indicators?
1.1.30.3. Is the poverty assessment tool used for selection? If so, what are the poverty
criteria?
1.1.30.4. More details needed for this section? (check John Hatch’ publication on
poverty assessment methods)
1.1.31. USAID poverty tool data

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5. Products and Services
1. Financial Products
Table 3: Microfinance Product Details
Product Features and Policies
microcredit
Individual or group product
Loan terms (maturity, interest rate,
interest type, flexibility)
Loan source
Loan use
Loan size (first loan, average loan,
maximum loan size)
Meeting requirement and frequency
Mandatory savings requirement and
amount
Collateral requirement
Other eligibility requirements
Loan default policy
Repayment incentives

microsavings
Individual or group
Savings Type
Deposit location
Deposit frequency, amounts, flexibility
Meeting requirement and frequency
Savings terms (interest rate, minimum
deposit, …)
Withdrawal and savings use policies
Record keeping and accounting
Investment of deposits

microinsurance
Microinsurance Type
Group or individual product
Term
Eligibility requirements
Renewal requirements
Rejection rate
Voluntary or compulsory
Product coverage (benefits)
Key exclusions
Pricing – premiums
Pricing – co-payments and deductibles
Pricing – other fees

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 Product Features and Policies
microgrants
Individual or group product
Amount (and number of grants)
Eligibility requirements
Grant use and other conditions
Savings requirement or matched savings
arrangement
Straight grant, no interest or partial
repayment

1.1.32.

2. Microenterprise Development Services

Table 4: MED Service Details
Service Types and Features
Training
Financial literacy
Business planning and management
Marketing
Recordkeeping and bookkeeping
Skill development
Technical assistance
Training method
Costs to client
Business Consultancy and Advisory Services
Individual or group sessions
Frequency
Topics
Confidence Building
Costs to client
Market Linkages
Input supply
Marketing Assistance
Market Information
Producer organizations
Business linkage promotion
Quality Control
Costs to client
Other
Employment generation
Technology development

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1.1.33.

3. Non-financial Services
Table 5: Non-financial Services Details
Service Types and Features
Nutrition

Health and Sanitation

Education

Social Capital Development

Other:

1.1.34.

4. Design and Product Development:

1.1.35. Program Rationale
1.1.35.1. What is your theory of change?
1.1.35.2. What did you know about client behavior that led you to this intervention?
1.1.35.3. What are the intended impacts of your program?
1.1.35.4. How are the inputs designed to achieve those intended impacts?
1.1.36. Concept development
1.1.36.1. Needs assessment

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 1.1.36.2. Competition analysis
1.1.36.3. Self-assessment
1.1.37. Product design
1.1.37.1. What was the process they followed in product design?
1.1.37.2. Risk assessment and tool design
1.1.37.3. Prototype development and testing
1.1.38. Pilot testing
1.1.38.1. Significant changes during pilot testing
1.1.39. Rollout
1.1.40. Product review and assessment
1.1.41. The Product Development Cost
1.1.41.1. Total cost
1.1.41.2. How were they funded
1.1.41.3. Outsourcing during the development process
1.1.42. Feedback loop?
We need to look into how the organization follows feedback loop.

5. Implementation Process
Summary of work plan, action steps and example of the typical process followed.

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6. Results
1. Method of measuring results:
1.1.43. What information does management use to track results, performance and impact?

2. Impact
Impact? Summary of program indicators, outputs and impact i.e..highlights from
evaluations, results of impact studies, anecdotal evidence of improvement in
economic status, household income level, health and welfare of beneficiaries and
their families (especially children) etc. Include end of project indicators if available.

Given the well-known challenges with impact assessment, what can we reasonably
expect to report on impact for each of the case studies?

3. Cost Effectiveness and Sustainability

1.1.44. Scale and replicability
1.1.45. Financial and operational self-sufficiency (if applicable)
1.1.45.1. financial expense ratio
1.1.45.2. operational expense ratio
1.1.45.3. cost per client
1.1.45.4. clients per staff member
1.1.45.5. average loan balance per borrower
1.1.45.6. average savings balance per saver
1.1.45.7. portfolio at risk
1.1.45.8. other?
1.1.46. Cost effectiveness of non-financial services?

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7. Conclusions
1. Challenges and Pitfalls/Lessons Learned
2.

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Appendices

Appendix 1. Contacts and Sources of Information.

Organization and contact person for additional information. Please include name,
email, telephone and mailing address.

Appendix 2. Socioeconomic and Poverty Indicators: definitions, explanations

and sources.
UNDP HDR
National and International Poverty Lines, Don Sillers (where will most recent update
be available? At www.povertytools.org ? We need to add this paper as a reference
for researchers

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