Defining “Poverty”: Pro-Poor Principles series

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“As a simple global benchmark, [the Seal will] reference a poverty line that approximates the bottom ~40% of the population. In many countries, the national poverty line is about the same as the bottom ~40%, as can be see in the graph below. This definition intentionally reflects a level that is practical, achievable and relevant to ensuring deep financial inclusion. Broadly, it represents outreach to the bottom half of the financially excluded. At the same time, in order to recognize MFIs that have achieved deeper outreach to the very poor, the Seal of Excellence indicators identify the percentage of clients from the bottom ~20% as well.”

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Pro-Poor Principles series
On 15 May 2013 we announced our Pro-Poor Principles in a blog post, found here. In this continuing series of blog posts, we will elaborate on the path that brought us to these Pro-Poor Principles of microfinance. The principles will inform both the learning environment in our community of practice, as well as our methodology for determining organizations that will be recognized by the Pro-Poor Seal of Excellence. We appreciate any thoughts you have on the Pro-Poor Principles and how best to apply them to practice. If you would like more information, please contact MeasureLearnChange[at]

Defining “Poverty”

A simple plan
There have been many varied measures of poverty established over the past two decades in our global efforts to alleviate poverty. Hundreds of National Poverty Lines have been established by individual country governments, and institutions such as the World Bank have used figures ranging anywhere from…

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