Webinar recap: Is it too late for microfinance to be pro poor?

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On April 21st, the Microcredit Summit Campaign co-hosted with Uplift a webinar discussion focusing on the promise that graduation holds for sustainably reaching the ultra-poor. Our featured speakers were Debasish Ray Chaudhuri, CEO of Bandhan Konnagar in India, Rachel Proefke, a research associate with BRAC Uganda, Mark Daniels, the Philippines director for Opportunity International, and Allison Duncan, CEO of Amplifier Strategies and founder of Uplift. Anne Hastings, a global advocate with Uplift, moderated the webinar.

The conversation looked closely at the experiences that each of the three practitioners on the panel have had in implementing the program as well as the global advocacy message supporting the graduation approach being delivered by Uplift and its allies.

We hope you will get engaged with this promising avenue for reaching those living in ultra-poverty and be inspired by the potential it holds for helping microfinance institutions to reconnect to their original purpose. Some final thoughts from speakers on the webinar follow.

Anne Hastings noted,

We weren’t really able to address in depth how a pro-poor MFI, struggling for sustainability in a competitive, regulated environment can attain sustainability while operating the graduation program. In the models we saw, the institution was either an NGO or a regulated MFI that had formed a non-profit foundation for the graduation program and perhaps the delivery of other non-financial services. We shouldn’t be surprised or embarrassed that donor funding may still be needed, but partnerships with government safety net programs and other NGOs can also be very helpful in paying for the program. As the 6 RCTs funded by the Ford Foundation concluded, “Although more can be learned about how to optimize the design and implementation of the program, we establish that a multifaceted approach to increasing income and well-being for the ultra-poor is sustainable and cost-effective.” (Science Magazine, 15 May 2015, Vol 348 Issue 6236, p. 772.)

Rachel Profke added,

I think the point that I would stress, which we begun to address in the discussion, is the importance of finding the right partner for the implementation of components that an MFI does not have the core capacity to implement. While BRAC is able to leverage both microfinance and additional programming in the areas that we operate all programs, this is not always the case for us or other MFIs that will be interested in implementing graduation programming. Often, MFIs can provide the scale in identifying communities and in providing financial services, but linkages with implementing partners providing similar programming is fundamental to ensuring best practices in programming — as Mark highlighted. However, aside from NGO implementers, governments are often running existing programming that can be leveraged not only in identifying beneficiaries through such channels as social protection programming but also in providing some components through existing service provision, in terms of health or extension services. We find it helpful to look at what is already at place — and at scale — through government programs is useful, as we have done in Tanzania. This is also useful as we think about scaling because, apart from donor buy-in, governments offer larger potential through larger budgets and capacity.

Thank you to all panelists for contributing to this important conversation about the importance of the graduation approach. We also wish to thank all participants who submitted thought-provoking questions and comments to help make the session a very lively and interactive discussion!

Couldn’t join us? Watch the session recording!

April 21st Webinar: Is it too late for microfinance to be pro poor?

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You’re invited to an exciting webinar organized by Uplift on April 21st (10 AM EDT / GMT-4): “Is it too late for microfinance to be pro poor? The case for linking microfinance with graduation.”

The Graduation Approach was first developed by BRAC to help address the needs of those who were too poor for microfinance services.

In recent years, shifts in the regulatory environment and disruptive digital inclusion technologies have put pressure on microfinance institutions to go up market and move away from their original pro-poor mission.

Please register by April 19th. The password to register is “MCSEWORKSHOP”.

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The 2015 State of the Campaign Report in a nutshell

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An African farmer is linked into the financial system via her mobile phone.
In his presentation today at the Inclusive Finance India Summit New Delhi, Larry Reed featured Mapping Pathways out of Poverty: The State of the Microcredit Summit Campaign Report, 2015. The report is now available online. We will also publish the full report in French, Spanish, and Arabic in early 2016. You can also read previous reports online, just select the year of interest from the drop-down menu “Previous Reports.”

At our 2013 Microcredit Summit in the Philippines, we focused on the partnerships required to deliver financial services to those living in poverty. At our 2014 Summit in Mexico, we focused on innovations in microfinance with a demonstrated capacity to reach those in extreme poverty. This year, we use the report to explore, in more detail, our six financial “pathways.” Each pathways has a chapter, and each chapter does the following:

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5 lessons on expanding financial inclusion and usage

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Source: The 2015 Brookings Financial and Digital Inclusion Project Report: Measuring Progress on Financial Access and Usage.

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>>Authored by Mbaye Niane, 100 Million Project intern

The Center for Technology Innovation (CTI) at the Brookings Institute recently published the 2015 Brookings Financial and Digital Inclusion Project (FDIP) Report and Scorecard. It evaluates access to and usage of affordable financial services across 21 different countries in Africa, Asia, and Latin America.

These countries are geographically, economically, and politically very diverse, but many of their citizens share a common experience of being excluded from formal financial services. Governments from these 21 countries [1] have made a commitment to achieve financial inclusion by improving access to and usage of appropriate, affordable, and accessible financial services. At the Microcredit Summit Campaign, we are mobilizing commitments from private sector actors as well as governments to expand access to and usage of just such high quality financial — as well as non-financial — services.

We know many organizations in the microfinance and financial inclusion sectors affirm a vision of ending poverty. The aim of this coalition is to tie visions to actions and action to achievement. For example, the Technical Secretariat for Disabilities (Secretaría Técnica de Discapacidades) of the Vice-What is a Commitment + Actions to end extreme povertypresidency of the Republic of Ecuador has committed to support 500 entrepreneurial projects led by persons with disabilities through the Productive & Financial Inclusion Network and to implement of a set of poverty measurement indicators that will allow the Technical Secretariat to assess progress in meeting its objectives in serving persons with disabilities.

Brookings’ Financial and Digital Inclusion Project (FDIP) measures the progress achieved in those 21 countries and seeks to answer important questions related to global financial inclusion efforts [2], questions that we are interested to know the answer to as well.

  1. Do country commitments make a difference in progress toward financial inclusion?
  2. To what extent do mobile and other digital technologies advance financial inclusion?
  3. What legal, policy, and regulatory approaches promote financial inclusion?

The FDIP Scorecard assesses the accessibility and usage of financial services in each country using 33 indicators across four dimensions: country commitment, mobile capacity, regulatory environment, and adoption of traditional and digital financial services. This scorecard will help non-governmental organizations, policy makers, private sector representatives, and others examine the best practices for facilitating and measuring financial inclusion.

The FDIP reports that Kenya, South Africa, and Brazil lead the 21 countries overall on financial inclusion. Rwanda and Uganda follow, tied at fourth place. These high-performing countries took the critical steps towards financial inclusion such as policy and regulatory changes. Creating an accessible and affordable path for poor families to use digital technology is a strategic way to get them out of poverty. The FDIP report and scorecard give us valuable information about financial inclusion. It is valuable to show that countries making commitments, solving regulatory issues, and creating an accessible and affordable path for poor families to use digital financial services (i.e., mobile money and e-wallets) is a strategic way to get them out of poverty.

Achieving financial inclusion: Five critical conclusions

The 2015 FDIP Report can be summarized with the following five critical conclusions on how to best expand financial inclusion across the world.

[ONE] Country commitments are vital to reach financial inclusion.

They facilitate knowledge-sharing and engagement among groups and assure that national financial inclusion strategies include measurable targets and a strong coordination across government agencies with the public and private sectors. Country commitments allow the creation of developing surveys that diagnose the status of financial inclusion, a critical step to develop a targeted strategy and assessing the success of future inclusion initiatives.

[TWO] Digital financial services are important for accelerating financial inclusion.

Governments and the private sector will need to increase investments in digital communication and payments infrastructure and ensure services are affordable. The use of digital financial services has grown significantly in recent years among many people who have little or no previous experience with formal financial services. Many households have more than one mobile phone, smartphone or tablet.

We believe that mobile money linked with agent networks in low-income communities is a key financial inclusion strategy — one of our six “pathways” — to help end extreme poverty. According to the Groupe Speciale Mobile Association (GSMA) in 2015 the number of cellular connections through mobile phones, smartphones and tablets increased to more than 7.5 billion and is expected to increase to over 9 billion by 2020. Additionally, smartphone penetration will allow non-bank institutions to expand access to more user friendly interfaces such as mobile financial services. However, for several reasons, feature (or “dumb”) phones will remain the preferred option in many developing community contexts (i.e., poor villages in Africa) for a while still.

[THREE] Geography generally matters less than policy, legal, and regulatory changes.

With this said, there are some regional trends in terms of financial services provision, however. Regulatory and policy changes will likely accelerate financial inclusion outcomes, but in order to promote digital financial services — which, as we explain above, is important for accelerating financial inclusion — countries need a robust digital ecosystem that promotes innovation.

[FOUR] There are many important actors with major roles and they need to coordinate closely.

Central banks, ministries of finance and communication, regulated banks and non-bank financial providers, and mobile network operators each have a major role in achieving financial inclusion. They should closely coordinate with respect to advances in policy, regulation, and technology to ensure a vibrant and inclusive financial ecosystem.

The Microcredit Summit Campaign organized a Field Learning Program last year for ministers and directors of social protection programs in Africa who were interested to learn how to replicate and scale up important, accessible, and affordable financial services to the extreme poor. They observed how flagship programs like Ethiopia’s Productive Safety Net Program are combating extreme poverty pairing financial services with social protection programs. In Mexico, they examined how the government and regulatory authorities coordinate with financial entities and technology companies to deliver a conditional cash transfer (CCT) program. The national development bank, BANSEFI, plays an integral role as a facilitator of cash transfers and an accounting hub for the social protection program.

[FIVE] Tackle the gender gap and address diverse cultural contexts with respect to financial services.

Solving these two problems will help achieve global financial inclusion. For example, formal financial service providers encounter mistrust and a lack of awareness. Public and private sector leaders need to educate the public about these services and mobilize their efforts to improve the efficiency and reliability of communication networks.

The FDIP Scorecard

The FDIP Scorecard provides us an overall ranking for each country on the rate of financial inclusion, a country’s commitment, the mobile capacity, the regulatory environment, and adoption of traditional and digital financial services.

The FDIP Report and Scorecard are instructive to us as we pursue our advocacy on uptake of the six pathways (mobile money, integrated health and microfinance). The FDIP report and scorecard hold valuable information that can provide positive guidance to the design and delivery of financial inclusion interventions. This report strengthens the growing body of evidence demonstrating effective ways of reaching the hardest to reach and poorest individuals with programs that support their sustained progress out of poverty.

The scorecard offers an easy-to-understand progress report on financial inclusion commitments. How can we assess, in the future, progress made on Campaign Commitments?

Here is an example of one of the 21 scorecards in the report:

We hope this report provides strength to the growing body of evidence demonstrating effective ways of reaching the hardest to reach and poorest individuals with programs that support their sustained progress out of poverty.


Footnote

[1] The 21 countries are Afghanistan, Bangladesh, Brazil, Chile, Colombia, Ethiopia, India, Indonesia, Kenya, Malawi, Mexico, Nigeria, Pakistan, Peru, the Philippines, Rwanda, South Africa, Tanzania, Turkey, Uganda, and Zambia.

[2] John D. Villasenor,West, Darrell M., and Lewis, Robin J. The 2015 Brookings Financial And Digital Inclusion Project Report. Pg.3: http://www.brookings.edu/~/media/Research/Files/Reports/2015/08/financial-digital-inclusion-2015-villasenor-west-lewis/fdip2015.pdf?la=en


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Colombia, a “Pathways” poster child

cct-grad-model_infographic_final_en1_Medium

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>>Authored by Paul Gostomski, Microcredit Summit Campaign Program Intern

The 100 Million Project, an initiative of the Microcredit Summit Campaign, aims galvanize and support work that helps advance industry toward the goal of helping 100 million families lift themselves out extreme poverty. To do so, the Microcredit Summit Campaign advocates adoption of “Six Pathways,” which are financial inclusion strategies that can reach the extreme poor and facilitate their movement out of extreme poverty.

The Consultative Group to Assist the Poor (CGAP), a global partnership of 34 leading organizations that seek to advance financial inclusion, recently published a paper that does an excellent job highlighting two pathways that are currently being implemented in Colombia: conditional cash transfers and an initiative to link mobile banking services with agent networks.

Conditional Cash Transfers

The Más Familias en Acción program began in 2001 and aims to supplement the income of families who live below the poverty line and have children under 18. Mothers receive the cash transfer conditioned on their child’s regular attendance at school. This condition also qualifies the family for a health subsidy if their child receives regular health check-ups. In 2012, Más Familias en Acción was reaching 2.7 million families throughout the country. Between 2001 and 2012, malnutrition among children in Colombia aged two and under in rural areas decreased by 10 percent. Also in this time, school attendance for children between 12 and 17 increased by 12 percent.

The Campaign advocates for the use of conditional cash transfers (CCTs) within our six-pathways framework due to evidence such as is seen from programs like Más Familias en Acción. An array of positive externalities are also associated with CCTs, including income smoothing. Stabilizing income through CCTs help families better plan for the future as the immediate risks of today are somewhat mitigated.

Conditioned cash transfers are also incentivizing beneficiaries to make investments in themselves, often through participation in programs to increase health or education for the family. During last year’s Innovations in Social Protection program led by the Campaign, participants in PROGRESA (then called Oportunidades) indicated that while they appreciated and valued the security the transfer brought, they found that the greatest positive change was understanding the significance of the education and health investments they were making in their families.

Another positive externality of conditional cash transfer, and one we find significant, is its effect on women in poor communities. Almost all conditional cash transfers are administered to the mother of the household and this in turn increases women’s bargaining power, something that’s all too often neglected in poor communities.

 Mobile Money with Agent Networks

The second of the two pathways currently being implemented in Colombia is mobile money linked with agent networks in low-income communities through the mobile banking service DaviPlata. DaviPlata, launched as a private mobile service in 2011, was able to garner 500,000 customers in its first year of operation. Taking notice of this success, the government of Colombia contracted DaviPlata in 2012 to deliver the conditional cash transfers of Más Familias en Acción to its 937,000 beneficiaries.

After being contracted, the paper noted, DaviPlata as an organization began a new focus on how to serve the poorest in the country. DaviPlata, working solely through mobile phones, makes financial inclusion easier by making transferring, receiving, and withdrawing money less costly to the recipient of the conditional cash transfer. The recipient now spends less time traveling to the bank or post office and takes less risk as he or she has less cash on their person.

The World Bank reports that of the poorest two quintiles of those living in developing countries, only 30 percent have access to a savings account, whether formal or informal. The Campaign is looking at mobile money within its six-pathways framework because of how digital financial tools are decreasing the cost of transacting and, when linked with savings, increasing the ease with which the poor can access accounts, begin to develop savings, and more easily transfer money when needed.

Although many of the poor do not have savings accounts, many do have mobile devices. Mobile money linked with agent networks like DaviPlata helps link those living in more rural and remote areas to the mobile platforms where traditional financial institutions are less easy to find.

However, DaviPlata has room for improvement as a payments facility. The CGAP paper reports that DaviPlata faces an illiterate customer base and also issues with customers that do not understand the technology. DaviPlata must also deal with dormant accounts, where customers signed up for the service but their accounts have not been used in more than 30 days. Overcoming these challenges will be critical to moving forward.

Colombia’s Next Step

Colombia’s Más Familias en Acción, is a global leader in the use of CCTs to support increased health standards and school attendance among the poor. Now, work needs to be focused on decreasing the inefficiencies around the mobile banking service DaviPlata. In the CGAP paper on Colombia, it was made clear that Colombia’s greatest development challenge was in regard to DaviPlata and increasing its financial stability. This includes taking fuller advantage of the product while making the processes and channels more efficient. With a more effective method on distributing funds, the intended effects of Más Familias en Acción can then be multiplied.


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Ghana: What lies ahead

Representatives from REST Ethiopia lead a group discussion with a graduation program participant during the Innovations in Social Protection and Livelihoods Development program in 2014.

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>>Authored by Paul Gostomski, Microcredit Summit Campaign Program Intern

The Microcredit Summit Campaign recently spoke with Mawutor Ablo, director of Social Protection at Ghana’s Ministry of Gender, Children and Social Protection, and also a participant in the Campaign’s Field Learning Program last year, Innovations in Social Protection and Livelihoods Development.

The program invited representatives from Ghana, Malawi, and Mozambique on a trip to observe leading social protection programs in Ethiopia and Mexico. In our discussion with Mr. Mawutor, we spoke about the changes made to Ghana’s social protection programs since we last met and what changes may be made in the future to increase the reach of the programs and strengthen outcomes for Ghana’s poorest.

The Ghana National Household Registry

In May 2014, the World Bank continued its support to Ghana through a credit of US$50 million to Ghana’s Finance Ministry with payments dispersed annually from 2015 to 2017.

The funds are directed to the Ghana Social Opportunities Project, which aims to extend Ghana’s Labor-Intensive Public Works (LIPW) program from 49 to 60 of Ghana’s 216 districts. LIPW also aims to expand the reach of grants from 100,000 to 150,000 poor households through the Livelihood Empowerment against Poverty (LEAP) program.

In addition, the social protection systems will be strengthened through improved targeting and the establishment of the Ghana National Household Registry (GNHR).

Ato Berhanu Woldemichael in a meeting

Mr. Ato Berhanu Woldemichael, as acting State Minister with the Food Security Directorate, oversees much of the government’s role in LEAP and LIPW.

Before the implementation of the household registry system, both LIPW and LEAP screened candidate households in selected districts independently. This has not caused an overlap yet, but with the extension of the Ghana Social Opportunities Project and its intended scaling up of both programs, overlap is inevitable, leading to possible disbursement conflicts between the two programs.

The GNHR will create a database that optimizes methods used in finding and selecting program candidates through a universal survey useful for multiple social protection programs in selecting participating households. Simply put, the GNHR and its universal survey will represent a more efficient and comprehensive method for selecting households for inclusion in the national social protection programs.

Mr. Mawutor expects the registry to improve the ability to target and reach the poorest in Ghana. He compared the registry to that of the successful Cadastro Unico, the national registry of Brazil established in 2001. Three years after Cadastro Unico was created, a study showed that the poorest quartile of the population received 80 percent of all social protection programs’ benefits.

By way of comparison, the cash transfer programs in place prior to the unified registry together distributed only 64 percent of the total benefits to the poorest quartile. This improvement in targeting is something Mr. Mawutor hopes to see take place in GNHR by reducing what he termed inclusion error — the participation of households living above the targeted poverty level — in programs like LEAP and LIPW.

The Move to Mobile Money

Leaders in charge of implementing Ghana’s social protection programs are interested in finding the most efficient way to distribute the cash transfers that are at the center of these initiatives. Currently, the most common method of disbursement is through smart cards. Here, recipients of a cash transfer can go to the post office or another government entity with their smart card to have their payment added to their smart card.

Ghana would like to move from this strategy because of the high transaction costs associated with it. Also, this method does not allow recipients to transfer the money they receive to, for example, a family member in need. Instead, Ghana would like mobile money to be the primary form of receiving cash transfers.

Ghana has already partnered with MTN, a mobile network operator from South Africa, and has thus far reached a point where about 10 percent of its payments are disbursed through mobile systems.

Hoping to expand this number, Mr. Mawutor told us that Ghana would be increasing its total number of providers to four companies this year. With the expansion, Mr. Mawutor hopes to make mobile banking more accessible to poorer areas by increasing the overall number of local branches across the country.

The addition of three new operators would also produce significant returns from the added competition to the market, producing incentives for each company to provide the best service.

Mr. Mawutor Ablo during the Innovations in Social Protection, along with the Hon. Dela Sowa, Deputy Minister of Gender, Children, and Social Protection. Together they have great responsibility for the social protection programing in Ghana.

Growth by Efficiency

Social protection programs in Ghana have made many changes in the past few years and they all seem to focus on efficiency. Both the establishment of the Ghana National Household Registry and the move to mobile money aim to cut the costs associated with these programs. The registry intends to better target those among the poorest in Ghana for participation in the social protection program and reduce the costs to serve them by removing redundancies between the various initiatives.

The move to mobile money aims to make funds more accessible to beneficiaries, increasing the potential for positive outcomes resulting from the programs. With these changes, it is clear Ghana is dedicated to maximizing results.

We look forward to continuing to follow new developments from Ghana over time and continuing to be a close supporter of the work of Ghana’s Ministry of Gender, Children, and Social Protection.


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Event Recap: Partnerships to End Poverty Workshop

RESULTS grassroots activists discuss the policy implications of the six pathways that were presented by the Microcredit Summit Campaign. It’s now their turn as RESULTS volunteers to decide what to do with that information. Learn how you can join RESULTS.

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On Sunday, July 19th, the Microcredit Summit Campaign hosted a standing-room-only workshop with attendees to the 2015 RESULTS International Conference. Those who came heard from leading voices on the future of financial inclusion, focusing on the crucial role of partnerships and advocacy in reaching the poorest.

Larry Reed, director of the Microcredit Summit Campaign, began the session by introducing the Campaign’s role in pushing for an understanding that achieving full financial inclusion means including those living in extreme poverty.

From the start, the Microcredit Summit Campaign has advocated scaling up microfinance and other financial inclusion interventions. They can provide those living in extreme poverty with the diverse array of financial and non-financial services that will support their journey out of poverty.

Reed spoke about the need for continued innovation in client-centered development of financial tools, creative ideas for reaching the hard-to-reach at affordable prices, and the promise that smart microfinance can help create positive and durable changes in the lives of those being served.

Six Pathways

Read more about the six pathways.

The Campaign is advocating for closer consideration of six financial inclusion strategies — our “six pathways” — that show promise in reaching people living in extreme poverty with needed products and services. These are the six pathways:

  1. Integrated health and microfinance
  2. Savings groups
  3. Graduation programs
  4. Financial technology
  5. Agricultural value chains
  6. Conditional cash transfers

In the discussion that followed, moderated by Sonja Kelly (fellow at the Center for Financial Inclusion at Accion), the panelists responded to questions about the importance of partnerships in achieving the goal of ending extreme poverty by 2030 and the role, present and future, of microfinance and financial inclusion in supporting these efforts.

DSK Rao, regional director for Asia-Pacific at the Campaign, focused on the immense potential for integration of health education and services into the delivery model of microfinance. He explained that “microfinance institutions shouldn’t run hospitals, but should spread essential health information and services to their clients when needed.”

Rao explained that the presence of MFIs, with their deep penetration into hard-to-reach communities, offer important opportunities to also deliver valuable health services (both financial and non-financial) to families often excluded from more mainstream service channels.

Larry Reed discussion possible advocacy options RESULTS’ citizen activists could take to policy makers in the coming days and months.

Reed also expanded on the power of government partnerships — specifically through conditional cash transfer and graduation programs — to reach those living further down the poverty ladder than those included in other social protection program designs.

Another guest speaker in the workshop, Olumide Elegbe from FHI 360, has extensive experience designing long-term partnerships between the government, nonprofit, and private sectors. He explained that “successful development is cross-sectoral and integrated,” much like poverty itself.

The mission of RESULTS and RESULTS Educational Fund, the parent organization of the Microcredit Summit Campaign, is to end the worst aspects of hunger and poverty. The annual International Conference aims to empower their grassroots activists from around the world to become strong and knowledgeable advocates for issues related to the RESULTS mission.

Therefore, after the panel discussion, workshop participants broke into small groups to take the discussion into brainstorming advocacy actions that can promote the kinds of financial inclusion interventions that will help end extreme poverty. These small group discussions focused on tangible points of action both for the longer term future as well as in anticipation of their meetings with representatives on Capitol Hill and at the World Bank on Tuesday, July 21st.

Voice your opinion in our comments section. How can you advocate for financial inclusion?

Learn more

Become a citizen advocate!

The Microcredit Summit Campaign’s role at RESULTS is to lift up microfinance solutions designed for the world’s extreme poor, creating economic opportunities to help lift themselves out of poverty.

The Campaign hosted a standing-room-only workshop with attendees to the 2015 RESULTS International Conference who came to hear from leading voices on the future of financial inclusion and the crucial role of partnerships and advocacy in reaching the poorest. Read RESULTS’ annual report today!


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How you can influence global policy priorities at the World Bank (event)

RESULTS is hosting its 35th annual International Conference on Capitol Hill in Washington DC from July 18th to July 21st, featuring many leading poverty experts, activists. and policy makers.

Join us at the 2015 RESULTS International Conference in Washington, D.C., this July 18-21. Leading poverty experts, activists, policymakers, and YOU will convene for a unique conference that mixes an educational experience and advocacy opportunities around increased access to education, health, and economic opportunity. Together, we can change the world!

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In just two weeks, RESULTS Educational Fund, the parent organization of the Microcredit Summit Campaign, will celebrate its 35th anniversary with the 2015 International Conference in Washington, D.C. We invite you to join in the festivities and attend our workshop called “Partnerships to End Poverty: Health, Government, and Financial Services” on Sunday, July 19th at 4:30 – 6:00 PM. The conference will be held at the Washington Court Hotel on Capitol Hill.

Only $85 a day!

RESULTS International Conference — only $85 a day!

Attendees of the International Conference will hear from leading experts, activists, and policymakers on the challenges and solutions to ending poverty. Join World Bank President Jim Yong Kim, Senator Sherrod Brown (D-Ohio), and Nobel Peace Prize laureate Muhammad Yunus (and, of course, founder of the Grameen Bank). Find out who else will be speaking here.

The conference agenda is designed to provide the information and tools to influence policymakers — so you can deliver the message directly to your representative on Capitol Hill and policymakers at the World Bank and USAID!

The Microcredit Summit Campaign’s role at RESULTS is to lift up financial inclusion solutions designed for the world’s extreme poor, creating economic opportunities to help lift themselves out of poverty. The Campaign will be leading a workshop at the International Conference about the future of financial inclusion.

Our session, entitled Partnerships to End Poverty: Health, Government, and Financial Services,” will focus on integrated health and microfinance and linking the graduation model and conditional cash transfers (CCTs). Learn why these are key pathways to help end extreme poverty and how you can influence the global development agenda. (Read more about the six pathways.)

Sonja Kelly of the Center for Financial Inclusion at Accion will moderate a panel discussion with Olumide Elegbe of FHI 360 and our own Dr. DSK Rao and Larry Reed. Join us to develop your message and advocacy strategy around financial inclusion to end extreme poverty, and take it directly to major financial inclusion funders like the World Bank and USAID to influence their programmatic priorities in the over coming years.

About the panelists


Sonja Kelly, Fellow, CFI

Sonja Kelly is a fellow at the Center for Financial Inclusion at ACCION (@CFI_ACCION). She conducts research on supply and demand side opportunities to advance financial inclusion around the world, including income growth, demographic change, and policy shifts. Ms. Kelly is finishing her PhD at the School of International Service at American University, writing her dissertation on financial inclusion policy and regulation in low and middle income economies. Her research articulates the ways that international organizations and internal politics influence financial sector policy. She is also a consultant at the World Bank and the president of the DC chapter of Women Advancing Microfinance. Prior to joining CFI, Ms. Kelly worked in microfinance at Opportunity International.

Olumide Elegbe Olumide Elegbe, senior relationship manager at FHI 360, is a health and development expert with demonstrated results of building successful partnerships across sectors and geographies. With a focus on forging trusted, long term partnerships between the government, nonprofit and private sectors, Mr. Elegbe has a track record of brokering collaborative partnerships that drive social change by addressing health, education, sustainability and/or other development challenges. This, while delivering results and outcomes tailored to suit the needs of stakeholder individuals and organizations including market access, efficiencies in supply chain, and contribution to local GDP.

Mr. Elegbe has extensive international and cultural experience, spanning sub-Saharan Africa, Eastern and Western Europe as well as the USA. Prior to joining FHI 360, he worked as a public health specialist and a visiting lecturer in population medicine in the United Kingdom, and as technical advisor on public health programs in Nigeria.

Mr. Elegbe holds a Master’s Degree in Public Health with a minor in Health Services Management from the London School of Hygiene & Tropical Medicine in the United Kingdom.

Dr. D.S.K. Rao, Regional Director for Asia-Pacific, Microcredit Summit Campaign

Dr. DSK Rao has been the regional director for the Asia-Pacific region with the Microcredit Summit Campaign since 2000. The Campaign draws heavily on his wide experience and familiarity with the sector while organizing the regional and global summits. Dr. Rao has conducted scores of workshops and trainings on tools for practitioners in Asia to track poverty and other social outcomes including the Cashpor Household Index, Poverty Wealth Ranking, and the Progress out of Poverty Index. Dr. Rao is presently implementing a Johnson & Johnson-funded project for integrating health with microfinance in India, in collaboration with Freedom from Hunger. He has co-authored two books on microfinance: The New Middlewomen and Development and Divinity and Dharma.

Larry Reed, Director, Microcredit Summit Campaign

Larry Reed has headed up the Microcredit Summit Campaign (@MicroCredSummit) since taking over the reins from founder, Sam Daley-Harris in 2011. Mr. Reed has co-authored the annual State of the Campaign Report for the last 5 years. He has worked for more than 25 years in designing, supporting, and leading activities and organizations that empower poor people to transform their lives and their communities. For the majority of that time, Reed worked with Opportunity International, including five years as their Africa regional director and eight years as the first CEO of the Opportunity International Network.


Our workshop will be held on Sunday, July 19th
from 4:30 – 6:00 PM
.

To attend the workshop and the International Conference, email IC2015[at]results.org
or register online

Daily registration is only $85.

RESULTS is an international movement of grassroots advocates raising their voices to end poverty. Through government program and policy advocacy, RESULTS staff and its massive network of grassroots activists help to address the root causes of poverty: lack of access to medical care, education, and opportunity to move up the economic ladder. Click here to read more about RESULTS.


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Six learning opportunities for the “Six Pathways”

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>>Authored by William Maddocks, director of the Sustainable Microfinance and Development Program (SMDP) at the University of New Hampshire’s Carsey School of Public Policy

New scrutiny has focused on what microfinance can’t do, and the evidence is growing that microfinance, de-linked from a social change paradigm, is simply another way to provide basic financial services to people historically excluded by the market. The new theme for the Microcredit Summit Campaign for 2015 of “financial inclusion to end extreme poverty” and the Six Pathways show promise in getting us there and can succeed in challenging extreme poverty if social change and equity are embedded as core values by those who fund, design, and implement these strategies.

These six pathways promoted by the Microcredit Summit Campaign touch on many of areas of the Carsey School of Public Policy’s current work. Using each pathway as a prompt, we will take a brief look at these themes and how you can get involved and learn more.

The Six Pathways

1) Mobile money linked with agent networks in low-income communities and other technological innovations

The SMDP New Hampshire Certificate 2015 in June will feature a session facilitated by Joyce Lehman, formerly with the Bill & Melinda Gates Foundation on branchless banking and the Digital Revolution. If the infographic from Kenya tells us anything (below), it’s that digital financial services are growing exponentially beyond just transfers and remittances to group savings & loans, agricultural inputs insurance, water services, off-grid lighting, and more. Come to New Hampshire, USA, this summer to learn about this exciting frontier of financial inclusion from the unique perspective of a former donor who worked on the ground floor of paving the digital finance highway.

Infographic: Kenya's journey to digital financial inclusion

Kenya’s journey to digital financial inclusion (by Simone di Castri and Lara Gidvani – July 2013)
Source: GSMA

2) Ultra-poor graduation programs

Jan Maes, who has worked in designing graduation programs with Trickle Up and other organizations, will present findings during the SMDP New Hampshire Certificate on the effectiveness and challenges of using these strategies to move the ultra-poor into self-sufficiency.

3) Microfinance savings and/or borrowing groups linked with health education, health financing, and health product delivery

Kathleen Stack, vice president of programs for Freedom from Hunger, will make a virtual presentation at the SMDP NH on Microfinance and Health Protection (MAHP) initiatives that they are implementing with our friends, CARD MRI in the Philippines and the Microcredit Summit Campaign, and in other locations. Read more about the project, Healthy Mothers, Healthy Babies, and how these three organizations, with the support of Johnson & Johnson, are helping address maternal and child health needs.

Photo courtesy of the Carsey School of Public Policy

Photo courtesy of the Carsey School of Public Policy

4) Agricultural value chains that reach to small-scale producers

Understanding markets is more than just knowing about products. The field of inclusive market development is moving from the linear value chain approach, to applying a systems approach that looks for, and adapts to, feedback from the system. Carsey has just launched SMDP Online and one of our first courses, “Understanding and Adapting to Complex Markets” will help practitioners understand complex adaptive systems and apply these concepts to their current work. SMDP Online course facilitator Mary Morgan, with more than 20 years of experience in development, promises a challenging and very practical learning experience for market development professionals.

5) Savings groups (aka village savings and loans associations)

One of the most promising strategies for reaching people that commercial microfinance has failed to reach are savings groups (SGs). Today more than 10 million people use SGs for saving, lending, building financial security, and social capital. Carsey has been a leader in savings groups training and learning events for several years and continues to expand opportunities to learn about this growing area of financial inclusion.

The SMDP Online will offer a blended course, “Savings Groups: Building Scale and Impact through Adaptation and Experimentation,” facilitated by Nanci Lee. This course will meet online for several months and then face-to-face in Lusaka, Zambia, during the SMDP Zambia, which occurs right before the next global gathering of SG practitioners, donors, researchers, and others at the SG 2015 conference also in Lusaka from November 10 to 12.

The lock box of a savings group in Africa

The lock box of a savings group in Africa
Photo courtesy of the Carsey School of Public Policy

6) Conditional cash transfers (CCTs) linked with mobile delivery and asset building

Reaching as many as 129 million people worldwide, CCTs work at a scale that few other anti-poverty programs can reach. Governments working with visionary partners like Fundación Capital can roll out programs that provide support, change social norms, and make a measurable impact on improving the lives of poor families. In the Dominican Republic, Fundación Capital has partnered with the Government’s ProSoli program and Banco ADOPEM and Banco Pyme BHD to connect savings groups with a CCT voucher program and bank linkages.

You can learn about this exciting pilot program by watching Jong Hyon Shin, Fundación Capital’s country project coordinator for the Dominican Republic, and her former professor (and Carsey Fellow) Jeffrey Ashe. (Watch the SEEP Network’s Taking Savings Groups on the Road Webinar Series.)

Relevant resources

The 2015 Listening Tour: Mapping pathways for ending extreme poverty

Photo credit: by Geoff (originally posted to Flickr as Pilgrim’s path) [CC BY 2.0], via Wikimedia Commons

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“Wars of nations are fought to change maps. But wars of poverty are fought to map change.”
— Muhammad Ali

After the success of Generation Next: Innovation in Microfinance, our 17th Microcredit Summit (Mexico in 2014), the Microcredit Summit Campaign conducted a Listening Tour to identify how this next generation could contribute to ending extreme poverty (those living on less than $1.25 a day) by 2030. The theme that emerges from this consultation will be reflected across the Campaign: in the 2015 State of the Campaign Report, the 18th Microcredit Summit, and Campaign Commitments.

With the post-2015 development agenda under negotiation, the financial inclusion and microfinance sectors have an opportunity to assess our role in shaping the international development framework and reflect on the impact we can have on the lives of millions of the world´s extreme poor. Our Listening Tour was the first step in surveying our coalition of partners to see what our role in this endeavor should be.

The Listening Tour was our time to listen — and your time to speak — on the issues that the microfinance and financial inclusion sector face and served two purposes. First, it was our hope to find out how our audience (you) felt about the World Bank’s goal of eradicating poverty by 2030, and equally important, we wished to consult you in identifying the topics that were most pressing and urgent.

We collected your feedback through an online survey where we received 151 responses from participants from around the world representing practitioners, advocates and support organizations, funders, investors, policymakers, and regulators. We also conducted phone interviews with 27 leaders in the microfinance and financial inclusion sectors. Below are some key findings from our Listening Tour calls and survey.

A client of Fundacíon Capital wiht her daughter Photo credit: Fundacíon Capital

A client of Fundacíon Capital wiht her daughter

Photo credit: Fundacíon Capital

1. Ending extreme poverty.

Our members believe that our main objective should be to end extreme poverty, but they acknowledge that microfinance and financial inclusion actors need to be mobilized around this objective. We need to take a leadership role in re-focusing the microfinance sector on a pro-poor mission and helping the microfinance community build confidence in a system that protects and benefits those who we serve. In order to accomplish this, we need to galvanize new visionaries and champions for the movement.

2. Universal financial access, financial inclusion, and ending extreme poverty.

The strategy for achieving both universal financial access by 2020 and the 2030 goal must be clear, and clear linkages should be created between these two goals. In addition, we need to clarify the definition of financial inclusion, especially in how it relates to ending extreme poverty. We cannot get to full financial inclusion unless inclusive financial systems are created that serve the extreme poor.

3. Defining roles.

It’s unclear what role each stakeholder plays in achieving these goals. Our challenge is to create a unified voice in support of this agenda among a diverse group of microfinance stakeholders, who sometimes have divergent priorities. How do we design a strategy and create a sense of responsibility to provide the appropriate products and services that help people move out of poverty?

4. Pushing innovation while maintaining client protection.

Innovation is key, and technology will need play an important role in reaching full financial inclusion. The microfinance community tends to copy successful ideas but hesitates when it comes to new methodologies. While we need to do away with this risk-averse culture when it comes to innovation, we need to make sure there is adequate regulation and client protection practices in place where our clients could be vulnerable.

Organizations that made a Campaign Commitment are recognized on stage at the 17th Microcredit Summit in Mexico.

Organizations that made a Campaign Commitment are recognized on stage at the 17th Microcredit Summit in Mexico.

5. Financial inclusion to end extreme poverty: six pathways.

Finally, we saw an emphasis on six topics that we have framed as our “pathways out of poverty;” these are financial inclusion strategies that reach people living in extreme poverty and facilitates their movement out of poverty:

  • Mobile money linked with agent networks in low-income communities (for example)
  • Agricultural value chains that reach to small scale producers (for example)
  • Savings groups (aka village savings and loans associations) (for example)
  • Conditional cash transfers linked with mobile delivery and asset building (for example)
  • Ultra-poor graduation programs (for example)
  • Microfinance savings and/or borrowing groups linked with health education, health financing, and health product delivery (for example)
Dignitaries who attended the 1997 Microcredit Summit.

Dignitaries who attended the 1997 Microcredit Summit. From L-R: Tsutomu Hata, Former Prime Minister, Japan; H.E. Pascoal M. Mocumbi, Prime Minister, Mozambique; H.E. Alberto Fujimori, President, Peru; H.M. Queen Sofia, Spain; H.E. Sheikh Hasina, Prime Minister, Bangladesh; Hillary Rodham Clinton, First Lady, United States; Prof. Muhammad Yunus, Managing Director, Grameen Bank, Bangladesh; Elizabeth de Calderón Sol, First lady, El Salvador; Ana Paula dos Santos, First Lady, Angola; H.E. Dr. Siti Hasmah, First Lady, Malaysia; H.M. Queen Fabiola, Belgium.

Let’s take a quick ride down memory lane. In February 1997, we convened the first Microcredit Summit in Washington, D.C., bringing together more than 2,900 delegates from 137 countries. This event resulted in the Declaration and Plan of Action in which Summit delegates promised to work towards making the Campaign a “global effort to restore control to people over their own lives and destinies” [1]. Since 1997, the Microcredit Summit Campaign has been leading, supporting, and guiding the microfinance field to address failures in reaching the extreme poor.

Jump forward to 2015. We still have a lot of work to do, but the will of our community to map out a better future together is evident. This is a time for change and transformation in the global development sector, and we must be bold in setting our goals.

We have taken it upon ourselves to make sure that the microfinance and financial inclusion movement is included as a tool in ending extreme poverty by 2030. Financial inclusion needs to serve the bigger purpose of helping people in poverty mitigate vulnerability, build resilience, and take advantage of opportunity. But, to reach the ambitious goal of ending extreme poverty by 2030, we need to draw a map of how to get there. We need to show how digital payments, savings groups, conditional cash transfers, agricultural value chains, and graduation programs intersect with other sectors like health, education, housing, and nutrition to build pathways out of poverty. We must map out pathways for how these different interventions, stakeholders, and initiatives can work together to achieve our shared goal.

We share responsibility for promoting microfinance and financial inclusion practices that put clients at the center and show progress toward poverty eradication. At the World Bank’s 2015 Spring Meetings, the Campaign made a commitment to support the World Bank Group’s goal to reach universal financial access by 2020 (UFA2020). Through our commitment, we have joined a global coalition of partners that includes Visa, Mandiri, the State Bank of India, the World Council of Credit Unions, WSBI, the Microfinance CEO Working Group (a group of 10 international microfinance networks), Telenor, Ooredoo, Equity Bank, and Bandhan.

We know that the hardest part of reaching UFA2020 will be to ensure that financial services reach those living in extreme poverty, and the Microcredit Summit Campaign will work with its reporting institutions to help them expand their outreach by at least 53 million of the world’s poorest families, bringing the overall total of the world’s poorest families reached by microfinance to 175 million by 2020.

UFA2020 will be a stepping stone to achieving the post-2015 development agenda, and the Campaign will document what is being done well and disseminate those lessons far and wide through the State of the Campaign Report and our Microcredit Summits. The 18th Microcredit Summit will be an opportunity to learn about these six pathways and engage in a thoughtful discussion around the role each of us plays.

We invite you to join us and take part in leading this movement; start by organizing a breakout session for the 18th Microcredit Summit and making a Campaign Commitment. Submit your breakout session proposal for the 18th Microcredit Summit, and use our platform to inform our community about what you are doing to contribute to our common mission. You can also join our own coalition of Campaign Commitment makers by announcing specific, measurable, and time-bound actions that you will take to support our goal of helping 100 million families lift themselves out of extreme poverty. This is a key step in reaching the end of extreme poverty by 2030, and by focusing on our six pathways, we can design a better future and create a map of opportunity.

Financial inclusion to end extreme poverty

Related resources

Sources

Declaration and Plan of Action. Microcredit Summit Campaign. February 1997, Washington, D.C. http://www.microcreditsummit.org/resource/58/the-microcredit-summit-declaration-plan.html

Microcredit Summit Campaign joins World Bank’s financial inclusion efforts

Global Findex database, World Bank, Washington, DC.
http://www.worldbank.org/en/programs/globalfindex

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The Microcredit Summit Campaign issued a press release today announcing our commitment to Universal Financial Access by 2020. The Campaign joins the World Bank Group and a their coalition of partners — including MasterCard, Visa, Mandiri, the State Bank of India, Equity Bank, and Bandhan — in making a commitments to accelerate universal financial access. Financial access and inclusion are stepping stones to achieving the end of extreme poverty by 2030.

The Campaign will work with its reporting institutions to help them expand their outreach by at least 53 million of the world’s poorest families, bringing the overall total of the world’s poorest families reached by microfinance to 175 million by 2020. Read the full press release.

This commitment was announced on April 17th in Washington, D.C., at the World Bank Group’s Spring Meetings.

Related resources

Social protection: innovative programs deliver financial services at scale

Participants of the Innovations in Social Protection project

Participants of the 2014 Innovations in Social Protection and Livelihoods Development initiative

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Pathway

Agricultural value chains that reach to small scale producers


>>Authored by Jesse Marsden, Manager, Research and Operations

April is the Month of MicrofinanceLearn more

April is the Month of Microfinance
Learn more

We at the Microcredit Summit Campaign have advocated for scaling up the full range of microfinance services (savings, credit, insurance, and beyond) as one sector’s contribution to a broader effort to end extreme poverty. Experience of the development community suggests that ending extreme poverty will take a multifaceted approach that matches and sequences the right combination of financial and non-financial services with an ever-varying set of binding constraints faced by individuals living in extreme poverty.

Some 40 years have passed since modern microfinance got underway with micro loans to villagers in Jobra, and innovation and learning have helped micro-financial services and interventions greatly evolve to now include a wide array of forms and functions. Last August, the Microcredit Summit Campaign led a learning tour to deeply investigate some of the newest and most promising innovations in delivering micro-financial services to those living in extreme poverty.

Six delegates representing ministries that oversee social protection programs in Ghana, Malawi, and Mozambique took a twelve-day journey with us across two continents in advance of the 17th Microcredit Summit. They observed innovative approaches for social protection programs to address the causes and symptoms of extreme poverty.

The learning and exposure visit, called “Innovations in Social Protection and Livelihoods Development,” was an initiative led by our 100 Million Project in partnership with The MasterCard Foundation. Delegates to the program from participating learned first-hand what is working well and what challenges exist for program implementers in Ethiopia and Mexico.

Policy makers then developed innovation plans for 2015 to act on lessons learned from their trip after returning home. In one example, the Malawi delegation, based on their innovation plan, fully redesigned their social protection plan (which they were preparing before their trip) to include savings schemes and digital transfer technologies to support implementation. This will have an impact on some 860,000 households (or more than 4 million individuals) living in extreme poverty served by the program.

Rainy season roads

Rainy season roads in Ethiopia

Ethiopia’s Productive Safety Net Program

The Ministry of Agriculture oversees the implementation of the Productive Safety Net Program (PSNP) in Ethiopia which is designed to address food insecurity, a key development and poverty issue in the country. PSNP uses a cash transfer process in combination with participation in a public works scheme, generating water and soil related improvements in remote areas of the country in order to build the capacity of drought stricken areas to endure weather related shocks. In return for working in a 10-person group for a set number of days per month, a monthly cash transfer is granted for six months each year that the individual participants.

These groups of 10 people select a public works improvement project to implement from a set of options developed by PSNP administrators based on the local conditions. Options often include projects to control and prevent the erosion of farming or grazing areas, rain capture systems to mitigate the impact of drought, and even infrastructure improvements such as bridges or access roads. An engineering expert is assigned to each group to ensure quality construction of the improvement and safety of the structure built.

Participants are considered “graduated” from PSNP once her or his status as “food secure” is verified by the Ministry of Agriculture, which states that “A household will be graduate when, in the absence of receiving PSNP transfers, it can meet its food needs for all 12 months and is able to withstand modest shocks.”

The Relief Society of Tigray

The delegates traveled to the northern Tigray Region of Ethiopia to visit public works completed or underway as part of PSNP outside the city of Mek’ele. The Relief Society of Tigray (REST), one of the largest NGO microfinance implementers in the country, hosted the delegation and our visits to sites where REST acts as the local partner to PSNP. Ministry and REST representatives highlighted this effective government-NGO partnership as a key to the program’s success.

The delegation visited a number of key water-related improvements and some of these images depict the massive amount of work conducted over the last seven years since the initiation of the program.

Mexico’s Conditional Cash Transfer Program

The learning program continued in Mexico where the delegation enjoyed a day of briefings, exploring the Oportunidades program (now known as Prospera), Mexico’s conditional cash transfer program (CCT) overseen by PRONAFIM in the State of Yucatán.

The briefing focused on the structures and relationships necessary within the policy framework to make Prospera work under the national-level Ministry of Social Development (SEDESOL). The delegates learned how the national development bank, BANSEFI, plays an integral role as a facilitator of cash transfers and an accounting hub for the program, and how important it is for the national government and regulatory authorities to be involved throughout the implementation of the program.

The delegation also met participants of the program Jovenes con Oportunidades (“Youth with Opportunities”), which provides higher education scholarships to youth of families participating in other social development programs of PRONAFIM. The families we met were participating in a health clinic through SEDESOL, enabling their college-age children to receive scholarships to attend universities or polytechnic schools. In this way, the program contributes to improved health while it supports access to higher education among low-income families.

The delegation spent the next day visiting the Cristo Rey Cooperative in the town of Izamal. Cristo Rey is a CCT distributor, partnered with BANSEFI, for the Prospera program. The delegation learned about their operations including a deep dive into the structure and aims of the child savings program that serves over 3,000 children. The presentation also included a look at the IT infrastructure Cristo Rey requires to be an effective partner in Prospera.

What we learned

The purpose of the learning tour was not to learn everything there is to know about successfully using social protection interventions to end extreme poverty. Not everything is known yet. But, it was an opportunity for the six members of the delegation — all of whom work with similar financial and social interventions in their home countries — to develop new ideas based on evidence of success in order to help reshape or improve the programs they oversee. As mentioned, Malawi has completely re-envisioned their program. Others have also begun asking how they can access a new learning tour looking at the use of digital solutions to help deliver programs.

The picture of microfinance is one of innovation and creatively combining services in very intentional ways to meet a huge variety of binding constraints faced by those living in extreme poverty. Agricultural financial tools, cash transfers, graduation model programs, and technology all featured prominently in the learning tour, and these are showing exciting promise in meeting the needs of the extreme poor at scale and in ways that still remain flexible. We look forward to exploring these pathways more!

Learn more about the 100 Million Project.

Relevant resources