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!

Video Corner | Lev Plaves of Kiva on measuring impact

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18th Microcredit Summit Video Corner Interview Series

Lev Plaves, portfolio manager at KIVA in the USA, interviewed by Miranda Beshara, editor of the Arabic Microfinance Gateway.


Lev Plaves of KIVA talks with Miranda Beshara, editor of the Arabic Microfinance Gateway, about what he was most excited to learn about at the 18th Microcredit Summit. “What we are most excited about is how much discussion there was at the Summit about how different stakeholders — whether investors or practitioners — are really working to improve how we’re measuring impact,” Plaves says. “That was really great to see, and I am excited to see moving forward how that plays out in terms of people working to really increase how we are quantifying the outcomes we are having as an industry.”

Plaves explains that KIVA’s mission is to connect people through lending to alleviate poverty, mobilizing people on a global level to lend as little as US$ 25 on their crowd-funding platform. KIVA has expanded its reach beyond traditional microfinance institutions, which now account for only half of their partners and thus extending their portfolio outside the microfinance sector.

Answering the question about the role of microfinance to help end poverty, Plaves explains that this has allowed KIVA to “expand the breadth our reach in terms of the number of people and the types of services we’re providing and also the depth and the impact we’re having.”

Muhammad Yunus: A new economic theory of selflessness

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Ghada Waly, Egypt’s Minister of Social Solidarity, and Nobel laureate, Muhammad Yunus, founder of Grameen Bank and the “father of microfinance,” got into a heated debate about the whole thesis of economic theory. The two distinguished speakers were on the panel for the “Scaling Business Models for Social Impact” plenary at the 18th Microcredit Summit (March 14-17 in Abu Dhabi).

Businesses have the ability to scale, delivering products and services on a global basis by providing for the needs and desires of their customers. But, the business focus on maximizing profits often lead limited attention to social challenges. Nonprofits have shown the ability to address a large variety of social problems, but the need to raise funds from donors often limits their ability to scale to the level of the problems they seek to address. Social businesses combine these two organizational models, using the power of business to solve some of the world’s most pressing social problems.

Minister Waly argued at the end of the session that businesses contribute to the well-being of society and to ending poverty — whether they do CSR or have a social mission or not — simply by creating jobs, paying taxes, and so on.

“Those companies that do not even do CSR [corporate social responsibility] but provide a service that is needed for society. Be it a pharmaceutical company or garment company, if they employ people, pay them fairly, and create jobs, this is good enough and this is very much needed. So you need everything.”

Prof. Yunus countered that human beings are both selfish and selfless, and the business world and economics can be structured to lift up the selfless side of human nature.

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Muhammad Zubair Mughal: Islamic microfinance is for everyone

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Muhammad Zubair Mughal of Al Huda Center of Islamic Banking and Economics attended his first Microcredit Summit. He discusses Islamic microfinance, the role of microfinance to help end poverty and the lessons learned at the 18th Microcredit Summit with Miranda Beshara, editor of the Arabic Microfinance Gateway. Mughal learned from the Summit about different techniques for poverty alleviation. Specifically, he appreciates the focus on financial education, insurance, and integrating health service.

Al Huda is dedicated to developing Islamic microfinance, poverty alleviation, and social development. “There is a misconception that Islamic microfinance is only for Muslims,” said Mughal. “No. Islamic microfinance is a system which can be utilized by Muslims and non-Muslims for poverty alleviation and social development,” Mughal concludes.

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Bdour Alhyari: Enabling the poor to participate in development

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18th Microcredit Summit Video Corner Interview Series

Bdour Alhyari, business development manager for Microfund for Women in Jordan, interviewed by Miranda Beshara, editor of the Arabic Microfinance Gateway.


Bdour Alhyari of Microfund for Women (Jordan) talks with Miranda Beshara, editor of the Arabic Microfinance Gateway, at the 18th Microcredit Summit. Microfund for Women launched a Campaign Commitment in 2015. Commitments are specific, measurable, and time-bound actions organizations take to support the Campaign goal to help 100 Million families lift themselves out of extreme poverty. “It is in our mission to enable and empower women at so many levels,” says Alhyari. “We thought we need to be part of this Campaign and commit to act, encourage others to commit to act.” (Learn more here.)

Microfinance plays “a great role” to help end poverty, says Alyhari, because it enables the financially excluded to gain access to the financial system. “Eighty percent [of the world’s population] are not allowed to access finance. Microfinance provides them with financial resources to enable them to participate in the development of societies, of communities. They [beneficiaries and clients] take the money. They create businesses, they continue their learning, their education, to enable them to be part of the development cycle. Gradually this will help to better livelihoods.”

Finally, Alhyari reflects on her time at the 18th Microcredit Summit. “The Summit has brought so many different expertise from different parts of the world,” she says. “We have shown our experience in microinsurance [and], providing the caregiver program, and we heard about other examples in microinsurance, green energy, and so many other topics, [such as] youth. It was a good platform to have this exchange to look at the expertise of each other and learn from it.”

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microPension Foundation to advance pension and social security inclusion

Micro Pension Foundation co-hosts a financial counselling session at Sullimula Paniya tribal village (India). Photo courtesy of Micro Pension Foundation — Read the press release announcing Micro Pension Fondation’s Campaign Commitment (the link connects to the ESAF press release) — Read their Commitment letter (the link connects to the ESAF letter) —Watch the recording of the E-workshop co-hosted with the Center for Financial Inclusion, Micro Pension Foundation and HelpAge International, (hyperlink https://www.youtube.com/watch?v=gFzTaAlc7To)

microPension Foundation co-hosts a financial counseling session at Sullimula Paniya tribal village (India). Photo courtesy of microPension Foundation
Read the press release announcing microPension Foundation’s Campaign Commitment
Read their Commitment letter
Watch the recording of the E-workshop co-hosted with the Center for Financial Inclusion, Micro Pension Foundation and HelpAge International

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The Microcredit Summit Campaign welcomes microPension Foundation (mPF) as the 58th organization to make a Campaign Commitment. mPF commits to provide an integrated, contributions-led micropension solutions for 25,000 domestic help workers in India and work to further social security inclusion for low-income informal sector workers. With this Commitment, mPF joins a global coalition to help 100 million families lift themselves out of extreme poverty.

The non-profit mPF is a specialized pension and social security inclusion R&D hub established in 2012 through an inception grant from VISA, Inc. mPF develops, field-tests, and mainstreams innovative and scalable technology-led solutions to enable secure, convenient, and affordable access to contributory pension and social security programs by low-income unbanked workers.

microPension Foundation joins our coalition and commits to the following:

  • By encouraging mass-scale civil society action to achieve pension and social security inclusion by motivating P2P action using the first global e-commerce social security platform titled “gift-a-pension.” This web-platform enables middle and upper-middle income households to enroll their domestic help (cooks, drivers, maids, guards) for an integrated pension, insurance, and micropayment solution through the Internet.
    Employers use electronic financial literacy tools (FAQs, animations, films, calculators) to explain pension and social security concepts and product features to their home help. Domestic help who do not have a bank account are provided a bank-issued prepaid card for channeling periodic micropension contributions to regulated pension funds and life insurers.
    By December 2016, the microPension Foundation will aim to achieve coverage of 25,000 domestic help employed by middle and upper-middle income households in India. The microPension Foundation will also identify and work with like-minded institutions in other developing countries to implement the Gift-a-Pension platform in other countries.
  • The microPension Foundation will collaborate with a specialized social security solutions enterprise to launch a new social security gateway named microPension-in-a-Box (mPIB). This gateway will enable governments, regulators, multilateral and bilateral aid agencies, MFIs, cooperatives, NGOs, and social enterprises more generally to offer an integrated social security program based on portable, individual pension and insurance accounts to their citizens, clients, or beneficiaries.
    With the Microcredit Summit Campaign, the microPension Foundation and the new solutions enterprise will launch a global road-show in mid-2016 to show-case the mPIB solution to Campaign partners and to build a global partnership-led implementation network.

gift a pension photo_275x338mPF will encourage, enable, and assist Campaign partners and other stakeholders to launch integrated, contributions-based micropension and microinsurance programs for low income excluded individuals. With this strategy, mPF seeks to multiply the impact of the social security inclusion effort and create a global micro-social security marketplace which will enable low-income, informal sector workers to achieve a secure and dignified old age through thrift and self-help.

Executive Director of Micro Pension Foundation, Parul Khanna, explains why they are committing with the Microcredit Summit Campaign:

“We are extremely excited about the huge potential global impact of the Microcredit Summit Campaign and are delighted to be a partner in this process. The mPF team is committed to work closely with the Campaign and fellow partners in the coming years to empower and enable low-income excluded women to achieve a financially secure and dignified old age.”

Read the Commitment Letter from Micro Pension Foundation.

The Microcredit Summit Campaign looks forward to welcoming our newest partners to the global coalition and sharing their progress towards the Commitment achievement at the 18th Microcredit Summit. The Campaign’s 100 Million Project is building a movement among financial service stakeholders committed to helping to end extreme poverty through: public statements of commitment to action, expanding practices to reliably measure movement out of extreme poverty, and promoting innovations and best practices to accelerate movement out of poverty.


We invite you to join microPension Foundation and…

Get Inspired. Set a Goal. Make a Commitment.

Join the movement to help 100 million families lift themselves out of extreme poverty:

Better health for every woman and every child in the Philippines

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The maternal mortality rate in the Philippines is among the highest in Southeast Asia. To help improve maternal health in the Philippines, three development institutions have come together to implement the Healthy Mothers, Healthy Babies: Kalinga kay Inay Project. Freedom from Hunger and the Microcredit Summit Campaign are partnering with CARD Mutually Reinforcing Institutions (CARD MRI) to implement an 18-month project to provide access to health education and healthcare, build sustainability of such services, and document evidence of improved lives. The project is supported by an educational grant from Johnson & Johnson.

More than 800,000 women have received vital information to ensure healthy pregnancies, and thousands more will. At community health fairs like you see in the short video above, thousands of women have received free OB/GYN consultations, have signed up for the national health insurance, PhilHealth, and have received free prenatal vitamins. We’re reaching for better health for every woman and every child. Join us.

Learn more

Insufficient and greatly uneven progress on the maternal health MDG

Millennium Development Goals: 2015 Progress Chart
Published articles to date: Introduction | MDG 1 | MDG 2 | MDG 3 | MDG 4

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The United Nations recently issued The Millennium Development Goals Report, 2015, the latest assessment of progress towards the eight MDGs. In short, they have had mixed results. This article is part of a blog series reflecting on the MDGs and the U.N. report. These are produced in partnership with our colleagues at RESULTS, a grassroots advocacy organization. They are lobbying for bipartisan legislation in the Senate that can impact the lives of mothers and children worldwide. (See the Fact Sheet.)


>>Authored by Marion Cosquer and Sabina Rogers

MDG 5: Improve maternal health

Target 5.A: Reduce by three quarters, between 1990 and 2015, the maternal mortality ratio

graph_MDG5

Click to enlarge. Source: The Millennium Development Goals Report, 2015

In 1990, 380 pregnant women were dying for every 100,000 live births. As of 2013, the global maternal mortality ratio has decreased by 45 percent to 210 women per 100,000 live births. The highest gains were seen in South and Southeast Asia with a 64 percent and 57 percent reduction, respectively. Developing regions overall achieved a 46 percent reduction. Maternal survival has been aided by a one-third increase in childbirth attendance by skilled health personnel. Thus, the news in the U.N. Millennium Development Goals Report for MDG 5 is promising.

Nonetheless, progress towards improving maternal health so far falls far short of the targets set under MDG 5 and has lagged far behind the other MDGs. Additionally, global figures tend to mask regional inequalities. For example, there were 510 maternal deaths per 100,000 live births in sub-Saharan Africa compared to 190 in South Asia and 140 in Southeast Asia.

Progress in raising the proportion of births delivered with skilled personnel has been modest over the last 15 years, reflecting the lack of universal access to care. Indeed, one in four babies still being delivered without skilled personnel and wide disparities are found among regions. For example, there is a 52 percent spread between the largest rural/urban disparity across regions:

  • In Central Africa, 32 percent of births were attended by skilled personnel compared to 84 percent in urban areas.
  • In East Asia, there is no difference between urban and rural areas.

Sub-Saharan Africa and South Asia pull down the developing region average. Overall, 56 percent of births in rural areas are attended by skilled health personnel compared to 87 percent of births in urban areas.

From The Millennium Development Goals Report, 2015

Click to enlarge. Source: The Millennium Development Goals Report, 2015

Target 5.B: Achieve, by 2015, universal access to reproductive health
After 25 years of slow progress, only half of pregnant women in developing regions receive the minimum of four antenatal care visits recommended by the World Health Organization. Once more, coverage levels in sub-Saharan Africa and South Asia trail the other regions. Sub-Saharan Africa has barely increased from 47 percent to 49 percent of pregnant women; South Asia has the lowest coverage at 36 percent (though it increased from 23 percent). Moreover, despite having doubled contraceptive use [1] in sub-Saharan Africa from 13 to 28 percent, sub-Saharan Africa still trails all other regions.

From The Millennium Development Goals Report, 2015

Click to enlarge. Source: The Millennium Development Goals Report, 2015

Proven health-care interventions can prevent or manage the complications that cause maternal deaths, such as hemorrhage, infections, and high blood pressure. These complications are concentrated in sub-Saharan Africa and South Asia, accounting for 86 percent of all deaths worldwide in 2013. Use of contraceptives also contributes to maternal health by reducing unintended pregnancies, unsafe abortions, and maternal deaths.

The report tells us that contraceptive use has risen in all regions and 90 percent of users were using effective contraceptive methods. However, the unmet need is still high (24-25 percent) in sub-Saharan Africa and Oceana. Other developing regions hover around 11-14 percent unmet need, and the overall use in those regions is significantly higher than in sub-Saharan Africa and Oceana.

The adolescent birth rate shows a mixed story. While the global rate for developing regions has fallen by half (from 34 to 17 births per 1000 girls), it hides poor progress in Africa and Latin America and the Caribbean. Indeed, in three regions (Southeast Asia, the Caucasus and Central Asia, and North Africa), some of the gains in the adolescent birth rate from 2000 reversed in 2015. Moreover, progress in East Asia was stagnant over the last 15 years.

The report calls for urgently needed intensified efforts to delay childbearing and prevent unintended pregnancies among adolescents. By increasing opportunities to go to school and for paid employment, we would see an overall improved maternal and child health as well as reduced poverty, greater gender equality, and women’s empowerment.

Maternal health in the post-2015 development agenda

The new Global Goals for Sustainable Development, which are set to be approved at the Sustainable Development Summit September 25 to 27, encompasses a broader, more ambitious and inclusive health goal. Goal 3 seeks to “Ensure healthy lives and promote well-being for all at all ages.” Indeed, it seeks to reduce the global mortality ratio to fewer than 70 deaths per 100,000 live births. Under Goal 3, countries will agree to ensure, by 2030, universal access to sexual and reproductive healthcare services, including for family planning, information and education, and the integration of reproductive health into national strategies and programs — for which the microfinance sector can be a key partner.

The report concludes on the inequalities in data availability on maternal health among and within regions. The lack of data is a key factor contributing to the unfinished MDG agenda, hampering efforts to establish priorities on national, regional, and global health. In the post-2015 period, it is imperative to have better and more data, especially concerning registration of births and deaths, in order to set adequate policy priorities, target resources more efficiently, and measure improvements.

In order to build on the successes of the MDGs and achieve Goal 3 of the SDGs, the 18th Microcredit Summit will focus on integrated health and microfinance as one of the six pathways out of poverty. Empowerment of women — which can help reduce maternal mortality more quickly and efficiently — will also be an important theme.


Footnote

[1] “Contraceptive use” is defined concerning women aged 15-49, married or in union, who are using any method of contraception

Post MDG-4: Integrating health services to reduce child mortality

Millennium Development Goals: 2015 Progress Chart
Published articles to date: Introduction | MDG 1 | MDG 2 | MDG 3

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The United Nations recently issued The Millennium Development Goals Report, 2015, the latest assessment of progress towards the eight MDGs. In short, they have had mixed results. This article is part of a blog series reflecting on the MDGs and the U.N. report. These are produced in partnership with our colleagues at RESULTS.


>>Authored by Carley Tucker and Sabina Rogers

MDG 4: Reduce child mortality

Target 4.A: Reduce by two-thirds, between 1990 and 2015, the under-five mortality rate

From The Millennium Development Goals Report, 2015

From The Millennium Development Goals Report, 2015

The numbers appear heartening. According to the latest assessment on the Millennium Development Goals (MDGs), deaths of infants and children under five have greatly reduced. The under-five mortality rate has declined by more than half, from 90 to 43 deaths per 1000 births. Moreover, the annual rate of reduction in child deaths has more than doubled since 1990, and the rate has accelerated the most in Africa.

We learn that 4 out of every 5 of children have received at least one dose of the measles vaccine, preventing 15.6 million deaths between 2000 and 2013. In all, some 48 million children under five are alive today because of smart investments and increasing access to cost-effective health programs over the last 15 years.

This is good news for children around the world; however, underlying these advances is news that the achievements are not equitably distributed regionally, between rural and urban areas, nor socioeconomically.

Across all regions, progress toward MDG 4 has been “fair” to “excellent.” Furthest from reaching the target, though, are those living in sub-Saharan Africa and South Asia. While sub-Saharan Africa has had the largest decline in child mortality rates, it still experiences half of all child deaths in the world. Of the 10 countries with the highest number of under-five deaths, 5 are in Africa: Nigeria (#2 at 750,000), DR Congo (#4 at 305,000), Ethiopia (#5 at 184,000), Angola (#7 at 169,000), and Tanzania (#10 at 98,000). See the full list in this infographic from Humanosphere.

Children living in rural areas are 1.7 times more likely to die than those living in urban populations. Child mortality is 1.9 times as prevalent among poor households as among wealthy. Those whose mothers lack education are 2.8 times more likely to die than if their mothers had reached the secondary or higher level. So, of the 16,000 children under five who die each day — mostly due to preventable causes such as pneumonia, diarrhea, and malaria — they are likely to be from poor, rural, and uneducated households.

Have we really made substantial progress achieving MDG 4 when young kids in rural and poor communities continue to be the ones more likely to die before their fifth birthday? Allowing this population to fall behind will only exacerbate the vicious cycle of poverty. In order to make permanent advances in reducing early deaths, global development actors need to narrow in on rural and impoverished areas, especially in sub-Saharan Africa and South Asia.

Where do we go from here?

Recognizing the need for a renewed effort towards improving health of the poorest households, the Microcredit Summit Campaign has identified integration of health and microfinance programming as one of its six pathways strategies key to ending extreme poverty. Poverty is both a factor contributing to and consequence of illness and disease, so it is not enough for clients to have access to financial services. The microfinance sector must look for ways to integrate healthcare to their microfinance services. Microfinance institutions (MFIs) can provide health services directly or through linkages with healthcare programs.

Campaign believes that microfinance services provide an optimal place for healthcare. Many MFIs are reaching very rural communities — to say nothing of savings groups, which are primarily a rural financial tool. MFIs have developed trust relationships with families; they meet regularly with clients and can, therefore, pass along information like how to care for their children. In addition, since many MFIs serve regions in Africa and South Asia where child mortality rates are the highest, a strong focus on healthcare will allow these organizations to directly combat this issue in the most afflicted regions.

Microfinance clients must also have access to good healthcare in order to run their businesses, and a healthy lifestyle begins at birth. In the “Healthy Mothers, Healthy Babies: Kalinga kay Inay” project, microfinance clients are learning simple but important lessons like the food and nutritional supplements that pregnant and young women need and the importance of giving birth in a health facility. They are attending community health fairs organized by CARD MRI and partners, receiving free gynecological exams, urinalysis, and vitamins and supplements to improve their chances of delivering a healthy baby.

70 percent of maternal and child deaths now concentrated in just 16 countries, health and non-health investments such as sanitation, education, infrastructure and gender equality can potentially double the impact on lives saved.

70 percent of maternal and child deaths are now concentrated in just 16 countries. Investments in sanitation, education, infrastructure, and gender equality can potentially double the impact on lives saved. Go to the Newborn Survival Map to learn more.

Integrating health and microfinance services will also support the efforts of the new Global Goals for Sustainable Development, which are set to be approved at the Sustainable Development Summit September 25 to 27. The ambitious Goal 3 (“Good health and well-being”) includes ending preventable deaths of newborns and children under 5 years of age by reducing child mortality to 20 or fewer deaths per 1000 births by 2030. It also seeks to reduce by one third premature mortality from non-communicable diseases through prevention, treatment, and promotion of mental health and well being.

There also efforts underway in the United States to maximize future investments by US Agency for International Development (USAID). To reach the goal of ending preventable child and maternal deaths by 2035, USAID has set bold, intermediate goals of saving 15 million child lives and 600,000 women’s lives by 2020. RESULTS, a grassroots advocacy organization, is lobbying for bipartisan legislation that will provide strong congressional oversight and ensure that “returns [are] measured in lives saved and healthy, prosperous communities.” (See the Fact Sheet.)

“We now have the chance to end these needless deaths in our lifetime,” said Joanne Carter, executive director of RESULTS and RESULTS Educational Fund (our parent organization). “The science shows we have the tools. That means in 2035 a child born in the poorest setting could have the same chance of reaching her fifth birthday as a child born in the richest.”

Campaign to host workshop with World Bank Annual Meeting in Peru

Attending the World Bank meeting in Peru? Join our workshop, “6 Financial Inclusion Pathways to End Extreme Poverty – What Role Can You Play?”

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Are you attending the 2015 Annual Meetings of the World Bank Group and the International Monetary Fund in Lima, Peru? Join us at the Civil Society Policy Forum* for a workshop to explore how microfinance and financial inclusion can contribute to the fight against extreme poverty.

The Microcredit Summit Campaign will host a workshop at the Forum at the World Bank Annual Meeting in Lima from October 6-9. The Forum promotes substantive dialogue and an exchange of views between Bank/Fund staff, civil society organizations (CSO), government officials, academics, and other stakeholders.

6 Financial Inclusion Pathways to End Extreme Poverty

What Role Can You Play?

As the 2014 Global Findex has shown, important progress toward universal financial access is evident. However, there has been much less progress for groups commonly considered to be among the most excluded or hardest-to-reach. Ensuring that these groups are not left out of the march toward universal financial access in the coming four years, intentionality in our approach will be essential as will be a clear framework for actors to coordinate their efforts.

The Campaign is highlighting six pathways that have shown positive outcomes for reaching and including the hardest-to-reach groups especially when delivered in an integrated manner. This lens can offer helpful ways to view opportunities where investment can accelerate progress in including the most excluded, hardest-to-reach populations by 2020.

Session Objective

We will show how the Universal Financial Access by 2020 (UFA2020) campaign links with ending extreme poverty by 2030. In breakout groups, participants will brainstorm how organizations like theirs (CSOs, in Bank-speak) can contribute to financial inclusion pathways to end extreme poverty.

Speakers

  • Larry Reed, Director, Microcredit Summit Campaign
  • Susy Cheston, Senior Advisor for the Center for Financial Inclusion at Accion and leads the Financial Inclusion 2020 campaign
  • Martin Spahr, Senior Operations Officer at the International Finance Corporation
  • Carolina Trivelli, Economist, CGAP

Date

October 8, 4-5:30 PM

Contact Jesse Marsden for more information.

* Note that registration for the Forum is closed. You can see the full Forum agenda here.


The 2015 Annual Meetings of the World Bank Group (WBG) and International Monetary Fund (IMF) will be held on October 9 – 11 in Lima, Peru. The Civil Society Policy Forum, a program of events including policy sessions for civil society organizations (CSOs), will be held from October 6 – 9, 2015.

Imprimir

Some Annual Meeting sessions will be livestreamed. Find out how to watch.

The registration platform for CSO representatives interested in attending the Civil Society Policy Forum is now closed. We will be processing registration requests that were received within the last few days and will be notifying applicants on the status of their request. This process can take a couple of weeks and so we ask for your patience. As previously published, no new registration request will be entertained.

Does anti-poverty work actually … work?

Photo credit: Giorgia Bonaga & Shamimur Rahman

Photo credit: Giorgia Bonaga & Shamimur Rahman

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The following blog post is re-posted with permission. Read the original article on Next Billion, “NexThought Monday – Does Anti-Poverty Work Actually … Work?: Three questions every ‘pro-poor’ group needs to ask themselves.”


>>Authored by Chris Dunford and Carmen Velasco

This month, the United Nations will celebrate achievement of Millennium Development Goal No. 1. The number of people living in extreme poverty has fallen by more than half, from 1.9 billion in 1990 to 836 million in 2015. How did this happen? Is it because of targeted anti-poverty programs, or is it due to broad-based economic growth, especially in China and India? If economic growth is the main cause, as it seems to be, further progress may be doubtful. Economic growth alone is unlikely to reach the residual hundreds of millions still living in extreme poverty.

Nor is it likely that anti-poverty programs, whether public or private, will lift this “bottom billion” from extreme poverty. For example, the U.S. poverty rate hovers around 15 percent of the population, nearly unchanged for decades, despite the hundreds of billions of dollars spent on U.S. anti-poverty programs. For another example, in poorer countries, microfinance was billed as a self-financing solution to deep poverty and became a darling of international development donors in the 1990s and “social investors” in the 2000s. Then smart social scientists tested the claims with sound field research and found little to no impact on poverty.

Is it reasonable, however, to expect anti-poverty programs, by themselves, to lift large numbers of people above an arbitrary poverty line? Given that the poor must overcome many burdens before they can seize whatever economic opportunities are available, perhaps we should ask a different question:

Do anti-poverty programs ease the burdens of poverty?

While the recent research into microfinance shows little to no increase of annual household income, on average, the same studies very often show that the burden of poverty is alleviated by giving microfinance participants access to money when they really need it during the year. Economists call this impact “consumption smoothing.” In plain terms, it means people get enough to eat throughout the year instead of going without adequate food for a day, a week, or even months at a time. If so, this is an impact worth celebrating, is it not?

Even with this more modest and realistic expectation, some anti-poverty programs are effective and some are not. We know this from our collective experience in anti-poverty work, with more than 70 years between us. We know the challenge is to distinguish what works from what does not. It is better to seek out “pro-poor” rather than “effective” anti-poverty work, because there are gradations of effectiveness. All programs have room to improve. “Pro-poor” programs actually strive to improve toward greater effectiveness. Transparency and accountability are not just about separating wheat from chaff; they are about improving.

How can we fully distinguish pro-poor programs from those that are not?

In a volunteer initiative called Truelift, leading thinkers of the “social performance” movement in microfinance (seeking social as well as financial return on investment) have hit upon a truth that applies to all anti-poverty work: Truly pro-poor programs provide the right answer to each of three straightforward questions.

First: Does the program work with people living in poverty?

Straightforward indeed! But how do you know a person living in poverty when you see one? More important: How does a program know them, recruit them, include them and keep others who are not poor from co-opting what the program offers?

Too many anti-poverty programs cannot answer this question. Regardless of legitimate reasons, these programs are flying blind in their poverty outreach and, therefore, their potential to impact poverty. “Blind” programs may be “wasting” precious resources on the “wrong” people — even though much good may be done. Such programs are not entitled to the “pro-poor” label — they need a different justification. Or, they can get serious about knowing the poverty status of the people they work with.

Second: Does the program design and adapt its services specifically for people living in poverty?

The staff of a pro-poor program changes and adapts the services and products they offer — intentionally and systematically, always listening carefully to people living in poverty and being clear about the benefits the program seeks to provide them. It is basic good business practice — know your customers, listen to them, design for them, satisfy them.

The Réseau des Caisses Populaires in Burkina Faso (RCPB) discovered while providing savings and credit services to groups of rural women that they wanted information about how to prevent and treat malaria, a disease that kills children and robs adults of far too many productive work days. At left, an RCPB animatrice (field agent) shows a women’s group how to understand the symbols on a take-home card that shows illiterate people how malaria is prevented and treated. (Image credit: Karl Grobl for Freedom from Hunger)

Third: Does the program track the progress of the people using its services?

It is not enough to reach out to people living in poverty and to design and adapt services to suit their needs and constraints. We must have some evidence that our work is helping them move in the right direction, even if not all the way to the intended destination. This is not just to show that our work is worthy of the money spent, but also to know how to improve our work. We need “real time” information about change in clients’ lives.

We operate programs in a world where sophisticated research into cause and effect is rare and likely to remain so. Logic, experience and some evidence indicates that programs providing the “right” answer to each of the three Truelift questions are likely to show positive impacts on people living in poverty, if and when sophisticated impact research is done.

It is not too difficult for managers, donors, investors, regulators and business leaders to ask these three questions and know when they get good answers. We can know a pro-poor program when we see one — and act to support it.

Truelift_RGBChris Dunford and Carmen Velasco are co-chairs of the Truelift Steering Committee.


Read the full article on Next Billion.

Learn more about Truelift.

ESAF Microfinance commits to comprehensive services for clients

ESAF Microfinance trains community health workers and organizes health fairs for their clients and poor communities. Photo courtesy of ESAF Microfinance
— Read the press release announcing ESAF Microfinance’s Campaign Commitment
— Read their Commitment letter

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The Microcredit Summit Campaign welcomes ESAF Microfinance as the 57th organization to make a Campaign Commitment. ESAF joins a global coalition to help 100 million families lift themselves out of extreme poverty. ESAF will help support their clients in uplifting themselves from poverty by providing them with education, training, and support services.

ESAF and the Campaign strongly believe that microfinance services should be complemented by education, training, and other supporting programs that help poor families battle chronic poverty and social exclusion. For example, in partnership with the Campaign, ESAF trained community health workers (Arogya Mithras in Hindi) to provide health education and front-line screening services for non-communicable diseases to poor communities. You can learn about that project in “Integrating Health with Microfinance: Community Health Workers in Action.”

For the financial year 2015-2016, ESAF Microfinance aims to reach out to new clients through its products and services, committing to the following:

  1. To offer microfinance services to 200,000 new clients through expanding the geographic reach in some of the backward states of Chattisgarh, Jharkhand, West Bengal, and Bihar.
  2. To increase the reach of financial services to an additional 10% of clients, making it to a total of 50% of clients who belong to socially backward communities/tribes (scheduled castes and scheduled tribes as per government of India)
  3. To offer livelihood support services to at least 10,000 clients who shall be in a position to contribute to the income of their household.
  4. To measure the poverty levels of 200,000 clients using PPI.
  5. To offer financial literacy training to at least 50,000 clients.
  6. To offer health education and awareness sessions to at least 50,000 clients and to offer health check-up services to benefit at least 5,000 clients.
  7. To offer financial and non-financial services to at least 3,000 PWD (persons with disabilities) clients.
  8. To offer women’s leadership and empowerment programs to benefit at least 50,000 clients.
  9. To reach at least 2,000 children through educational programs for academic growth and value education.
  10. Educate at least 50,000 clients on environment protection and use of clean energy products.

Chairman and managing director, K. Paul Thomas, explains why their commitment includes a number or programs addressing multiple aspects of the client’s life such as health:

“ESAF’s vision and mission very clearly emphasize on holistic transformation of its poor clients,” he said, “and, we are convinced this cannot be achieved unless their health issues are addressed.”

ESAF Microfinance is one of the premier microfinance institutions in India today, particularly in Kerala, effectively empowering 750,000 members through 160 dedicated branches. The founder of ESAF ventured into microfinance in 1995, by organizing self-sustainable groups, to alleviate poverty and generate employment. Since then, ESAF has grown by leaps and bounds in the microfinance sector, promoting microfinance as a viable, sustainable, and effective means for creating jobs and reducing poverty.

Read the Commitment Letter from ESAF Microfinance.

The Microcredit Summit Campaign looks forward to welcoming our new partners to the global coalition and sharing their progress towards the Commitment achievement at the 18th Microcredit Summit. The Campaign’s 100 Million Project is building a movement among financial service stakeholders committed to helping to end extreme poverty through: public statements of commitment to action, expanding practices to reliably measure movement out of extreme poverty, and promoting innovations and best practices to accelerate movement out of poverty.


We invite you to join ESAF Microfinance and…

Get Inspired. Set a Goal. Make a Commitment.

Join the movement to help 100 million families lift themselves out of extreme poverty:

#tbt: Clients Continue Movement above the US$1 a day Threshold

The study found that, on net, 1.8 million microcredit client households, including 9.43 million household members, crossed the $1.25 a day poverty threshold between 1990 and 2008.

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We are pleased to bring you this #ThursdayThrowback blog post, which was originally published in The State of the Microcredit Summit Campaign Report 2011. We commissioned a study to estimate the net number of microcredit client households in Bangladesh that crossed the US$1.25 a day threshold between 1990 and 2008. You can download a copy of the study from our Resource Library as well.


Authored by Sajjad Zohir, the director of the Economic Research Group; he is based in Bangladesh.

The Microcredit Summit Campaign is committed to using microfinance to powerfully contribute to the end of poverty. Its decade-long focus on client poverty measurement and progress out of poverty underscores this commitment. To this end, the Campaign continues to track progress towards its second goal to ensure that, from a starting point in 1990, 100 million of the world’s poorest families move from below US$1 a day adjusted for purchasing power parity (PPP) to above US$1 a day adjusted for PPP by 2015.

Evidence from Bangladesh

Findings from a nationwide study in Bangladesh commissioned by the Campaign shows promising results. The study, undertaken by the Bangladesh-based Economic Research Group, was administered between February and August 2009. Researchers surveyed a nationally representative sample of 4,000 Bangladeshi microcredit clients and estimated the net number of households in Bangladesh that crossed the US$1.25 a day threshold between 1990 and 2008.[1]

The study found that, on net, 1.8 million microcredit client households, including 9.43 million household members, crossed the $1.25 a day poverty threshold between 1990 and 2008. A second key issue raised in the report, seen in Figure 1 below, was that in some years a large percentage of clients left poverty, whereas, in years coinciding with the 1998 floods and the food crisis of 2008, many households, including some who where non-poor when they joined the microcredit program, slide below the $1.25 threshold.

Figure 1: Percentage of Client Households, on Net, Crossing the US$1.25 Threshold in Bangladesh

Figure 1: Percentage of Client Households, on Net, Crossing the US$1.25 Threshold in Bangladesh
Data showed that among those taking their first microcredit loan between 1990 and 2008, the following poorest client households crossed the US$1.25 threshold:

1990-1993 8.94%
1994-1997 19.83%
1998-2002 0.33%
2003-2008 1.84%

It is important to note that the findings in this report were significantly influenced by the period in which the data was collected. In 1998 Bangladesh suffered from what are often described as the most severe floods ever to hit the country. In 2008, a food crisis coupled with political instability in Bangladesh and the global economic crisis led to a general slack in economic activities. All these factors may have led to the depletion of assets that are commonly chosen as proxies to measure poverty status among the very poor in Bangladesh. This in turn may have led to under-estimation of the number of microcredit client households that may have otherwise crossed the threshold.


Footnote

[1] This study made no attempt to establish causality between microcredit and poverty alleviation. Instead, it simply estimates the change in status of microcredit client households between 1990 and 2008, when compared with their status during the time of the first loan received by any member of the household.


Related reading

Post-MDG 1: Focusing the lens on those still in extreme poverty

Millennium Development Goals: 2015 Progress Chart
Published articles to date: Introduction | MDG 1 | MDG 2 | MDG 3 | MDG 4

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The United Nations recently issued The Millennium Development Goals Report 2015, the latest assessment of progress towards the eight MDGs. In short, they have had mixed results. This article is part of a blog series reflecting on the MDGs and the U.N. report. These are produced in partnership with our colleagues at RESULTS (our parent organization).


>>Authored by Sabina Rogers and Maeve McHugh with support from Anushree Shiroor from RESULTS UK

MDG 1: Eradicate extreme poverty and hunger

graph_MDG1

From The Millennium Development Goals Report, 2015

The overall number of people living in poverty in developing countries fell by more than half since 1990. The rate dropped to 14 percent in 2015 and the absolute number to 836 million people. There has also been significant progress made towards curbing hunger worldwide.

Target 1.A: Halve, between 1990 and 2015, the proportion of people whose income is less than $1.25 a day

Looking at the regional distribution of data, poverty reduction was concentrated in eastern and southern Asia thanks to immense poverty reduction measures in China and India. Progress is less apparent in other regions. In sub-Saharan Africa, 40 percent of the population still live in extreme poverty, and in western Asia, extreme poverty is actually expected to increase between 2011 and 2015.

The mix of progress and failure provides some guidance to the Sustainable Development Goals (SDGs). Namely, they must continue the campaign around eradicating extreme poverty while also confronting challenges that hinder progress in the regions that have seen marginal improvement.

While the world met its goal of halving the proportion of people living in extreme poverty, we must now look with a narrower lens at those remaining in extreme poverty. We must ask what changes must be made to the policies that did not succeed.

Full and productive employment

Target 1.B: Achieve full and productive employment and decent work for all, including women and young people

From The Millennium Development Goals Report, 2015

From The Millennium Development Goals Report, 2015

This target faced various challenges. First, the global labor force grew, and continues to grow, faster than employment opportunities. The global working-age population that is employed actually declined 2 percent between 1991 and 2015. (The 2008-09 global economic crisis certainly didn’t help.)

Youth (15-24 years) are especially affected by unemployment, with three times as many unemployed than adults. Young women are especially affected by unemployment and have few employment opportunities. They face unequal access to work as well as unequal pay, inadequate social protection, and unsatisfactory access to assets. These factors all contribute to women’s overall greater vulnerability of living in poverty.

Additionally, the situation is precarious for both those living just above the $1.25 a day line and those working in vulnerable employment conditions (i.e., unpaid family workers and own-account workers). Half of the developing regions’ workforce live on less than $4 a day, necessitating improvements in social protection programs and policies that see beyond extreme poverty. We need to take into account what comes after.

Halving hunger

Target 1.C: Halve, between 1990 and 2015, the proportion of people who suffer from hunger

From The Millennium Development Goals Report, 2015

From The Millennium Development Goals Report, 2015

Progress has alternated between slow and rapid declines in the proportion of undernourished people since 1990. Current estimates indicate that approximately 795 million people are undernourished globally, and for the developing regions, the proportion of undernourished people is projected to drop to 12.9 percent, or 780 million, in 2014-2016.

The vast majority of undernourished people live in developing regions. They experience various risks of food insecurity, namely natural disasters, volatile commodity prices, rising food and energy costs, and periods of economic stagnation, among other difficulties.

Addressing child health, specifically, is an important challenge to tackle in order to end hunger. While the proportion of underweight children under the age of five has been halved, the absolute numbers are still high at 90 million. Furthermore, sub-Saharan Africa and Southern Asia are home to nearly 90 percent of all underweight children.

Looking Forward

SDG 1The world has made immense progress in improving the lives of millions of people since 1990. While MDG 1 can be called a qualified success, the targets must remain a linchpin in the post-2015 agenda. Sustainable Development Goal (SDG) 1 is to “End poverty in all its forms everywhere.” However, the SDGs, which are to be approved at the U.N. General Assembly next month, need to address the shortfalls in reaching the MDGs within regions and the individual factors that combine to cause people to slide back into poverty.

SDG 2SDG 2 proposes to “End hunger, achieve food security and improved nutrition and promote sustainable agriculture.” While the MDGs considered only one aspect of undernutrition in children (i.e., underweight), we now have a better understanding of other forms. We know that stunting, wasting, micronutrient deficiencies, as well as overweight and obesity are all important factors to track. These indicators in the SDGs are more reliable than “underweight” alone in predicting growth, development, and well-being of children.

The World Health Assembly (WHA) has also set targets to reduce multiple forms of malnutrition by 2025. If we want the world to commit resources and take action to meet these targets, indicators must be built into the proposed SDGs to track these multiple forms of malnutrition the WHA is seeking to address.

However, early signs point to the inclusion of merely one or two undernutrition indicators as was the case with the MDGs. This will lead to a very limited body of data with which to understand progress in achieving SDG 2 and an inadequate basis on which to measure and predict children’s growth, development, and well-being. Indicators on reducing stunting, wasting, anemia, and overweight that come under SDG 2 as well as promotion of exclusive breastfeeding during the first six months of infancy within SDG 3 will give a much more accurate picture of actions being taken, and progress made.

Looking beyond 2015 and the MDGs, it is clear that microfinance has a role to play in supporting achievement of the SDGs. It can be a tool to generate sustainable growth and ultimately create self-sufficiency for poor and vulnerable households.

When proper targeting is employed…

When integrated with important non-financial services like health…

When coupled with government programs like conditional cash transfers…

When the business model measures “success” in terms of their client’s well-being…

When these measures are taken, then microfinance institutions can work directly with individuals living in the very conditions the SDGs are aiming to address. Those living in extreme poverty or fighting hunger can use microfinance as a tool to mitigate the risks they face and seize opportunities to build lasting and positive change in their lives.

A deep dive into the Millennium Development Goals Report

Millennium Development Goals: 2015 Progress Chart
Published articles to date: MDG 1 | MDG 2 | MDG 3 | MDG 4

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>>Authored by Sabina Rogers, Communications and Relationships Manager

The United Nation’s (U.N.) Inter-Agency and Expert Group on MDG Indicators recently issued the latest assessment of progress towards the Millennium Development Goals (MDGs) in a 75-page report. The Millennium Development Goals Report, 2015 is a rich document presenting data on each of the eight goals. In short, the MDGs have had mixed results, and the headline of one billion people lifted out of extreme poverty (living on less than US $1 a day) is almost entirely a result of the massive gains in China and India.

The 2015 MDG report presents the successes and shortcomings in the areas reducing poverty, increasing employment, and eradicating hunger. In the foreword, U.N. Secretary General Ban Ki-moon extolled these successes while conceding that “inequalities persist and that progress has been uneven.” Specifically, few countries met their poverty alleviation targets, and women and other vulnerable groups still tend to be excluded in what gains there were. Maternal and child health is still a very serious problem around the world (especially these 17 countries), including the Philippines, where we have a project with Freedom from Hunger and CARD MRI whose express purpose is to address this problem.

In just a few weeks, world leaders will convene in New York to finalize the Sustainable Development Goals (SDGs), the successors to the MDGs. (Here is the SDG agenda for the U.N. Summit.) What is most important for the international community to consider is what worked with the MDGs and why. Moreover, we should take inspiration from the fact that the MDGs did reshape our world. Ban Ki-moon says it best:

“By putting people and their immediate needs at the forefront, the MDGs reshaped decision-making in developed and developing countries alike…Reflecting on the MDGs and looking ahead to the next fifteen years, there is no question that we can deliver on our shared responsibility to put an end to poverty, leave no one behind and create a world of dignity for all.”

In the coming weeks, we will be publishing articles reflecting on each MDG and the assessment as presented in the 2015 report from the U.N. These are produced in partnership with our colleagues at RESULTS (our parent organization), a non-profit that supports a movement of passionate, committed everyday people who use their voices to influence political decisions that will bring an end to poverty. RESULTS grassroots volunteers have been instrumental in so many (often unsung) ways over the years to bring about the successes that we do see in the 2015 report.

We will present the first post in that series tomorrow morning. In the meantime, check out this fantastic visualization of the MDG data from the Institute for Health Metrics and Evaluation.


Published articles to date: