Does your microfinance program improve newborn survival?

Products provided to microfinance clients through the “Healthy Mothers, Health Babies” project in the Philippines implemented by the Microcredit Summit Campaign, Freedom from Hunger, and CARD MRI. The products included are selected for their usefulness to women soon to give birth.

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>>Authored by Larry Reed, Director, Microcredit Summit Campaign

Research from the World Health Organization shows that half of the decline in under-5 child deaths is due to factors outside the health sector. In addition to health improvements, advancements in girls’ education, women’s economic status, water, sanitation and hygiene, energy, and infrastructure all make a vital difference. We believe that the microfinance sector has an important role to play in bringing child mortality down even further.

At the Microcredit Summit Campaign, we know how powerful integrating health programs can be. Microfinance institutions (MFIs) that offer health products and services to their clients help them to manage shocks and improve the health of clients and their families. In partnership with Freedom from Hunger and with the support of Johnson & Johnson, we are working with microfinance partners in India and the Philippines to provide health products and services to hundreds of thousands of families.

In the Philippines, our project focuses on improved health outcomes for pregnant women and their newborns. To date, CARD MRI (our local partner) has delivered the “Healthy Pregnancies Make Healthy Communities” education to nearly 300,000 women clients. The education is delivered using an innovative pictorial learning conversation (PLC) methodology developed by Freedom from Hunger. This PLC module distills important information about pre- and post-natal care into easily digested 15-minute segments.

An image from the “Healthy Pregnancies Make Healthy Communities” PLC. It teaches about the importance of visiting a health facility throughout the pregnancy.

An image from the “Healthy Pregnancies Make Healthy Communities” PLC. It teaches about the importance of visiting a health facility throughout the pregnancy. Contact Cassie Chandler at Freedom from Hunger to learn more about the education module.

At the Community Health Day events organized under the project, thousands of women (pregnant and with newborns) also get free consultations and medical checkups — many for the very first time. In addition, attendees have learned important information for ensuring healthy pregnancies and healthy newborns. Medical professionals have delivered lectures on family planning, signs and symptoms to be aware of during pregnancy, as well as prenatal care like nutrition during pregnancy and post-natal care like breastfeeding or caring for a newborn.

The Campaign is helping CARD and other members of the MFIs for Health consortium to leverage this small, one-time grant by building a strong, local resource base for their work. Through our Campaign Commitments, we are mobilizing microfinance actors around the world to take specific, measurable, and time-bound actions to address the multiple dimensions of poverty. We hope to do the same in the Philippines to improve the health of microfinance clients and their families.

Mapping integrated solutions

An effort is underway to develop a new online map to capture such programs around the world. Called the Newborn Survival Map, this initiative hopes to encourage the development of cross-sector partnerships delivering integrated solutions. In our experience, when an MFI hesitates to introduce health programs, it is often because they say that their job is to provide financial services, not health. In this case, partnering with health development organizations and other health sector actors is a viable alternative to offering health services in-house. The map could direct your organization to potential future partners in health.

The Newborn Survival Map will initially focus on 16 countries where newborn deaths are concentrated (see the map below). It will focus on programs with a total value of US$500,000 and above across 14 different sectors whose work greatly impacts newborn survival. Note that this threshold is for the life of the project and represents a total investment. Investments will also be tracked by sub-region, so it may be that an organization has a series of smaller investments in different locations or over a period of time, but the total current and planned investment for their work in a sub-region may equal or exceed the $500,000 threshold.

Priority countries (MDG 4, child mortality)

Priority countries are India, Nigeria, Pakistan, Democratic Republic of Congo, China, Ethiopia, Angola, Indonesia, Bangladesh, Kenya, Uganda, Afghanistan, Tanzania, Sudan, Sierra Leone, and Niger. Send in your program information by August 24th to be sure that you are included in the Newborn Survival Map.

The initiative is led by FHI 360, an international development organization, in partnership with the MDG Health Alliance and Johnson & Johnson. FHI 360 and partners invite actors in the microfinance sector to take part in this exciting initiative. We encourage you, our audience, to make sure that significant microfinance programs — especially those benefiting women of reproductive age — are represented on The Newborn Survival Map.

The Newborn Survival Map is in collaboration with the Every Newborn Action Plan and in support of the UN Secretary-General’s Every Woman Every Child movement.

Take action today!

Email Christina Blumel (cblumel[at]fhi360.org) with the name and email of a contact person in your organization who will be responsible for getting your microfinance program included on the map. Christina will guide your colleague through the necessary steps to an online form, which takes approximately 20 minutes to fill out.

Many thanks for your partnership as we enter the Sustainable Development Goal era where achievement of the ambitious new goals will require unprecedented levels of collaboration. Read the letter from Leith Greenslade of the MDG Health Alliance inviting your organization to be part of this exciting initiative (and en français).

About the organizations responsible for the map

The MDG Health Alliance is an initiative of the UN Special Envoy for Financing the Health Millennium Development Goals and for Malaria. The Alliance operates in support of Every Woman Every Child, an unprecedented global movement spearheaded by the Secretary-General to mobilize and intensify global action to improve the health of women and children.

FHI 360 is a nonprofit human development organization dedicated to improving lives in lasting ways by advancing integrated, locally driven solutions. Our staff includes experts in health, education, nutrition, environment, economic development, civil society, gender, youth, research and technology — creating a unique mix of capabilities to address today’s interrelated development challenges. FHI 360 serves more than 70 countries and all U.S. states and territories.

At Johnson & Johnson, our Credo inspires our strategic philanthropy to advance the health of communities in which we live and work, and the world community as well. We focus on saving and improving the lives of women and children, preventing disease among the most vulnerable, and strengthening the health care workforce. Together with our partners, we are making life-changing, long-term differences in human health.


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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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The Truelift Indicators are now available in the SPI4

Photo courtesy of Carsey

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CERISE and SPTF have created, with the support of their membership, the SPI4, a universal social performance assessment tool that integrates emerging industry social performance standards. MFIs can use the SPI4 as a self-assessment tool, or with the assistance of someone trained in the SPI. This blog post was originally published by Truelift on July, 29 2015.


The Truelift Indicators Tool has been streamlined and incorporated into the SPI4 as the pro-poor module. The SPI4 is a universal social performance assessment tool that integrates emerging industry social performance standards (Read more about the SPI4).

The streamlined SPI4 Truelift pro-poor module not only significantly reduces the number of indicators that need to be answered, it also contains guidance and examples of compliance for each indicator, easing practitioner completion of the self-assessment.

Completed SPI4 Truelift pro-poor modules can be still be submitted to Truelift by emailing the Excel file to info[at]truelift.org with the subject “Institution Name: SPI4 Truelift pro-poor module” to get verified and recognized as an Aspirant Milestones institution.

Download and complete the Truelift pro-poor module in the SPI4.

CGAP’s take on household resilience in Burkina Faso

Marie and Child

“A resilient household is able to find solutions to the various crises it encounters by making good choices in their income-generating activities. A non-resilient home fails to solve crises encountered.” — Marie, a 35-year old first wife of a polygamous family who lives in the Passoré province of Burkina Faso

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>>Authored by Barakah Ibisomi, Microcredit Summit Campaign Program Intern

Landlocked Burkina Faso is one of the poorest countries in the world with 44.6 percent of its population living on $1.25 or less per day. A recent CGAP publication draws on “resilience diaries” of 46 women in rural households in the northeastern zones of the country to determine how different financial services contribute to and affect household resilience.

Twenty-five women are members of village banks with the Reseau des Caisses Populaires du Burkina Faso (RCPB) while 21 are members of savings groups with the Office de Développement des Eglises Evangéliques (ODE). The seven-month project was conducted by Freedom from Hunger.

The diaries were used to understand the following:

  1. The strategies poor households employ to manage economic, environmental and health shocks that disrupt their financial lives.
  2. The roles formal, non formal and informal financial products play in improving household resiliency and building assets.

Freedom from Hunger Resilience Framework

Burkinabé households are highly influenced by their country’s seasonal and agricultural calendar as it determines how they make a living — specifically, how land is put to use, the degree to which households depend on livestock, and other non-agricultural sources of income. The time just before harvest in September is financially difficult, with income and savings at a low point and borrowing and expenses at a high point. There is a need for additional or specialized financial services to help households better manage the season.

The most common coping strategies used to respond to shocks are first using savings at home, then reducing food consumption, selling grain, selling small livestock, purchasing on credit and lastly, borrowing from a savings group. Borrowing from financial institutions, family and friends is less preferred. As resources become available to them, the women re-prioritize the way they manage any particular shock. For example, after harvest, more sell grain and fewer reduce food consumption, make purchases on credit or borrow from friends and family.

Very few households in Burkina Faso have access to formal financial services so the women’s use of formal financial products is very limited and their demand for it is widely unmet. When asked whether they had all the financial products and services they need, only 17 percent felt they had. There is a strong demand for additional financial products and services, with an emphasis on microcredit, savings products and agricultural-related grants. However, when they do have access, they use formal services to cover costs incurred from shocks. The most common formal products or services used are RCPB loans and remittance services.

The more commonly used non formal services are savings groups which are used to save money for purchasing livestock, paying health expenses, school fees and for food and income generating activity (IGA) expenses. For informal services, the women borrow from friends and family, make purchases on credit from local merchants and, as mentioned earlier, receive remittances often by hand-to-hand transporters. The women reported using non formal and informal financial services significantly more than formal financial services.

All these services help improve cash flow but it is difficult to determine the extent to which they are helpful in building resiliency.

Other key findings from the studied households:

  1. The most common shocks encountered by those studied were illness and injury, loss of livestock, death of family members and poor harvest, all These shocks affected both income-generation as well as food supplies. Other semi-regular shocks included droughts and famine, political crisis, and health threats.
  2. Women play a significant role in the household economy, but are limited byResilience Quote gender norms, time, and resources to pursue more profitable IGAs. The most common IGAs for the participants were the growth and sale of cash crops and petty commerce.
  3. Food insecurity dominates all of the households’ lives.

The concept of resilience is in itself a work-in-progress because of its novelty and multi dimensionality. The RM-TWG defines resilience as “the capacity that ensures adverse stressors and shocks do not have long-lasting adverse development consequences.”

Based on this definition of resilience, it is difficult to consider many of these households resilient because when shocks occur, they use negative coping mechanisms that increase food insecurity, such as reducing daily food consumption and selling grain stocks and livestock meant to be. These strategies solve an immediate problem but can have long-term, long-lasting adverse development consequences.


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#tbt: The Faces Behind the Statistics

#ThrowbackThursday

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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 2005. Microfinance client Janèt Dèval attended literacy courses offered by Fonkoze and shares how her business has been improved. Indeed, it has cemented her determination to continue improving herself and her loyalty to her microfinance institution.


Microfinance stands as one of the most promising and cost-effective tools in the fight against global poverty.

Jonathan Morduch, Chair
United Nations Expert Group on Poverty Statistics

Janèt Dèval, a client of Fonkoze, a microcredit institution in Haiti, is one of the 66.6 million poorest clients reached. Janèt has been a credit client for more than two years and comes regularly to all meetings. She has also been a part of every literacy program available and is about to start the newest module on developing business skills. Not only could she not read or write when she started, but she has had an extra challenge: Janèt has only a fraction of her hearing due to an injury when she was 20 years old.

My husband didn’t want me to send my five children to school because his parents didn’t send him to school. From the beginning, he said he would not pay and he has never given even one goud, but I always knew it was important. For a long time I have gone to Port-au-Prince to buy goods to sell in Hinche, and I put all my money into paying for school for my children.

When I found out that Fonkoze gave literacy classes for market women, I was so happy. I never went to school even one day. I didn’t know anything about school. I started right away with basic literacy and I have tried to never miss a class.

I couldn’t write my name and I didn’t understand anything, but I kept going even when my husband got angry. My kids pushed me and encouraged me and they helped me practice my letters. The monitor, Christa, told me to keep writing every day even when I didn’t understand.

I can write my name now, and I write it everywhere. Imagine, I used to go to Port-au-Prince to buy and I couldn’t read the bags and I felt lost. I couldn’t keep track of what I bought. The drivers sometimes would take my boxes off the truck and give them to someone else, but I didn’t know until I got all the way home. Now, I can’t lose anything. Now I write my name on every box and I know what I buy.

I finished Alfa Baz and Alfa Pos and then I went to the Health Program, too. I still don’t know many things, so I want to keep going. I take my notebook to my school and I write in it because one day I hope to read and understand everything. I bought two books in the market and my kids help me read them.

I work hard in the market so that I can repay my loans, keep going to school and so that my kids have that chance, too. If my parents would have sent me to school, I would have thrown a party for them to say thank you.[1]

The Microcredit Summit was launched to multiply stories like this 100 million times, but a number of barriers continue to impede the Campaign’s success.

Read the 2005 Report.


Footnote

[1] From the Fonkoze website www.fonkoze.org.

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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Getting the ultra-poor on the “economy train”

BRAC group meeting

BRAC group meeting

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>>Authored by Yanira Garcia and Sabina Rogers of the Microcredit Summit Campaign

More than one-fifth of the world’s population lives on less than US$1.25 per day (the “extreme poor”), and most of those people live in rural areas. Due mostly to geographic constraints, it is difficult and costly to reach this population with financial and social services. Having poor infrastructure and few tools, they are stuck in a perpetual cycle of poverty.

This is a problem just begging for a solution. How about six financial inclusion strategies — our “six pathways” — that show promise in ending extreme poverty? Specifically, how about BRAC’s Graduation Approach? In 2002, BRAC set out to help the ultra-poor living on less than 80 cents a day to move up one level of poverty and to develop an approach that could tackle the geography obstacle. (Read Shameran Abed’s blog post to learn how BRAC developed Graduation Approach.)

Exciting results from impact assessments

In June, Science magazine published the results of six randomized controlled trial (RCT) impact assessments of BRAC’s Graduation Approach. The RCTs were conducted in Ethiopia, Ghana, Honduras, India, Pakistan, and Peru among 7000 households and provided the following complementary approaches:

  • Productive assets
  • Training and regular coaching and household visits
  • Access to savings and health services
  • Consumption support

At a half-day event in June at the World Bank, “Creating Sustainable Livelihoods for the Poorest,” the Consultative Group to Assist the Poor (CGAP), Innovations for Poverty Action (IPA), and J-PAL disclosed results from these six RCTs.

The RCTs showed that the Graduation Approach is a cost-effective, clear pathway out of poverty. Specifically, attendees learned that it can help drive a sustainable transition to self-employment and ultimately have large lasting impacts on the standard of living of the ultra-poor. “There will be growth in the economy,” stated Esther Duflo, “and the ultra-poor are not on the [economy] ‘train’ and would never get on the train [without help]…The Graduation Approach would push them onto the train.” (Dr. Duflo is co-director of J-Pal and professor of economics at MIT.)

Eligible households were identified through a participatory wealth ranking process as well as through household visits. On average, participant households had higher incomes, increased savings, greater food security, and improved health and happiness. These effects were consistent across multiple contexts and implementing partners.

Additional outcomes from the study include the following:

  • Daily consumption was not negatively affected over time in the selected sites after the program had ended. The authors suggest increased consumption is a result of increasing self-employment activity.
  • Household members were able to afford two meals per day more often.
  • Households continued to increase their productive assets (most in the form of livestock) as well as their savings after the program had ended, with the exception of Honduras. (Participating households in Honduras suffered an unexpected illness that killed all of the chickens, causing the study to be incomplete.)
  • In Bangladesh, where women were targeted, land ownership increased by 38 percent.

The Graduation Approach had the largest impact on ultra-poor households in Bangladesh, Ethiopia, and India. Researchers suggest that income diversification may have been a leading factor. In addition, cost-benefit calculations confirm that long-run benefits for the ultra-poor outweigh the graduation program’s overall cost.

Policy lessons for scale-up and replication

The RCTs also provide us with important policy lessons for scale-up:

  • For the Graduation Approach to have a lasting impact on ending extreme poverty, the support and action of governments and policymakers is essential.
  • It is possible to make sustainable improvements in the economic status of the poor with a relatively short-term intervention.
  • The positive results to date indicate that this approach can have a profound impact on improving the lives of the world’s ultra-poor.

Scale-up of the Graduation Approach is underway and will reach thousands of households in the coming years. Mariana Escobar, deputy director general for the Department for Social Prosperity in Colombia, spoke about Colombia’s pilot that started two years ago.

In Colombia, the Graduation Approach has helped repair the lives of the victims of the internal conflict and victims of sexual violence. Ms. Escobar explained that these results demonstrate to policymakers and governments that the extreme poor can make good economic decisions when they are given the right tools.

Edgar Leiva (Secretary of Technical Planning, Directory of Public Policies for Paraguay), Hugo Zertuche Guerrero (Director General of Geostatistical Information of PROSPERA in Mexico), Camilla Holmeno (Senior Economist with the World Bank in Ethiopia), and Fiona Howell (Senior Social Assistance Policy Advisor with the National Team For the Acceleration of Poverty Reduction in Indonesia) shared their respective country’s perspective on the Graduation Approach. On a scale of low to high, policymakers were asked to answer the questions below.

Q: How high was the impact evidence to decide to start a program in your respective country?

A: All of the policymakers answered “high.”

Q: How influential was visiting the site and seeing it in person to starting a program?

A: All of the policymakers answered “high.” Edgar Leiva (Paraguay) explained that his government started a pilot program two days after visiting Colombia’s pilot program.

Q: What was each country’s biggest challenge in implementing the program?

A:

  • Camilla Holmeno (Ethiopia): both cost and complexity.
  • Edgar Leiva (Paraguay): maintaining the positive attitude of workers in the program, which helps create a sort of magic and is so important to the success of the program.
  • Hugo Zertuche (Mexico): budget constraints due to recent decrease in oil prices as well as cross-program competition (and a perception that Zertuche’s program was poaching resources from other programs).
  • Fiona Howell (Indonesia): existing structures and system and coordination among the Ministries.

Q: What is the number one research question you would like to know the answer to?

A:

  • Camilla Holmeno (Ethiopia): test different types of packages with varying levels of transfer across Ethiopia.
  • Edgar Leiva (Paraguay): how closely tied the Graduation Approach is to the psychology of people.
  • Fiona Howell (Indonesia): how we can integrate the urbanized poor into the economic system.

Additional questions for future research were posed in the closing section of the event:

  • Which components of the Graduation Approach drive results? Through this study, CGAP and Ford Foundation learned that household visits allotted for 30 percent of the cost of the program. Are household visits necessary?
  • How do the impacts of the Graduation Approach evolve over a longer time span?

Watch the event recording

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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!


Related reading

Connecting across continents at the RESULTS International Conference

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!

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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This article was originally posted by RESULTS on April 16, 2015. Re-posted with permission. KANCO, the Kenya AIDS NGOs Consortium, is a member of the ACTION global health advocacy partnership with RESULTS.

>>Authored by Joyce Matogo, KANCO Grassroots Manager.

“Connecting with other human beings about issues that affect human beings, you’re able to relate to these issues more closely…. When you step outside of your own continent and see other people who have good will, other people who care, it’s very empowering.”

I never thought I’d go to the U.S., much less Capitol Hill. But on the last day of the RESULTS International Conference, that’s exactly where I found myself. Standing in front of the Capitol dome with hundreds of other advocates, all I could think was, “This is a central place of power. Decisions are made here. And here I am, giving the human face to the vaccines issue.”

When I went back home to Kenya, I used the lessons that I learned at the conference to arrange an advocacy day and implement the RESULTS organizing model. I wanted grassroots volunteers in Kenya to feel the same sense of empowerment that I felt when I advocated in Washington. When our grassroots sat down with members of Parliament, they were well prepared to inform their MPs about the TB epidemic, explain the value of vaccines, and communicate a clear call to action.

Just like at the International Conference, our grassroots were ready to discuss not only problems but also solutions. Later that day, an MP that we’d spoken with brought our legislative ask on tuberculosis to the floor of Parliament. This prompted discussion on the deteriorating status of health in the country. The event was so successful that the Kenyan government expanded funding for immunizations and tuberculosis.

The RESULTS International Conference was an eye opener for me. I realized that anyone and everyone can be an advocate for issues that matter. I encourage you to come to the conference this year to see the success of our efforts. Let’s celebrate our incredible progress and encourage each other to keep going.

Want to have your own experience lobbying on Capitol Hill? Join RESULTS and attend the International Conference.

Who will pay for the end of poverty?

RESULTS UK is launching a report called 'Who Pays for Progress?' at Addis. It is an in-depth study that looks at one country and one sector - health in Kenya - to unpick that complexity and give some guidance as to what really matters when trying to decide the right financing mix.

RESULTS UK launched a report called ‘Who Pays for Progress?’ at the Financing for Growth conference in Addis Ababa. It is an in-depth study that looks at one country and one sector — health in Kenya — to unpick that complexity and give some guidance as to what really matters when trying to decide the right financing mix. Download the report.

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On Monday, RESULTS UK (a sister organization to our RESULTS Educational Fund) released a report at the Financing for Growth conference in Addis Ababa, Ethiopia, (which is happening right now) where the global community is negotiating who will foot the bill to eradicate poverty. 

Titled “Who Pays for Progress? The Role of Domestic Resource Mobilisation and Development Assistance in Financing Health. A Case Study from Kenya,” RESULTS UK’s report focuses on Kenya’s reclassification from a low-income country (LIC) to a lower-middle-income country (LMIC) and how that reclassification will affect financing for health needs in Kenya. Oxley’s HuffPo article lays out RESULTS’ argument for strong and ambitious commitments from the global community to finance the next phase of development goals and the end of poverty. He closes his article with this warning:

The draft text of the Addis Ababa Accord has recently been weakened. We’ve lost time-bound commitments for rich countries to meet their aid-giving targets…If our leaders cannot make the political decisions and show the leadership necessary to ensure we have the funding needed to build a more just and equitable world, then history will judge us harshly. I, for one, want to be able to say it was this generation that finished off poverty. And I know we can.

The following article by Aaron Oxley (executive director of RESULTS UK) was originally posted on Huffington Post on July 8, 2015. Read Oxley’s article below for inspiration, and to the 2015 RESULTS International Conference (July 18-21) to learn how you can make a difference and influence policy making. 


One of the things I love about my job is that I get to be optimistic every day. That’s because I, and my colleagues working in international development, look at the problems of the world that are rooted in poverty and inequality, and refuse to accept that the world is not smart enough or rich enough to defeat them.

The evidence of history is on our side. Since the year 2000 the world has halved the number of people living in extreme poverty, the mortality rate for children under five has dropped almost 50%, millions more children live past their fifth birthday, and 90% of children now attend primary school. It’s been the best 15 years our species has had in its entire existence, with 1.7 billion undernourished people in 1999 dropping to ‘just’ 836m today. While we have a long way to go, that’s staggering progress.

That poverty still exists is a question of politics. Should we get the politics right, we can continue and accelerate those rapid gains and, truly, wipe out poverty in the next 15 years. At which point I’ll be happily out of a job.

This year, the world is coming together in a series of global meetings to decide the level of political ambition we’ll bring to the eradication of poverty. If we aim high, I get to head off to a beach somewhere in 2030. If we fail, the price isn’t just that my retirement is delayed: it means more human suffering and unnecessary death, a drag on economic growth that hurts us all, and wastes the potential of hundreds of millions of lives.

The first of those critical meetings is the Financing for Growth conference in Addis Ababa, happening from the 13th to 16th of July. This conference is all about the money: how are we going to pay for the end of poverty, and who will pay for what? I’d assert that money is not the most important element in ending global poverty, but it’s clear that so much simply cannot and will not happen without it.

Continue reading…

Aaron Oxley with John Mathai of Global Health Advocates India and a RESULTS US grassroots volunteer at the 2011 RESULTS International Conference.
Follow Aaron Oxley on Twitter: @ATOxley

We are all lobbyists

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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This article was originally posted by RESULTS on June 23, 2015. Re-posted with permission.

>>Authored by Susan Fleurant, 2015 RESULTS U.S. Poverty Campaigns Intern

I arrived in Washington, D.C. this summer for an internship at RESULTS with only the certainty of ceaseless heat and humidity and not fully knowing what else to expect. Then on June 9, I went to Capitol Hill and lobbied for the first time with Bread for the World, an anti-hunger organization. Lobbying is a word that carries with it a heavily negative connotation, a word that evokes images of wealthy businessmen persuading legislators one way or another. As a student pursuing a career in policy, I always said that I would never be a lobbyist, because I subscribed to this professional and negative definition of the word. While much of politics in the United States these days does involve the interests of wealthy corporations and professional lobbyists, the reality is that we can all be lobbyists.

It is easy to forget that Congress works for us, the voters. Our votes put people into office, and our votes can remove people from office. Yes, that oversimplifies the process, and while I acknowledge the role of campaign finance and special interests in both the campaign and legislative processes, citizens are not doing enough to change what has become the not-so-pleasant status quo of American politics. The truth is, the United States has abysmal voter turnout, yet a high percentage of the population complains about those in office and policy decisions that are made.

So what are we doing about it? Complaining to our neighbors and coworkers about the state of the nation will not move us in a new direction. We need to channel our concerns and our visions for the future of the country into positive civic engagement. We need to teach our children the importance of voting and the significance of civic engagement in maintaining a healthy democracy. As citizens of a representative democracy we have the opportunity to speak with our representatives whether through writing a letter, making a phone call, or scheduling an in-person meeting, and we must exercise these rights. Too few people take advantage of these opportunities, leaving lobbying to the groups that give the act its negative connotation. This lack of engagement is likely the result of a cynical view towards American politics in general paired with a lack of knowledge about the avenues available for engagement and correspondence. This is where educators and parents play a key role in providing the information from a young age about the variety of ways to engage in our democracy in order to demystify the process.

As I sat in a senator’s office on Capitol Hill speaking with a legislative advisor about why child nutrition programs are important, providing factual evidence paralleled with a personal story, I realized that I was a lobbyist, and it was perhaps one of the most democratic acts in which I could take part. I felt both empowered and perturbed. Empowered because I realized that I could lobby and make my voice heard on Capitol Hill, and perturbed because I did not understand why it took me this long to realize that. I feel lucky to have had this opportunity now before I carried on with a skewed idea of lobbying.

I think that government is too often presented as a separate entity to which average citizens do not have access, and this sentiment undermines democracy by leaving people uneducated about their ability to participate in the political system. Voting is often the extent of political participation for many people, and others do not even make it that far. It is time for us to reexamine our democracy and encourage active engagement through a variety of means. Lobbying is not just wealthy corporations and special interest groups; lobbying is citizens writing letters, making phone calls, and stopping by for visits. Get out there and lobby, trust me, it is empowering. You can make a difference. Share your concerns, describe your visions for the future, tell your personal stories, and make your voice heard. In the end, we are all lobbyists.

Want to have your own experience lobbying on Capitol Hill? Join RESULTS and attend the International Conference.

Why go to an advocacy conference?

Join us at the 2015 RESULTS International Conference to learn new skills, hear from experts, and raise your voice on Capitol Hill this July 18th to 21st.

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This blog post was cross-posted from Cynthia Changyit Levin’s blog (@ccylevin), Anti-Poverty Mom: Raising my voice & my kids on May 13, 2015. Re-posted with permission.

To all my readers raising tiny children and learning to advocate, I’m going to say something to you that may sound a little crazy. I think it’s time you go to an advocacy conference in Washington D.C. Many advocacy organizations with a national presence that have been around for a good number of years have conferences in D.C. where you can learn from experts about your issue, hear inspirational speakers, and lobby your members of Congress. If you can rustle up the child care, I think you should find one you like and go to it!

“What? Take three days away from my baby? You’ve got to be kidding me! I don’t have that kind of time for myself!” That was exactly my reaction when someone suggested that I learn more about hunger and advocacy by going to the Bread for the World Gathering. I was a new activist, full of excitement about my very first letter to the editor recently published in the local paper. The Bread organizer at my church recognized potential in me to be a powerful activist and thought the best way for me to get involved would be to jump right in and go to a conference and lobby day event. It was so flattering to me that she thought so, but…what about the baby?

At the 2008 RESULTS International Conference with fellow RESULTS champions for education at the White House

It turns out I did go. The baby was just fine for a whole weekend with my husband and it was a life-changing experience for me. I heard inspirational, international speakers who convinced me that I — as an American citizen — had a powerful voice to influence the course of poverty throughout my country and the world. I started relationships with like-minded people who would become critical in helping me not feel alone in my desire to make the world a better place. I learned advocacy skills that I took home and would eventually teach to others in my community. It was a thrilling leap into the pool of activism when I’d been just sitting on the edge dangling my toes. Not only did I go to the Bread gathering that year, but I met RESULTS activists there who encouraged me to go to their conference the following year. Much later, my participation at those conferences led to invitations to the Shot@Life Summit and the ONE #AYASummit. Each conference has brought me new connections, new skills, and new confidence in myself.

You might be thinking, “Great for her, but not for me. I’m too busy to add a work conference in the middle of my life.” Fair point. That’s what I thought, too. Yet I want to share six things a conference can allow you to do that are much harder at home in your regular routine…

“You wouldn’t leave a cutie like me just to go learn how to save the world, would you? You would!?!”

  1. Take a break.
    Step away from the children, Ma’am. Your absence will be felt, but joyful side benefits to taking a few days away may include increased child-bonding with daddy, grandparents, or friends who watch them in your absence.
  2. Get a full night of sleep.
    One of my favorite things about a conference is getting real, deep sleep. A fellow activist once asked me what my plans for the evening were. I gave him a huge smile when I said “I’m going back to my room!” He joked that I was so happy about it that he wondered if there was a romantic plan up there for me. No, sirree! That’s just how much I like sleep with nobody needing a diaper change!
  3. Get out of your everyday routine.
    When you are away from the mundane, it’s somehow easier to see yourself as the exceptional, powerful individual you are. Shake it up and make some memories to think about when your back to making lunches.
  4. Be appreciated by someone over two feet tall.
    Toddlers are cute, but sometimes they aren’t the best at conveying that you are smart, capable, and valued. Sometimes they do it when they wrap those pudgy fingers around you and say, “I wuv ooo,” but it can feel like they take it all back when they dump applesauce on your lap immediately afterward.
  5. Dive deep into the facts.
    I don’t know about you, but I have immense trouble holding facts in my head when I’m trying to multitask with yelling infants. Not having to double and triple check the contents of your diaper bag really opens up a lot of space in your brain that you can fill with all sorts of information about your issue!
  6. Make some new friends.
    Not since college had I had such rich opportunities to come together to meet new and interesting people with a common goal. Some of my closest friends now are people I look forward to seeing at conferences each year.
  7. Lobby!
    Nothing convinces a member of Congress that you are serious more than the statement that you are a volunteer traveling on your own time to talk to them.
2013 Shot@Life Summit with my BFF's Jen DeFranco and Myrdin Thompson

2013 Shot@Life Summit with my BFF’s Jen DeFranco and Myrdin Thompson

Can’t afford a plane ticket to Washington D.C.? Scholarship or financial assistance is often available for first-time or low-income attendees. If I didn’t have one for my first conference, I wouldn’t have gone. Some organizations are willing to bet that if they invest in you by assisting you to attend once, you’ll have a great experience and want to come back again. If you are a low-income parent and want to talk to your members of Congress about poverty, then you are a valuable voice that needs to be added to the chorus.

If you’re still not sure it’s the right thing to leave your child for three days to go to a conference, just remind yourself why you are doing it. Is it to create a better world for your child? Is it to improve the lives of parents and children who are facing much more difficult situations than the travel dilemma you are facing now? Will this be a step in making you a more empowered, more satisfied mommy? These are very good reasons.

It’s true that if you go, there will be times you miss your children. There will likely be tears when you leave and when you get home. But I encourage you to take the leap for yourself and all the people in the world you want to help. You won’t be sorry!

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.


Get Inspired. Set a Goal. Make a Commitment.

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

#tbt: Lobbying the World Bank, Part I

#Tbt_6

Elizabeth Littlefield, CEO of CGAP in 2004, said at the 2004 Microcredit Summit in Bangladesh, “There is no evidence of a necessary trade-off between poverty and sustainability.”
Read her full quote on page 12 of the 2004 State of the Campaign Report.

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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 2004. The RESULTS International Conference is only three weeks away (July 18-21), and grassroots activists from the U.S. and around the world will be in D.C. to lobby the USAID Administrator and World Bank Directors. Therefore, we’re reviewing advocacy successes and struggles in the early 2000s. This week, we look at a breakthrough we achieved in getting the World Bank to recognize microfinance as an important strategic element in reducing poverty and announcing that they were committed to increasing their funding for microfinance.


In this introduction to the State of the Microcredit Summit Campaign Report, rather than presenting a neat, uncontested picture of the field of microcredit seen solely from the Campaign’s perspective, we think it useful to listen to the challenges and opposition to what the Campaign and these parliamentarians have championed, coming as it does from some of the most influential institutions in development. In the pages that follow, we invite you to listen in on debates that contrast the views of the World Bank and CGAP with those of industry leaders like BRAC founder Fazle Abed, Grameen Bank founder Muhammad Yunus, and the Microcredit Summit Campaign. What follows are excerpts from the World Bank and CGAP’s responses to the 700 parliamentarians, along with reactions from the Microcredit Summit Campaign.

Download the full 2011 State of the Campaign Report in our Resource Library

Download the full 2011 State of the Campaign Report in our Resource Library

In his response to 188 British Parliamentarians, World Bank President James Wolfensohn wrote, “I very much agree with your observation that microfinance has a demonstrated, powerful impact in improving the livelihood of the poor, and a crucial role in reducing poverty. Access to financial services for the poor is a critical condition for the attainment of the Millennium Development Goals.”

This is a tremendous vote of confidence from Mr. Wolfensohn, but if, as Wolfensohn says, “access to financial services for the poor is a critical condition for the attainment of the Millennium Development Goals (MDGs),” then reaching those below $1 a day is also critical. Mr. Wolfensohn acknowledges the poverty goal, which seeks to cut absolute poverty in half by 2015, as the lead MDG. Absolute poverty is measured by those living below $1 a day, adjusted for purchasing power parity. This show of support is important, but the words must be followed by more effective action.

Wolfensohn asked officials from the World Bank and the Consultative Group to Assist the Poor (CGAP), to jointly address the detailed issues raised in the parliamentarians’ letter.

World Bank and CGAP officials begin their own response to the parliamentarians on a hopeful note when they write that microfinance forms “…an important strategic element in any broad based effort to reduce poverty,” and assert that the World Bank and CGAP “are committed to massively scaling up this access to financial services.”

While it is good for the Bank to declare microfinance as an important strategic element in reducing poverty, there is still a disconnect between this assertion and the fact that microfinance constitutes less than one percent of annual Bank spending. Assigning such a low priority to microfinance is neither strategic nor a sign it is viewed as important. There is also a disconnect between the Bank’s enviable commitment “to massively scaling up…access to financial services,” and the fact that the Bank offers nothing measurable in response to the parliamentarians’ request to double spending. It would seem that a massive scale-up would at least equal a doubling from less than one percent to less than two percent.

World Bank and Consultative Group to Assist the Poor (WB/CGAP) officials continue by saying, “While the World Bank Group already provides more microfinance funding than any other agency, we remain committed to doing much more. The fundamental constraint to an exponential increase in the numbers of poor people receiving financial access is, however, a real absence of retail institutional capacity. Building this capacity is an integral part of the financial systems of our client countries and is, therefore, a critical task for the World Bank Group and other agencies.”

MCS: The World Bank should provide more microfinance funds than any other agency given that its overall portfolio dwarfs that of all other bilateral and multilateral donor institutions. However, the World Bank does not provide more funding than any agency. USAID surpasses the Bank’s total spending in microfinance. In addition, more than one percent of USAID’s funds and more than three percent of UNDP funds[5] go to microfinance.

Retail institutional capacity does exist. Some of the global and domestic partners of a number of institutions and networks are either already reaching very poor clients or gearing up to do so as a result of the new U.S. law. These include institutions and networks such as ASA, BRAC, PKSF[6] and Grameen Bank in Bangladesh, NABARD and SIDBI in India, Pro Mujer, Freedom from Hunger, Opportunity International, FINCA, CARE, Save the Children, Catholic Relief Services, World Vision, Katalysis, Grameen Foundation U.S.A., ACCION and World Relief in the U.S., Développement international Desjardins in Canada, members of The Africa Microfinance Network (AFMIN), Sanabel members in the Middle East and North Africa, and members of REDCAMIF and Foro Latinoamericano y del Caribe de Finanzas Rurales in Latin America.

PKSF alone estimates that for the six years beginning July 2004 and ending in June 2010, $562 million could be absorbed by its 192 Bangladeshi partner organizations and those to come. This is in just one country.

There are scores of institutions around the world that have demonstrated the vision and systems to reach the very poor sustainably. To say there is “a real absence of retail institutional capacity” is to imply that whatever capacity exists has been fully exploited. This is clearly not the case. The greater problem is the low priority donor agencies place on finding institutions with the vision and systems necessary for expansion to the very poor, not the “absence of retail institutional capacity.”

WB/CGAP: We agree with the spirit of your recommendation that at least 50% of World Bank funds should be reaching those living on less than a dollar a day. However, we do not think that earmarking funds would be the best strategic choice for moving the microfinance industry towards sustainably serving much larger numbers of those in absolute poverty. In fact, such directed lending could have an adverse effect on scaling up, through distorting markets. Many MFIs achieve sustainability through increasing outreach to a larger diversified client group. They end up serving much larger absolute numbers of the very poor, even though they may have a smaller percentage of very poor clients in comparison with poverty-focused institutions that are not sustainable. Such MFIs would be penalized through the suggested mandate.

MCS: Institutions that do not exclusively, or even predominantly, target the poorest need not be penalized. The parliamentarians are not asking that all MFIs reach the very poor or that half of an MFI’s clients fall below $1 a day when they entered the program. They are asking that, on balance, half of World Bank spending in microfinance go to people who were very poor when they started with the program. Within the World Bank’s portfolio there might be a group of institutions that primarily serves better-off clients, another group with a more mixed clientele, and a third group largely serving those starting below $1 a day. Yet institutions such as the World Bank have not provided incentives to reach those below $1 a day. If anything, the Bank and others have discouraged depth of outreach. This is why the parliamentarians believe earmarking is required. The World Bank/CGAP response leaves the impression, however unintended, that programs reaching very poor clients may be less sustainable, but this is far from current reality. CGAP CEO, Elizabeth Littlefield, backed that up with remarks made at the Asia/Pacific Microcredit Summit held in Dhaka, Bangladesh in February 2004.

“There is no evidence of a necessary trade-off between poverty and sustainability,” Littlefield said in Dhaka. “…Very recent data from our MicroBanking Bulletin (MBB) and from The Microfinance Information eXchange (The MIX) show us that the best poverty-focused microfinance institutions are breaking right through conventional wisdom. Of the 124 microfinance institutions reporting to the MBB, 66 were fully selfsufficient. Of those, 18 were institutions that work with very poor populations, the poorest. These 18 institutions had higher average sustainability, higher return on assets, and higher return on equity than the overall averages. Sustainable microfinance institutions that serve lower end markets, the poorest, reach, on average, one and a half times as many borrowers as other microfinance [institutions] and they do it with fewer resources. Hence, these institutions do a much better job of stretching their resources to reach more clients. In terms of clients served, they are far more efficient with their human resources, serving each borrower at half the cost, on average, of a sustainable institution serving higher market segments.”

Footnotes

[5] Approximately two percent of USAID funds and three percent of UNDP funds go to microfinance.

[6] Palli Karma Sahayak Foundation (PKSF) is a Banlgadesh-based autonomous microcredit fund.

Relevant resources

Equitas commits to improve focus on clients and service coverage

Read the press release announcing Equitas’ Campaign Commitment
Read their Commitment letter
Photo courtesy of Equitas

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The Microcredit Summit Campaign welcomes Equitas, a major Indian microfinance institution (MFI), as the 56th organization to make a Campaign Commitment, joining a global coalition working to help 100 million families lift themselves out of extreme poverty.

Equitas is committing to expand its financial services and non-financial services to the following number of clients in the financial year 2015-2016 :

  • Provide 1.5 million clients with financial services.
  • Cover 70,000 clients under the food security program.
  • Cover 50,000 clients under the health education program.
  • Screen the health of 850,000 clients.
  • Partner hospitals will provide 3,000 Equitas clients discounted consultation/ treatment.
  • Use the Progress out of Poverty Index to measure the poverty level of 1.5 million clients.
  • Provide financial support to 3,000 disabled women.
  • Rehabilitate 200 homeless pavement dwellers.
  • Screen, educate, and track the health of 3,500 students in the 6 schools run by Equitas Trust.
  • Provide gainful employment to 15,000 unemployed youth.
  • Train 50,000 women in new skills to increase their income.

P.N. Vasudevan, founder and managing director of Equitas Micro Finance India P. Ltd., explains their mission and how they support the well-being of their clients:

“When we founded Equitas in 2007, we wanted to create an MFI which would be a global benchmark in fairness and transparency, two facets sadly missing from most of the MFIs globally.  Equitas is a Latin word meaning ‘Equitable,’ which means fair and transparent, and this philosophy is woven into every action of Equitas.  Equitas had started lending at 25.5% in 2007 (at a time when the other MFI rates were in the high thirties) and after 4 years, Reserve Bank of India capped the lending rate for MFIs in India at 26%! The Equitas Ecosystem Model is designed to support the well-being of our clients by providing financial and non financial services with a clear focus to address a large spectrum of their requirements in the field of health, education, skill development, food security during emergencies, placement for unemployed youth and many more.”

Equitas is an NBFC MFI with headquarters at Chennai, India, and operations in eight states, namely Tamil Nadu, Pondy, Karnataka, Maharashtra, Gujarat, Rajasthan, Madhya Pradesh, and Chattisgarh. Equitas has about 2.8 million active borrowers as of 31st March, 2015. Along with financial services, Equitas is also promoting several non-financial services aiming at holistic development of their clients and their families.

Read Commitment Letter from Equitas.

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 Equitas and…

Get Inspired. Set a Goal. Make a Commitment.

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