Global Money Week at the 18th Microcredit Summit with Luis Fernando Sanabria

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Luis Fernando Sanabria, COO of Fundación Paraguaya, tells about his organization’s commitment to serving the youth of Paraguay. He highlights the importance of the youth in Paraguay, noting that half the country’s population is under 30 years old. “They are not only the future, but also the present — especially of our economy,” he points out.

Fundación Paraguaya focuses on developing a self-sufficient school model so that the youth will be prepared to have a successful in life. The organization encourages youth to engage in micro-enterprises and works with other organizations to develop a supportive ecosystem.

“Everything we learn in microfinance and in financial literacy,” said Sanabria, “we put it in our self-sufficient school model. Those are self-sufficient schools for very poor people. We run microenterprises on the campuses of those schools, and the microenterprises are run by teachers and students. They serve 2 purposes: first one is to generate income to sustain the school but second, and perhaps the more important objective, is to better train students to be successful in life…They learn not only about production but about marketing, accounting, packaging — everything they need to run a real enterprise when they graduate.”

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Addressing the financial needs of the most excluded

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Anowara Begoum lives in Kazipara village. Anowara received a cow and goat to from BRAC through its STUP Special Targeting Ultra Poor. AusAID funds BRAC's work in Bangladesh, its estimated that BRAC works within 70,000 of Bangladesh's 86,000 villages. Photo: Conor Ashleigh for AusAID.

>> Authored by Larry Reed, Director, the Microcredit Summit Campaign, and Jesse Marsden, Research and Operations Manager, the Microcredit Summit Campaign

In collaboration with the CFI’s process to develop the Financial Inclusion 2020 Progress Report (to be released October 1, 2015), the Microcredit Summit Campaign recently conducted interviews with microfinance leaders* around the world committed to reaching the most excluded. In this post, we share some of the insights from these conversations about how to ensure that the most invisible clients are financially included, directly drawn from the experiences of those who are doing it.

To set the stage, Luis Fernando Sanabria, general manager of Fundación Paraguaya, made this central point: “Our clients need to be the protagonists of their own development stories. Our products should be the tools they use to meet their needs and empower their aspirations.” With that reminder of the purpose of financial inclusion, we begin the discussion by asking who are the most excluded.

In each country, people living in extreme poverty (below US$1.25 a day) make up the largest segment of those excluded from the financial system. We spoke with leaders from organizations that make intentional efforts to reach this large excluded market: Fundación Paraguaya, Pro Mujer, Fonkoze, Plan Paraguay, Equitas, Grama Vidiyal, and TMSS. These organizations not only address poverty, but also a host of other dimensions that lead to exclusion, including literacy, race, gender, physical disabilities, and age. Less frequently-discussed reasons for exclusion include sexual orientation, language barriers (especially among indigenous populations), and mental or emotional health issues. In India and Bangladesh, for example, those interviewed noted that the lack of personal identification often drove exclusion, especially among women, persons with disabilities, and the socially excluded, such as transgender individuals.

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