poverty-focused cop mar 6, 2013 (facilitation in français)
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Presentation made on March 6th, 2013 at 5:30am UTC/GMT (facilitation in French)Presenter: JD BergeronGuests:- Frances Sinha- Lucia Spaggiari- Refilwe MokoenaTRANSCRIPT
Poverty-‐focused Microfinance
Welcome to our community of practice on:
Brought to you by:
The Social Performance Task Force and the Pro-Poor Seal of Excellence
Why do we need a group for Poverty-‐focused Microfinance?
1.4 billion people in the world living on less than $1.25
Over 200 million clients served globally, and growing
Why do we need a group for Poverty-‐focused Microfinance?
Where the industry is moving WORKING ON ACCOUNTABILITY
* Graphic from SPTF.info PPT “Introduction to Social Performance”
Seal of Excellence
What is the role of the Pro-‐Poor Seal of Excellence?
Measure poverty outreach
Learn about client needs and preferences
Change services to create better outcomes
Poverty Outreach. Positive and Enduring Change.
What is the Pro-‐Poor Seal of Excellence?
What does the Seal aim to achieve?
¢ Positive and enduring change for people living in poverty
¢ Creating a learning environment to share poverty results best practices
¢ Attracting more MFIs and funders to pursue poverty alleviation as part of their core mission
What is different about the Seal?
The Seal defines a journey
What does the journey towards the Seal look like?
• Outreach to Poor People • Services that Meet the Needs of Poor People • Tracking Progress for Poor People
Three Dimensions of the Seal
• From Aspiration to Leadership
Progressive Levels of the Seal
What does a Pro-‐Poor MFI look like?
� A financial service provider receiving the Pro-Poor Seal of Excellence serves as a beacon by which others can navigate toward the same destination – services that reach the poor and make a real difference in their lives.
� Not that the Seal recipient is perfect! This financial service provider is simply farther than others along one of several possible routes to the destination. They are leaders that others can follow. They set an example to inspire and guide others along three dimensions.
� Outreach to Poor People: A Seal recipient has shown that at least some of its services reach people who are poor by comparison to the great majority of their countrymen, even by comparison to the great majority of humanity. They can document this outreach because they actually measure the poverty of some or all of their clients—using some reasonably accurate and credible measure of poverty. The measurement shows not only their success in reaching poor clients, but also their firm intention to do so.
What does a Pro-‐Poor MFI look like?
� Meet the Needs of Poor Clients: A Seal recipient has shown that at least some of its services/products are designed specifically for poor people. They show this by the evidence of their service/product design processes: they know who among their clients are poor; they study the needs and constraints of these poor clients; they design and test services/products specifically for these clients, and adjust according to the response of these clients until confident that the clients are using the services/products in ways likely to bring benefits to themselves and their families.
What does a Pro-‐Poor MFI look like?
� Tracking Progress for Poor People: A Seal recipient has shown that at least some of its poor clients are tracked over time to assess the apparent influence of the services/products on their lives. This is not expected to be research that can attribute changes in lives to use of the services/products. It is simply the effort of tracking progress (or lack thereof) over time and responding to evidence of positive, negative or no change by asking deeper questions about what the service provider might do better for all clients. The provider keeps tracking and changing and tracking and changing until it sees more positive change in the lives of poor clients and less evidence of being stuck or falling backward.
What does a Pro-‐Poor MFI look like?
• Community of Practice Aspiring
• Emerging Practitioner First Level
• Achiever Second Level
• Leader Top Level
Progressive Levels of the Pro-‐Poor Seal of Excellence
� There are progressive levels of the Seal, which reflect both the quality of documentation of the three dimensions above and the progress of the service provider along a path toward its pro-poor destination.
� Any service provider with serious intent can join the lowest, most inclusive level—a community of practice of pro-poor fellow travelers.
� Members learn from each other and especially from their peers who have achieved higher levels of the Seal.
Social Lens
Gender
Youth
Rural Green
Poverty
Focusing a lens of Poverty
What do we mean by poverty? % of population below poverty lines
Bolivia Senegal Philippines
$2/day (2009 est.)
$1.25/day (2008)
$1.25/day (2005)
$1.25/day (2009 est.)
Nat’l Poverty line (2011)
Nat’l Poverty Line (2009 est.)
Regional – country poverty rates % households below different poverty lines
0
10
20
30
40
50
60
70
80
90
100
AFRICA SE ASIA LAC MENA EECA
Na-onal $1.25 $2.50
Data for countries with PPI: Reliable recent national data, different poverty lines (Mark Schreiner, GF)
The trade-‐off: Accurate methodology / difficulty of data collection
Poverty measurement involves a variety of complex factors
Many of the measures used vary regionally
A comprehensive methodology should capture the specificities of regional factors and variability…
Collecting good data is expensive!
A wholly accessible methodology should be easy to understand and implement…
As a first step, we are benchmarking poverty as the bottom 40%. From there we can account for more specific regional factors.
To require that a certain type of data be available can be prohibitive
Regional – country poverty rates % households below different poverty lines
0
10
20
30
40
50
60
70
80
90
100
AFRICA SE ASIA LAC MENA EECA
Na-onal $1.25 $2.50
Data for countries with PPI: Reliable recent national data, different poverty lines (Mark Schreiner, GF)
Bottom 40%
What is our shared vision for Poverty-‐focused Microfinance?
We would like to open this discussion:
� What does our shared vision look like?
� What are we striving for?
� What are the most important pieces of the puzzle?
FRAN
CES SI
NHA • Co-‐Founder,
EDA Rural Systems & M-‐CRIL
• Technical Committee Chair & Steering Committee Member, Pro-‐Poor Seal of Excellence
LUCIA SP
AGGIARI
• Social Rating Director, MicroFinanza Rating
• Technical Committee, Pro-‐Poor Seal of Excellence
REFILW
E M
OKO
ENA
• Progress out of Poverty Index Manager, Vision Fund International
Today’s Guests
What is our shared vision for Poverty-‐focused Microfinance?
The poverty-focused community of practice, over the long term, will develop models that assure sustainability and long lasting changes in clients’ lives. The goal is to set a vision for the sector that prioritizes effective poverty outreach and quality data collection and analysis. Balancing earnings with strong client relationships and accountability for measurable results can reinvigorate the role of financial services as a powerful tool and platform in the fight against poverty.
We propose the following as a starting point:
Send us your thoughts!
� What topics would you like to discuss? � Do you have suggestions for the format of the sessions? � Would you like to hear from certain people or organizations?
Upcoming Events
Save the Dates!
Wednesday, April 3rd Wednesday, May 1st
Times TBA
The Poverty-focused Microfinance community of practice will have regular meetings the first Wednesday of every month.
Who leads the Seal?