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Progress out of Poverty
Roadshow:
Measuring the Impact of Microfinance
The Progress out of Poverty Index (PPI) measures the
results of microfinance that ultimately matter the most: that
clients achieve higher income and standards of living. The PPI
is a set of social indicators -- family size, diet, housing
type, etc. -- designed to give a picture of the poverty level of
microfinance clients, to track changes over time, and to
identify program features that maximize poverty alleviation
impact.
The tool, which builds on previous efforts to measure social
performance alongside financial performance, was pre-tested last
summer among clients of microfinance partner Al Sol Chiapas in
Mexico and refined. GFUSA's PPI is simple, practical, and
responsive to the way poverty indicators differ in significance
across countries.
GFUSA's Social Performance Management team has now taken it
on the road again. They held a PPI Workshop in Bangalore, India
May 1-5 to train microfinance practitioners on its use.
Attendees from six GFUSA partner microfinance organizations in
India, Pakistan and Bangladesh developed individual action plans
for incorporating the PPI into their operations. One of the
exciting outcomes was identifying specific ways the PPI can be
made more country-specific. With further fine tuning, the next
road trips will showcase an even more accurate and effective
social performance tool for our MFI partners in the Americas
this July, and the Middle East and Northern Africa in
October.
Learn more about the Progress out of Poverty Index
GFUSA Launches Africa Task
Force
Prominent economist lends her expertise
The number of Africa's poor has doubled over the past two
decades. The World Bank recommends that Africa "must unleash the
power of African enterprises to create jobs."
Field officer with some of her clients at LAPO
Nigeria
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GFUSA's new Africa Task Force is working to develop a
comprehensive strategy to fight poverty in Sub-Saharan Africa
with microfinance. Building on the success of the GFUSA Capital
Markets Group and Village Phone initiatives in Central and East
Africa, and our partnership with LAPO, a microfinance
institution in Nigeria, the group will seek ways to extend the
reach of microfinance in some of the world's poorest
countries.
The Africa Task Force is advised by Dr. Willene Johnson,
former US executive director to the African Development Bank and
another addition to GFUSA's exceptionally talented and committed
volunteers. Dr. Johnson is an adjunct member of the faculty of
Cornell University in the Department of Applied Economics and
Management. She serves on the Committee for Development Policy
of the United Nations and the Sub-Saharan Africa Advisory
Committee of the United States Export Import Bank. Her long and
illustrious background in development economics and Africa
brings invaluable insight to the Africa Task Force's work toward
bringing the power of microfinance to more of Africa's poorest
people.
Against All Odds: Helping the Poor
in Haiti
Excerpts from a donor's report on his visit
GFUSA supporter Marshall Saunders recently visited Fonkoze,
our partner in Haiti, along with Technical Officer Nurul Alam.
His observations reveal the heart and the business of
microfinance. Here are some excerpts from his report of the
trip.
Fonkoze president Anne Hastings with a
microfinance client
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March 21 - La Pignon, Haiti. We are attending a
training for new borrowers. They say: I want to make better
decisions; I want to come out of the bad situation we are
in; We know this is not charity. We know we have to pay the
money back; I am poor but I am honest; I want strengthen
the doors of my home (a metaphor).
... Anne Hastings, the Manager and President, gets a greeting
and a kiss on the cheek from staff and borrowers all during the
day. It's quite remarkable.
... In the market in Hench we met Bruny Gieudonna who is
selling a mixture of tomato paste, vegetable oil and maybe
Crisco. There is a constant moving line of 5 or 6 customers. Her
first loan was $35 and has now reached $1,000. She says she
hopes God will bless Fonkoze. "It helps my people."
... Fonkoze taught Janet Deval to write her name. She writes
it on the boxes in her market stall and "people don't steal them
now."
... Fonkoze has suffered three kidnappings, one of whom was
Amosh, a dedicated Credit Manager. The only demand had been,
"tell Anne to close Fonkoze." Two weeks later Amosh was found in
the morgue. The other two kidnappers demanded money. Fonkoze did
not pay. There has been considerable civil unrest and
spontaneous strikes when much of the city of Port au Prince has
been closed down. Fonkoze defied the threats and dangers and
continued to do their work.
... Pam and I will fund a branch.
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