Microcredit Summit Campaign Secretariat Blog

New Horizons for Poverty Alleviation: Beyond Microcredit

2011-06-01T16:07:00.000-04:00

In the next posts we want to draw your attention to how microcredit in combination with other sectors like business, insurance, and healthcare can boost the efficacy of poverty alleviation initiatives and advance the second Microcredit Summit Campaign goal of ensuring that 100 million families rising above the US $1.25 per day purchasing power parity threshold by 2015.

Grameen’s latest cutting-edge initiatives pivot on Prof. Muhammad Yunus’ model of social businesses created to solve specific social problems without using charity. He distinguishes the model between two types: a “non-loss, non-dividend company … owned by investors who reinvest all profits in expanding and improving the business” and “a profit-making company owned by poor people, either directly or through a trust” (Yunus, 2010).

Grameen Danone Foods, Grameen-Veolia Water Ltd., and BASF Grameen, Ltd. are Type I social businesses because their primary goal is to solve a problem, not make a profit. Grameen Danone Food fights child malnutrition through an affordable nutrient-enriched yogurt called Shokti Doi. Grameen-Veolia Water Ltd. improves access to clean drinking water by selling low cost, locally treated water to rural villages in Bangladesh. BASF Grameen combats malaria and child and maternal malnutrition by selling bug-repellent impregnated mosquito nets and dietary supplement sachets.

These three businesses were created with investment funds, which will be returned to the investors’ at zero interest. Success will be measured on their effectiveness in solving the targeted social problem, not on their financial return. However, each business will have to be managed efficiently to be sustainable and replicable.

As of last year Grameen Danone Foods, which began selling Shokti Doi yogurt in 2007, has not broken even. As Yunus described in his book Building Social Business, start-up social ventures require a steep learning curve and “growing pains” are inevitable. After analysis, Grameen Danone concluded that they needed to repackage their product and develop a two-tier system to sell the yogurt at an affordable price for the urban and rural populations. The 60 gram container is sold at 7 taka (USD 0.10), reasonable in the rural area, and the 80 gram container is sold at 12 taka (USD 0.16), high for the rural regions, but affordable in the capital Dhaka.

Check back in two weeks when we discuss Type II social business.

Source
Yunus, M (2010): Building Social Business: The New Kind of Capitalism that Services Humanity’s Most Pressing Needs, New York: Public Affairs.

Record 128 Million of World’s Poorest Received a Micro-Loan in 2009

2011-04-01T10:35:00.003-04:00

Monday, March 7th 2011, the State of the Microcredit Summit Campaign Report 2011 was launched during a press conference organized by the Microcredit Summit Campaign at the National Press Club in Washington, D.C. The report shows that, as of December 31, 2009, more than 128 million of the world’s poorest families received a microloan—an all-time high—and, in total, more than 190 million people (of which 140 million are women) received a microloan. (Download here.)

The Campaign was pleased by the turn-out; including several journalists from the US and international media, as well as Campaign members.

Campaign Director Sam Daley-Harris moderated the panel composed of report author Larry Reed, U.S. Ambassador-at-Large for Global Women’s Issues Melanne Verveer, Nobel Peace Prize Laureate Professor Muhammad Yunus and Spanish Secretary of State of International Cooperation Soraya Rodríguez.

***

The Report’s analysis is based on data collected from more than 3,500 microfinance institutions since 1997, and 93% of that data is current and verified by a third party. At the press conference Mr. Reed summarized the report and its significance.

In a nutshell, the importance is that we are reaching 128 million of the poorest families in the world. Take 5 family members, and that is [641] million people or more that we are reaching. That is the size of the population of Europe—or more than Europe—that we are reaching.

Also featured in the report, the Campaign’s Bangladesh study [1] empirically describes how microfinance can be a powerful poverty reduction tool and that between 1990 and 2008, 2 million households in Bangladesh moved above the threshold of poverty.

Despite these successes and microfinance’s global reach, the panel declared that there is still a great deal of work ahead—both for the microfinance field at large and to achieve the Campaign’s two goals. By 2015, the Campaign aims 1) to reach 175 million of the world’s poorest families with access to credit for self-employment and other financial and business services and 2) to ensure that 100 million families rise above the US$1.25 a day threshold, which, according to Mr. Reed, “is still much of a challenge.”

Among the panellists, there was consensus that microfinance still needs improvement. Secretary Rodríguez stated that industry actors were “aware that much remains to be done regarding management and measuring the effectiveness of the microcredit system around the world.” Echoing the 2011 report’s opening lines, Ambassador Verveer added, “Microfinance alone is not enough. It is critical when tied to insurance to protect the poor from catastrophes that can wipe away their economic progress over night."

In recognition of these and other challenges to the microfinance field, the 2011 report introduced the concept of the Seal of Excellence for Poverty Outreach and Transformation in Microfinance. The Seal is conceptualized as a “third initiative” building upon the Smart Campaign's focus on client protection and the Social Performance Task Force’s (SPTF) initiative on social performance indicators. Mr. Reed explained the rationale for the focus on poverty outreach in this initiative:

This Seal would focus on those microfinance institutions that seek to reach the poorest clients and to help them move out of poverty. We know that the movement out of poverty can be an arduous journey for many, and with this Seal we want to be able to highlight those organizations that demonstrate success in helping their clients make that journey.

As in any industry, there are examples in microfinance of good implementation models as well as others that actually do harm to “beneficiaries”. As the industry has expanded, it has been faced by questions such as, are we losing sight of our social mission? MFIs in Bosnia, Nicaragua, Pakistan and Morocco have failed spectacularly in recent years, and the common thread was over-indebtedness of clients, profit margins that were arguably too high, poor institutional management and, in effect, a forgotten social mission. Most recently, we have seen these problems in the crisis in Andhra Pradesh. Secretary Rodriguez affirmed the importance of the Seal.

We are aware that much remains to be done regarding the management and in measuring the effectiveness of the microcredit system around the world. In this sense, we view with great respect and expectation the possibility that a Seal of Excellence might be introduced, as proposed at the Microcredit Summit [Campaign], to certify best practices in this field. Although the proposal needs to be fine-tuned, we believe it is correct to take into joint account the viability and the economic and financial success of microcredit; however, at the same time consideration should be given to their social impact and the role they play in combating poverty and marginalisation, in accordance with the Millennium Development Goals set by the international community.

Read "Towards 'Fair Trade Microfinance'", a "Microfinance Voices" review of the Seal of Excellence for Poverty Outreach and Transformation in Microfinance concept note. To read the concept note and offer your feedback (deadline April 2), download the paper here.

In our next blog post, we will review the exciting innovations presented in the 2011 report and what they promise for the future of microfinance.

----------------------------------------

[1] “Number of Microcredit Clients Crossing the US $1.25 a day Threshold during 1990-2008 – January 2011”

To Catch A Dollar: Muhammad Yunus Banks on America, Thursday, March 31 at 7:30 PM

2011-03-24T17:45:00.009-04:00

Gayle Ferraro's film, "To Catch A Dollar: Muhammad Yunus Banks on America", will be shown on Thursday, March 31 at 7:30 PM in more than 225 theaters around the US. Audiences will see the 60 minute film, and also the important panel discussion introduced by Robert De Niro; moderated by CNBC's Maria Bartiromo; and featuring Suze Orman, President of Kiva Premal Shah, President of Grameen America Vidar Jorgensen, and Muhammad Yunus.

If this works well on March 31, the theatrical release will expand and continue. We only have one chance to make the launch a success. If March 31 does not work, we will have to try something else. For this to be a success, we just have to find 227 motivated people to each take the lead in filling one theatre. People can bring 5 or 10 of their friends, or come alone. Do what is possible!

Click here to see how you can host a screening

Click here to request a screening at a theater near you or contact Patti McClary directly at patti.mcclary@grameenresearch.org.

You can also provide your feedback on the documentary and the panel discussion, and your suggestions on how we can bring our message and work to a broader audience by emailing Muhammad Yunus at Yunus@grameenresearch.org.

Savings Groups: Alternative or Complement to Microcredit?

2010-12-02T16:17:00.000-05:00

At a USAID-sponsored event this September, Kim Wilson, Malcolm Harper and Matthew Griffith spoke about the premise of their co-authored book, “Financial Promise for the Poor: How Groups Build Savings” wherein they discuss a phenomenon that has been overshadowed by the well-publicized microcredit side of the field, namely, that of savings groups.

In a savings group, women, and to a lesser extent men, begin their economic activity by first pooling their savings (pennies really); this is accumulated each week and each group member, in her turn, can take out a loan from the group fund. In Haiti and other parts of Africa and the Caribbean, one common type of savings group is called a ROSCA (rotating savings and credit association), with a more flexible version of this group called an ASCA (accumulated savings and credit association).

ROSCAs and ASCAs are two of many other types of savings groups, which are championed by such organizations as CARE, CRS, Oxfam America, Freedom from Hunger, the Aga Khan Foundation, and, of course, India's government agency NABARD. (The SEEP Network Savings-led Financial Services Working Group has recently published a paper, "Savings Groups: What Are They?" that lays out the geography of savings groups.)

In India, the largest contributor to the Microcredit Summit Campaign’s data collection is a government agency, NABARD, which links savings groups to banks (last reported more than 38 million women living on less than US $1.25 a day with access to credit).

Additionally, the Bill & Melinda Gates Foundation has funded a 3-year multi-million dollar, multi-organization initiative to pilot three savings methodologies in Africa: Oxfam America’s “Savings for Change,” CARE USA’s “Village Savings & Loan Associations,” and Catholic Relief Services’ “Savings and Internal Lending Communities.”

What is the difference, then, between these types of savings groups and village banking schemes in microfinance? For Wilson, who has done considerable research in Haiti, savings groups are unique because unlike microcredit, they generally fund emergencies while microloans fund productive business activities. That way, if one group member has a medical emergency, she can take out a loan from her ROSCA to pay for her hospital bill.

According to Wilson, these savings groups are not old-fashioned and its members are not naive, rather these locally-occurring, locally-forming groups have arisen in response to the poverty they face and the uncertainty of their daily lives. Wilson contends that even when promoted by both local and international and NGOs, these savings groups are sustainable (“promotion” referring to different NGOs starting their own savings groups using a previously developed model).

Griffith spoke to the potential danger of these different “brands” of savings groups, faulting many for not adapting enough to the specific environment of each group but rather competing with other “brands.” Griffith, who studied pastoral communities in Ethiopia, highlighted the importance of pacing with regards to groups taking on greater financial capabilities than they can handle too quickly, overburdening groups and frustrating members.

These savings groups, which Wilson sees as a complement to microcredit, are to Harper rather an alternative to microcredit programs. Frankly, he said, people do not have unlimited time to attend meetings for both microcredit and savings groups. In contrast to serving as a time-consuming add-on to microcredit, savings groups provide an alternative that is more empowering than microcredit because it is owned and operated by its members, and is very similar to what people are already doing.

“Classic microfinance is just about putting people in debt,” said Harper, and in many cases, it is exploitative because it requires a continual involvement on the part of the microfinance institution and has massively expanded debt among the rural poor.

As with Harper, for Ingrid Munro, founder of the Kenyan microfinance institution Jamii Bora, saving is an integral first step in borrowing, because it teaches people how to manage money. Munro, who spoke at the 2010 Africa - Middle East Regional Microcredit Summit in Nairobi this past April, cited how many people must first take the important step of learning how to save:

"When you are a beggar you have learned that if you get some money from some nice tourist, then you buy food and you eat it with your kids right away; then nobody can steal it from you. So they were not used to saving, and we had to teach them how to save before they could borrow. [our emphasis] So we insisted you can borrow twice as much as you have saved, but you have to save first. And that has been a blessing actually for us; that has taught everybody how to handle it."

This panel examined savings groups from many angles and in their multiple capacities, and through different points of view, discussed the usefulness of them as a complement or an alternative to microcredit programs. The latter argument criticizes microcredit programs for allowing clients to access money that they had not first saved. This is all well and good when group members diversify their economic activities, so the argument goes, so that if one member’s crops fail, she can take out a loan from her fellow members who raise chickens. However, what happens when there is a disaster that affects all group members at once?

The effects of the Haiti earthquake on ROSCA members will be a test case of the “complement or alternative” debate. Though women kept up their group meetings in the spirit of solidarity, Wilson was unsure whether all group members were in need of loans from the communal fund—and there not being sufficient for everyone. Perhaps in the presence of an external fund, women would be able to access a greater amount of capital in case of emergencies.

The experience of Fonkoze, Haiti’s largest microfinance institution, and FINCA Haiti demonstrates the positive role external aid when clients have died or have lost their homes or businesses. Only with the help of a grant from the Citi Foundation could FINCA Haiti write off one third of its loans and take on 1,000 new clients. Fonkoze wrote off 10,000 loans with donations from the Red Cross and other charities, and in fact expanded to more inclusive financial and nonfinancial services (see the New York Times article).

Cases like the Haiti earthquake highlight the need for financial services for poor people that include savings as a means of empowerment but the ability to access a greater amount of capital in times of emergency.

Ten More Workshops Authors Announced for the 2011 Global Microcredit Summit

2010-11-15T00:14:00.000-05:00

We are delighted to announce the next ten authors of workshops papers to be presented at the 2011 Global Microcredit Summit to be held from November 14 to 17, 2011 in Valladolid, Spain.

The workshops include Initial Public Offerings: The Field's Salvation or Downfall with one paper by Vikram Akula, CEO of SKS Microfinance, and another by Sanjay Sinha, Managing Director of M-CRIL; What is the Low-Bar and What is the High-Bar on Client Protection? by Beth Rhyne, Managing Director of Center for Financial Inclusion at ACCION International; and Is Transparency Enough: What Is Fair and Ethical When It Comes to Interest Rates in Microfinance? by Chuck Waterfield, CEO & President of MFTransparency.

With the workshops released last week, this brings our total to twenty workshops and authors announced. To see a complete list, click here.

Working Group Formed on Microfinance in Industrialized Countries

A working group has been formed to identify workshop titles relevant to practitioners and other stakeholders working in industrialized countries. Members of the working group are:

Chair: Maria Nowak, President, L'Association pour le droit à l'initiative économique (ADIE), France
Vice Chair: Connie Evans, President & CEO, Association for Enterprise Opportunity (AEO), USA
Grzegorz Galusek, Executive Director, Microfinance Centre (MFC), Poland
Mikhail Mamuta, President, Russian Microfinance Center, (RMC) Russia
Nazrul Chowdhury, Microfinance Consultant, ICO, Spain
Philippe Guichandut, Executive Director, European Microfinance Network (EMN), France
Wendy Bauman, President & CEO, Wisconsin Women's Businesses Initiative Corporation (WWBIC), USA

Guest Post: Miracles in Kenya

2010-05-04T09:33:00.000-04:00

The following is a guest post from Sister Giant participant, Cathy Michael, who attended the Africa - Middle East Microcredit Summit in Nairobi, Kenya in April 2010. She along with hundreds of delegates to the Summit went on field visits organized by local organizations to showcase innovative projects and client success stories.

The reflections that Cathy shares with us is about her visit to the slums with the Jamii Bora team. To access her photos posted on Facebook, click here.

"For all of my friends everywhere who care about making this a more peaceful world and for my Sisters from Sister Giant, who could not make it to Kenya, this is for you. I have tried to recreate the experience as best as I could...

"A note to all of you who are not familiar with my recent trip to Nairobi, Kenya. I attended the African Regional Microcredit Summit in Nairobi last week. I had the fortune to go as part of a delegation from SisterGiant/RESULTS. The 3 day conference was sandwiched between 2 field trips to the slums and the new model community, Kaputiei Town. We had the opportunity to meet, hug, listen to and speak with the people whose lives have been transformed by the microfinance grassroots organization Jamii Bora. We also had private meetings with Muhammad Yunus, 2006 Peace Prize Recipient; Ingrid Munroe, the visionary behind Jamii Bora; and Sam Daly Harris, RESULTS founder and organizer of this conference."

MIRACLES IN KENYA

We walked through the slums of Nairobi expecting to find the downtrodden -- human beings without hope, children crying and begging. Instead to our surprise we found smiles and laughter and pride. Children were serenading us in their high pitched voices, “How are you, How are you?” Everyone was proud and pleased to welcome these “wasungu” -- white foreigners.

Who were these lovely beings we found squashed inside their one room huts? Families of five or even fourteen crammed themselves with all their belongings into a 10 x 10 space. Mattresses piled one upon the other, stuffed between storage containers reaching to the ceiling. Each night the mattresses are pulled back out of the stack and laid upon the floor for all to sleep. No bathrooms. . .no toilets. . .no running water. . .no kitchens. . . maybe a cooking stove run on kerosene shoved in the corner. Outside the door are plastic buckets to wash and bathe in. Two foot wide dirt paths separate the shacks and morph into mud paths during the rainy season.

Strangely, strolling through this community warmth and happiness radiated with an intensity that both captivated and energized us. What beautiful faces! Never in my experience as I’ve traversed through villages in other foreign lands have I felt such warmth and love. What is this magic that caught us off guard and warmed our hearts? These were authentic smiles. These were people who walked with their heads held high, people filled with dignity! The love and warmth they exuded were contagious. We all felt it. Walking on rural or city streets back home in the US, I have never experienced such a feeling.

The secret recipe of that magic is called Jamii Bora which means “good families” in Swahili, is a grassroots microfinance organization. It transforms lives by integrating ingredients including micro-loans starting at $10, a mandatory savings program and weekly support groups, affordable health care and life insurance, education, training and counseling, all with an astonishing loan default rate of only 1% and without Government support. Private donations are used minimally to initiate projects to develop infrastructure. This holistic approach provides an opportunity, not a handout, for the world’s poorest to take responsibility for their own lives. Individuals who repays their loan can access larger loans and are then energized to mentor others in the street.

Jamii Bora, with the guidance and vision of Ingrid Munro, who had lived in Africa for over 20 years working in housing development, looks for the poorest of the poor, families earning less than $1.25 per day. They search for street beggars, prostitutes, gang members and thieves. Ingrid Munroe believes and has shown beyond a shadow of doubt that any person on this globe, no matter how destitute or downtrodden, once empowered will discover and ignite their own individual creativity and motivation to lead a life of contribution with dignity.

The miracle is one of transformation, both personal and social. A favorite mantra that we heard from the Jamii Bora members is that “it doesn’t matter where you come from, what matters is where you are going”. Personal transformation generates social transformation in a reinforcing and self-sustaining reaction. Helping the poorest stand up is a central element in this process of transforming a culture. Many microfinance organizations have found that women are particularly responsive, trustworthy and responsible. As the saying goes, give a woman a loaf of bread and she will share it with her family and if anything is left, her community. Give the man a loaf and he will eat it himself or sell it for something else.

I have been asked, “How many people can this possibly touch?“ Another miracle of Jamii Bora is that this social model is replicable. Jamii Bora has given over a hundred thousand loans totaling almost $3 Billion. Jamii Bora has grown and spread throughout Kenya.

In Bangladesh, Grameen Bank, the microfinance institution begun by Muhammad Yunus, recipient of the 2006 Nobel Peace Prize, has designed a similar program which has spread into Asia and Africa, now reaching millions of people. Another organization called BRAC, also begun by a Bangladeshi, Sir Fazle Hasan Abed, has built an organization of several billion US dollars. BRAC is also spreading throughout Asia and Africa. Multitudes of other Microfinance groups, based on similar principles of savings and support groups are cropping up throughout the poorest communities of the world.

Muhammad Yunus has declared that microcredit is about making “The Impossibles Possible!” Leaders of the microfinance movement have said that we have the knowledge to end poverty within this generation. What we need now is not only the political will, but also compassionate commitment within the Institutions that serve the poor to make their first goal serving the poor not their bottom line, nor their investors. Jamii Bora, Grameen Bank and BRAC are outstanding examples of service in the name of the people. Reasonable interest rates and integrated support systems must be the accepted benchmark as we move forward. Institutions that charge 80% and 100% interest rates with the sole goal of profitting off of the world’s poorest are an absolute outrage.

People working in the field know that compassionate microfinance is the best tool that we have for obliterating poverty and obliterating poverty is the best tool we have to rid the world of terrorism.

Cathy Michael

To access the photos of the amazing people and their homes visit my Facebook page.

For more information on the organizations mentioned click on:
http://www.jamiibora.org/membersvoices.htm
http://www.grameen-info.org/
http://www.brac.net/index.php?nid=69
http://www.results.org/

Nairobi Summit Highlights & Submitting Your Action Plan

2010-04-24T12:00:00.004-04:00

Africa - Middle East Regional Microcredit Summit

"Quite informative and relevant to my line of work. Bravo all panelists."

1,200 delegates from 81 countries

Opened by Kenyan President Mwai Kibaki, HM Queen Sofia of Spain, HRH Princess Máxima of The Netherlands, and Nobel Peace Prize Laureate Muhammad Yunus, delegates from around the world discussed microfinance and its relation to the environment, agriculture, and health with a strong focus on empowering the world's poorest families, especially the women of those families.

Sam Daley-Harris challenged delegates to change our way of thinking. He said, "The technical side of microfinance is important, but only if it serves the transformational dimension...[to effect] redemption that restores peoples' honor and worth" and sets them free.

Delegates discussed the importance of:

Supportive regulatory environment for MFIs
Tools for greater outreach to rural areas and urban slums
New technology to increase efficiency and decrease costs
African and Middle East practitioners to commit to the goals of Campaign

Campaign staff will be uploading the powerpoints in the coming weeks to http://regionalmicrocreditsummit2010.org.

What Delegates Said

"Topics of plenaries and workshops very relevant. Excellent panelists and good representatives from Africans as well as westerners. This is very important!"
"Sessions were so educative and they made people know more innovative ways to fight poverty."
"The Jamii Bora presentation and success is a sure example that we in Microfinance can do something for the urban poor even in better in their living environments."

Share Your Pictures from the Summit

Campaign staff took hundreds of photos. What about you? Send your photos to info@microcreditsummit.org to be added to the Microcredit Summit Campaign PhotoBucket public album at http://photobucket.com/AMERMS_2010.

Notice: By posting your photos to this public album, you give the Microcredit Summit Campaign permission to use your photos in our materials. MCS will credit you and/or your institution.

Goal: 175 million of the poorest receiving credit for self-employment and other needs

Submit your Institutional Action Plan (IAP) to be included in the 2011 State of the Campaign Report! Download your IAP here: http://www.microcreditsummit.org/submit_institutional_action_plan/

Direct your questions related to IAP submission to Sabina Rogers, Program Manager for the State of the Campaign Report, at rogers@microcreditsummit.org.

President Kibaki of Kenya to Open Microcredit Summit in Nairobi

2010-03-13T17:13:00.005-05:00

Kenyan President Mwai Kibaki will open the Africa-Middle East Regional Microcredit Summit to be held April 7-10, 2010 in Nairobi, Kenya. President Kibaki will be joined at the Summit by HM Queen Sofia of Spain, HRH Princess Máxima of The Netherlands, Nobel Peace Prize Laureate Muhammad Yunus, BRAC Chair Sir Fazle Abed, Former Peruvian President Alejandro Toledo, and Kenya's Deputy Prime Minister and Finance Minister Mr. Uhuru Kenyatta.

Delegates from outside Africa and the Middle East now have until March 24th before the final registration increase goes into effect. Delegates from Africa and the Middle East can register from now until April 7th for US$300. More than 110 speakers have confirmed their participation, with more names being added to the detailed agenda daily: http://www.regionalmicrocreditsummit2010.org/?page_id=42

The workshop titled: "What Is Needed to have Wholesale/Autonomous Microfinance Funds Work in Africa and the Middle East" will be chaired by former World Bank Vice President Praful Patel and will include Quazi Mesbahuddin Ahmed who is Managing Director of PKSF in Bangladesh, Eric Ekué who is former Secretary-General of the Banking Supervision Commission (BCEAO), Senegal, Marylou Uy who is Director of the Financial Sector Operations and Policy Department at the World Bank, and David Ferrand who is Director of Financial Services Deepening at DFID in Kenya.

Another workshop titled "Innovations in Information Technology that Work for the Clients and for MFIs" will be chaired by Kamal Budhabhatti who is CEO of Craft Silicon and will include George Conard who is Executive Director of Technology for Microfinance at the Grameen Foundation, Eamon Scullin who is CEO of Fern Software and Murray Gardiner who is Microfinance and Community Banking Strategy Manager at TEMENOS.

The Summit is being co-organized by the Association of Microfinance Institutions of Kenya (AMFI) and the Microcredit Summit Campaign, a project of RESULTS Educational Fund. For Summit details and to register online visit: www.regionalmicrocreditsummit2010.org

2010-03-11T09:37:00.002-05:00

Microfinance Focus, one of the media partners for the Africa-Middle East Microcredit Summit, has a feature story on Microcredit Summit Campaign Director, Sam Daley-Harris.

To view the online edition of of the magazine CLICK HERE.

Remember to join us April 7-10, 2010 for the Africa-Middle East Regional Microcredit Summit in Nairobi, Kenya.

To visit the Registration Website and learn more about exciting speakers and events that are planned, CLICK HERE.

Sam Dalley-Harris Interview on CNBC Africa

2010-02-12T12:07:00.001-05:00

On a visit to Nairobi this week in advance of the upcoming Summit in Nairobi, Campaign Director Sam Daley-Harris was interviewed on CNBC Africa's Power Lunch which is aired in 43 African countries. View the interview here:

To Catch A Dollar - Official Trailer

2010-02-01T16:33:00.001-05:00

Check out the Official Trailer of the new documentary "To Catch A Thief" by director Gayle Ferraro. The story follows Muhammad Yunus and his efforts to launch Grameen America. Visit the official website at: http://www.tocatchadollar.com to learn about ways you can get involved and spread the word about the film.

BRAC Chair Fazle Abed to Attend Africa-Middle East Regional Microcredit Summit

2010-01-22T13:54:00.003-05:00

Fazle Hasan Abed, the founder of BRAC in Bangladesh and a pioneer in the fight to end poverty, will participate in the Africa-Middle East Regional Microcredit Summit to be held April 7-10, 2010 in Nairobi, Kenya. Mr Abed's name was included in HRH Queen Elizabeth of England's New Year's Honors List released on December 31, 2009. He will be knighted by Queen Elizabeth for his services tackling poverty.

Mr. Abed's involvement in the Africa-Middle East Microcredit Summit mirrors BRAC's entry into Africa. "I now want to build on this success," said Mr. Abed responding to the honor, "to continue BRAC's fight against poverty not only in Bangladesh but in eight other countries in the world where we are involved - Afghanistan, Uganda, Tanzania, Southern Sudan, Pakistan, Sierra Leone, Liberia, and Sri Lanka."

Mr. Abed will join Nobel Peace Prize Laureate Muhammad Yunus, CARE CEO Helene Gayle, and Kenya's Deputy Prime Minister and Finance Minister Mr. Uhuru Kenyatta at the Summit in Nairobi. The Summit is being co-organized by the Microcredit Summit Campaign, a project of RESULTS Educational Fund and the Association of Microfinance Institutions of Kenya (AMFI).

Early-bird registration continues until January 31, 2010. Take advantage of the lower registration rates now by visiting: http://regionalmicrocreditsummit2010.org

Helping Haiti Recover

2010-01-15T10:22:00.007-05:00

The world is mobilizing to address the massive earthquake that hit Haiti on Tuesday, dealing a horrific blow to the poorest nation in the Western Hemisphere. The reported epicenter of the earthquake is a highly populated area known to house many of Port-au-Prince's poorest families. The International Red Cross estimates that one-third of the island nation's 9 million people have been displaced by the earthquake and many thousands are dead.

This disaster requires both immediate emergency relief and longer term rebuilding efforts. Microfinance will play a crucial role in the financing needs that inevitably arise from this type of catastrophe as Haitians look to rebuild their country.

Please Donate Today

Below are microfinance organizations participating directly in relief and recovery work among earthquake victims in Haiti. Click on the organization link below to donate:

ACCION INTERNATIONAL

FINCA INTERNATIONAL

FONKOZE

FREEDOM FROM HUNGER

GRAMEEN FOUNDATION

Below are other organizations that include microfinance as a part of their work in Haiti, and are currently focused on providing immediate humanitarian assistance:

ADVENTIST DEVELOPMENT AND RELIEF AGENCY

CARE

CATHOLIC RELIEF SERVICES

HABITAT FOR HUMANITY

WORLD RELIEF

WORLD VISION

Registration for Africa-Middle East Summit Now Available!

2009-12-21T13:10:00.002-05:00

Registration is now open for the Africa-Middle East Regional Microcredit Summito be held April 7-10, 2010 in Nairobi, Kenya and co-hosted by the Microcredit Summit Campaign and the Association of Microfinance Institutions of Kenya (AMFI). Click here to register now!

We expect 2,000 delegates from more than 40 countries to gather in Nairobi for what will be the most groundbreaking regional Microcredit Summit Program ever. Click here to view the detailed summit agenda.

We encourage you to participate in one or more of the optional field visits to leading microfinance institutions in Kenya on the day before (April 6), the fourth day (April 10) and the day after (April 11) the Summit. You may visit: Jamii Bora, Equity Bank, Faulu, KADET, ECLOF, K-Rep and KWFT.

Come and join the top leaders in the fight to end global poverty!

For more information, please visit the registration site at: www.regionalmicrocreditsummit2010.org

Margaret Chunga - A Microfinance Success Story

2009-12-14T11:00:00.003-05:00

BBC news shares the story of Margaret Chunga living in Malawi who climbs up to a better life condition, as she gained access to her first small loan. As Peter Ryan, founder of Microloan Foundation, said in the article "This empowers people. It's the first step on the ladder."

“Microfinance is a reminder that the ability to borrow is a crucial part of economic development. And Margaret Chunga is a witness to that.”

To read the story of Margaret Chunga, click here.

New Pro Mujer Blog

2009-12-03T17:04:00.003-05:00

Pro Mujer, a long time Microcredit Summit Campaign friend and council member, has launch a new blog (www.promujerblog.wordpress.com). Their blog features first-hand accounts from clients, loan officers and medical staff, as well as news, relevant studies, upcoming events, and highlights from Pro Mujer volunteers. All entries are posted in English and Spanish.

Please visit their new blog and learn about their great work in Latin America today!

Kenyan Deputy Prime Minister to Speak at Upcoming Microcredit Summit in Nairobi

2009-11-23T13:29:00.003-05:00

Leaders of the Association of Microfinance Institutions in Kenya (AMFI) met with Deputy Prime Minister and Minister for Finance, Hon. Uhuru Kenyatta, on November 19, 2009 to discuss the Africa-Middle East Regional Microcredit Summit to be held April 7-10, 2010 in Nairobi, Kenya.

Hon. Kenyatta pointed out that microcredit was at the center of the development agenda for Kenya. The Minister said he would speak at the closing ceremony of the Summit and his Ministry would be fully involved.

More than 2,000 delegate from over 40 countries are expected for the Summit which will be the largest microfinance gathering ever held in Africa and the Middle East.

Early registration will open for the Summit in the coming weeks. An announcement will be sent when the registration site opens.

Podcast Interview with Sam Daley-Harris

2009-11-12T14:51:00.002-05:00

At a recent event at the Dallas-based Chiapas Project Junior Committee, Youth Venture Ambassador Brian Weinberg sat down to speak with Microcredit Summit Campaign Director, Sam-Daley Harris.

Click here to listen

Special thank for making this available online go to Dallas Social Venture Partners as part of their podcast series "Maximizing Social Impact: A Podcast about Social Ventures".

Panelist Nominations for the 2010 Africa - Middle East Regional Microcredit Summit

2009-11-09T17:37:00.005-05:00

We are seeking nominations for top plenary and workshop panelists for the Africa-Middle East Regional Microcredit Summit.

Being selected as a panelist is an excellent way for leaders of MFIs, governments, development agencies and academic institutions to showcase their successes and breakthroughs and learn from other experts in the field. Your feedback and recommendations are greatly appreciated.

To nominate a panelist, please complete the following form NO LATER THAN Thursday, November 19, 2009. Please consider that we are primarily seeking nominations for panelists knowledgeable in the Africa - Middle East region.

To nominate a panelist, please Click Here

Or paste the following link into your browser window:

http://www.surveymonkey.com/s.aspx?sm=PfBN5CRpzTQVOSAlZpBC8Q_3d_3d

Thank you for your input!

BRAC Uganda reaches 100,000 microfinance borrowers in less than 3.5 Years

2009-11-09T17:25:00.002-05:00

Congratulations to the great work BRAC Uganda is doing in providing microcredit to East Africa!

Dr. Fazle Hasan Abed, the Founder and Chairperson of BRAC disbursed BRAC Uganda’s first ever loan in June 2006 at the Iganga branch. Dr. Abed is also serving on MCS' Regional Advisory Committee for the upcoming Africa-Middle East Regional Microcredit Summit, April 2010 in Nairobi, Kenya.

From their announcment:

"BRAC Uganda has set a remarkable record by reaching 100,000 borrowers in less than 3.5 years since that start of its microfinance operations in Uganda in June 2006. With an average annual borrower growth rate of 139%, BRAC Uganda is in the company of other rapidly growing microfinance institutions in world."

The Micro-approach: Overlooked Way to Get out of Poverty

2009-10-30T16:25:00.004-04:00

An excellent article in Foreign Policy entitles "How Microfinance Changes the Lives of Millions² has been published recently aiming to debunk the micro approach.

The author of the article, Shweta S. Banerjee, mentions that microfinance field is a pretty young field of expertise compared to macroeconomic level; therefore it cannot be judged hastly without letting it demonstrate that it can be an useful way to help people getting out of poverty.

It can look odd but poor people CAN save money. But to do it, they need some financial institutions that give them the opportunity to thrift. As she mentions in her article ²helping the poor save, before or along with providing credit, might be the missing piece to help solve the poverty puzzle.² Savings are the first step towards creating assets in a long term. Can you imagine yourself without a bank account? For sure not, those poor people need to prove that they can save money and eventually get loan to improve their life conditions and therefore their future.

²So, let's not be so dismissive of micro, and let's give up the idea of going back to the old days of thinking only at the macro level. A million people here, and a million there, and pretty soon thinking small can have a very big impact indeed.²

You can read the article here.

Grameen Foundation in a $162.5 Million Credit Guarantee Partnership with USAID

2009-10-22T14:32:00.006-04:00

On Monday, USAID has announced a partnership with Grameen Foundation for a $162.5 Million Credit Guarantee. By this valuable partnership, it will easier for the microfinance institutions (MFI) to access private credit as USAID and Grameen Foundation will share the credit risk.

As we all know, effects of the actual financial crisis also has an influence on the MFIs. As the unemployment rate increases, more and more people are trying to setup a micro-enterprise and this has increased the demand for microcredit.

According to USAID and Grameen Foundation, the 3 major ways that MFIs get funding are reinvestment of repaid customer loans, loans from commercials banks and finally grants from donors. As the financial crisis has reduced the access of commercial financing to the MFIs, this partnership between USAID and Grameen Foundation will provide credit enhancement for the MFIs.

Moreover, the partnership will lend money in local currency as they believe that this will present less risk of currency market fluctuations. In the actual financial meltdown, this partnership should give a helpful hand to worldwide MFIs who will profit from this partnership, an estimated of 691, 500 micro-entrepreneurs will benefit the loans provided by these MFIs.

The Partners

Grameen Foundation is "global non-profit organization that combines microfinance, technology, and innovation to empower the world's poorest people to escape poverty. It has established a global network of 46 partners in 25 countries that has impacted an estimated 18 million lives in Asia, Africa, the Americas, and the Middle East. Grameen Foundation was founded by Alex Counts, who began his work in microfinance with Grameen Bank founder and Nobel Peace Prize recipient Dr. Muhammad Yunus."

USAID is an independent federal government agency that provides foreign assistance worldwide. "USAID has been the principal U.S. agency to extend assistance to countries recovering from disaster, trying to escape poverty, and engaging in democratic reforms."

To consult the Press Release

Pro Mujer launches microfinance-health initiative with PATH and Global Partnerships

2009-10-16T11:49:00.005-04:00

A remarkable microfinance and health initiative in Latin America has been launched recently by three non-profits organizations: Global Partnerships, PATH and Pro Mujer. As they mentioned in their Q&A : “the organizations will jointly address key health challenges in Latin America by developing a microfinance model for expanding access to essential, low-cost health solutions that are financially sustainable over the long term.”

Global Partnerships (GB), a Seattle-based organization, provides support to microfinance institutions in Latin America. GB partners with microfinance institutions working especially for women and rural poor. PATH, also a Seattle-based organization, works toward making sure that healthcare and health technologies are accessible worldwide, especially in the most needed area. Pro Mujer is “an international women’s development and microfinance organization that alleviates poverty in Latin America by providing financial services, healthcare and training to poor women entrepreneurs.”

This initiative will start this month in Nicaragua as a model to be expanded throughout Latin America and will take place in two phases. The first phase will work toward getting a financially sustainable healthcare strategy, while the second phase will be a pilot project to demonstrate how microfinance organizations can be a powerful tool to promote primary and preventive healthcare services in a financially sustainable way. As we know, Pro Mujer already provides microfinance services, healthcare and training, but through these partnerships they will take advantage of the health expertise of PATH and also get financial support from PATH and GB to "develop a sustainable funding stream for integrated health services and education that are offered through the microfinance platform."

For more information, please read the Press Release

End Poverty all Together!

2009-10-14T17:14:00.005-04:00

For its fourth year Stand Up and Take Action will take place worldwide this year October 16 to 18 to advocate the leaders of the planet and request them to keep their promises to eradicate poverty and to carry out the Millennium Development Goals (MDGs).

MDGs were established “in September 2000, building upon a decade of major United Nations conferences and summits, world leaders came together at United Nations Headquarters in New York to adopt the United Nations Millennium Declaration, committing their nations to a new global partnership to reduce extreme poverty and setting out a series of time-bound targets - with a deadline of 2015 - that have become known as the Millennium Development Goals.” (United Nations Millennium Development Goals)

Stand Up and Take Action is co-organized by the UN Millennium Campaign and the Global Call to Action Against Poverty (GCAP). The inception of UN Millennium Campaign was launched with the signatures of the 189 world leaders onto the Millennium Declaration and agreed to meet the MDGs. GCAP is a grouping of various organizations from the civil society calling the leaders to end poverty and inequality around the world.

Visit Stand Up 2009 and Take Action: be part of the movement to end poverty! You will find on the Website information about events happening all around the world, success stories and information on how to create your own events or join one!

Auditing MFIs

2009-10-14T13:01:00.004-04:00

Is it possible to get genuine performance measures concerning the social performance of microfinance institutions (MFIs)? In a recent article, I was pleased to notice that CERISE provided a tool to “capture” this information.

Microfinance Knowledge Network (CERISE), based in Paris, gathers five leaders in French microfinance to provide technical assistance to MFIs around the world. One of the expertises of CERISE is to perform social auditing of MFIs with their own tool that has been created.

The Reuters article mentions: “The latest innovation in social performance measurement is to look not only at the performance of the microfinance institutions, but also to undertake a social audit of private financiers. […] Cerise is at the forefront of social performance, and serves as an exchange platform on practices in microfinance. Cerise's Social Performance Indicator tool, a social audit instrument for microfinance institutions, is recognized by CGAP, SEEP network and donors worldwide. The tool is currently being developed to analyze financier's internal systems and processes.”

As mentioned in the article, Oikocredit, one of the world’s largest sources of private funding to the microfinance sector, has recently released the results of it social audit results “to know that investments of some EUR 370 million lead to positive changes in the lives of the working poor.” You can have a glimpse of the audit results and read the article here. You can also visit their Website for a detailed analysis.

Microfinance should find a path in China

2009-10-09T17:15:00.008-04:00

A recent article in The Wall Street Journal mentioned that “China's economy may lead the region in many ways, but in one surprising area it is lagging behind: microfinance […] A casual observer might say China doesn't need microfinance. After all, it is now the world's third-largest economy. But beyond the prosperous cities, millions of people still languish in poverty. China has the second-largest number of poor after India. About 254 million people in China lived on less than $1.25 a day in 2005 (as measured in purchasing power parity dollars), according to the World Bank.”

The author points to the importance of microfinance as a tool to alleviate poverty and mentionsChina, despite its growing influence as an International player, still has an enormous number of people living in poverty. Also as they mention in the article, China's government has a responsibility to consent to let microfinance play a role in the country. Hopefully soon the Chinese government will create a favorable environment for its citizens to benefits from microfinance. As worldwide microcredit and microfinance are showing great results, China could become part of it.

You can read the complete article here.

Educating Children about Microfinance

2009-10-06T15:36:00.004-04:00

Never too young to learn about microfinance: inspired from a true story, children can learn about microfinance with Katie Smith Milway's book, One Hen: How One Small Loan Made a Big Difference.

The story takes place in a village in Ghana (Africa) where people got the idea of saving money for the villagers and one family at a time can use the money saved as a loan to buy “something important”. Your children and you will get the chance to know how useful the loan will be and how it will change the life of a young boy Kojo and his widowed mother.

Also, One Hen offers a friendly website to learn about microfinance in an fun way with some exciting games, as well as plenty of useful resources for parents and professors and also people sharing their stories. The website offers a good collection of rhythmic African music too!

Here is a review of the book on Education Oasis.

Microfinance According to Ingrid Munro - a Delightful Story

2009-10-02T16:43:00.009-04:00

In a lovely, inspiring and amazing lecture Ms. Ingrid Munro shared her story, the story of Jamii Bora, the organization she founded in Kenya and the stories of what she calls the “slower and faster climbers”. She gave an illustration of the magnificent work she has accomplished through the last 10 years and her continuing extraordinary involvement for Jamii Bora members.

In a lecture hosted by J.P. Morgan in New York, on September 21^st midday, Ingrid Munro explained to us, how she worked with the members of Jamii Bora and succeeded in getting them out of poverty.

In July 1999, Ms. Munro started Jamii Bora, by lending money to 50 women street beggars, who had proven they could save as little as 0.65$ per week, for months. Today, there are more than 200,000 members of Jamii Bora, and it is the largest microfinance institution in Kenya.

Ingrid Munro did not just start a microfinance institution that provides loan to poor people but she created a new model by providing microcredit along with significant services like health and life insurance. Jamii Bora created a remarkable safety net around the members making sure they will be able to reimburse their loan and eventually succeed out of poverty. Throughout Jamii Bora, Ingrid Munro also founded a Business school for the members and primary and high school institutions will be completed soon.

Furthermore, she is supporting and encouraging the members of Jamii Bora in building a new town. The members are building their own town to move out of their slums. They are also building the roads through the new town and all the houses have solar panels for their energy needs. Ingrid proudly mentioned “today Jamii Bora members are building the first eco-town in Africa and we are managing ourselves!”

To conclude in Ms. Munro's own words “everybody is not a success story and some people take a long time, we never give up and one day, they will say I can also make it!”

You can watch the delightful lecture titled “Not even the sky is the limit” here.

Grameen Bank Model Expanded to Mexico with the $45 Million Grameen Carso Microfinance Program

2009-09-25T13:09:00.006-04:00

Grameen Bank has been shaped in 1983, in Bangladesh, by Professor Muhammad Yunus who has been a pioneer in the microcredit field and who was awarded the Nobel Peace Prize in 2006. Today Grameen Bank provides loans to almost 8 million borrowers across Bangladesh. Moreover, in 1989, Mr. Yunus expanded the Grameen Bank model to other countries as he created the Grameen Trust.

Lately, Grameen Trust has joined hands with Fundacion Carlos Slim (family charity of Carlos Slim, 3rd wealthiest man in the world - as per Forbes) to create Grameen Carso. As a recent article reveals “The mission of Grameen Carso is to significantly increase access to affordable micro-credit in Mexico for poverty alleviation through the Grameen Bank microcredit model and the support of Foundation Carlos Slim. Grameen Carso plans to serve more than 100,000 borrowers in the first five years.”

Dutch Princess Maxima in a new role at the United Nations

2009-09-24T14:51:00.009-04:00

Princess Maxima was appointed Special Advocate for Inclusive Finance for Development.

Worldwide still a lot of people do not have access to a bank or any financial products.

UN secretary –general Ban Ki-moon has recently created a new role in the UN Advisors Group. This Special Advocate role to be filled by Princess Maxima will advice Mr.Ban Ki-moon on access to financial services to everyone.

Read the article

Thoughts from a Departing Intern

2009-09-22T14:37:00.009-04:00

As my internship at the Microcredit Summit Campaign comes to an end, I wanted to share my impressions with the readers of this blog. Over the past three months I have learned a lot from the dedicated members of this organization and was given the opportunity to get a better insight into Microfinance thanks to the various conferences I attended and articles I read for this blog.

Believing in the capacity of Microfinance requires us to challenge our mindset, just as all revolutionary discoveries. Microcredit is not a magic wand. It is a complex tool that can change the lives of the poorest inhabitants of our planets when carefully used. Not only does it change those women’s lives financially but above all it changes the perception they have of themselves and the perception their community has of them - making it maybe the greatest empowerment tool. Of course, Microcredit is not flawless, but its practitioners are truly dedicated to find new ways to improve its implementation.

If Microcredit may not lift one hundred per cent of its clients out of poverty, I have come across enough outstanding success stories to believe it is worth the try.

The voiceless of the world need your help to be heard. Every one of us can help make a difference. Like Ingrid Munro declared during the lecture she gave yesterday in NY at the JP Morgan foundation “It is not about the “Yes, we can!”; it is about the “Yes, we must!”

Most sincere thanks to Jeff, Sam and Nick and all the RESULTS team.

Raphaelle

RaceCar Drivers Leverage Twitter to END Poverty with Microfinance

2009-09-18T15:14:00.002-04:00

To kick off Race 4 Change ( http://Race4Change.org ), top Twitter personalities and humanitarians will meet offline & on Twitter for a TweetUp to mix and mingle at one of New York City’s hippest lounges and hear about a daring and dangerous month long racecar rally on Kenya’s rough terrain to raise public awareness and money to end poverty and environmental degradation. By leveraging the microblogging site Twitter, two international financiers-turned-racecar drivers Steven Funk, a Canadian, and Jean-Louis Juchault, a Frenchman, and leading U.S. and African organizations, will launch a massive grassroots campaign throughout the global Twitter community to support the treacherous racecar rally’s goal of ending poverty, expanding microlending, and protecting the environment to transform the lives of Africa’s poorest people.

The grueling road race, to take place in November, is a coordinated effort between the East African Safari Classic Rally, Jamii Bora and Microcredit Summit. 100% of money raised will benefit Kenya-based Jamii Bora Bank, an innovative, world-renowned microcredit lending institution, and the Microcredit Summit Campaign, a global campaign to reach the world’s poorest families, especially women, with credit and financial services. It will host it's next meeting in Kenya in April 2010.

In a day when the smallest effort can make the greatest difference, help show the power of what can happen when a challenge is offered and thousands respond. We can race to make great change! Follow the action in real time at @race4change, and share via your Twitter! Copy and ReTweet the below:

Pls RT: Check out the @race4change Tweetup in #NYC Sept 23, Africa Rally racers fight to end poverty: http://bit.ly/5RPiX #race4change

Jamii Bora helps Kenyans build a new life in Kaputei

2009-09-14T14:14:00.007-04:00

On September 13th, the Seattle Times reported on Jamii Bora success story. Now one of Kenya's largest microfinance organizations, with about 230,000 members, it has gone beyond the wildest imagination of what microfinance organizations are expected to accomplish with its new project.

22 miles outside of Nairobi, Kaputei is a being erected as a new self-contained town that Jamii Bora hopes will someday be home to 10,000 people, schools, shops and small industry.

"To keep costs down, Jamii Bora is manufacturing the building materials on site, providing jobs to its members and others living nearby. Kaputei is also an eco-town of sorts, with houses powered by solar panels and an ambitious plan to recycle 70 percent of the wastewater through man-made wetlands."

Read Full article of Jim Simon and leran more about Jamii Bora here.

Microcredit program aids post-quake reconstruction in Sichuan

2009-09-09T12:15:00.007-04:00

Today China Daily published an article about the story of chineese villagers in Sichuan trying to rebuilt their lives from scratch in the aftermath of the terrible hearthquake that hit their province on May 12, 2008 thanks to the Grameen-CPAD-Danone Micro-Credit Initiative.

"Based in France, Danone, one of the biggest food and beverage producers in the world, has been devoted to poverty relief in rural areas of China. On July 30, 2008, Danone, Grameen Trust (a sister agency of Grameen bank) and CPAD signed a cooperative memorandum to set up the Grameen-CPAD-Danone Micro-Credit Initiative with a donation of 20 million yuan from Danone to assist the quake zone in its reconstruction [...]

Three years after the initiative's launching, it is expected to provide loans totaling 168 million yuan for 24,000 farmers each year. In the long run, the initiative will be spread to more poor regions."

Read full article by Zhang Shining and Huang Zhiling.

Debunking Myths about the Poor and Financial Services

2009-09-08T15:11:00.005-04:00

The Wall Street Journal published on September 4th an interesting article entitled Debunking Myths about the Poor and Financial Services by Suyash Rai, Senior Manager, and Sona Varma, Senior Advisor, with IFMR Trust, a private trust with the mission of ensuring complete access to financial services for individuals and enterprises in India.

The poor are not credit worthy, finance falls lower in the 'hierarchy' of needs for the poor, below health or education,credit is the only financial service required by the poor and finally the poor are not sophisticated in using financial services. Read their full article to see how the two authors debunk those 4 major prejudices often held against microcredit.

Laos’ Forgotten Women

2009-09-03T14:49:00.013-04:00

During a trip to the Ban Hai village in central Laos Charlotte Halligan - who works for the Social and Economic Developers Association in Laos - witnesses for the first time microcredit for women in action. Her article also gives us an insight into a country most people know little about. A country torn between the great beauty of its landscapes and the arch poverty of its people (27% of people live below $1 a day; 75% of people live with less than $2).

"The skills they have, which have been taken for granted for so long, are finally being recognized and for they feel like their opinions and knowledge actually count. Micro-credit offers them the chance to make their own decisions about their futures."

Read her full article published on August 1st in AsianWeek. To learn more about The Social Economic Developers Association and how they finance, educate and empower women to run their businesses profitably clic here.

"The forgotten half of rural finance"

2009-09-01T16:44:00.004-04:00

Is the expression that Robert Vogel uses to qualify the crucial and too often dismissed importance of money-saving. An article published in the Time last week by Barbara Kiviat called "Next Step for Microfinance: Taking Deposits" highlights this issue. One thing that people really need, more than business loans, is a safe place to save their money. The demand for savings accounts sometimes far outstrips the demand for loans. Bank Rakyat in Indonesia, for instance, has 10 savers for every one borrower. "Low-income people need a variety of financial services," says Bob Christen, director of the financial services group at the Gates Foundation, which has given tens of millions of dollars in grants to savings initiatives.

How microfinance has become big business, and should we fear it?

2009-08-31T14:31:00.006-04:00

Last friday The New York Times published an article called "Some Fear Profit Motive to Trump Poverty Efforts in Microfinance" raising the question whether or not big business and microfinance are compatible. The article uses, as an example, the great expansion of PlaNet Finance: a leading international non-profit organization created and based in France with the mission to alleviate poverty through the development of microfinance.

PlaNet Finance now has a staff of 700, active in more than 60 countries. Since 1998, it says it has provided help to 140,000 entrepreneurs and set up $80 million in financing. It also has an investment arm and offers technical assistance to donors and recipients. Some services, like ratings, have become benchmarks; others, like insurance, are less successful.

Companies like PlaNet Finance attract not only public investors, but private ones seeking a “double bottom line” of socially responsible returns. But some in the field worry that the industry may become overly driven by profit and lose sight of its original aim — reducing poverty. There are also persistent questions about debt burdens and regulation. Mr. Attali, the founder of PlaNet Finance, says his company had been pushing two or three years for an international treaty to regulate microfinance and that the aim of microfinance should be creating products that improve lives, so it is not ideally suited to a purely commercial model.

Read the Full article of the New York Times

To learn more about PlaNet Finance, visit their Website

Hans Rosling updates us on Global Development

2009-08-28T17:14:00.002-04:00

Talking at the US State Department this summer, Hans Rosling uses his fascinating data-bubble software to burst myths about the developing world. Look for new analysis on China and the post-bailout world, mixed with classic data shows.

See more of his presentations on global development and poverty at his website gapminder.org.

Hillary on Women’s issues and microcredit

2009-08-27T14:17:00.008-04:00

Last week the New York Time published a 35 minute interview of the US secretary of state, Hillary Clinton, before she left for a 11-day visit to Africa.

Mrs Clinton is a well known international advocate of women's right, but she is also one of the earliest supporter of microcredit. She started to work for microcredit in 1983 and attended the first Microcredit Summit Campaign's Global Summit in Washington in 1997 where we set our goals for 2015.

"I am struck by every international public-opinion poll I’ve ever seen, that the No. 1 thing most men and women want is a good job with a good income. It is at the core of the human aspiration to be able to support oneself, to give one’s children a better future.

Microenterprise is uniquely designed to empower women because — through the trial and error of its development, going back to Muhammad Yunus’s invention of it in Bangladesh — women are much greater at investing in future goods than the men who have participated in microcredit have turned out to be. And they are also very reliable in paying back, because they are so eager to have that extra help and recognition that microcredit provides.

I don’t make a distinction between economic empowerment and political, social empowerment; I think it’s fair to say both need to go hand in hand." She told Mark Landler, the diplomatic correspondent for The New York Times, in this interview.

Read full interview

Nokia, connecting people. All the people.

2009-08-27T12:49:00.002-04:00

Mobile money is one of the hottest topics in the wireless world and the leaders of Nokia have understood it.

According to an Article published on Reuters yesterday (read) Nokia has announced its intention to lauch mobile finance service.

"Mobile-enabled financial services has tremendous growth opportunities," said Nokia Chief Development Officer Mary McDowell to the press last Monday.

Readers contest on global poverty : Share your story

2009-08-25T12:14:00.005-04:00

Are you dedicated to trying to make a difference in poverty and gender issues? Have you been the witness of some organizations or individuals work in that field that moved you? Do you have innovative ideas for helping people? Or do you want to share your photos related to women or girls' education and empowerment?

Nicholas D. Kristof and Sheryl WuDunn, the two authors of the book Half the Sky, encourage you to share your story in a 500 words comment bellow this article by September 23rd. The three selected authors will receive a signed copy of the book Half the Sky: Turning Oppression into Opportunity for Women Worldwide.

Their book is also available on Amazon.

Defending Microfinance in India

2009-08-19T14:32:00.008-04:00

A recent Wall St. Journal article critical of the microfinance market in India has produced sharp rebuttals from many in the microfinance sector. Here is an excellent response from Vikram Akula, CEO and founder of the SKS Microfinance in India.

Read Article

María Otero Confirmed as US Under Secretary of State for Democracy and Global Affairs

2009-08-13T10:45:00.006-04:00

The MCS is thrilled by Mrs. Otero's nomination. As CEO of ACCION since 2000, Mrs. Otero directed an expansion of the organization, from serving 460,000 micro entrepreneurs with micro loans and technical assistance to over 3.7 million, through a portfolio that has grown from $274 million to nearly $3.6 billion. She has been a great advocate of microfinance in her books and has she spoke throughout the world on issues of microfinance, women and poverty alleviation.

In her final message as CEO of ACCION International, Mrs.Otero wrote:

"Microfinance is not a silver bullet. Consumer protection, fair lending, acceptable profits and capital-market investment all remain critical, complex issues that warrant deep consideration and thoughtful debate."

We believe she will be a great asset to this administration and wish her the best as she now continues on with her mission of reinforcing democracy world wild from the Office of the Under Secretary for Democracy and Global Affairs!

Read full article by Robert Kropp

The Microfinance field is "Crisis free"

2009-08-12T17:00:00.005-04:00

Microcredit is "Crisis-free", Professor Yunus tells CNBC today as he receives the Medal of Freedom from the hands of President Barack Obama for being an “an agent of change” and to reward his outstanding contribution in helping to put an end to poverty.

Watch the video below.

Thoughts from a Departing Intern

2009-08-12T16:08:00.003-04:00

I am grateful to have had the opportunity to work with the Campaign these past few months. It has been a very positive experience and the enthusiasm with which the staff of both MCS and RESULTS approaches its work still never ceases to amaze me.

Over the course of my internship, I did a lot of work that revolved around expanding and maintaining communications with our supporters and general stakeholders of the microfinance field. The mission of the Microcredit Summit Campaign to promote microfinance as well as facilitate innovation is truly an admirable and I hope my limited time here has made a contribution, however small, to putting microfinance more at the forefront of development.

I was also given the opportunity to read and blog about latest developments in microfinance, to attend lectures at places such as the World Bank, to research potential partners and donors, and, most importantly, to learn the human stories of those who have successfully utilized microfinance as a means out of poverty. Despite its detractors, microfinance certainly has a place in the fight against global poverty. As a wise man once put it, "It is better to light one small candle than to curse the darkness."

I would like to thank staff members of both MCS and RESULTS Educational Fund for being so helpful and welcoming; I wish them the best in all they do.

Winston

Freedom From Want from Ian Smillie

2009-08-12T16:07:00.005-04:00

Freedom from Want describes the success story of the Global Grassroots Organisazation BRAC whose goal is to end up poverty. It is now available to anyone eager to learn more about the spread of its work in health, education, social enterprise development and microfinance. BRAC's accomplishments are a source of inspiration and hope for the many government or non-profit enterprises who also wish to make a difference in the life of thousands.

This book is available on the Amazon website.

The Green Children Releases Music Video

2009-08-11T16:21:00.006-04:00

The Green Children have been major supporters of microfinance since their first visit to Bangladesh in 2005. They were important supporters of the Global Microcredit Summit in Halifax where there was a sneak preview of one of their music videos during the opening ceremony.

The Green Children have just announced the international release of their single and music video 'Hear Me Now', which celebrates the incredible success of millions of women micro entrepreneurs throughout the world. Inspired by their first trip to Bangladesh, this is a new international version of what they released in Norway in 2006.

The video is FREE for everyone to download and share, just visit here to get your copy.

The song is now up on iTunes, and 50% of the proceeds will go to a new microfinance project in India, run by Whole Planet Foundation. Click here to buy it now!

The Green Children are asking us to spread this positive message, because, with a hand up, great things can happen!

FINO Launches Own Mobile Banking Product

2009-08-11T15:54:00.004-04:00

Financial Information Network and Operations (FINO) has introduced its mobile banking solution that will increase the capabilities of the unbanked and underbanked at reduced costs. According to the Mumbai-based company, the use of mobile banking has increased three times over the past two years. Additionally, at least 36% of the population is literate and has mobile phones but no access to direct credit.

The introduction of this new FINO-MITRA mobile banking will hopefully allow more of the 8 million rural mobile subscribers in India to be reached. For more information about this new product by FINO, please visit the article at Microfinance Focus HERE.

Dreams From His Mother

2009-08-11T15:24:00.009-04:00

Dreams From His Mother

Op-Ed by MICHAEL R. DOVE

On August 10^th, The New York Times published an interesting Op-Ed of Professor Michael R. Dove who teaches social ecology and anthropology at Yale.

Pr. Dove, who knew President Obama’s late mother Ann Dunham Soetoro both as a friend and colleague, describes her as a pioneer of Microcredit in Indonesia. He emphasizes that her dedication and her work combined, like her personality, both audacity and cultural sensitivity, two core tenets she seems to have passed on to the 44^th President of the United States she raised.

Extract from the Op-Ed:

“She [Dr. Soetoro] helped to pioneer microcredit programs that made small amounts of capital available to weavers, blacksmiths and other low-income groups — people who would otherwise have had no access to credit.

It’s worth pointing out that though microenterprise is fairly well-known today — and Indonesia now has one of the world’s largest microcredit programs — it was pretty radical stuff when Ann Soetoro was doing her work. But then, she had a habit of swimming against the current.”

Read the full article.

Congratulations to Professor Muhammad Yunus

2009-08-05T15:38:00.004-04:00

On August 13, 2009, Muhammad Yunus will receive the Presidential Medal of Freedom from Barack Obama. Join people from around the world in congratulating Professor Yunus on being awarded the 2009 Presidential Medal of Freedom. It is a richly deserved recognition of his more than 33 years of fighting poverty and giving the world's poorest people, mostly women, the resources they need to start their journey from poverty. Click here if you wish to leave a congratulatory message for Professor Yunus at the Grameen Foundation's website.

Click here to see the Grameen Press Release for some more information about this honorary award.

Muhammad Yunus to Receive Presidential Medal of Freedom

2009-07-30T15:26:00.002-04:00

The Microcredit Summit Campaign extends its deepest congratulations to Professor Muhammad Yunus, Managing Director of Grameen Bank and a member of the Microcredit Summit Campaign Executive Committee. The White House announced today that Professor Yunus will be one of the sixteen recepients of teh 2009 U.S. Presidential Medal of Freedom. The Medal of Freedom is the highest civilian award. Professor Yunus will receive the award from President Barack Obama at a White House ceremony on August 12, 2009.

Other recipients receiving this honor along with Professor Yunus include: Mary Robinson, first female President of Ireland and former United Nations High Commissioner for Human Rights, as well as Desmond Tutu, a leading human rights activist from South Africa.

This award recognizes a diverse set of achievements and contributions to the security or national interests of the United States, to world peace, and to cultural or other significant public or private endeavors have. Past recipients have included Colombian President Alvaro Uribe, Pope John Paul II, Lucille Ball, Henry Kissinger, and many others. For a list of past recipients please CLICK HERE.

CLICK HERE to read the official White House press release on the Presidential medal of Honor.

Video from Unitus

2009-07-28T14:55:00.006-04:00

Unitus released an Introductory video on YouTube. Unitus is an international nonprofit organization that fights global poverty by accelerating the growth of microfinance—small loans and other financial tools for self-empowerment—where it is needed most. The organization seeks out and partners with young, high-potential microfinance institutions (small banking organizations that serve the poor, often called MFIs), to help them build capacity, attract capital, and unite with the broader microfinance network. Watch the video to learn how Unitus works. And click on the Unitus logo below to visit the organization's website.

Goodbye Bloggers - Reflection from a Departing Intern

2009-07-28T14:52:00.001-04:00

It has been an incredible two-month experience for me here at MCS. The Microcredit Summit Campaign is an interesting place: part advocacy, part research, part event-planning...

As an intern, I was asked to spend much of my time scouring the internet for the newest stories and developments in microfinance (particularly for this blog). It was a chance to read and, more importantly, to reflect.

Slowly, but surely, the world is changing. And with the work I've done here, I know that microfinance will one day bring about a very profound change. What did the articles and news stories teach me? Successful microfinance combines the money and altruism of traditional aid, with a more comprehensive understanding of causality and a personalized process of educating the poor recepients. Sure, there are plenty of critics and skeptics of our campaign against global poverty, but the small deeds of thousands of microfinance institutions cannot be ignored. Especially for the extreme poor and those who are most in need, the smallest of donations and the most basic of modern technological tools (as simple as a cell phone) could mean life-altering changes. Microfinance is important, and a path worth sticking to.

Beyond the general field of microfinance... My tasks here gave me a wider appreciation for not just the planning and coordination it takes to flawlessly execute regional and global conferences, but also for the broader passion that infuses the work. The staff meetings for both MCS and RESULTS exhibited the highest levels of enthusiasm. I loved how the work environment was always encouraging and up-beat. It was the frequent exchanges of "Thank you"s, "Congratulations"s, and "Well Done"s that truly impressed upon me one of the biggest lessons of my internship. It is always important to express gratitude. In the hectic times of planning an event, taking dozens of calls, and shuffling through endless amounts of data and paperwork, it is often easy to forget how important this work really is... that at the end of the conference, the phone calls, the data, and the paperwork, there is the collective achievement of a very big goal.

My tasks may often have been tedious and, in the overall structure of the organization, my contributions may have been minute, but I thoroughly cherished all the moments of my internship. Thank you to all in the office and in the broader RESULTS-MCS family. Thank you for letting me be a part of you. Good luck to you all. I look forward to hearing more and more about your successes. I'm sure there will be many.

CGAP Photo Contest

2009-07-24T11:36:00.000-04:00

The 2009 CGAP Photo Contest is NOW open for entries!

CGAP Photo Contest

The Consultative Group to Assist the Poor (CGAP) invites photographers of all levels of expertise to enter the CGAP Microfinance Photography Contest. The contest will allow us to share striking images of financial services reaching poor people today. Microfinance around the world is a varied and rapidly developing field. We hope to capture in these images the diversity, dynamism, and impact of our work.

The winning images will be published by CGAP in a publication and on www.cgap.org, and a slideshow and screensaver will be shared with the industry for use at conferences and in offices around the world. Winning images may be printed for exhibition at the World Bank in Washington, D.C., and displayed online.

For more information, including the contest guidelines, prize list, and online entry form, visit the website at http://www.cgap.org/photocontest.

Follow Peter Olivier's Blog!

2009-07-21T15:12:00.002-04:00

Peter Olivier, who served on our staff at the Microcredit Summit Campaign from 2008-2009 and was an excellent Project Manager for the Latin America-Caribbean Regional summit in Colombia, June, is beginning six weeks of travel throughout Latin America during which time he will be investigating the client outcomes from the perspectives of all participants in the microfinance process.

His research helps to answer the growing need for reliable, detailed social performance measurements (SPM) in the field. He will be conducting a number of interviews with parties at every level of the process but they will be roughly divided into two types:

Once a week he will meet MFI leaders on behalf of The MIX and asking them for their opinion on how and why people are measuring social performance.
He will also meet with local MFI staff and clients to discuss their perceptions on the social effects of microfinance.

Peter will be posting his interviews and blogging about his experience and own thoughts during this time. We hope you will join us in following him on his exciting and thought-provoking trip!

You can follow along at: http://mfprimarysource.wordpress.com/

Sam Daley-Harris on Kiva

2009-07-21T11:07:00.002-04:00

This month's MIT Press publication of its Innovations: Technology, Governance, Globalization Journal featured a piece by Kiva co-founder, Matt Flannery. Microcredit Summit Campaign Director Sam Daley-Harris was asked to respond to Flannery's piece, "Kiva at Four". CLICK HERE for the full journal issue, including Sam Daley-Harris's response piece.

Microfinance Information Exchange Website Relaunch

2009-07-20T11:42:00.003-04:00

The Microfinance Information Exchange (MIX) is an exciting tool that allows you to easily access current and historical data on microfinance performance. Their new website relaunch now provides even more data, improved search functions and feeds, and new download capabilities. Their valuable services have proved to be a tremendous asset to the Microcredit Summit Campaign over the years and we hope you that you explore their resources as well!

Their new, improved website can be reached here

Wokai

2009-07-16T13:25:00.002-04:00

Casey Wilson and Courtney McColgan met at Tsinghua University in Beijing, in 2006. Combining their passions, they started Wokai. "Wokai" in Chinese means "I start". Wokai is a non-profit organization that gives microloans to impoverished entrepreneurs in rural China.

China has a population of over 1 billion people. And approximately 200 million of that population lives on less than $1 a day. China's rapid economic growth has left it with one of the most severe income gaps in the developing world. The urban areas are marked by the same decadence as the developed world; skyscrapers, luxury cars, public services, and abundant employment opportunities. Unfortunately, that same boom has left rural incomes and living standards stagnant. Rural residents often lack the basic infrastructure necessary for development. During their time in China, Wilson and McColgan realized that they could do something. Wokai is similar to Kiva, harnessing the power of the internet to gain exposure and donors. Please watch Business World's news clip about Wokai and visit their site.

Muhammad Yunus Speaks on Ending Global Poverty

2009-07-14T13:50:00.007-04:00

Social Earth put up a new video featuring Muhammad Yunus. Please watch it below or CLICK HERE to watch directly on the Social Earth website.

The Next Banking Revolution begins with Microfinance

2009-07-10T09:21:00.003-04:00

The Wall Street Journal's Market Watch had an interesting article today by Elizabeth Rhyne. As the world slowly pulls out of the massive recession, banks must combat new hurdles. And as Rhyne puts it, that has "nothing to do with exotic financial engineering".

Instead many banks and others in the financial sector are returning to the basics in microfinance: "relationship banking, strong underwriting, and transparent products". Providing not just microcredit, but broader financial services to poor people worldwide could prove to be truly revolutionizing for the banking industry. Especially when the world's poorest represent an estimated $5 trillion in purchasing power.

Read more commentary from Elizabeth Rhyne and learn about the next revolution HERE.
Elizabeth Rhyne is the Managing Director at the Center of Financial Inclusion of Accion International. Parts of the article were adapted from her forthcoming book, "Microfinance for Bankers and Investors: Understanding the Opportunity at the Bottom of the Pyramid."

Powerpoints and Audio from LACRMS

2009-07-08T12:18:00.002-04:00

We have successfully uploaded and linked all available Powerpoint Presentations! They are now on the same page as the audio files from the 2009 Latin America - Caribbean Regional Microcredit Summit! Please click here to view the multimedia files. We hope that you take advantage of all of this information!

Listen to LACRMS

2009-07-06T11:34:00.002-04:00

The audio files from workshop sessions at the 2009 Latin America-Caribbean Regional Summit are finally up! We have been working on these files for weeks now. Please go to our website. You will find links to playlists for each speaker's presentation, as well as playlists for Question and Answer sessions from each workshop.

Please be aware that due to website limitations, each audio files was cut to be 8 minutes or less. Therefore, there are multiple files for each speaker. They are titled to show the chronological order of the files, for your convenience.

We welcome your feedback on the accessibility, organization, and content of these audio files. So please comment back.

Please be patient, we are working very hard to bring you PowerPoint presentation files and videos from the Summit very soon!

Save the Date

2009-07-06T09:43:00.001-04:00

The Campaign is proud to announce that the Africa and Middle East Regional Microcredit Summit will be held April 7 - 10, 2010. The Summit will be hosted in Nairobi, Kenya. We hope you will mark your calendars and join Nobel Peace Prize Laureate Muhammad Yunus and others in this sure-to-be groundbreaking event. We will let you know as more info comes.

Grameen Foundation Launches Mobile Services for Uganda's Poor

2009-06-29T10:28:00.004-04:00

The Grameen Foundation launched new mobile services today, targeting Uganda's poor and disadvantaged. This field-based program in Uganda is based on an innovative partnership that strategically combines the resources and experience of Grameen Foundation, Google, and MTN. For eighteen months, GF's Application Lab (AppLab) has been researching and designing these services. The applications deliver services and information that were previously unavailable to Uganda’s poor and disadvantaged communities. According to GF's Press Release, these applications provide real-time information, including:

Farmer’s Friend, a searchable database with both agricultural advice and targeted weather forecasts;
Health Tips which provides sexual and reproductive health information, paired with Clinic Finder, which helps locate nearby health clinics and their services;
Google Trader, which matches buyers and sellers of agricultural produce and commodities as well as other products

The services are SMS-based and designed to work with basic mobile phones to reach the broadest possible audience. Users can access the services quickly and privately. For those who do not have a mobile phone, the services will still be easily accessible through existing Village Phone Operators (VPOs).

AppLab is researching more "sustainable and scalable models". Like the first five applications, future endeavors will continue to " put critical information and knowledge directly into the hands of poor people who have access to mobile devices, in an effort to further alleviate poverty".

Microinsurance, the Next Big Breakthrough?

2009-06-26T09:51:00.004-04:00

Last year, Forbes magazine ran an op-ed piece recognizing microinsurance as a way for the financial services sector to diversify and support itself during the global economic crisis. The op-ed concluded saying, “And most important: Done right, microinsurance is a rapidly expanding and highly profitable business." Those in the business world may be concerned about the bottom line, but there are also widely-recognized social benefits.

Like microfinance, microinsurance enables the poor in developing countries to access key services. According to the Digital Journal, "Farmers will take chances with new seed stocks; or people who have been devastated by natural disasters such as hurricanes, floods or other catastrophes will no longer have to lose everything. And should people wish, they can purchase life insurance, which would help pay for the rising costs of funerary services." The Leap Frog Financial Inclusion Fund is hailing the recent boom of microinsurance as the a major breakthrough. The Fund will start providing these insurance products to an estimated 25 million low-income people in Africa and Asia. With over an estimated one billion living in extreme poverty, microinsurance seems like a win-win situation.

To read more from the Digital Journal, please click here.
And to see Reuter's article on microinsurance, please click here.

UNIFEM Chimes In

2009-06-25T10:47:00.005-04:00

Government plans need to reflect women’s realities as workers and shock absorbers of society to be truly effective

The United Nations Development Fund for Women (UNIFEM) released an assessment report today, analyzing the impact of economic downturns and subsequent economic stimulus packages on the welfare of women. UNIFEM is urging governments to treat economic stimulus packages not as "quick-fixes", but as an opportunity to reform economic policies to be more responsive to gender issues.

70% of the world's poor are women. Women therefore represent the large majority of low-skill, migrant workers. Therefore they are often hardest hit by economic downturns. UNIFEM's report noted that, "The credit squeeze could hurt microfinance lending in South Asia, which accounts for more than 50 percent of global demand for microfinance, with women being majority of the clients."

According to the news release, key findings and recommendations include:

If seen as a development instruments and not just short-term response to the crisis, stimulus packages can make far-reaching changes in macroeconomic policy and expenditure frameworks to ensure that women’s contributions to economic recovery and future growth are fully harnessed, and gender outcomes are achieved.
New or increased spending on social protection schemes needs to be directed towards reaching women in the informal sector and supporting female migrant workers who have been displaced.
Stimulus measures aimed at firms should also target sectors where women make up a good proportion of the labour force, such as export manufacturing.
Social protection mechanisms could be linked to training and enterprise development, to ensure that social protection contributes to growth.

To learn more about UNIFEM's Report, Making Economic Stimulus Packages Work for Women, please click here.

A High School Microcredit Bank

2009-06-24T11:12:00.004-04:00

An encouraging new trend in microfinance has been the increases of projects led by teenagers.

The Meadows is an elite private high school in Las Vegas, Nevada. Last year, a small group of these high schoolers decided to start their own microbank. Justin Blau is the student mastermind behind the project, now the Chief Executive of Meadows High Microbank. More than just an after school club, the Microbank has real world impact.

The students began by raising over $25,000 in seed money. According to the Las Vegas Sun, the students set strict lending standards, "including that no more than 15 percent of the bank’s capital be in a single country, and that no loans are made through microfinance institutions that have a default rate greater than 5 percent. The default rate is significantly higher for U.S. microloans, so the students have opted for less risky international lending." Harnessing the powers of internet research, the students carefully weeded through the dozens of microfinance institutions, settling on a few big name programs like Kiva and MicroPlace.com, among others.

The Microbank has been a rewarding learning experience, and also successful and profitable. The microbank’s balance at the end of the academic year is expected to be about $30,000.

Microfinance, Made Easy

2009-06-23T10:37:00.007-04:00

Kate Smith Milway may be a big businesswoman working with an international consulting group in Boston, but she seized on something very basic. She says,

"You ask any third, fourth, fifth grader, 'Have you started a business?' and they say, 'Oh, yes, I sell Girl Guide cookies, I babysit, I walk dogs, I have a lemonade stand.'... Ask high-school kids how many started a business, and few hands go up, because by then business is a big, complicated thing."

That is why she decided to write a children's book. One Hen (subtitled How One Small Loan Made a Big Difference) explains the concept of microfinance in the developing world to children aged 8 to 12. Inspired by a true story, One Hen shares the story of Kojo, a small boy in Ghana who receives a small loan to buy a hen. He laters grows up to be the owner of one of the largest poultry farms in West Africa.

Then to expand on the book and its lessons, Milway partnered with Microplace and Opportunity International to start an organization. Its associated website (www.onehen.org) has many functions. On one hand, the kid-friendly site provides interactive games to further understand microfinance. In the game, kids earn and lend beads to Third World entrepreneurs, whose stories are featured. And on the other hand, the site leads to real financial investment. For each bead lent, the site makes a donation to one of Opportunity International's entrepreneurs. The website also provides curriculum material for teachers and librarians.

What started with just one children's book has sprung into something much greater. In just one year since the book was published, One Hen Inc has raised over $50,000 and lent it out as microloans to people in Africa. The organization is mostly volunteer-run, but hopes to continue educating the a new generation of socially responsible global citizens.

Signing Ceremony for 2011 Global Summit

2009-06-19T11:13:00.002-04:00

The Spanish Secretary of State for International Cooperation, Soraya Rodriguez signed the official agreement between the Spanish Agency of International Development Cooperation (AECI) and the RESULTS Educational Fund. Spain is the second largest bilateral donor to international microfinance. The signing was presided over by Queen Sofia, the honorary co-chair of the Microcredit Summit Campaign. She emphasized her belief that the Global Summit in 2011 will have a positive impact, improve the microfinance field, and help acheive the Millennium Development Goals. Queen Sofia said that she hoped that the Global Summit will become a landmark in the economic and social development of the poor. The 2011 Global Summit in Valladoid, Spain is expected to bring together over 2,000 delegates, from over a hundred countries.
To read more of our Campaign News, please see our Microcredit Summit Campaign website!

Revolutionizing Repayment

2009-06-17T09:45:00.001-04:00

Basic economics tells us that the most successful businesses are those that can reduce costs and increase efficiency. Microfinance institutions are no different. World Vision Georgia's microfinance organization, Credo, has launched a new, more efficient form of loan repayment. Credo now allows microcredit recipients to repay their loans at no charge via Payment Machines, called "PayBox". They are located in shops, streets, and villages all across the country. PayBoxes are designed to increase convenience, save time for clients, and save Credo significant costs. PayBox repayment comes as just one step in Credo's attempt to focus more on rural lending.

Credo’s mission is providing sustainable financial services to the entrepreneurial poor and Georgian micro- and small businesses, with a preference for rural activities and those businesses that create income and employment opportunities for the poor. Credo has its roots in the Georgia’s Entrepreneurs’ Fund, which began after the collapse of the Soviet Union and the Georgian Civil Wars. The Fund went through several transformations, finally resulting in the 2007 establishment of the LCC Microfinance Organization Credo.

To learn more about Credo, please visit their website.
To read more about Credo's use of PayBoxes, click here.

Tweet Tweet

2009-06-16T16:13:00.001-04:00

We have created a Twitter page! Please visit our page and let us follow you: www.twitter.com/MicroCredSummit. Our interns and staff will continue to update this blog. But the Twitter feed will be used as just another source of information -- for news clips, photos, and thoughts from the office.

Photos from Cartagena

2009-06-16T14:24:00.000-04:00

We have just uploaded some photos from the Latin America - Caribbean Regional Summit! Photos of the Summit, Conference Center, the exhibition stands, and Cartagena --- They are all posted in an album, on our Facebook Page. Friend us, as another way to stay in touch and receive our many updates.

Recaps of the Summit

2009-06-16T11:24:00.000-04:00

MCS's Latin America - Caribbean Regional Summit has officially come to an end. But if you want to check out recaps of the Plenary sessions and Workshops, please visit this blog. Lisa Laegreid did a tremendous job in summarizing the major talking points of each session. Thanks MicroLinks for the support in putting on this summit conference!

Mobile Banking to Reach the Poor

2009-06-16T09:38:00.000-04:00

Mobile banking has been the less-understood brother of the more popular online banking. But microfinance policy and research centers, like CGAP, are predicting that as mobile phone usage rapidly increases, so too will mobile banking. Mobile Money refers to a PIN-based mobile payment system that utilizes the mobile device to buy and sell anytime and anywhere. This gives the freedom to shoppers to buy products online and pay the merchant using his/her mobile phone without being physically present at the store. Mobile banking began with simple services, like text message cash transfers, and has rapidly expanded, like paying for a haircut or dinner at a restaurant.

In Africa, only one in five people have a bank account. In these emerging markets, there are one billion people who have cellphones, but no bank account. This is why CGAP is estimating that the mobile financial service market will boom from zero to $5 billion, by 2012.

To read more, please click here.

Women in Microfinance

2009-06-15T10:01:00.000-04:00

Two articles came to our attention this morning.

First is a press release from Oikocredit. Oikocredit is one of the largest sources of private funding to the microfinance sector. The organization also provide credit to trade cooperatives, fair trade organizations, and small-to-medium enterprises (SMEs) in the developing world. Oikocredit released its International Empowerment Study, an investigation of microcredit, fair finance, and women's empowerment. The results show "no matter where you’re from, no matter what you do, the empowerment of women is a vital consequence of fair finance". And economic empowerment and women's rights are interdependent.

Combine those results with this new article on Zimbabwe and there is a powerful message. Zimbabwe's microfinance institutions have found a valuable wealth of agricultural knowledge in the matriarchs of local families. These "momtrepeneurs" (mom entrepreneurs) have lifted their families out of "grinding poverty", while reportedly their husbands were more inclined to squander a year's earnings in the "bright lights of the city".

When economic crisis hits, women and children are the most vulnerable. The current global financial turmoil has led to declining investment, slower growth and a shrinking tax revenue base, resulting in rising unemployment. Women constitute a greater majority of the world's population. If we're working for growth and economic empowerment, who better to drive this change forward than women?

New Credit Risk Rating Project by MIF & CAF

2009-06-12T15:37:00.001-04:00

The Inter-American Development Bank's Multilateral Investment Fund (MIF) and Corporación Andina de Fomento (CAF) announced recently that they will support a project to assist MFIs in the Latin America/Caribbean region obtain credit risk ratings and performance assessments. Such reports will increase the level of transparency and understanding between donors, practitioners, and borrowers. A study done by MIF concluded that microfinance institutions that underwent ratings and scrutiny saw greater amounts of funding made available to them by donors.

This new project will target MFIs with loan portfolios ranging from $1m-$15m USD and the cost of assessment will be in part borne upon the MIF and CAF. Hopefully it will also serve to encourage regional MFIs to share their experiences and industry best practice.

Kiva to Expand

2009-06-11T13:06:00.001-04:00

Kiva.org has focused its work in forty-four impoverished nations, for the past three and a half years. But given the global recession, US banks have slowed its lending to small business owners. Therefore, Kiva announced yesterday that it will expand its online loan program to microentrepreneurs in the United States. The U.S. listings will start with about 45 businesses in Boston, New York, Miami, Atlanta and San Francisco.

Kiva's mission is to connect people through lending for the sake of alleviating poverty. Kiva is the world's first person-to-person micro-lending website, empowering individuals to lend directly to unique entrepreneurs around the globe.

To read more about their expansion, click here.
To learn more about Kiva and to join the "crowd-funding", please visit their website.

Lend for Peace

2009-06-10T14:09:00.000-04:00

Microfinance serves many purposes. Most notably, we have seen its positive effects on expanding the economic situations of the world's poorest. But, what if it could also create world peace?

A group of four students -- two Jewish and two Palestinian -- have united at Penn State University. In February, they launched a not-for-profit internet platform LendforPeace.org. The website allows individuals to make small loans to specific micro-entrepreneurs in the West Bank, which in turn will allow the "Palestinian micro-entrepreneurs to lift themselves out of poverty by building sustainable businesses". LendforPeace.org has considerable backing, recently being featured on Fox News and receiving grants from the likes of the Clinton Global Initiative. The founders have also formalized relations with Middle Eastern microfinance institutions, as well as with USAID, the US Government's humanitarian assistance agency.

These students are answering President Obama's call to action, for people of all nationalities to "turn dialogue into interfaith service so bridges between peoples lead to action." We wish them all the luck.

Please click here to read the full article.
And visit the Lend for Peace website here.

Last Day of Regional Summit

2009-06-10T09:45:00.000-04:00

It is the last day of our Latin America - Caribbean Regional Summit. We hope you have enjoyed all of our exhilarating discussions. Please tune into our live webcast today to catch the last two plenary sessions of this Summit. All of our webcasts will soon be available for on-demand viewing, as well.

WEDNESDAY, JUNE 10

10:00 – 11:30 am
BUILDING DOMESTIC FINANCIAL SYSTEMS THAT WORK FOR THE MAJORITY
Chair | Carlos Moya Franco, Presidente, Banca de las Oportunidades, Colombia
Panelist | Reynold Marconi Ojeda, Gerente, Finrural - Asociación de Instituciones Financieras para el Desarrollo Rural, Bolivia
Panelist | Chuck Waterfield, MicroFinance Transparency, USA
Panelist | Nelson Avila, Ministro Asesor Económico de la Presidencia de la República, Republica de Honduras, Honduras

4:45 – 6:15 pm
CONVERSATION ON POLICY PROPOSALS FOR LATIN AMERICAN PRESIDENTS
Prof. Muhammad Yunus, Managing Director, Grameen Bank
Dr. Alejando Toledo, Former President of Peru

Remarks at Opening Ceremony by Colombian President Álvaro Uribe Velez

2009-06-09T16:16:00.000-04:00

President Uribe re-emphasized on Monday the importance of microfinance as well as the positive impact it has had in Colombia and much of the Developing World. The introduction of microfinance into areas that otherwise lack access to traditional forms of finance will undoubtedly raise living standards and welfare, he said. Uribe points out that such an all-inclusive system of finance has already done much in Colombia to raise the nutritional and educational standards of Colombia. This year alone, microfinance was able to touch nearly four million Colombians, two million of which for the first time.

Even in spite of the current economic downturn, Uribe believes that microfinance will play pivotal roles in both revitalizing the economy out of the slump and its long term development down the road. He praised microfinance and the work of many MFIs as the "best solution at the lowest cost" and, in his closing remarks, made calls to make access to microcredit easier and faster.

Link to the speech

LACRMS Continues

2009-06-09T10:06:00.001-04:00

Yesterday, the Microcredit Summit Campaign's Latin America - Caribbean Regional Summit opened with over 1,100 delegates in attendance! The discussions continue today. Please tune into our live webcast.

9:30 – 11:15 am MICROFINANCE DEVELOPMENT IN COLOMBIA

3:00 – 4:45 pm THE FUTURE FACE OF MICROFINANCE:
SHORT TERM AND LONG TERM EXPANSION IN THE FACE OF THE FINANCIAL CRISIS AND FLUCTUATING FOOD AND FUEL COSTS
Panelist | Carmen Velasco, Co-Founder and Director, Pro Mujer, Bolivia
Panelist | Muhammad Yunus, Managing Director, Grameen Bank, Bangladesh
Panelist | Reynold Walter, Director Ejecutivo, Fundacion de Asesoria Financiera a Instituciones de Desarrollo y Servicio Social, Guatemala
Panelist | Elisabeth Rhyne, Managing Director, Center for Financial Inclusion at ACCION, USA

5:15 – 7:00 pm FACTORS THAT CONTRIBUTE TO EXPONENTIAL GROWTH:
CASE STUDIES FOR MASSIVE OUTREACH TO THE POOR AND THE POOREST
Chair |Alex Counts, Grameen Foundation, USA
Panelist | Eulalia Arboleda de Montes, BCSC, Colombia
Panelist | Stelio Gama Lyra Jr., Superintendente- Area de Microfinancas e Projetos Especiais, Crediamigo, Brazil
Panelist | Carlos Danel, Co-CEO, Financiera Compartamos, S.A de C.V. SFOL, Mexico

“Bank for the Unbanked” Comes to America

2009-06-08T15:35:00.000-04:00

Another interesting article on Muhammad Yunus...

Yunus recently brought hsi world-renown Grameen microfinance model to America. What had been increasingly labeled as a "Third World" project, Yunus decided to implant his ideas into the heart of New York City. Beginning in modest numbers, as did the original Grameen Bank in Bangladesh, Grameen America is a small project that currently serves about 600 borrowers. Grameen America faces many challenges, including: different social circumstances than what Yunus saw in Bangladesh, a more rigid financial structure, and especially difficult -- the perception that microfinance is only for underdeveloped, third world countries.

Extreme poverty knows no boundaries. Although the country as a whole may be significantly better off than the Third World, the US government still estimates that 12% - 17% of the American population lives below the poverty line. Facing these challenges and our current economic times, what does Muhammad Yunus hope for in Grameen America? That more people will be let into the financial system. Indeed, this is an important goal, even in the world's richest nation.

Latin America - Caribbean Regional Summit 2009 Begins Today

2009-06-08T09:08:00.000-04:00

Our Latin America – Caribbean Regional Summit begins this morning in Cartagena, Colombia. It will be an exciting time of discussion over some of the most important topics facing us in the development world, today. For the very first time, the Summit's Opening Ceremony and all plenary sessions will be available on the web, in real time. Videos of the Opening Ceremony and Plenary sessions will be available shortly , courtesy of MotoSat. We encourage you to join us for these discussions from the comfort of your office by taking advantage of this free service.

Please CLICK HERE to link directly to the webcast.

The schedule for today’s viewing is as follows:

MONDAY, JUNE 8
10:00 am – 1:00 pm (EST)
OPENING CEREMONY
Director, Microcredit Summit Campaign, Mr. Sam Daley-Harris
Minister of Commerce, Industry and Tourism of Colombia, Luis Guillermo Plata
Managing Director, Grameen Bank, Prof. Muhammad Yunus
President of Colombia, Mr. Alvaro Uribe

2:30 – 4:00 pm (EST)
BREAKING THE RULES OF MICROFINANCE TO BETTER END POVERTY:
INNOVATIONS FROM AROUND THE WORLD
Chair | Julio Flores Coca, Director, Red Centroamericana de Microfinanzas
Panelist | Anne Hastings, Director, Fonkoze - Fondasyon Kole Zepòl, Haiti
Panelist | Ingrid Munro, Executive Director, Jamii Bora, Kenya

Jamii Bora Builds Kaputei

2009-06-03T16:10:00.000-04:00

We've seen the infomercials: the sad pictures of poor young children, living in shanty towns under no more than a few cardboard boxes and sticks. From what even the newest reader knows, one can picture hundreds of those slum towns, littering the continent of Africa. Daniel Howdon of The Independent recently wrote an article about the transformation of one such population into what he called a "shining town on a hill". It's an interesting article to read, especially in the context of my previous post, "Nicholas Kristof and Microfinance in Africa".

We briefly mentioned her before, Ingrid Munro of the Kenya-based, nonprofit organization, Jamii Bora is an example of microfinance success in Africa. What began as just one women giving small loans to 50 beggars in the streets of Kenya has blossomed into a true microfinance organization, servicing 170,000 members in over72 branches all over Kenya.

Howdon's article highlighted something that we find unique to microfinance organizations, this "can-do" attitude. An underdog mentality means that organizations (like Jamii Bora) refuse to succumb to the bureaucratic and political pitfalls.

"When Jamii Bora found that the Kenya power corporation wanted a fortune to connect the town to the grid, their attitude was "we'll do it ourselves". So they built their own renewable power station. When builders' merchants wanted to overcharge for breeze blocks and tiles, they built their own factories which now provide jobs as well as materials. Kaputei's houses are powered by solar panels and its water will be processed by one of the first ecologically sound recycling plants in Africa."

Jamii Bora's Kaputei town is a shining beacon on the hill, built in the Kenyan countryside. The goal is to transmute slum populations to this community. Kaputei has neat rows of clay-tiled roofs. Most of the houses have running water. And some of these poor are experiencing flushing toilets for the first time. The tireless workers of Jamii Bora sprouted a town worth remembering, and style worth emulating.

That's why we think microfinance is a success in Africa. Because these small do-gooders will continue to push their way through the red tape. Not only that, but these small successes are proving a far greater point. True, these microfinance organizations are maneuvering succesfully through poverty-stricken regions. We think the greater point is that, in the long run, development and poverty alleviation will no longer be a Western-run field.

Clarice Adhiambo was one of Ingrid Munro's very first microcredit clients. Clarice used her first loan to begin a very small business, selling fish and chips as an inexpensive lunch for workers. She grew her business, loan by loan. And today, she is a wholesale retailer to vendors, shops, hotels, and restaurants. She also continues to work with Jamii Bora; inspiring and encouraging otherse to follow her lead.

Some have criticized development workers. Although they may have benevolent intentions, these critics argued that none of these projects were sustainable in the long run because Africans were not solving their own problems. Well, Jamii Bora and its army of members are proving the critics wrong. It's the beauty of microfinance. The formerly-helpless individuals become the strongest proponents. The newly empowered serve on advisory boards and they become directly involved in expanding projects. In short, the poor take ownership of their own development. So although we may still see faults in the overall picture of development in Africa, microfinance will continue to slowly chip away at poverty.

ACCION’s Maria Otera Nominated for Department of State

2009-06-03T12:20:00.000-04:00

Exciting news came from the White House, nominating Maria Otero to the position of Under Secretary of Global Affairs at the Department of State.

Maria Otero is currently serving as ACCION International’s President and CEO. ACCION International is a private, nonprofit organization. Its mission is to give people the financial tools they need to work their way out of poverty. ACCION commitment to providing microenterprise loans, business training, and other financial services to the world’s poorest has made this organization a world pioneer in microfinance. During her tenure, the number of poor micro-entrepreneurs served by ACCION’s network has expanded considerably, to an astounding 3.7 million members served, in over 25 countries. She has published extensively on the subject and spoken around the world on microfinance, women’s issues, and poverty alleviation.

This nomination marks a pivotal moment for the microfinance world. In these harsh economic times, it would be easy for the richest nation in the world to forget its less fortunate neighbors, focusing inward instead. Especially given our history of only half-hearted commitments to development, it is an encouraging image to see -- Maria Otero, who has devoted her life to microfinance and poverty alleviation, will garner an important title. As Under Secretary of Global Affairs, this pioneering leader will coordinate US foreign policy on a variety of global issues – including democracy, human rights, environment, health and science, population, and refugees and migration. She will undeniably bring her vast experience and knowledge to this influential role. And perhaps, we will see some positive and substantive changes in American foreign policy.

Maria Otero’s nomination will face Senate Confirmation in the next few weeks. To read more, click here.