Posts Tagged ‘poor’

Posted on November 17, 2009 - by boris

Credit firms use social link to help poor access loans…

Posted on November 9, 2009 - by boris

Helping the poor just got popular…

Since Muhammad Yunus won the Nobel prize in 2006 along with the Grameen Bank he founded for the poverty-bound entrepreneurs of Bangladesh, microfinance has entered the consciousness of the investment community.

The concept of lending small amounts to very poor women, each borrower part of a group that is jointly responsible for repayment, has been extended and modified as it moved to different economies with other requirements. The common thread is providing relatively small loans to people who would otherwise not have banking facilities.

While the original concept was all about lending a helping hand to lift people out of poverty, the inevitable result of the structure was that investors would see it as an opportunity.

Read more

Source: http://www.ft.com/cms/s/0/e3bde38c-cb06-11de-97e0-00144feabdc0.html

Posted on June 25, 2009 - by Gavin

Micro-finance can boost labour class income…

The Nation

KARACHI – The success of micro-finance institutions around the globe has established that it could make an important contribution in improving the socio-economic conditions of the poor. All stakeholders of micro-finance industry in the country need to realise that micro-finance is but one element of a
comprehensive strategy to combat poverty.

Interventions based on this can indeed lead to poverty alleviation, at macro scale, reports SBP publication, Towards Achieving Social and Financial Sustainability: A study on the performance of micro-finance in Pakistan.

The survey results revealed that the availability of loan had a partial impact to reduce the incidence of child labour.Though respondents expressed rise in their income levels as a result of availing the loan but it alone did not serve as a universal remedy to fully convince parents to take their children out of
work.

(more…)

Posted on June 15, 2009 - by Gavin

Mobile money to the poor will see $5 bln market in 2012…

Reuters

HELSINKI,(Reuters) – The market of mobile financial services to poor people in emerging markets will surge from nothing to $5 billion in 2012, U.S.-based microfinance policy and research center CGAP said on Monday.

Mobile money is one of the hottest topics in the wireless world, but so far take-up of services has been mostly limited to a few emerging markets, as in developed countries the popularity of online banking has been a brake on mobile money.

“Theres a lot of excitement, but very little understanding what’s going on as the number of implementations is still limited,” said Mark Pickens, microfinance analyst at CGAP.

The market began in early 2007 with a launch of Safaricom’s (SCOM.NR: Quote, Profile, Research) M-PESA in Kenya, which has attracted 6.5 million customers, or one in six Kenyans.

Operators in several emerging countries have followed, and by end-2009 CGAP expects more than 120 mobile money implementations in developing markets. (more…)

Posted on June 11, 2009 - by Gavin

World Bank approves $250m for PPAF project…

Daily Times

ISLAMABAD: In recognition of the performance of the Pakistan Poverty Alleviation Fund (PPAF), the World Bank has approved $250 million for a poverty reduction project, PPAF-III, for the next five years, Chief Executive Officer Kamal Hayat said on Wednesday.

He told journalists the proposed PPAF-III project aims to alleviate poverty through consolidation and saturation approach in targeted areas. The project would focus on marginalised groups of the most vulnerable and poorest households, including women, he said, adding it would adopt an integrated approach to livelihood enhancement that learns from other programmes in Pakistan and South Asia.

Five divisions: Elaborating on the $250 million, he said it would be divided into five major components: Social Mobilisation and Institution Building ($38.5 million); Livelihood Enhancement and Protection ($85.5 million); Micro-credit Access ($40 million); Basic Services and Infrastructure ($80 million); and Project Implementation Support ($6 million). (more…)

Posted on June 8, 2009 - by Gavin

Kenya’s poor embrace mobile bank…

The National

NAIROBI // Each week, Bakari Iloka sends about US$15 (Dh55) to his wife, who is raising their four children in a far-flung village in western Kenya. But Mr Iloka cannot afford a bank account and he has lost money sending it through courier services, so he sends the cash using his mobile phone.

Mr Iloka, who sells traditional medicine in a sprawling slum of corrugated metal shacks and muddy pathways, is part of a micro banking revolution that is sweeping Kenya’s slums and rural areas.

A service, called M-Pesa (“M” for mobile, and pesa is the Swahili word for money), has become the cheapest and most secure way of transferring money in Kenya.

Its popularity with the lower class has spawned similar services in other developing countries.

“Before I would send money with the bus company,” said Mr Iloka, a tall man with a bushy beard.

“Sometimes the bus would be robbed and I would lose my money. With M-Pesa, once you send it, the money is immediately there.”

Mr Iloka recently walked into an M-Pesa agent operating out of a small corrugated metal kiosk in Kibera, a slum of one million people. (more…)

Posted on June 4, 2009 - by Gavin

SACCOs can promote devt of the rural poor…

The New Vision

Building a more inclusive and equitable economic order helps in shaping a financial system that is responsive to the needs and aspirations of the people. Every country should strive to have such a financial system. But this requires political will as well as good leadership at all levels.

An inclusive economic order involves creating room for more people to participate in the mainstream economy and to partake the opportunities of an expanded market economy.

I am glad the Government has shown commitment towards ensuring inclusive and equitable growth by setting up the Rural Finances Service Programme.

According to the World Council of Credit Unions, 43,000 credit unions provide financial services to over 136 million members in 91 countries. Many well-managed Savings and Credit Cooperative Societies (SACCOs) have empowered many people, especially the rural poor women, whose roles and responsibilities are critical to the sustenance of households and the future generation.

When these people join SACCOs, they access credit which helps them participate in the economic order. (more…)

Posted on May 19, 2009 - by Gavin

Microsavings, a step up the ladder for the poor

Daily Mirror

In a developing country such as Sri Lanka, where the percentage of rural poor is high with nine out of ten people living in rural areas, microfinancing and microcrediting can play a vital part. Branchless banking,a concept still not fully introduced to Sri Lanka, has the potential to grow leaps and bounds and aid the poor to overcome problems associated with banking and related other areas.

Access to financial services by poor people is seen as an influential tool to curb poverty, and microfinancing is a vital way forward. Daily Mirror FT met up with Thilakshana Kodithuwakku, Brand Manager ITC to talk about branchless banking and its importance to Sri Lanka today.

“It makes an enormous difference when underprivileged populations have access to basic financial services, whereby they can invest in income-producing activities, meet their crucial needs, such as health, education and nutrition,” says Mr. Kodithuwakku, “and branchless banking is one of the easiest ways to assist the poor by getting them involved in financial matters such as banking.” (more…)

Posted on May 14, 2009 - by Gavin

The African continent has to find its own road to prosperity…

Daily Monitor

Paul Kagame

At recent meetings of the Group of 20 and the International Monetary Fund, world leaders have gathered to discuss the global economic crisis.

Unfortunately, it seems that many still believe they can solve the problems of the poor with sentimentality and promises of massive infusions of aid, which often do not materialise.

We who live in, and lead, the world’s poorest nations are convinced that the leaders of the rich world and multilateral institutions have a heart for the poor. But they also need to have a mind for the poor.

Dambisa Moyo’s controversial book, Dead Aid, has given us an accurate evaluation of the aid culture today. The cycle of aid and poverty is durable: as long as poor nations are focused on receiving aid they will not work to improve their economies.

Some of Ms Moyo’s prescriptions, such as ending all aid within five years, are aggressive. But I always thought this was the discussion we should be having: when to end aid and how best to end it.

Aid has not only often failed to meet its objectives; it has also rarely dealt with the underlying issues of poverty and weak societies. We see this with our neighbour, the Democratic Republic of the Congo. (more…)

Posted on May 13, 2009 - by Gavin

Obama Administration Nominates Microfinance Leader as U.S. Under Secretary of Global Affairs, Department of State…

Accion International

BOSTON, Mass., May 13, 2009 – ACCION International, a pioneer and leader in microfinance, today announced that María Otero, president and CEO, has been nominated by the White House as Under Secretary of Global Affairs at the Department of State. Ms. Otero has expressed her intention to accept the appointment following confirmation by the Senate Foreign Relations Committee, which is anticipated within several weeks.

Catherine Quense, ACCION chief deputy, will take over as interim president and CEO of the international nonprofit, effective immediately. Ms. Quense will direct ACCION in line with its 2008-2011 strategic plan and the key initiatives launched under Ms. Otero’s direction. A committee is already engaged in a global search for a successor to Ms. Otero.

The Under Secretary of Global Affairs coordinates U.S. foreign relations on a wide variety of global issues, including democracy, human rights, and labor; environment, oceans, health and science; population, refugees, and migration; and trafficking in persons. Previous Under Secretaries of Global Affairs have included Paula Dobriansky, appointed in May 2001; Frank Loy, who served from October 1998 to January, 2001; and Tim Wirth, who served from May 1994 to December 1997. (more…)

Posted on May 8, 2009 - by Gavin

MICROCAPITAL STORY: MicroVentures Reports Investments in Equitas Microfinance of India and Sahayata Microfinance of India, Caritas del Peru and Fondesurco of Peru…

Microcapital

During March and April MicroVentures, a microfinance investment vehicle, reported four loans to the Consultative Group to Assist the Poor (CGAP) Microfinance Dealbook, a monthly report on microfinance capital market transactions. Two equity investments were made to Indian microfinance institutions (MFIs) Sahayata Microfinance Ltd and Equitas Microfinance Ltd in March of USD 3.7 million and USD 4.4 million respectively. MicroVentures also granted loans to Caritas del Peru of USD 1 million and to Fondesurco of Peru of USD 750,000 during April.

According to a press release from MicroVentures, Sahayata has been active in the Indian state of Rajasthan since 2007. It serves around 37,000 women clients and the USD 3.7 million increase in equity should allow Sahayata to reach 150,000 clients by March 2010. Sahayata Microfinance Ltd does not report to the MIX market, the microfinance information clearinghouse, so no further details are know about total assets or gross loan portfolio.

Equitas Microfinance Ltd, formerly known as UPDB Micro Finance, was established in 2007 in the state of Tamil Nadu and currently has 10 branches serving over 16,000 borrowers. It lends to women who are organized into joint liability groups and does not take deposits. The investment of an additional USD 4.4 million in March will strengthen MicroVentures partnership with Equitas, according to a recent press release. This increase in equity will fund expansion plans outside of Tamil Nadu. (more…)

Posted on May 7, 2009 - by Gavin

AfDB Group Approves Over U.S .$235 Million for Five Operations in Sierra Leone, Kenya, DRC and Rwanda…

All Africa.com

Tunis — The Boards approved 10 million Units of Account (UA*), equivalent to US$ 15 million, from the AfDB/ADF grant under the Supplemental Support Window of the Fragile States Facility (FSF) to finance the country’s economic governance reform programme.

The goal of the Economic Governance Reform Programme (EGRP I) is to improve economic governance through greater efficiency, transparency, and accountability in the use of public resources as laid out in the country’s Poverty Reduction Strategy (PRS II) and Integrated Public Financial Management Reform Programme (IPFMRP). The IPFMRP aspires to achieve fiscal discipline; strategic, efficient, and effective allocation and use of funds; value for money; and probity in the use of public funds. These objectives and reforms are in line with a proposed AfDB/World Bank 2009-2012 Joint Assistance Strategy (JAS) for the country.

Kenya – The Boards approved US$ 77 million for two operations in Kenya. These comprise a 174,800,000 KShs (US$ 2.2 million) private sector investment K-rep Bank, to promote entrepreneurship and economic growth in the country and UA 50 million ADF loan to finance the Mombasa-Nairobi electricity transmission line project. (more…)

Posted on May 5, 2009 - by Gavin

NEWS WIRE: Portfolios of the Poor: How the World’s Poor Live on $2 a Day…

Microcapital

NEW YORK, UNITED STATES,  April 29  -  Financial diaries research in Bangladesh, India and South Africa intimately examines the financial “portfolios” of poor households and finds that they lead surprisingly sophisticated financial lives. A panel discussion followed by a book signing and wine and cheese reception. Thursday, May 7th, 6 – 8 pm NYU Law School, Lipton Hall.

Billions of people around the world live on less than $2 a day—an amount most of us could likely dig out of our couch cushions. It’s hard to imagine what it would be like to scrape by on so small an income, much less prosper. Yet despite widespread global poverty, little systematic research has been conducted on the fundamental question of how the poor manage their money.

A new book, co-authored by Daryl Collins, a PhD student at the Robert F. Wagner Graduate School of Public Service, and Jonathan Morduch, policy and economics professor at the Wagner School and managing director of the Financial Access Initiative tackles this basic question. Portfolios of the Poor: How the World’s Poor Live on $2 a Day is the first in-depth examination of how the world’s poorest households patch together financial lives. The book shows that they do so with surprising sophistication and complexity, refuting commonly-held assumptions about the poor. (more…)

Posted on April 30, 2009 - by Gavin

EU €1 billion “Food Facility” for developing countries – Commission adopts overall plan and first implementation decision…

Euro Alert.net

Europe has already made humanitarian responses to the food crisis through emergency aid. The “Food Facility” is the development response – €1 billion over 3 years to get agriculture back on its feet. The package adopted today targets the 23 countries worst hit. This is a response to the food crisis which is already hitting developing countries. Over the months ahead, financial crisis and economic downturn will have an important effect on developing countries. Europe is quite rightly focused on recovery plans for its own economy. That should not in any way diminish its commitment to developing countries. (more…)

Posted on April 30, 2009 - by Gavin

UTI AMC to cover the poor under micro-pension scheme…

Business Standard

UTI Asset Management Company (UTI AMC) and Invest India Micro Pension Services (IIMPS) have inked a strategic partnership with the BASIX Group to deliver UTI’s retirement benefit pension fund to BASIX customers.BASIX is a leading livelihood promotion institution that works with over 1.5 million poor – 90 per cent of whom are rural households and the rest urban slum dwellers. BASIX works with over 100 NGOs and community-based microfinance institutions (MFIs) across the country.

Under this partnership, IIMPS will use its proprietary Micro-Pension Model to deliver the UTI-Retirement Benefit Pension Fund to BASIX customers. In 2009-10, this partnership will target 700,000 working poor, most of whom are women living in 10,000 villages of Andhra Pradesh, Karnataka, Bihar, Orissa, Jharkhand, Maharashtra, Madhya Pradesh, Tamil Nadu, Rajasthan, Chhattisgarh, West Bengal, Delhi, Uttarakhand, Sikkim and Assam.

The micro-pension scheme would be investing 23 per cent in equities and later it could be extended up to a maximum of 40 per cent. The remaining would be invested in government securities. It would have zero entry load and the expense cost would be incurred by the UTI AMC itself. (more…)

Posted on April 21, 2009 - by Gavin

Lending capital to the poor…

The Wall Street Journal

Following the lead of the Grameen Bank in Bangladesh, India needs vibrant microfinancing.

When Muhammad Yunus and Grameen Bank got the Nobel Prize in 2006, it created worldwide interest in microfinance. The movement Yunus started 30 years ago as a young professor at Chittagong university, who began lending his own money to poor women organized in groups, has now spread all over the developing world, and has reached 80% of the poor in Bangladesh. In India, microfinance still covers only 20% of the poor. When Yunus got the Nobel, the question my friends most often asked me was, “Why can’t we do it here?”

The short answer is that we can, but haven’t been able to because of the government. The breakthrough in the credit delivery system Yunus pioneered was simple enough. It kept borrowers honest-with almost 100% repayment rates-though the loans were unsecured, for two reasons. First, they were responsible for each other’s loans, so that if one member of a group defaulted, all the members stood to lose their access to further loans. Second, and more important perhaps, was the knowledge borrowers had that timely repayment would be followed by a larger loan.

Unlike in India, where loans to the poor were seen as one-off events, with a single loan expected to raise a borrower above the poverty line, credit in the Grameen Bank system is seen as a continuing relationship between borrower and lender. After all, don’t we in the middle class keep borrowing, for a variety of purposes? (more…)

Posted on April 14, 2009 - by Gavin

The bigger global crisis…

Indiana Daily Student

“In London, Washington and Paris, people talk of bonuses or no bonuses. In parts of Africa, South Asia and Latin America, the struggle is for food or no food.”

That was World Bank President Robert Zoellick commenting on disparate agendas at the recent G-20 summit. For all the talk of financial bailouts in hopes of mitigating the global crisis, there exists a tacit qualification that this applies to the top economic engines.

But many nations aren’t developed enough to speak in terms of foregone retirements and failing auto industries. Rather, they grapple with issues like stunted trade, leaving them missing out on the little revenue they might have gotten for food.

And food issues are no small quandary. Recent projections indicate that global food production needs to double by 2050  to feed a surging population, coupled with higher input costs and climate change.

What’s worse, research from the United Nations Food and Agriculture Organization of the  recently indicated that food prices in developing countries have gotten stuck and started diverging from falling world prices. (more…)

Posted on April 2, 2009 - by Gavin

What the poor can teach the rich at G-20…

Yahoo News

Washington – This week’s G-20 summit is essentially an echo chamber for the world’s wealthy to talk macrofinance. The world economy might rebound more quickly if they listen to what the poor have to say about microfinance.

Indeed, just as the global financial system is imploding, the micro-financial sector is expanding. It is ironic that the poor – who have been chronically ignored, or at least underserved – seem more adept at keeping financial institutions healthy at a time when global giants are struggling to hold their ground even with billions in bailouts. Maybe the behemoths in the market (and those now wishing to save them) could learn a thing or two from the “little people.”

How is it possible that microfinance institutions (MFIs), from famous operations, such as the Grameen Bank in Bangladesh, to smaller ones in Nicaragua and Nigeria are actually faring well amid such strain? It is an issue of assets. While major players prioritized the creation of complex investment schemes that led to toxic assets, MFIs stayed focused on a more reliable asset class: their clients. (more…)

Posted on March 27, 2009 - by Gavin

SOUTH AFRICA: Food Banks to Curb Hunger…

IPS

CAPE TOWN, (IPS) – In yet another attempt to bolster food security in the country, a charity organisation has opened a food bank in Cape Town which will operate like a huge warehouse from which food is handed out to the poor.

The food banking concept is the latest of a raft of measures taken by both non-governmental organisations and the government to curb poverty, such as the distribution of food parcels, vouchers and social grants.

Patrick Andries, executive director of Food Bank South Africa, says the programme, which is planned to be rolled out countrywide, aims to assist the 20 million poor South Africans who are living under the poverty line of $1 a day.

“The basic concept of food banking is that you have a centralised warehouse facility where you collect food via donor agencies, food manufacturers, farmers, wherever food is available. We bring that food into the warehouse, store and repackage it and get it out to communities in need,” explained Andries.

However, questions remain if initiatives like Food Bank South Africa are only short-term solutions to the long-term problem of food security in one of the continent’s most advanced economies. (more…)

Posted on March 19, 2009 - by Gavin

Can Pakistan be a welfare State?…

Pakistan Observer

Pakistan is a developing country and over the time, process of and compatibility between politics and development policies remained trembling. By considering politics as irrelevant to the notion of development will be a colorless panorama. One of the rudimentary prerequisite of being a welfare state is the system of governing legislative process which by definition should represent every faction of society with voice and opportunity to participate.

World is suffering from a prolonged and ever-present social taboo of poverty which remained characteristic of every society other than industrialist societies so European nations were to some extend able to remove social inequality, enhanced social mobility and transformed from agrarian society based on economy of subsistence agriculture to modernization under world system theory and globalization. They developed in indigenous technology and manufactured industry.

Development of the indigenous technology is a continuous process requiring only favorable environment. It explores new horizons as required based on principles of natural evolution. Importation of technology always hinders the timely change required to transform the society. In all this debate state and society are two interacting groups. States always tackle social issues by addressing policy challenges. One more important aspect of development recently been acknowledged is the development within cultural boundaries. This fully negates the hypothesis of linear development e.g. Pakistan cannot apply same policy framework all over the Pakistan as some areas have different recurring social issues of concern. (more…)