Tracking The Fight Against Poverty In the Cloud

Steve Wright is Director of the Social Performance Management Center at Grameen Foundation.

The team at the Grameen Foundation Social Performance Management Center (SPMC) is trying to solve a problem fundamental to poverty alleviation: how to accurately measure who is reaching the poor and to what extent. The Progress out of Poverty Index® (PPI®)  is the necessary first step toward addressing those questions. An easy-to-use tool, it enables microfinance institutions (MFIs) to obtain consistent, measurable and reliable data, as well as giving them the ability to use the results to improve their services to the poor. The PPI is currently the industry-standard poverty measurement tool used by MFIs globally.

Over the last four years, Grameen Foundation staff has heard from MFIs, as well as from MFI networks and associations, that they need to integrate PPI data with their management information systems to gain critical business intelligence (for example, to learn how a particular loan product is performing at a particular level). We have worked closely with these organizations to understand their requirements and prototype the tools that they need.

Today, we’re delighted to announce that we will be creating a PPI management tool that users will access via the Internet. This new, cloud-based PPI application – made possible by generous funding from The Moody’s Foundation and built on the Force.com platform from Salesforce.com – will make the PPI even more dynamic and easier to use, enabling more organizations to use it to collect, analyze and report social performance data.

Statement from Alex Counts on the resignation of Prof. Muhammad Yunus

Statement from Alex Counts, President and CEO of Grameen Foundation, on the resignation of microfinance pioneer Professor Muhammad Yunus, winner of the 2006 Nobel Peace Prize and founder of Grameen Bank.

The resignation of Professor Muhammad Yunus yesterday marks an important transition in the work and mission of Grameen Bank.  For 35 years, his deep commitment to the world’s poorest people and unshakeable belief in their power to help themselves escape poverty have shaped the work of the Bank and its more than 26,000 employees in Bangladesh.  His ideals, which have inspired countless others and helped to build a global movement to empower the poor through access to financial services, do not end with his term as Grameen Bank’s managing director.

Throughout his career, Professor Yunus has never been afraid to speak his mind nor challenge the status quo, earning both praise and criticism in many quarters.  He dispelled prevailing notions about the abilities of poor people by creating Grameen Bank, which today serves more than 8.3 million people across Bangladesh.  His recognition of poverty’s complexity also led to the creation of the Grameen family of companies, which focus on solving problems related to a range of issues, including hunger, educational disparities and access to affordable energy. (For more information about the Grameen family of companies, see M. Khalid Shams’ paper, Accelerating Poverty Reduction in Bangladesh Through the Grameen Family of Companies: Building Social Enterprises as Business Ventures].  That voice of reason will continue to echo, as will his unrelenting quest to promote social businesses and other changes that benefit poor people.

Prof. Yunus has always focused on serving the poor in Bangladesh, and around the world.

His bold vision of a world free from poverty has unleashed a powerful force that will continue, both in Bangladesh and abroad.  I’m proud to say that he planted the early seeds of Grameen Foundation.   He also played a pivotal role in launching the Microcredit Summit Campaign in 1997, which achieved its nine-year goal of reaching more than 100 million poor families with microcredit – and has now launched a second goal of reaching 175 million by 2015.  Equally important, he has inspired individuals in such diverse places as Haiti, India and Nigeria to launch organizations modeled after Grameen Bank to provide hope and opportunity to poor people in those countries.

We salute Professor Yunus for urging us all to do more and press further to make poverty a thing of the past, and will continue to work with him to reach this admirable goal.  We also look forward to Grameen Bank and its 8.3 million borrower-owners continuing its long, proud tradition of being a beacon for the microfinance community, and call on the Bangladesh government to respect the independence of Grameen Bank during this new era.  As Prof. Yunus said in his resignation statement, “I hope Grameen Bank will continue to operate, maintaining its independence and character under the Grameen Bank Ordinance and move toward even greater success.”

It’s Gonna Be Ghana: Out in the Field

Lynda Barton is spending six months volunteering with MOTECH Ghana through Grameen Foundation’s global volunteer corps, Bankers without Borders. This is Part II of a two-part series. If you haven’t yet, you can read part 1.

I’m in my fourth week now and have had the opportunity to visit our field sites in the Upper East Region of Ghana to see Grameen Foundation’s Mobile Technology for Community Health (MOTECH) initiative in action.  These are some of the most remote areas in Ghana, where MOTECH really makes a difference for expecting mothers.  We visited 12 facilities during my three days in the field, interviewing nurses and midwives at each location to collect their feedback regarding “Mobile Midwife,” the MOTECH mobile application that they have been using.

I was absolutely humbled by the dedication of these nurses and midwives and how they manage to work with so few resources available to them.  One of their greatest concerns is their fuel allotment for the month.  If they have too many follow-ups at patients’ homes for that month they run out of fuel and can’t afford to do more visits — not to mention the long hours they must put in to finish the paperwork that is required at the end of each month.  Most of these nurses and midwives work very long hours and weekends. MOTECH and the efficiencies it provides should help them in the future, if all of their client data can be uploaded electronically via the mobile phone application, because their paper registers will no longer be needed.

Lynda working in Grameen Foundation's Ghana office.

This project is amazing since no two days are the same and I’m able to contribute to so many different things. Day two in the field was mostly devoted to shooting video footage of expectant mothers who are using the Mobile Midwife application, asking them about their experience and how it has helped them so far during their pregnancy.  We interviewed one mother’s husband, who was impressed with the program and often listens to the voice messages his wife receives as part of the program. He especially likes the messages that tell her to eat meat and eggs, those that tell her not to carry heavy things, and the reminders for vaccinations and check-up appointments; he ensures that she never misses an appointment (for some, the distances to the clinic are significant, so this is not always an easy task).  It was so interesting to meet some of these ladies and their families and listen to them speaking in their local dialect.

Volunteering is not only an opportunity to broaden my horizons on a professional level.  It has also given me an opportunity to meet new people, see new places and learn about different cultures.  I’ve tried to do as much as possible — in and out of the office — and Ghana has impressed me with its welcoming people and interesting places to visit.  So far, I’ve managed to join a book club, meet new volunteers, make friends with other locals and expats, visit the Aburi Botanical Gardens, get to know a few restaurants and bars in Accra, and visit the Cape Coast and Kakum National Forest, to do the canopy walk.  I know there’s a lot more exciting work to come – stay tuned!

Statement of Prof. Yunus Regarding His Removal from Grameen Bank

Statement of Nobel Laureate Professor Muhammad Yunus on the Occasion of Supreme Court Verdict on May 5, 2011 Regarding His Removal from Grameen Bank.  Professor Yunus voiced his concern after revelations surfaced surrounding violence against employee leaders of the Bank.  Those interested may also want to read in the Bank’s point-by-point refutation of the allegations brought up in the government’s Review Committee report, as well as by the nation’s government-aligned media.

You have already heard the verdict from the Supreme Court.

Why did I appear before the Court? Why did I want to contest the order of Bangladesh Bank? Why there is so much concern about this issue at home and abroad? There may be some confusion regarding these questions. Please allow me to share my feelings with you to remove this confusion. I went to the Court for a specific reason. Bangladesh Bank sent a letter to Grameen Bank, removing me from my post as Managing Director of Grameen Bank. The letter also mentioned that I held this position for the last eleven years illegally. Bangladesh Bank did this without giving me a chance to explain my position. I felt that this letter was not legally correct, and through this letter, not only was I been wronged, but so was Grameen Bank. Nine elected members of the Board of Directors of Grameen Bank felt the same way. That is why the nine members of the Board and I filed separate writs in the High Court. We wanted these wrongs to be corrected. Therefore, we had to seek justice through all avenues offered in the Bangladeshi judicial system. This is what we have done.

The fate of 40 million poor people connected to this
In the event that the Honorable Court stated in their final decision that the letter from Bangladesh Bank was issued without lawful authority, I could continue my work with Grameen Bank and make the transition to a capable management as smoothly as possible. But, if the Court verdict went against us, the Board may be forced to take steps to implement the content of the Bangladesh Bank letter. This was the only reason for me to take this matter to the Court. I had no option but to seek justice in this matter.

It is indeed a much wider and much more significant issue to save the future of Grameen Bank and also to protect the hopes and dreams of the over 8 million borrowers. These borrowers are also the owners of 96.5% of the Bank’s shares. The Bank is connected with 40 million microcredit borrowers in Bangladesh, and its impact on all these people cannot be neglected. What happens to Grameen Bank influences the future of the millions of Bangladeshis who benefit from microcredit activities, as well as the future of the institution of microcredit itself. It is actually a great concern for me, and many others, that I properly fulfill my responsibility to safeguard their future before and after leaving the post of Managing Director of Grameen Bank.

Some have said that, instead of going to the court, it would have been more honorable for me to resign from my position as suggested by the Finance Minister. I do not think so. In that case, the end result would have been the same, so far as my exit is concerned. But I would have suffered from carrying the guilt of knowingly accepting an unexpected proposal and putting the borrowers and their families’ futures at risk. I could not do that.

Millions of borrowers like the ones seen meeting above could be adversely affected by a government takeover of Grameen Bank.

Some people felt that I intend to cling to the position of Managing Director of Grameen Bank. But, the nation knows that this position is not my life’s goal. I was, and am, conscious of the fact that my future work will not be based on my holding on to this position, but rather, it would be working with the young generation, from other platforms to address the problem of poverty at home and abroad. I want to do that without jeopardizing the interests of Grameen Bank. This is the thought which prompted me to write the letter to the Honorable Finance Minister one year ago. I suggested two options to him for a transition that could take place without creating any waves within the Bank.  I did not get any response to these proposals.  I was, instead, told to quit. It is, therefore, unfair to me to suggest that I am holding on to the of position of managing director unjustly or to allege  that I am not co-operating in the process of transition.

For the last few months, a section of the media devoted itself fiercely to campaign against me, Grameen Bank, and the concept of microcredit. Everyone has his own explanation why this is happening.

An unfriendly atmosphere is not helpful for a smooth change of leadership
The cause of my concerns, as well as those of the nation and the world, lies here. These concerns are more for Grameen Bank and the future of its millions of borrowers, than for me. For this reason, I have been reminding you repeatedly that undertaking the transition process of Grameen Bank’s management in an unfriendly environment will only cause harm to the future of the Bank. I have always wanted to make sure that the transition takes place in a friendly, mutually supportive environment, so that the achievements of Grameen Bank may continue without interruption. There are many issues related to this. The big questions are: whether Grameen Bank can maintain its independent existence, and whether it can be successful in keeping itself away from political influences. What actually happens to financial institutions in our country if political influences start playing a role in these institutions is common knowledge. This experience will not inspire trust in the borrowers.  We all know how important the role of trust is in the operation of Grameen Bank.

Two Steps Backward for Innovation to End Poverty

A guest post from Sam Daley-Harris, Founder of the Microcredit Summit Campaign, which seeks to reach 175 million poorest families with micro-loans, and of RESULTS, which seeks to create the political will to end poverty.

The deed is done.  On May 5th, the appellate division of the Bangladesh Supreme Court agreed that the Bangladesh Bank, the nation’s central bank, was justified in firing Nobel Peace Prize Laureate Muhammad Yunus from his post as Managing Director of Grameen Bank, the institution he founded more than three decades ago.  Prof. Yunus’s lead lawyer, Dr. Kamal Hossain, one of Bangladesh’s most distinguished attorneys and a drafter of the nation’s constitution, was scarcely able to hide his disgust at the Appellate Division order, when he said, “I [apparently] have to take admission to university again to newly learn the constitutional laws of the 21st century.”

The dismissal is not the lone action of one government institution, but is part of a premeditated campaign that starts at the highest level, with Prime Minister Sheikh Hasina.  Their reason for sacking Prof. Yunus?  He’s “too old.”  Never mind that the 70-year-old Yunus maintains a rigorous schedule or that the Finance Minister, another key player in the sacking, is at 77 somehow not “too old” for that post.

The dismissal of Prof. Yunus from his post as Managing Director of Grameen Bank could portend ominous changes by the Bangladesh government.

Their excuse would be laughable if it were not for the calamitous impact it portends.  What makes the decision to remove Prof. Yunus so disgraceful is not that he would be out of a job – any university in the world would welcome him with open arms as a visiting professor.  No, the atrocity here is the fact that the independence and integrity of one of the world’s premier poverty-fighting institutions is now at grave risk.  Grameen Bank, an extraordinary institution with more than 8 million microcredit borrowers that took 35 years to build, could be destroyed in a matter of months by incompetent government action.

The government’s action cannot honestly be in response to accusations by a Danish documentary maker about an improper transfer of Norwegian aid funds more than a dozen years ago, because both the Norwegian government and Bangladesh’s own review committee have found that Grameen Bank did nothing wrong.  It cannot be due to the documentary maker’s charge of excessive interest rates, because Microfinance Transparency and the government’s own review committee found that Grameen Bank has the lowest interest rates in the country.  Instead, most observers see this as an inexcusable political vendetta by the Prime Minister against Prof. Yunus, stemming from his short-lived attempt to start a political party in 2007.

Consider these groundbreaking innovations that Prof. Yunus’ poverty-fighting laboratory has brought to the world, and what could be lost in the future from his unwarranted ouster:

• In 1976 he made loans of less than US$1 each to 42 desperately poor Bangladeshis to start or build tiny businesses – and the microcredit revolution was born.  It has made its way all around the world.  While others have seen microfinance as a way to make big money for investors, Prof. Yunus has never once diverted from his original intent to empower the poor.
• In 1997 Grameen Phone Ladies started bringing cell phone technology to remote villagers throughout Bangladesh – providing the dual benefit of creating jobs and increasing communications, which enhanced others’ work.
• Grameen Shakti, an energy firm, has installed more than a half-million solar home systems and sold more than a quarter-million improved cooking stoves.
• In a joint venture with Danone, the yogurt maker headquartered in France, Grameen Danone is bringing low-cost fortified yogurt to malnourished children throughout the country – and creating a business opportunity for the poor women who sell it.
• College scholarships and loans have gone to 180,000 students. Most remarkably, in almost all of the cases, these are the children of illiterate parents who have had the help of Grameen Bank in breaking the bonds of inter-generational illiteracy.

A government that so rashly and ruthlessly ousts this innovative and transformational leader cannot likely be trusted to continue his revolutionary work.

But the deed is done.  Here is a sample of the visionary voice that Bangladesh has likely lost in this despicable government act.  Reflecting on the 1997 Microcredit Summit, Prof. Yunus wrote: “In teaching economics I learned about money, and now as head of a bank I lend money.  The success of our venture lies in how many crumpled bank bills our once starving members now have in their hands. But the microcredit movement, which is built around, and for, and with money, ironically, is at its heart, at its deepest root not about money at all.  It is about helping each person to achieve his or her fullest potential.  It is not about cash capital, it is about human capital.  Money is merely a tool that unlocks human dreams and helps even the poorest and most unfortunate people on this planet achieve dignity, respect, and meaning in their lives.”

It’s Gonna Be Ghana: First Steps to Living the Dream

Lynda Barton is spending six months volunteering with MOTECH Ghana through Grameen Foundation’s global volunteer corps, Bankers without Borders.  This is Part I of a two-part series. 

It’s amazing to realize that you can completely change your life in fewer than 30 days when you have the passion and motivation to do so.  We often set our own limitations and roadblocks, but I think we can achieve anything we set our mind to.  We might just need some patience and flexibility along the way, but once you take that first brave step, a whole new world opens up to you.  Perhaps like many other volunteers, I found the first step difficult, but I have not looked back since.

Lynda Barton is volunteering with MOTECH through Grameen Foundation's Bankers without Borders program.

For years I’ve been interested in healthcare and microfinance, and the potential benefits that such initiatives can bring to the developing world.  I’ve researched a number of organizations, in the hope of someday gaining first-hand knowledge by working with them in the field. Grameen Foundation really impressed me with its healthcare-related initiatives around the globe.

Given an incredible opportunity to help with one of Grameen Foundation’s projects in Ghana, I took a courageous step in January and requested a nine-month leave of absence from the pharmaceutical company I had worked for in Switzerland since 2000.  I was excited and terrified to take such a risk professionally, but I knew in my heart that I was doing the right thing for me.  I also knew that that the experience I’d gain clearly outweighed the perceived risks.

I was in the Ghana office by March 9th learning about Grameen Foundation’s Mobile Technology for Community Health (MOTECH) initiative, which uses innovative mobile phone-based solutions to help provide healthcare access to pregnant and new mothers in rural communities in Ghana. It’s an exciting project and the team is very busy planning an expansion of  its pilot program, to eventually scale up to the national level (pending funding).

I’m still getting up to speed with the details, but have been learning about the applications they use to capture client health data, as well as learning about the system for alerting clients about upcoming vaccinations and check-ups.  The application/tool also delivers tips and useful health information to registered users. I feel very privileged to be helping this unique and talented group of people to accomplish such a sizeable task.  I was expecting the pace to be slower than the office environment I left in Basel, but people here are really motivated by the project, and are often in the office beyond their scheduled workday.

Only two weeks into the assignment, I had the privilege of meeting the President and CEO of Grameen Foundation, Alex Counts, who visited our site to see our work first-hand.  He was accompanied by David Edelstein, Director of the Grameen Foundation Technology Center, and Robyn MacIntire, Grameen Foundation’s Regional Director of Development.   It was a wonderful opportunity for our entire team to meet these individuals and to learn more about the vision and passion that drives the company.  We were all very inspired by their visit.

Read Part II >>

Bankers without Borders Now Serving U.S. Microenterprises

Shannon Maynard is the Director of Bankers without Borders, Grameen Foundation’s skills-based volunteer program.

Today, Bankers without Borders (BwB) has joined with the Association for Enterprise Opportunity (AEO) to announce a new collaboration to support microfinance and microenterprise development organizations in the United States.  This alliance will enable more than 400 organizations to benefit from the skills and experience of our more than 6,300 highly skilled active and retired business professionals in BwB’s global volunteer reserve corps.

We are currently recruiting for our first project to support AEO and its members.  BwB is seeking a team of volunteers to refine and develop a toolkit that will enable microfinance and microenterprise organizations to better meet the needs of their existing clients and reach individuals presently not served.  For more details or to apply, please visit the Bankers without Borders website.

Once the toolkit is developed and piloted, we anticipate opportunities for other volunteers to work with microenterprise organizations to conduct a market assessment using the framework designed through this first volunteer project.

AEO's new report talks about the job-creating power of microenterprises.

In conjunction with today’s announcement, AEO released a report on the state of the microenterprise sector in the United States.  The report, “The Power of One in Three,” frames the powerful role that the microenterprise sector can play in helping the American economy recover and create jobs. As suggested by the study’s title, the findings demonstrate that if one in three microenterprises hired just one employee, the U.S. economy could reach full employment. For more information on AEO, please visit www.aeoworks.org.

We believe BwB’s volunteers are some of the best and brightest minds in the corporate sector. For those of you who are U.S. residents, this partnership presents a unique opportunity to help make a difference, both locally and globally.  Stay tuned as we keep you informed of opportunities to engage through this new alliance.