Archive for the ‘PPI’ Category

Day Eight: Reaching the Poor and the Organizations That Serve Them

November 18, 2012

For the 12 days leading up to Thanksgiving in the U.S., we’re featuring 12 stories from six different countries we work in, as a way of saying, “Thank You” to our supporters, who make our work possible. We hope that you enjoy seeing the difference that you’re making in the lives of poor people around the world, every day.

Cristopher Lomboy lives in Los Banos, in the Philippine province of Laguna. He joined Grameen Foundation in November 2009 as its poverty measurement specialist in Asia.

One of our exciting initiatives in Asia is the microsavings initiative in collaboration with CARD Bank in the Philippines, which reaches around 600,000 clients. Its goal is to encourage more poor people, especially those living on $1.25 or less a day, to have access to formal savings services. The program allows them to pool their money as a group and then open one account for each member of the group.

Cris strives to put life-changing tools – like savings accounts – in the hands of the poor, and to help other pro-poor organizations reach more poor people, more effectively.

My role is to help the project measure the poverty levels of the clients, then use this information to find out if we are reaching the poorer people. If not, we develop approaches to reach those clients. What makes my job rewarding is the opportunity to become a thought and practice leader in poverty measurement, and to support “blended performance reporting” – meaning that we look at both financial sustainability and social impact. Also, being able to learn about poverty alleviation efforts in different Asian countries enriches my own approach to helping influence pro-poor organizations’ initiatives to help the poor.

One of the challenges of my job involves reaching out and sharing our rich experience and tools with more pro-poor organizations. The magnitude of poverty is great and there is a real need quickly exchange knowledge and stories between practitioners, to help improve their practice. We also collaborate with other organizations, such as the Ford Foundation, to provide technical support for poverty measurement data.

Our goal is to increase our direct outreach to poorer clients. There are many people who do small jobs, like selling vegetables and seasonal manual labor, who are most vulnerable to crisis. If they can at least save some money for an emergency or life event in their families, then reduce the risk they face, and break the cycle of poverty for themselves and their families.

You can help us connect even more poor people to savings accounts when you support Grameen Foundation today.

Our 12 days of Thanksgiving series stories were collected and edited with the help of Bankers without Borders® volunteer Nicole Neroulias Gupte.

You can read the rest of our series here: Part 1 | Part 2 | Part 3 | Part 4 | Part 5| Part 6| Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12

Using Customer Data to Fine-tune Product Design and Marketing Strategy

July 24, 2012

Emily Hosoya is a Bankers without Borders® volunteer and Communications Intern with Grameen Foundation’s Microsavings Initiative. We have included an excerpt from her post on our Progress out of Poverty­ blog, with a link to the full post below.

Since starting our work with CARD Bank in the Philippines, we’ve realized the best savings products are designed by the customers themselves. Although we’d love to sit down with each of CARD’s 500,000+ savings customers to discuss their needs, there is never enough time or resources to do so. Instead, with the help of our senior data analyst, Jacobo Menajovsky, we’ve created a process to use specific customer information to address our business questions and drive CARD’s product design and marketing strategy.

For more information on our approach, and how you can use data to help answer important business questions, see our case study titled Information as Power: Implementing Data Analytics at CARD Bank.

It can get overwhelming to sort through data without a clear approach. Over the past year, we developed a process to sift through customer information to cluster customers into manageable segments. This process allows us to better learn about their needs and analyze their savings habits.

Along with our Progress out of Poverty Index , a tool that uses country-specific indicators to predict a given household’s likelihood of poverty, we looked at CARD’s demographic and financial data to cluster customer types. In addition to poverty level, the most predictive variables we found in the clustering process included family size, education level and employment status.

Continue reading the full post >> 

Why Measure Poverty?

July 20, 2012

Steve Wright is Vice President, Poverty Tools and Insights for Grameen Foundation. He recently wrote a blog post for Nexii.com. We have included an excerpt below, along with a link to the full post.

Let’s start with the realization that poverty is bad. The hardships of the poor fill heartstring-pulling fundraising campaigns: unsafe drinking water, poor diets, poor education, untreated illnesses, saving cash under a mattress, danger, a roof that leaks, no access to the information we take for granted, and more. These hardships make life more difficult for the poor than the not-poor. But this is not the only reason why poverty is bad.

Poverty is also bad because it hurts us all.

A very simple logic model for Poverty Alleviation

The Theory: Poverty is an economic anchor. Those living in poverty (an economy’s losers) cannot be producers in the system. They are not generative. Meanwhile, the economic ‘winners’ remove their winnings and invest them in other markets or economies where they can earn a better return. And so, economies with severe inequality drag and leak, like a neglected ship with lifeboats for only a fraction of the passengers. However, people are not poor because of a lack of capacity and the prejudiced view that ignores this capacity is what makes poverty epidemic.

The Change: Economic success is defined as a state where the maximum number of people are generating value in an economy and receiving benefit from their work.

The Work: With strong local leadership, a community can invest in the generative capacity of the poor through education, health care and access to markets.

At Grameen Foundation, we try to catalyze the change described above. We implement interventions that provide valuable missing information to the poor to enable them to be equal actors in specific markets (agriculture in Uganda and Colombia and prenatal health in Ghana and the state of Bihar in India). We design and test innovative financial services products (microsavings and mobile financial services). We build mobile enabled technology to maximize the impact of those that serve the poor. And finally, we know we are serving the poor in all of these interventions because we measure poverty and use that information to inform our interventions.

To do the above with appropriate design and rigor we must have the ability to measure poverty.

Continue reading at the Nexii.com blog >>

Things Move More Slowly in Africa

June 27, 2012

Shannon Maynard is Director of Bankers without Borders® (BwB), Grameen Foundation’s skilled-volunteer initiative. Maynard has more than 15 years of experience in nonprofit management and volunteer mobilization. Before joining Grameen Foundation, she served as Executive Director of the President’s Council on Service and Civic Participation, and managed strategic initiatives for the Corporation for National and Community Service, a federal agency. This post is the third in a four-part series; you can read her first post here, and her second post here.

“Things move more slowly in Africa” – this is a common refrain for many of us at Grameen Foundation when we find ourselves experiencing hurdles with our work in places like Nigeria and Ethiopia. In fact, African countries and the organizations we work with do often lack the infrastructure – particularly the Internet connectivity – that contributes to the fast-paced, rapid-response world that those of us based in the United States have grown so accustomed to. Slower is also a word I’d use to describe Bankers without Borders’ own presence in Sub-Saharan Africa.

Joining Grameen Foundation after primarily working with US-based NGOs, I remember my own first experiences arranging a call with a microfinance institution (MFI) leader in Sub-Saharan Africa – fumbling around with Skype to enter the correct phone number, then getting a voicemail message in a language I couldn’t understand. It might take a few weeks of trying to connect at a time convenient for us both. In those early days, Grameen Foundation did not have local offices or staff in places like Nairobi, Accra or Kampala. Cultivating relationships and managing projects is difficult to do from a different continent, which is why I am amazed we were actually able to do any work in places like Ghana and Nigeria in those first few years of BwB.

Over the past year, however, BwB has been able to gain some traction in the region, thanks to the regional leadership of Erin Conner and Steve Wardle, and BwB Regional Program Officer Martin Gitari, all based in Nairobi.

David Washer (right) spent a week meeting clients and lending his skills in finance to Eshet, an Ethiopian microfinance institution, as part of Bankers without Borders' FiDavid Washer (right) spent a week meeting clients and lending his skills in finance to Eshet, an Ethiopian microfinance institution, as part of BwB's Financial Modeling Reserve Corps.nancial Modeling Reserve Corps.

David Washer (right) spent a week meeting clients and lending his skills in finance to Eshet, an Ethiopian microfinance institution, as part of BwB’s Financial Modeling Reserve Corps.

Grameen Foundation’s own programs, particularly our MOTECH work in Ghana and Community Knowledge Worker (CKW) program in Uganda, are BwB’s biggest clients. In our early days, we had a hard time convincing Grameen Foundation’s own technology teams of the services we could provide, because Grameen Foundation’s own employees assumed BwB was only focused on connecting bankers with microfinance institutions (a fair assumption, given our name). Thanks to some education on our part and the willingness of these programs’ leaders to give us a try, we’ve been able to place volunteers such as Chris Smith and Gillian Evans (a husband-and-wife team) with CKW and Roche employee Lynda Barton with MOTECH, in year-long placements. We’ve worked with CKW to establish a local collaboration with Makere University to provide interns to our Uganda office each semester. And we’ve just finalized arrangements to engage a Glaxo Smith Kline employee with the CKW team on a six-month assignment, starting this month.

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Tipping: A Viral Infection We Want to Catch

June 15, 2012

Alex Counts is president, CEO and founder of Grameen Foundation, and author of several books, including Small Loans, Big Dreams: How Nobel Prize Winner Muhammad Yunus and Microfinance are Changing the World.

At Grameen Foundation, we often talk of the concept of “tipping,” which was popularized by the book The Tipping Point by Malcolm Gladwell.  I define the concept as taking something, such as an idea or a product, to the point where it starts to spread virally, exponentially and without much additional effort.  For an organization like Grameen Foundation that works with limited resources to make significant impact on a global problem such as poverty, it is a very important concept.  Through tipping, our early seeding and nurturing of innovations can lead to their widespread adoption by poor people, the organizations that serve them, and even by businesses and governments.

One example is our Growth Guarantees program, which pioneered loan guarantees to forge mutually beneficial business relationships between local commercial banks and microfinance institutions (MFIs) working to alleviate poverty.  In the program, we not only directly consummated transactions (bringing nearly $200 million to MFIs, who were then able to help more than 1 million new poor borrowers), but more importantly, proved the concept and prompted many other banks to follow suit (even without guarantees from Grameen Foundation).  Likewise, our efforts to replicate the highly successful village phone program of Grameen Telecom, initially in Uganda, set in motion dozens of “village phone” initiatives, most of which we had no direct role in starting or managing.

The PPI is a simple, short, country-specific survey that poverty-focused organizations can use to better understand the people they're trying to help, as well as the effectiveness of their work. This is a screenshot of the PPI for the Philippines.

The PPI is a simple, short, country-specific survey that poverty-focused organizations can use to better understand the people they’re trying to help, as well as the effectiveness of their work. This is a screenshot of the PPI for the Philippines.

I thought a lot about Grameen Foundation’s role in “tipping” last week when I flew to Jordan to attend the annual meeting of the Social Performance Task Force (SPTF), a group in which Grameen Foundation has been deeply involved for years.  More than 300 people attended.  The SPTF sets standards and shares best practices for those practicing ethical, poverty-fighting microfinance.  Partly as an acknowledgment of Grameen Foundation’s central role in the task force, I was asked to give the closing remarks at a historic “CEO Roundtable” where the heads of leading MFIs came together to discuss implementation of the just-completed “universal standards for social performance management.”  The standards have the potential to reshape how MFIs around the world work in fighting poverty, mainly by comprehensively adopting what have emerged as effective practices through the task force’s dialogue and research over many years.

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Reporting from Hong Kong

June 14, 2012

Shannon Maynard is Director of Bankers without Borders®, Grameen Foundation’s skilled-volunteer initiative. Maynard has more than 15 years of experience in nonprofit management and volunteer mobilization. Before joining Grameen Foundation, she served as Executive Director of the President’s Council on Service and Civic Participation, and managed strategic initiatives for the Corporation for National and Community Service, a federal agency. This post is the first in a four-part series.

The summer after I joined Grameen Foundation to run Bankers without Borders (BwB), I had the pleasure to travel to Shanghai, China, where we had amassed a significant pool of advocates for our work – the “Shanghai Volunteers.” I met with these inaugural members of our BwB community (organized by uber-volunteer Susan Place Everhart) and joined Jennifer Meehan, our Regional CEO for Asia, in meetings with potential corporate partners for Grameen Foundation’s work in the region.  After spending time in Shanghai, I then traveled to Bangalore, India, where BwB was undertaking one of its first corporate collaborations and field-based projects in Asia, with Grameen Koota and a team of volunteers from Accenture, Dow Chemical and Citi.

It’s now three years later, and I am headed to Hong Kong – Grameen Foundation’s regional headquarters for Asia – to spend time with Sharada Ramanathan, the extraordinary woman behind BwB’s presence today in Asia. Working with Grameen Foundation’s regional staff, we’ll brainstorm how to continue to deeply integrate volunteers into the way Grameen Foundation does business – from helping us fundraise and addressing our own capacity gaps, to creating standard roles for volunteers in delivering our programs and services in Asia. We’ll also look at how we continue to share the skills and expertise of volunteers in our database – more than 20% of whom are based in Asia – with other social enterprises that have a market-based approach to improving the lives of the poor.

BwB Regional Program Officer for Asia, Sharada Ramanathan, and Director Shannon Maynard are spending a week meeting with volunteers and supporters in Hong Kong.

BwB Regional Program Officer for Asia, Sharada Ramanathan (left), and Director Shannon Maynard are spending a week meeting with volunteers and supporters in Hong Kong.

As I prepare for this trip, I think it’s worth reflecting on some of BwB’s successes, failures and insights from our three-year history in Asia.

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