PLNU Microfinance Club

2012-01-30T10:49:00.000-08:00

For further information

Microcredit Summit Campaign
Larry Reed +1.202.637.9600
larry@microcreditsummit.org
Sabina Rogers +1.202.637.9600
rogers@microcreditsummit.org

Freedom from Hunger
Steve Hollingworth +1.530.758.6200
shollingworth@freedomfromhunger.org
Chris Dodson +1.530.758.6200
cdodson@freedomfromhunger.org

Microcredit Summit Campaign and Freedom from Hunger

Form Alliance to Benefit 3.7 Million of the World's Poor

Through Combining Microfinance and Health

WASHINGTON, DC (January 23) -- The Microcredit Summit Campaign and Freedom from Hunger today announced that they have entered into a strategic alliance to reach more than 700,000 microfinance clients with health education and services over the next five years. The goal of the alliance is to work globally on several levels to create a more enabling environment for integrating microfinance and health.

Clients participating in this integrated approach will bring the benefits of microfinance and health protection home affecting an estimated 3.7 million family members in all. Integration of health with microfinance is also cost effective. Studies funded by The Bill & Melinda Gates Foundation show that, on average, it cost microfinance institutions $1.59 per client per year to provide health protection products. A significant proportion of the resources to support the work and expansion of the alliance are being provided through a grant from Johnson & Johnson, which has been a long time champion of integrated microfinance and health education and services.

The alliance will use India as a demonstration and model of what can be achieved on a global scale. Deaths of Indian children currently account for 20 percent of all worldwide childhood mortality. Microfinance institutions (MFIs) currently serving 71 million rural poor, could help reduce these deaths by serving as a critical intermediary for the provision of much needed health education and services. According to Indian microfinance pioneer Ela Bhatt, "It's no longer a question of whether MFIs should add health services, but how."

MFIs and their staff know firsthand the impact that poor health and health shocks have on the lives of hard-working clients who are trying to create a more secure future for their families. Market research from Freedom from Hunger and others indicates that illness sometimes forces MFI clients to repurprose business loans for health and to borrow from more expensive sources to access cash for healthcare needs. For example, in India, where 80% of healthcare spending is out of pocket, the financial impact of illness falls hardest on those least able to pay. At a recent conference on health micro-insurance, Anil Swarup, head of India's RSBY social health insurance scheme, reported that 64 percent of the poorest population in India becomes indebted every year due to in-patient-related expenditures and 21 percent to the costs of out-patient services. The Campaign and Freedom from Hunger hope to be able to address the needs of these poorest clients and others through the work of the alliance.

"For nearly a decade, the Microcredit Summit Campaign has addressed the link between ill health and poverty through its commissioned papers and global summit workshops and courses. This alliance with Freedom from Hunger is another step towards facing this problem head-on by championing the delivery of integrated health protection services. Providing low cost ways for people living in poverty to maintain their own health and care for the health needs of other family members is an essential part of achieving our goal of seeing 100 million families move out of severe poverty," said Campaign director Larry Reed.

Commenting further on the announcement, Freedom from Hunger president Steve Hollingworth said, "Our long-term vision is to cultivate communities of practice for the global expansion of the integration of microfinance and health and to create a true change in the way that the global community of practitioners, thought leaders, policymakers, and funders approach health protection and poverty alleviation for the world's hungry."

Johnson & Johnson corporate contributions director Joy Marini added, "It seems so simple -- teach mothers and fathers basic health information to build healthier families. However, reaching the most marginalized families is difficult. I commend the Microcredit Summit Campaign and Freedom from Hunger for their innovative thinking. Their model of collaborating with local microfinance institutions to reach small communities in India is already showing positive results."

###

Microcredit Summit Campaign:

The Microcredit Summit Campaign is a project of RESULTS Educational Fund, a U.S.-based advocacy organization committed to creating the will to eliminate poverty. The Campaign was launched in 1997 and in 2007 surpassed its original goal of reaching 100 million poorest families with credit for self-employment and other financial and business services. www.microcreditsummit.org

Freedom from Hunger:

Freedom from Hunger is an international development organization dedicated to bringing innovative and sustainable ways to support the self-help efforts of very poor families around the world. As of 2011, Freedom from Hunger had trained and supported 150 partner organizations in 19 countries that are currently reaching over 3.9 million people (almost all women in poor, rural communities), benefiting a total of over 21.8 million when their family members are included.www.freedomfromhunger.org

Johnson & Johnson:

Johnson & Johnson is a global company that embraces research and science-bringing innovative ideas, products and services to advance the health and well-being of people. Employees of the Johnson & Johnson Family of Companies work with partners in health care to touch the lives of over a billion people every day, throughout the world. The company has committed to meet the UN's call to action to achieve the Millennium Development Goals (MDGs)-particularly MDGs 4, 5, and 6, which address maternal and child health. The commitment includes, among other things, a concerted effort to provide access to skilled health workers so that women and children in hard-to-reach places can receive the care they need. www.jnj.com

2012-01-20T16:17:00.000-08:00

"Small Wonder"

A new model of microfinance for the very poor is spreading

According to an article by the Economist a recent occurrence is many micro savings and loans associations popping up in places like Ghana. These institutions are picking up more of the poorest of the poor who are less desirable clients to traditional micro loans due to their less densely populated locations. The approach is to instead of just give out micro loans to create savings accounts for them to grow and earn interest on to supplement their income.

Programs such as this have grown to cover over 54 African countries with 4.6 million people having savings accounts accruing to the Economist.

To read more visit the article at:

http://www.economist.com/node/21541429

Global Microcredit Summit 2011 Report | Microfinance Focus

2012-01-20T16:04:00.000-08:00

Global Microcredit Summit 2011 Report | Microfinance Focus

2011-12-07T12:20:00.001-08:00

The Global Microcredit Summit

The Point Loma Nazarene University contingent at the global Microcredit Summit held in Valladolid, Spain from November 14-17 had a wonderful time joining almost 2,000 participants from close to 100 countries for a great time of learning and networking. The initial purpose for PLNU's involvement was the presentation of a commissioned paper at a workshop entitled "How can Microfinance contribute to restoring dignity and transforming lives in urban slums?" The paper was co-authored by Rob Gailey and Rebecca Harver and Rebecca is doing a Spanish translation of the paper as part of an honors project for her senior year.

The workshop included a summary of the paper and then presentations by an esteemed panel of leaders of organizations doing microfinance in urban slums. The panelists were from organizations operating in Uganda, India, Kenya, and Turkey. Several audience members were from practitioner organizations as well, including from organizations operating in South Africa and the Philippines. Needless to say, there was a lot of wisdom in the room as we discussed ways that microfinance can be leveraged for those who suffer from difficult living conditions in urban slums.

In addition to the workshop there were outstanding plenary sessions where we heard from world leaders and leading practitioners in and donors of microfinance initiatives around the world. Even leaders of the business world shared. The CEO and President of Danone, headquartered in France, spoke of his company's partnership in Bangladesh with Grameen Bank to get low-cost, highly nutritious yogurt to children living in poverty so as to improve their health. The partnership is a unique approach to a "social business" which is a no-dividend, no loss profitable company, where all profits are poured back into the company's mission.

We also heard from Nobel laureate, Dr. Muhammad Yunus, who shared about his discussions with Reebok/Adidas that have led them to create a shoe for under two dollars that can be sold to poor people around the world in a similar social business approach. The Queen of Spain also shared her personal and her country's support for microfinance around the world.

PLNU students/alums were well represented at the Summit. MBA alum and current MBA Program Assistant Lalaine Beltran and current senior Spanish major Rebecca Harver, served as volunteers for the global Summit. Both women did a great job volunteering and were commended by the Summit for their work.

A highlight for the ladies was getting to meet and talk privately with Queen Sofia of Spain and Professor Muhammad Yunus. Pictures of these special meetings are attached and perhaps one of them will write up their story of their time in Spain.

Rob also participated in a one-day workshop at the end of the Summit on poverty measurement tools used in microfinance to track how poor people are when initially being served by an organization. The organizations can also use these tools to "track" movement out of poverty by these families over time. Rob is looking to use some of these tools to help child sponsorship programs, particularly the one operated by Nazarene Compassionate Ministries, track the families of sponsored children.

We had a wonderful time in Spain and we are thankful for a great learning and networking experience.

Contributed by Professor Rob Gailey

2011-11-01T16:45:00.000-07:00

New Resources Now Available

MFTransparency is excited to announce a series of new resources,
now available on our website in theResources section.

This week's featured new resource:
Flat vs Declining Balance Interest Rates:

What is the Difference?
This educational article, first in the new series "MFTransparency

Pricing Fundamentals", provides a concise overview of the concept

of interest, the different methods used to calculate it and some

industry standards for disclosure. Financial institutions, investors,

donors and regulators alike now have a resource to draw on in

understanding and communicating this critical distinction in the pricing

of microloans.

Read this new article here: http://www.mftransparency.org/pages/

wp-content/uploads/2011/10/Article_Flat-vs-Declining-Balance-Interest-

Rates.pdf

MFTransparency is the leading provider of educational

materials on pricing in the microfinance industry. In addition

to transparent microloan pricing data, we are committed to

providing an an array of resources to put enable industry stakeholders

to better understand and implement this data in adopting more

transparent practices.

In the coming weeks we will announce several exciting new resources.

Please look for these announcements in your inbox and on the

MFTransparency website. Feel free to contact us with questions and

feedback at resources@mftransparency.org

View our complete Resources library here:
http://www.mftransparency.org/pages/category/

resources/understanding-interest-rates/

MicroFinance Transparency
325 N West End Ave
Lancaster, PA 17603
USA
Read the VerticalResponse marketing policy.

2011-10-10T18:19:00.003-07:00

Social Performance Management Network

A message to all members of Social Performance Management Network

SUMMARY: Day one of the SPM Network E-vent on Effective Group Lending

Thanks to everyone who has taken part in the discussions on the subject of the causes of group over-indebtedness and how this should be avoided. It’s not too late to get involved in the discussion – we’ll be here until the end of the week! Click here and add your thoughts to the debate.

Carmen Velasco explains that if the group methodology is applied correctly by socially-minded institutions, positive results will be generated for clients as well as the institution: over-indebtedness will be avoided, groups empowered and clients will have access to services credit and services they would otherwise find difficult to access. But what is the correct approach to facilitate this?

A key response that has come up repeatedly is that “good groups don’t happen by accident”. MFIs through facilitating and training can support the development of effective groups. This ensures the group functions on a number of levels, from having strong leadership and group solidarity to members understanding the implications of taking a loan, the risk of over-indebtedness, and more general financial responsibilities, both within and outside the formal group.

That said, it’s about more than training. As Anton Simanowitz points out, it is not enough to rely on groups screening loans. ‘Credit committees’ in each group could be set up for example, and which give the group a clearly defined role in assessing loan sizes. Groups must be well formed and based on mutual knowledge, trust and power dynamics. Finally, MFIs must invest in integrating group effectiveness into operations: from staff recruitment and training to ensure staff are facilitating supportive groups who learn from poor loan decisions, to client feedback to ensure clients are not being over-indebted, and an integration of these principles into performance management systems.

We still have a few unanswered questions here, so please let us know what you think. How are these costs to be borne by MFIs or as Carmen Velasco suggests should they be seen as an investment? And what is the process for making sure that systems are integrated properly and staff trained appropriately?

If not seen as an investment, this can have negative consequences for clients. Elikanah Kiarie Ng'ang'a explains that in his experience as a credit officer poaching of clients by other MFIs was common: “I knew the area I worked had many unreached clients but it was hard work to form the groups and train them and that was the reason other MFIs officers wanted the groups.” Multiple borrowing can then diffuse the feeling of responsibility in the MFIs as N.Srinivasan says, “who will bear the costs, especially when the customers are not wedded to any one lender?”.

Even once you have well trained groups who are functioning well, this is unlikely to be the norm for every group, so it’s important for the MFI to have its own systems for avoiding over-indebtedness like limits to loan size increases, individual assessments of capacity to repay, analysis at group formation stage to avoid ‘ghost’ members, or access to Credit Bureaus if possible. But a critical question is how to ensure that this over-sight does not stifle the responsibility of the group for its own members.

Do you have any experience whereby an MFI has balanced its own loan appraisals and systems with group accountability?

Weigh in on today's discussions here...and stay tuned for tomorrow's discussion on the relevance of groups to the social mission of microfinance, as well as the needs of clients. Visit the effective group lending group here.

See you there!

Visit Social Performance ManagementNetwork at: http://spmnetwork.net/?xg_source=msg_mes_network

2011-10-10T18:19:00.001-07:00

Social Performance Management Network

A message to all members of Social Performance Management Network

Day 1 of group lending effectiveness debate: tell us how you think can group lending help avoid over-indebtedness?

For the whole of this week, we’ll be talking about what the problems are affecting group lending methodologies and why these have come about. We’ll also start discussing possible solutions. Issues arising within the following themes will be discussed: the relevance of groups to clients and MFIs, group lending methodologies and avoiding over-indebtedness, and about using groups to manage client-level risk. What we come up with will feed directly into the discussion points for a meeting taking place ahead of the Microcredit Summit in Valladolid (Spain) in November. This will be attended by microfinance group practitioners from across the globe. The purpose of the meeting is to discuss solutions to the problems, and develop an action plan for how to put them into practice. So please take this opportunity to get involved in the online discussions, and have your say in making a practical difference to the way group lending works!

If you would like to get involved in the debate join the ‘effective group lending’ group or follow the debate.

Our discussions are going to kick off on the subject of how group methodologies can work to avoid over-indebtedness.

Carmen highlights that groups have an important role in assessing risk for clients and ensuring that loan sizes are appropriate. However for groups to be effective in this role they need specialised training. What in your experience are the elements of an effective group, and what training is needed to achieve this?

What are the barriers or challenges in providing the training and support necessary for the groups to evaluate loans? Why are groups not getting this training?

Do you have experience of groups being effective in setting loan size and avoiding over-indebtedness? How can MFIs facilitate this?

Is relying on group accountability enough or should the MFI also get involved in loan appraisals, in order to avoid client over-indebtedness? How can a balance be reached that still enables groups to be empowered and solidarity promoted?

Visit Social Performance ManagementNetwork at: http://spmnetwork.net/?xg_source=msg_mes_network

Global Microcredit Summit

2011-05-10T15:09:00.000-07:00

The Global Microcredit Summit to be held November 14-17, 2011 in Valladolid, Spain will bring together more than 2,000 participants from more than 100 countries. Confirmed participants include H.M. Queen Sofía of Spain, Nobel Laureate Muhammad Yunus and Sir Fazle Abed of BRAC. Delegates will have the opportunity to participate in 6 plenary sessions, more than 50 workshops, over 30 associated sessions, a variety of day-long courses, as well as field visits to leading institutions around the world in the days before the Summit. Registration rates increase July 1, 2011. For more information go to: http://www.globalmicrocreditsummit2011.org/

Local microfinance in action

2011-04-14T22:53:00.000-07:00

A recent KPBS piece spotlights microfinance aiding San Diego refugee women in childcare start-ups. Click here to read or listen to the article.

Microfinance on the Huffington Post

2011-03-12T08:55:00.000-08:00

A recent Huffington Post column mentions Mircofinance Transparency's Chuck Waterfield, speaker at this year's MF 102 conference. Click here to read the article.

Upcoming SDMA Summit and Microfinance Course

2011-03-06T12:48:00.000-08:00

From Travis Vaughan, with the San Diego Microfinance Alliance:

Partners and Friends of the SDMFA,

I hope this email finds you well. I wanted to let you know about 2 upcoming events during April that you and your students, clients, partners, and friends may be interested in. We would greatly appreciate your help raising awareness about The San Diego Microfinance Summit as well as the Microfinance 102 Course that will be held at UCSD.

The Summit:

Most of you have been involved in one of our previous microfinance summits. If you or your oranization is connected to microfinance in San Diego (or based in San Diego) we would welcome you to have a table during the morning of the event. Please contacttravis@sdmicrofinance.org if this interests you and we have not already spoken about it. I have attached a flyer for you to distribute throughout your networks. If you have the opportunity to email the flyer or some information about the summit to your email list that would be great. Thanks to CitiBank's offer to sponsor the event, we are able to keep the prices extremely low at $38 for a non-student and only $12 for students (this is the early bird price, after April 14th the prices will increase to $50 and $20 respectively). This price includes morning coffee and snacks, catered lunch, and reception hour as well as a $10 gift certificate to our vendor marketplace where you can buy wares to support our local microfinance businesses.

To register or get more information about the Summit please visit www.sdmicrofinance.org/the-summit

MF102 at UCSD

Hosted by the SDMFA, The Center For International Development at PLNU, and UCSD's EPTEAM (Eliminatiing Poverty Through Education and Microfinance), the MF102 course will build upon the MF101 course delving deeper into some of the critical issues of international microfinance. While the MF101 course is not a mandatory prerequisite to the MF102 course, all participants need to have a fundamental understanding of microfinance and review the materials from the MF101 course before attending. We will hear from leading researchers and practitioners in the field such as Craig McIntosh, Chuck Waterfield, and John De Wit. Registration for all three sessions costs only $10 for students $15 for alumni or faculty and $25 for all others. Not only that, but anyone who signs up for the MF102 course will receive $8.00 off of their registration for The Microfinance Summit at UCSD (not applicable to student registration). The course will be held on Tuesday evenings during the month of April. CLICK HERE for more information about the MF102 course or see the attached flyer.

Again, I want to thank all of you for your partnership and support of the San DIego Microfinance Alliance. Together we have come a long ways in 2 years to raise the profile of microfinance in San Diego and continue to create opportunities for people to become more involved and provide resources to small business owners. Thank you for your help in raising awareness for these 2 big events. Please call or email me with any questions.

Best Regards,

Travis Vaughan

travis@sdmicrofinance.org

A celebration of Yunus in The Atlantic

2011-02-09T09:04:00.000-08:00

Journalist Peter Osnos champions the effect Muhammad Yunus has had through Grameen Bank in a recent article in The Atlantic. Read it here.

Does microfinance harm or help?

2011-02-05T10:29:00.000-08:00

An article in the Guardian discusses the implication of the court case in which Muhammad Yunus is currently involved. Read it here to consider the issue.

Join the Center for International Development for “Careers in International Development”

2010-12-15T08:58:00.001-08:00

A panel discussion with a free lunch provided
Friday, January 14, 2011, 11:30 a.m. - 1:30 p.m. Fermanian School of Business Plaza and Conference Center

Can business ideas be used to address global poverty? What kinds of careers are possible in the field of international development? On Friday, January 14, The Center for International Development is hosting a free lunch with a panel of alums and leaders of local organizations doing international development work. The panel of speakers will feature three San Diego-based organizations involved in international development work: Plant with Purpose, Edify (formerly Eduleap), and Lazarian World Homes. The event is free, but an RSVP is needed so we can plan accordingly.

Find out more and RSVP here.

Questions? Email Centerid@pointloma.edu or call 619-849-2792

Recent article on microfinance in India

2010-12-09T20:41:00.000-08:00

Learn more about the state of microfinance in the country of India in this article from IndianExpress.com.

Was Jesus a communist or a capitalist?

2010-11-23T14:36:00.000-08:00

Read and watch a discussion between Peter Greer of HOPE International and Shane Claiborne of the Simple Way here.

Microfinance in Haiti, and a PLNU tie

2010-11-14T21:18:00.000-08:00

Last year, through the $2 Challenge with the Grameen Foundation, PLNU's microfinance club raised funds to support Fonkoze, a microfinance organization in Haiti. Read a recent New York Times story about the efforts of Fonkoze and other microfinance groups here.

Brewed Awakening features microenterprise November 1

2010-10-26T14:47:00.000-07:00

Point Loma Nazarene University's Center for Justice & Reconciliation presents:

Brewed Awakening
“Sacred Marks”: Glimpses from life and ministry through microenterprise in Bangladesh

With Robin Seyfert
Colt Hall Forum
6:30-7:00pm Serving Fair Trade Coffee
7:00-8:30pm—Guest Speaker
Next Monday, November 1

-Serving fair trade coffee, tea and speakers to stir the social conscience-

Sponsored by PLNU’s Center for Justice and Reconciliation, the Brewed Awakening series gives a platform to speakers who bring critical analysis of pressing contemporary social issues while pointing to ways of engaging these issues with hopeful alternatives. Reflecting the CJR’s praxis-reflexive pedagogical emphasis, the Brewed Awakening series showcases individuals and organizations with keen insight as well as practical ways of getting people involved. Special attention is given to Christians who are engaged in the struggle for justice and reconciliation. All speakers are encouraged to reflect on the relationship between their passion for justice, their actions and their faith.

For more information, contact Dr. Kevin Modesto 619.849.2368 or mailto:cjr@pointloma.edu.
Learn more about the Center for Justice and Reconciliation at http://www.pointloma.edu/cjr
For directions to the university, call 619.849.2200 or go to http://www.pointloma.edu/Directions

PLNU grad bikes from Canada to Mexico for Hope International

2010-10-09T15:45:00.000-07:00

Read about Brandon Napoli's efforts to support microfinance here.

Muhammad Yunus on The Simpsons!

2010-10-02T20:15:00.000-07:00

When Lisa Simpson uses a monetary gift from her grandfather to give a microloan to a schoolmate, the results are not quite what she expected. So who else should she turn to for advice but the “Father of Microfinance,” Professor Muhammad Yunus, winner of the Nobel Peace Prize and recent recipient of the Congressional Gold Medal?

Tune in to The Simpsons this Sunday at 8 p.m. ET/PT, or 7 p.m. CT, to hear the advice that Prof. Yunus gives her. And help spread the message about the power of microfinance to enable the poor to move themselves out of poverty by letting your friends and family know about the episode!

Learn More: Visit grameenfoundation.org/simpsons.

Give a gift of $27: Prof. Yunus sparked the global microfinance movement by making a loan of $27 to a group of 42 Bangladeshi women out of his own pocket. You can make a difference to a poor woman and her family by helping today.

Kind regards,

Seena Aras
Director of Online & Annual Giving
Grameen Foundation

Grameen Foundation
1101 15th Street, NW
3rd Floor
Washington, DC 20001

Join the online conversation with USAID: Why integrate microfinance with health services?

2010-09-29T08:09:00.000-07:00

Join microLINKS for a Speakers Corner discussion on October 5 & 6 on Integrating Microfinance and Health Services. This discussion is hosted by the USAID Microenterprise Development office and facilitated by the Freedom from Hunger and the Microcredit Summit Campaign.

Click here to learn how to be a part of the online discussion.

PLNU's Microfinance 101 next month!

2010-09-20T14:02:00.000-07:00

Join the Center for International Development and the San Diego Microfinance Alliance for Microfinance 101 every Tuesday in October, 6:00 p.m. to 8:00 p.m. in Fermanian Room 104 at Point Loma Nazarene University. Network with students and professionals interested in microfinance lending and enjoy snacks for purchase from a local food vendor who is a microfinance client from 5:30 p.m. to 6:00 p.m. in the Fermanian board room.

$10 for students, $30 for non-students, Click here to register. Limited to 40 seats, so register today!

· Week 1: October 5 - Introduction to Financing
· Week 2: October 12 - Introduction to Microfinance
· Week 3: October 19 - Introduction to Microfinance in the U.S.
· Week 4: October 26 - Hearing from the Clients and Meeting the Organizations

At the beginning of each class there will be a short Q&A with a client of a local microfinance organization. Course also includes panel discussions with microfinance experts and hands-on learning activities to provide everything you want to know about microfinance.

Contact Chloe Sparacino at the Fermanian School of Business for more information: 619-849-2747

Using cellphones to make bank deposits, spread microfinance, and more.

2010-09-08T08:00:00.000-07:00

Aid groups using cellphones to reach the world's poor

By Cecilia Kang
Washington Post Staff Writer
Tuesday, September 7, 2010; 12:36 PM

SEATTLE - For the world's poorest, cellphone technology carries opportunity, aid groups say, as text messages and other mobile applications have created a new platform to reach the most remote farms and crowded urban slums of Africa, Asia and Latin America. Read more here.

TED Talk with Sam Daley-Harris: Poverty, Purpose, Pitfalls, and Redemption

2010-08-25T09:02:00.000-07:00

Workshop Titles Announced for Global Microcredit Summit 2011

2010-08-18T19:17:00.000-07:00

Global Microcredit Summit - November 14-17 2011 - Valladolid, Spain

The Global Microcredit Summit 2011
is proud to announce the following
Workshop Sessions

Selected Workshop Titles:
(click here to see the complete list)

Initial Public Offerings (IPOs): The Field's Salvation or Downfall?
What Can Mobile Banking Do to Advance the Field, and What Can It Not Do?
Why Managing for Social Performance is More Important than Just Measuring It, and How Can MFIs Best Use These Insights?
Climate Change Affects Microfinance: How are Operations Influenced, and What Can MFIs Do to Increase Energy Efficiency and Use of Renewable Energy and to Improve Access to Water and Sanitation?
How Can Microfinance Programs Help the Struggle Against Social Problems Such as Begging, Child Labor, Prostitution, Violence Against Women, Criminality, Gangs and Drug Addiction?
A Deeper Look at Programs that Work with the Ultra-Poor: From Safety Net Programs to Other Innovations
Best Practices in Community-Managed Savings Groups for Successfully and Sustainably Reaching the Very Poor
Women are Useful to Microfinance. How Can We Make Microfinance More Useful to Women?
What is the Cutting Edge for Microfinance in Remote, Hard-to-Reach Areas?
Catapulting Youth Livelihoods: Finance-Plus Strategies to Improve Attitudes and Behaviors, Provide Hope and Opportunity
What is the Low-Bar, and What is the High-Bar on Client Protection?

(click here to see the complete list)

October Simpsons Episode to Feature Muhammad Yunus

2010-08-11T12:07:00.000-07:00

Read The World's interview with Yeardley Smith, voice of Lisa, here.

PLNU grad's documentary featured on the San Diego Microfinance Alliance site

2010-05-24T22:06:00.000-07:00

View Kaley Hearnsberger's documentary "Collaborative Capital" here or at http://sdmicrofinance.org/documentary-on-microfinance-in-san-diego/. Kaley's documentary was shown at the 2010 San Diego Microfinance Summit at USD.

Collaborative Capital from Kaley Hearnsberger on Vimeo.

Microfinance Impact 101 on Kiva

2010-05-11T16:11:00.000-07:00

Find a summary of studies of microfinance efficacy here.

Live Webinar May 7th 9 a.m. PDT

2010-05-04T16:06:00.000-07:00

How much does it cost to lend $250 to a poor woman?

By last count, there were more than 3,000 microfinance institutions around the world providing loans and other resources to more than 150 million poor people. To make these loans, these local organizations rely on various sources to fund their operations, including donors and commercial lenders, and often face unique local challenges.

To help demystify the decision-making behind microfinance loans, Grameen Foundation is hosting a webinar titled, “The Making of A Tiny Loan” on May 7 from noon to 1 p.m. ET. Hosted by Jill Chen, director of Grameen Foundation’s Capital Markets and Advisory Center, the webinar will also focus on how Grameen Foundation helps microfinance institutions finance these critical small loans.

To learn more about the campaign and register, please go to http://grameenfoundation.org/pioneer.
Posted By Darwin Cruz

The pressures of change in microfinance.

2010-04-28T08:53:00.000-07:00

From Knowledge@Wharton

Employment in the microfinance industry is at a crossroads. When microfinance began, its scope was simple: Charitable, donor-driven organizations with a mission to eliminate poverty gave out very small business loans to help the world's poor. Big banks — deeming the double- and triple-digit loans too small to be profitable — didn't get involved.

Today, after three decades of rapid growth, the microfinance industry has become both more crowded and more complex. The Microfinance Information eXchange reports 1,200 microfinance institutions (MFIs) with 64 million borrowers and 33.5 million savers, and those numbers are growing at 25% a year. Big banks, realizing there is money to be made at the bottom of the pyramid, are now entering microfinance markets that were once solely the territory of philanthropies. Commercial investors, too, are seeing profits. And microfinance institutions are scrambling not to lose ground.

Click here to read more!

SAVE THE DATE: Wednesday, April 28, 2010 — The University of San Diego to host the 2nd Annual San Diego Microfinance Summit

2010-04-09T09:14:00.001-07:00

The event will focus on the international work of San Diego’s microfinance organizations, as well as opportunities to get involved in local microfinance initiatives and partnerships.

Wednesday, April 28, 2010
8:30 a.m. – 4:30 p.m.
Joan B. Kroc Institute for Peace & Justice, USD

Early Registration (price will increase after April 15th)
$12 students/faculty
$38 general public
Registration includes lunch and networking reception

Keynote Speaker: Yeardley Smith, award-winning actor, novelist, and avid supporter of microfinance

Register Today at http://sdmicrofinance.kintera.org/Summit2

More Information on the San Diego Microfinance Alliance: www.sdmicrofinance.org

http://www.pointloma.edu/ArmenianCenter.htm

$2 Challenge returns!

2010-04-09T09:11:00.000-07:00

The Microfinance Club is bringing the Two Dollar Challenge again to campus! For this awareness/fundraising event, students live on $2 a day for three days (Wednesday, April 14—Friday, April 16, 2010). The students will live in a shantytown made from cardboard boxes and tarps, have communal meals, and follow many other rules that will resemble living in poverty in a developing country. Their shantytown will be placed in front of the Golden Gym lawn, ironically facing the ocean.

The $2 Challenge is an educational movement that engages students in the fight against global poverty. Its role is to show students a glimpse of what it means for half the world to live on two dollars a day, inspire students to take action and help alleviate poverty and empower students with the skills and resources they need to become the next generation of leaders in the field of development.

This is the second year PLNU has participated. IF YOU ARE INTERESTED IN PARTICIPATING, PLEASE CONTACT JESSICA at jchetsawang0321@pointloma.edu. Sign-ups continue on Caf Lane this week from 10 am to 2 pm until the actual event on Wednesday, April 14. For more information, please watch http://vimeo.com/4047437.

There is also a write-up about this event on the San Diego Microfinance Alliance page: Click here.

Microfinance and microsavings.

2010-03-29T21:43:00.000-07:00

A recent Economist article looks at efforts to help people put away money for the long term. Click here to read it.

Two chances to see Bill Massaquoi at USD this month!

2010-03-18T15:06:00.000-07:00

Bill Massaquoi: My Story and My Dream of Rebuilding Africa

Monday, March 29

1:30 – 2:30 pm

IPJ Room D

The Joan B. Kroc School of Peace Studies invites you to a talk on the personal story of one inspiring Liberian social entrepreneur. Bill Massaquoi survived a long and brutal civil war, came to the United States for an elite education, and returned to his country, determined to promote a development model that could heal the wounds of his continent’s wars.

The Potential and Limits of Microfinance in Post-Conflict Countries

Tuesday, March 30

1 – 2:30 p.m.

IPJ Room D

In 1995, during a hiatus in the Liberian civil war, Bill Massaquoi founded the Local Enterprise Assistance Program LEAP (or LEAP), Liberia’s first and largest microfinance organization. The war began anew in 1996, but Mr. Massaquoi nevertheless served as CEO of this organization for the next 8 years, raising more than $500,000 and serving more than 15,000 women with small short-term loans in the midst of unimaginable violence.

Since his tenure with LEAP, Mr. Massaquoi has gone on to do post-war reconstruction in Sierra Leone and his native Lofa County, Liberia with his new venture, Rebuild Africa. He brings a keen sense of the local constraints and possibilities of microfinance in the post-war setting.

No RSVP required. For more information on Bill Massaquoi, go to the following profiles:

http://alum.mit.edu/news/AlumniProfiles/Archive/massaquoi

http://www.rebuildafrica.org/billbio.htm

Co-sponsored by the Joan B. Kroc School of Peace Studies, the Office of Community-Service Learning, Social Issues Committee, and the Responsible Enterprise Initiative.

Spring and summer distance learning courses with the Chalmers Center

2010-02-25T15:39:00.000-08:00

Learn about domestic and international microfinance from home through distance learning courses with the Chalmers Center. Courses include areas like "Principles and Practices of Christian Microfinance and Microenterprise Development"and "Promoting Church-Centered Savings and Credit Associations." Dates and costs vary. Click here to learn more and register.

PLNU microfinance in the news.

2010-02-04T15:46:00.000-08:00

Read here to see what is happening in local San Diego microfinance programs. Look for a quote from PLNU's Rob Gailey!

Grameen America?

2010-01-31T19:05:00.000-08:00

Time Magazine wonders whether microfinance can work in the United States. Read the article here.

Microfinance aid in Haiti

2010-01-30T14:41:00.000-08:00

Fonkoze, Haiti's largest microfinance institution, was able to get $2 million to Haitians in the wake of the earthquakes that shattered the region. Click here to read the story.

Hope International Internship Opportunity

2010-01-25T11:23:00.000-08:00

Interested in Microfinance? Looking for an Internship? HOPE International has just released its Summer 2010 Grow Internship Program position openings!

Recent PLNU graduate Daniel Renz interned at Hope last summer. The link and advertisement is below:

http://www.hopeinternational.org/site/PageServer?pagename=impact_internship

For the summer of 2010, our Internship opportunities are as follows…

At our Central Services Unit In Lancaster, PA:

· Accounting Intern

· Executive Intern, Homes for Hope

· Executive Intern-Jeff Rutt

· Executive Intern-Peter Greer

· Grant Research Intern

· Human Resources Intern

· Marketing Intern

· Programs Intern

· Strategic Investments Intern

Overseas:

· Congo (Brazzaville) Intern

· China Intern

· Dominican Republic HOPE Trips Intern

· Dominican Republic Intern

· Moldova Intern

· Haiti Intern

For Job Descriptions and application details, please visit: http://www.hopeinternational.org/site/PageServer?pagename=impact_internship

Select the options from the Right toolbar on the webpage to learn more!

Fascinating discussion of Kiva's role in microfinance

2009-11-06T15:15:00.000-08:00

"Kiva is not quite what it seems," David Roodman wrote on the Center for Global Development blog October 2. Matt Flannery, Kiva's co-founder and CEO, responded 12 days later.

Read Roodman's original post here, and see Flannery's response here.

Women's dignity defined by Hope International

2009-10-25T16:56:00.000-07:00

Announcement from the Africa-Middle East Regional Microcredit Summit

2009-10-24T20:32:00.000-07:00

Join Nobel Peace Prize Laureate Muhammad Yunus, and more than 2,000 delegates from over 40 countries at the Africa - Middle East Regional Microcredit Summit to be held April 7-10, 2010 in Nairobi, Kenya. The gathering is co-organized by the Microcredit Summit Campaign and the Association of Microfinance Institutions of Kenya (AMFI). The chair of the Kenyan Organizing Committee is Ingrid Munro of Jamii Bora.

Delegates will have the choice of participating in a wide variety of plenary sessions, workshops, day-long courses, various council meetings, and associated sessions over the course of the four-day Summit. The Summit will also offer field visits to leading Kenyan microfinance institutions.

Some of the groundbreaking plenary sessions include: “Breakthroughs in Using Microfinance to Better End Poverty: A Vision for the Future of Microfinance in Africa and the Middle East”; “Using Microfinance to Improve the Environment and Agriculture: Ensuring Sustainable Livelihoods in Africa and the Middle East”; and “Using Microfinance as a Tool for Building Peace.” For more information, visit http://www.microcreditsummit.org.

Chemen Lavi Miyò - Pathway to a Better Life

2009-10-12T08:13:00.001-07:00

Click here to see a short video on microfinance education in Haiti and how it is helping the people there to move out of poverty.

Catch up with the latest Hope International efforts in the Dominican Republic

2009-10-10T10:53:00.000-07:00

See WJTL reporter Lisa Landis's trip to the Dominican Republic and her experience with microfinance organization Hope International.

Visit the blog for pictures and video here.

Visit the on-air WJTL archive to hear audio interviews here.

"Financial innovation and the poor: A place in society"

2009-10-01T19:29:00.000-07:00

An article in The Economist recently discusses financial innovation amid the current economic crisis in the form of social investing. Click here to read more!

Race4Change with the Microcredit Summit Campaign

2009-09-19T08:48:00.000-07:00

The Microcredit Summit Campaign is hosting an on and offline Twitter mixer September 23 to bring attention to the Race4Change, a November road race that will raise funds for Jamii Bora Bank in Kenya.

Visit their site to find out how you can join in.

Free webinars on poverty alleviation with a Christian focus.

2009-09-13T08:29:00.000-07:00

Register now for free webinars from the authors of When Helping Hurts: How Alleviate Poverty without Hurting the Poor . . . And Yourself. Visit this site to find out more about the book and the webinars, which run through December.

Microfinance 101 at PLNU this October!

2009-09-11T19:50:00.000-07:00

Point Loma Nazarene University will be hosting a four-week Microfinance 101 course. Cosponsored by the San Diego Microfinance Alliance and the PLNU Microfinance Club, the course will be taught by professors and microfinance practioners from throughout the San Diego area. Student tickets are $10, non-students are $20. Click here to sign up. The first class begins October 6!

Are microfinance organizations the next mortgage bubble?

2009-08-27T15:14:00.000-07:00

From Economist.com

THE notion, popularised by C.K. Prahalad’s best-seller, “The Fortune at the Bottom of the Pyramid”, that poor people should be seen as potentially profitable customers rather than mere charity cases, has caught on fast in the past few years. Finding profitable ways to meet the needs of poor people, the idea goes, would not only empower them by making them customers rather than supplicants, it would also attract far more capital than would ever be forthcoming from charity. For the providers of this capital, catering to the bottom of the pyramid promised to be good for the soul as well as the wallet.

A growing number of investors have taken the chance, investing in bottom-of-the-pyramid businesses, of which by far the most popular to date is microfinance—providing loans and other financial services to people ignored as too poor by the traditional banking system. Yet as this idea has spread, it has become increasingly controversial.

Read the rest of article here.

Muhammad Yunus awarded Medal of Freedom by President Obama

2009-08-17T08:17:00.000-07:00

The founder of Grameen Bank recently received a Medal of Freedom.

Click here to read an article on the importance of the event.

Click here to watch a video of the proceedings.

Microfinance Club gains new partner

2009-06-24T08:58:00.000-07:00

The San Diego Microfinance Alliance (SDMFA) is a consortium of local microfinance practitioners, donors, educators, students, and professionals looking to provide useful tools to local microfinance organizations and raise public awareness about microfinance. Committed to collaboration, the SDMFA is establishing a network of support for local entrepreneurs and small business owners.

Check them out here!

See the Microfinance Summit Campaign conference live!

2009-06-04T16:41:00.000-07:00

The 2009 Latin America-Caribbean Regional Summit will be webcast live June 8-10. Speakers including Muhammad Yunus, the managing director of Grameen Bank, will present. Visit the site to experience the conference in real time!

Microfinance in the United States on PBS's NewsHour

2009-05-11T08:32:00.000-07:00

Making microfinance crystal clear: Microfinance Transparency

2009-05-08T16:10:00.000-07:00

The past decade has shown an overall shift in the non-profit industry to commercialize and professionalize operations from their once charity-like methodology. The realm of microfinance is certainly no exception. In fact, it has often been at the vanguard of this transformation due to the attention received from the commercial banking world and by its foundational nature to promote business and economic growth. Chuck Waterfield, of Lancaster, Pennsylvania, has long advocated making interest rates in the microfinance world clearly visible and listed as an annual percentage rate. Interest rates are often hidden or expressed in bi-weekly or monthly increments, which can often allow a borrower to be unknowingly taken advantage of. In the interest of protecting the consumer as well as continuing to gain access to capital markets from commercial lenders, he has created Microfinance Transparency to be the venue for the microfinance industry to publicly demonstrate its commitment to pricing transparency, integrity, and poverty alleviation.

Click here to visit the website.

Microfinance for all ages

2009-05-07T09:09:00.000-07:00

Click here to find out more about microfinance children's book author Kate Smith Milway, who was named ABC News' person of the week!

Microfinance on NBC

2009-05-03T19:23:00.000-07:00

Visit msnbc.com for Breaking News, World News, and News about the Economy

Houses made of styrofoam? Check out Lazarian World Homes!

2009-04-10T07:00:00.000-07:00

Lazarian World Homes from Point Loma Nazarene University on Vimeo.

More from the $2 Challenge!

2009-04-09T07:04:00.000-07:00

PLNU $2 Challenge from Point Loma Nazarene University on Vimeo.

Microfinance summit in San Diego May 7!

2009-04-07T07:00:00.000-07:00

SD Micro Finance Summit Flyer

Publish at Scribd or explore others:

The $2 Challenge on San Diego 6 News.

2009-04-06T07:00:00.000-07:00

View the video here.

View the original story here. You can also find links to the organizations that the Challenge was dedicated to.

The $2 Challenge write-up in Friday's Union-Tribune.

2009-04-05T09:10:00.000-07:00

College students getting $2-a-day lesson in poverty
By Alexa Capeloto
Union-Tribune Staff Writer
2:00 a.m. April 3, 2009

POINT LOMA: A group of students at Point Loma Nazarene University is learning firsthand what Third World poverty can feel like – at least for a few days.

From Wednesday through today, about 25 students are living on $2 a day: sleeping in a shanty village outside the campus gym, boiling their drinking water and eating only what their pooled dollars can buy.

Their effort was organized by two students in the university's microfinance club and is part of the Two Dollar Challenge, an educational program that aims to engage students in the fight against global and domestic poverty.

Participants are also collecting donations for anti-poverty service organizations, according to a statement from Point Loma Nazarene, a private university that serves more than 3,500 students.

“It's hard to bring ourselves out here in the cold, but it's really beneficial,” sophomore Jennifer Hassen, 20, said yesterday. “I really learned a lot about myself and other people.”

In the Union-Tribune on Page B2

View the original story here.

PLNU Microfinance Club makes local news!

2009-04-02T16:09:00.000-07:00

The PLNU Microfinance Club is currently holding the $2 Challenge on campus. Watch the video above to see our students on Fox 5 News.

View the original story here.

The Microfinance Gateway asks: Where did all the women go?

2009-03-30T20:21:00.000-07:00

Women have been a major part of the development of microfinance, but their presence within organizations has been shrinking. Find out why in this article.

Microfinance experts might be coming to your area soon...

2009-03-26T21:26:00.000-07:00

Upcoming microfinance events

Microfinance 2009 in the Bay Area
May 28, 2009 at Stanford University

The 2009 Pacific Northwest Microfinance Conference
May 8-9, 2009 at Seattle Pacific University

Microfinance 2.0: Innovative Solutions to Thrive in the Downturn in San Francisco
June 15-17, 2009

Want an easy way to get an in-depth understanding of microfinance?

2009-03-26T12:00:00.000-07:00

Interested in delving more deeply into the intricacies of microfinance? The United Nations Capital Development fund offers a distance learning course for those who would like to understand the dynamics behind microfinance efforts. According to the website, it is "a chance to step back and see how [microfinance staff's] work fits into global microfinance initiatives."

Click here to find out more!

Who's Making Money from Microcredit?

2009-03-25T16:48:00.001-07:00

Click here to find out!

PLNU Microfinance and Junior Achievement

2009-03-18T16:03:00.000-07:00

This year was the start of the PLNU Microfinance Club's involvement with Junior Achievement and SIFE. The project involves working with high school students in order to teach them how to become entrepreneurs. The students are placed in teams to start a business, pick out a product, and then find funding for that business. Their goal by the end of the semester is to make a profit with their products.

The Microfinance Club has been involved with this project by providing funding to the teams in the form of micro-loans. On March 4th, the Microfinance Club handed out loans amounting to $350. By May 8th, the teams will be expected to hand back in the loans with an interest rate.

Not only has this experience given the Microfinance Club greater knowledge of dispersing loans, but it also informs high school students of what is required when applying for a loan and what is expected when paying back the loan.

Make sure to check back in and find out about the finished project after May 8th!

Watch $25 travel the world!

2009-02-08T09:18:00.000-08:00

A Fistful Of Dollars: The Story of a Kiva.org Loan from Kieran Ball on Vimeo.

Looking for microfinance internships?

2009-02-06T16:36:00.000-08:00

Check out these sites to find an internship with a microfinance organization:

Hope International: Programs Intern, Accounting Intern, Development Intern, Executive Intern, Marketing Intern, Dominican-Republic Intern, Haiti Intern

World Relief: International-ESL Teachers, Basic Computer and Finance Skills Trainer, Microfinance Interns, Program Analyst, Corporate Finance Intern, IT Technicians, Human Resources, Agriculture Intern
Domestic-Video Interns, Disaster Support Intern, Program Support Intern, Church Engagement Intern, Communications Intern, Advocacy and Immigration Intern

Opportunity International: Young Ambassadors for Opportunity

"Addressing the global financial crisis and fluctuating food and fuel costs"

2008-10-29T15:03:00.000-07:00

The October 2008 Microcredit Summit E-News features a discussion between microfinance leaders and investors about issues that the field of microfinance currently faces.

From the site:

Microfinance leaders were asked:

1. How has your microfinance institution (MFI) been affected by the global financial crisis, or how do you see it being affected, and if it is being affected what are you doing to address it?
2. How is your MFI being affected by rising food and fuel prices? What are you or your clients doing to address those challenges?

Investors were asked:

1. How do you see the global financial crisis affecting your institution's work as an investor in microfinance?
2. If you see a negative affect what, if anything, are you doing to address it?

Click here to read their responses!

Hope International's Chris Horst visits campus

2008-10-26T14:28:00.000-07:00

Christ Horst from Hope International spoke to PLNU students this month. Hope International is a non-profit microfinance organization working around the world to alleviate poverty through microloans. Club President Travis Vaughan and Vice President Rashawna Chapman, who have both interned with Hope, also shared their experiences of helping to impact people both spiritually and physically.

Opportunity International's Chris Crane visits campus

2008-10-26T14:25:00.000-07:00

Opportunity International brings opportunities to PLNU

2008-10-18T10:37:00.000-07:00

By Hannah Kuehl

On September 16, the Microfinance Club hosted a luncheon with Chris Crane, president of Opportunity International. Opportunity International is a non-profit microfinance institution, which is present in 28 countries around the world. The organization works to bring about better education and healthcare, among many more issues, through the means of microfinance. The organization gives small entrepreneurs loans, who would otherwise not be able to sustain businesses. The goal of Opportunity International is to help transform people's lives, all the while bringing the love of Jesus Christ to them.

Point Loma Nazarene University was blessed in getting to hear Chris Crane talk about the mission of Opportunity International, the projects that are currently taking place, and the goals that the organization hopes to accomplish in the upcoming years. Chris Crane's son, Andrew Crane, also shared about his experiences working with Opportunity International and the impact that the work has had on his life.

This event was a neat opportunity to see how microfinance has been active in touching the lives of the poor, both spiritually and physically. The mission of microfinance can be understood through what a co-worker of Andrew Crane's said after a 14 hour day, traveling from village to village while handing out loans, "This is a mission, not a job."

Contemplating microfinance in light of the current economic turmoil

2008-09-23T12:03:00.000-07:00

A recent article in Newsweek looks at microfinance and discusses why we should continue to expand it.

Lending tiny sums to people who live on a few dollars a day—street vendors in New Delhi, goatherds in Kenya—doesn't carry the glamour or financial rewards of haute banque. And compared with efforts to vaccinate children, or build dams, it seems like an exercise comparable to shooting pellets at a runaway rhinoceros. But in an era when a great deal of foreign aid has been wasted, or fallen into the hands of corrupt officials, microlending has built a track record of effective poverty relief.

The rest of the article can be found here.

Grameen America, "Banking for the unbanked"

2008-09-17T12:19:00.000-07:00

For anyone looking for a job in microfinance after finishing school:

Grameen America has openings for the position of trainee center manager.
Check out this link for more information.

Microfinance Transparency

2008-09-13T17:37:00.000-07:00

This NGO, Microfinance Transparency, was launched in July. Dedicated to improving communication and understanding in the microfinance world, MF Transparency seeks to collect and distribute information about product pricing and interest rates to stakeholders.

To learn more about MF Transparency's commitment "to building a healthy and vibrant market for microcredit products," visit their website: http://www.mftransparency.org/

Kiva Account Update

2008-09-11T12:11:00.000-07:00

So far, $212 have been repaid to us through our club's account with Kiva. All but one of the people who received our loans have begun to repay!

If you would like to partner with us, please consider joining our lending team.

Microfinance in the news.

2008-09-09T14:29:00.000-07:00

Check out this article on businessweek.com:

A Major Push for Microphilanthropy

eBay's Pierre Omidyar discusses his goals for the $100 million donation he just made to Tufts University to start a fund for microfinance loans

On Nov. 4, Pierre Omidyar and his wife, Pamela, announced that they're donating $100 million to Tufts University to create a new fund for microfinance lending initiatives. The eBay chairman and his wife are no strangers to the world of microfinance, business loans made in tiny amounts to people who are far too poor to qualify for normal-size loans. Their philanthropic organization, the Omidyar Network, has made some $15 million in microfinance investments to date. But this initiative is intended for lending institutions and to help stoke the development of new investment products attractive to traditional investors.

Click here to read the interview.

Check out the Kiva Chronicles!

2008-09-05T15:34:00.000-07:00

We've added a link to the Kiva Chronicles in the right-hand column, under "Microfinance Resources." Matt Flannery, CEO of Kiva, and his wife, Jessica, regularly update the blog with their behind-the-scenes account of working for this major microfinance institution.

Steve Haskell's Take on Blue Orchard Microfinance

2008-05-02T10:28:00.000-07:00

Steve Haskell, PLNU senior and member of the Microfinance Club, explored the business strategies and future plans of Blue Orchard Microfinance Investment Managers in the paper that appears below. Please read, and feel free to comment!

BlueOrchard - Upload a doc

"A Guardian for those at the Bottom: Bandhan's Work to Reach the Poorest"

2008-04-28T21:06:00.000-07:00

Dr. Rob Gailey, professor and director of the Armenian Center here at PLNU, recommended the following article this week.

An Indian microfinance organization, Bandhan, has served almost one million clients. They lowered their interest rates as they became more profitable.

Bandhan founder Chandra Ghosh recalled a time when he met a woman on the street whose children were eating dust. He told her that she must stop them, for it is unhealthy. She replied, "That is not what I am thinking about. I am thinking that last week, my children cried to me that they wanted to eat fish and meat with rice. But every day I had to give a false commitment that tomorrow I could give it to them. How can I tell my children to stop eating dust when I have nothing more to give them?"

You can view the article here.

2008-04-20T14:42:00.000-07:00

The following is a profile of a Princeton student who is currently developing a method for assessing the efficacy of microfinance programs. You can view the article in its original context here.

Measuring the success of microfinance
From the April 14, 2008, Princeton Weekly Bulletin

Just six months after being introduced to the idea of microfinance -- providing the poor with extremely small loans to start businesses -- senior Molly Jamieson traveled around the world to assess it in action, visiting lending organizations in seven countries on three continents.

Jamieson's senior thesis project was inspired by a December 2006 New York Times profile of Muhammad Yunus of Bangladesh, who shared the 2006 Nobel Peace Prize for inventing microfinance with the Grameen Bank, which he founded 30 years ago. The goal of microfinance is simple: provide the poor with small loans, typically averaging around $345, to support their business endeavors and help them rise out of poverty.

"I liked the idea that it wasn't a handout," said Jamieson, who is majoring in the Woodrow Wilson School of Public and International Affairs and pursuing a certificate in environmental studies. "This is about business, not charity. It's about giving people capital and tools."

Jamieson learned about a funding opportunity from the Circumnavigators Club Foundation shortly after reading the Times article. The organization provides support to rising college seniors to do research for 10 weeks on a subject of their choosing, as long as they literally circumnavigate the globe -- crossing the appropriate meridians in the proper order -- as they do so.

Jamieson wrote one of four winning proposals in the nation, detailing her plan to assess the success of microfinance institutions by meeting with staff members and borrowers at a diverse group of organizations throughout the developing world.

Though her thesis research took her all over the globe, Jamieson has lived in Princeton her entire life, save for her senior year in high school, when she moved with her family to Washington, D.C.

Last summer, Jamieson traveled to Peru, Ecuador, Egypt, Ghana, Bangladesh, Thailand and China. Staying in hostels, she spent between four days and two weeks in each country, meeting with microfinanciers and visiting their clients, many of whom live in sheer destitution.

But nothing compared to Khlong Toei, the largest slum in Bangkok, where 120,000 people live in a network of dark, lethargic alleyways and two-story buildings of plywood and tin sheeting.

"Everyone argues about the definition of poverty, but I found it there," Jamieson said.

She also found insight.

It came in the form of a conversation with one of Step Ahead Micro Enterprise Development's borrowers, a woman by the name of Jai, who started a business with her husband to prepare and deliver meals. By all traditional measures, microfinance had been a stellar success for Jai. Her business had grown; she had paid back her loan, taken out a larger one and was depositing savings. But when Jamieson asked her if she would be leaving Khlong Toei, Jai looked at her quizzically and said she and her husband would never leave.

"What struck me about that wasn't that she should leave, but the fact that, according to traditional microfinance assessment, everything about her story would say that the organization was doing a great job," Jamieson said. "But she was remaining in poverty. There needed to be a way to measure if people's lives were actually changing."

The experience prompted Jamieson to focus her thesis on the evaluation of tools used to assess the impact of microfinance institutions. She uses case studies such as Jai's to illustrate her claim that social performance metrics need to be used in conjunction with traditional financial benchmarking tools to evaluate the success of microfinance institutions and prove their effectiveness to potential donors and investors.

"The field of microfinance holds great potential to promote more secure livelihoods for the poor and to reduce their vulnerability," said Jamieson's faculty adviser Karen McGuinness, assistant dean for graduate education in the Wilson School and lecturer in public and international affairs. "Molly is looking at the crucial question of how to measure and demonstrate the social performance of microfinance institutions. Of course, it's not only reaching the poor that's important, but also ensuring that this intervention helps them to move out of poverty. One of the features of Molly's thesis that's so distinctive is that she had the opportunity to observe many microfinance programs last summer in a number of countries."

The proper assessment tools, Jamieson argues, will be able to address the two major critiques of microfinance as a means to end poverty: that it doesn't serve the most destitute, and that it allows borrowers to persist in a life of poverty without ever really escaping it. In situations where microfinance institutions aren't found to be improving people's lives, the tools will help identify the need for changes in the services provided or alternatives to microfinance in general.

Increasingly, the microfinance world is becoming aware of the need to measure success in terms beyond the financial. In her thesis, Jamieson evaluates a variety of the social performance indices that have been proposed, ultimately recommending a series of low-cost assessment tools -- known as poverty scorecards -- that measure a small number of observable and verifiable indicators of poverty. Jamieson argues that these inexpensive and easily replicable tools have the most potential for quick and effective deployment to microfinance institutions around the world. She proposes that these tools could be used to assess a borrower's status upon joining an organization and annually thereafter to assess change in the borrower's living situation.

Jamieson plans to provide copies of her thesis to the organizations she worked with this summer in hopes that it may help them more accurately assess their success. After graduating, she will work in New York City as a Princeton Project 55 research fellow at the Rockefeller Foundation, analyzing programs to help guide the foundation's investments.

2008-04-04T15:07:00.000-07:00

Wall Street Journal Explores Microfinance Web Sites

2008-03-25T11:54:00.000-07:00

Microlending for Microbankers
Groups, Web Sites Link Individuals To Poor Borrowers
By JILIAN MINCER March 20, 2008; Page D2

While the credit crunch bedevils fixed-income investors, a growing number of individuals are discovering the financial and psychological benefits of an alternative asset class: Lending to the poor through microfinance.

Increasingly, individual investors can make microfinance loans themselves through charitable organizations and the Internet.

Microcredit, which was made prominent by Nobel Peace Prize winner Muhammad Yunus, is the practice of making small loans to the world's poor. While the goal is the charitable one of helping them out of poverty, investors are discovering that most borrowers -- 97% industrywide -- repay their loans, according to San Francisco-based nonprofit outfit KIVA.

A growing number of private banks are offering high-net-worth individuals advice to help them invest in microloans. The Internet and groups like mutual-fund company Calvert, national financial services organization TIAA-CREF and international microfinance organization Accion are enabling individuals to make small loans, typically for one to four years, and get a return ranging from 1% to 4% annually.

"It's a safe way for investors to get involved," says Shari Berenbach, executive director of Calvert Foundation, which offers investors ways to invest in microfinance. "It's like getting a CD. It's a modest yield, but it's very safe and very convenient."

The Calvert Foundation offers a securitized note through the foundation or on the newly created MicroPlace, a Web site (http://www.microplace.com/) and registered broker-dealer. Funds can be invested for up to 10 years with a maximum guaranteed return of 3%, guaranteed by Calvert Foundation. Calvert's securitized note isn't rated by rating agencies.

"Poor peoples' credit is very reliable," says Terry Provance, executive director of Washington-based Oikocredit USA. Based in the Netherlands, Oikocredit was established in 1975 by a group of churches. "We work very closely with the people who borrow that money," says Mr. Provance. "We want to reduce poverty, and we want them to pay us back."

The minimum investment in loans made through Oikocredit, if not made online, is $1,000 for one year with a maximum 2% return. The fund has about $530 million deployed to 410 credit banks and almost 220 cooperatives, which work directly with the borrowers. (Investments can be made online for as little as $100 through the MicroPlace Web site.)

David Mesenbring is typical of many investors in microfinance. While working in the 1980s in Africa he saw that poor people couldn't get credit from traditional banks. But a loan of $50 or $100 could be life changing because it would enable someone to start a business selling produce or producing crafts.

Over the years, he and his wife have invested about $6,000 in Oiko, which they keep relending. "When I think about the social dividend it pays to me, $500 is another five families working their way out of poverty," says Mr. Mesenbring.

MicroPlace, launched in October, hopes to expand microinvesting to many more investors.
"Think of us as a marketplace for microfinance investors," says Tracey P. Turner, founder and general manager of MicroPlace, which is a subsidiary of eBay Inc. "This is another asset class you can add to your portfolio."

Individuals can invest as little as $100 on the Web site in one of the agencies. Subsequent investments can be made for $50 or more. Returns are typically in the 1% to 3% range for periods of one to four years. Investors don't pay a fee, but the site charges the issuers of the securities 1% of the loan. Ms. Turner says that eBay has committed to reinvest the profits.

Ms. Turner saw firsthand the benefits of these loans when she lived with a single mom in Kenya. The woman bought three sewing machines, which she used with her cousin and mother to sew school uniforms. Her oldest son attended school and went on to college in the U.S. with help from her earnings.

Individuals also can get involved in microfinance by investing in a variety of mutual funds, securitized notes and annuities available through TIAA-CREF, Accion and others.

Accion's Global Bridge Fund allows individual investors to lend money to the funds and earn interest while their pooled funds support small to midsize microfinance institutions. Accion, like Calvert, guarantees the fund, which isn't rated by rating agencies.

The minimum investment is $2,000 for at least 18 months. Interest rates vary from zero to 3% for new investments.

"I'm extremely bullish on microfinance as an investment for the right kind of client," says Melanie Schnoll-Begun, managing director at Citigroup Inc. unit Citi Family Office Philanthropic Services, which now offers high-net-worth individuals advisory services for microfinance investments.

The Web site run by KIVA (http://www.kiva.org/) has attracted a lot of attention to microfinance in the past two years. Individuals could select a recipient and contribute $25 or more online. The money is typically repaid and could be lent again or taken out of the account. However, at this point the lender doesn't earn any interest.

Fiona Ramsey, a spokeswoman for KIVA, says it eventually hopes to enable individuals to receive interest from the borrower.

The nonprofit has been so popular that at times during the holidays there were not enough borrowers for lenders.

"We have a perception that the poor are a [poor] credit risk, but actually they're a very good credit risk," says Ms. Ramsey. "The poor are highly motivated to be successful. Usually, this is their only chance for a loan."

If you missed last night's club meeting . . .

2008-02-29T15:05:00.000-08:00

. . . here's the link for the article we discussed. Some of the questions it raised:

Are microfinance organizations actually helping the poorest of the poor?

How can organizations adequately address the needs of these people?

Why do the Small Enterprise Foundation and CASHPOR use different methods?

Post your thoughts through the Comments link below!

International Opportunities Event

2008-02-14T09:57:00.000-08:00

Thanks to everyone who spoke at our International Opportunities Event last night! We enjoyed a Mexican meal while listening to presentations on Accion, PLNU Study Abroad, Lazarian World Homes, World Relief, the Rock Church, and more! If you would like more information about any of these organizations, please contact us, or comment on this post below.

Want an in-depth discussion of Microfinance?

2008-02-09T14:22:00.000-08:00

The New Yorker published an article in 2006 outlining Microfinance and the impact it's having on people around the world.

Click here to read it.

Post your thoughts with the comments link below!

Is Microfinance infallibly good?

2008-02-09T14:00:00.000-08:00

The Ugly Side of Microlending

How big Mexican banks profit as many poor borrowers get trapped in a maze of debt
by Keith Epstein and Geri Smith

"In a gleaming office tower in Mexico City secured with retinal scanners, bulletproof glass, and armed guards, dozens of workers in white lab coats dart around a large operations center monitoring long rows of computers. Along one wall, 54 enormous screens flicker dizzyingly with numbers, graphs, and fever charts: a relentless stream of data. You'd think the urgent mission involved tracking the trajectory of a spacecraft or the workings of a national power grid, not tiny amounts of cash and credit for Mexico's working poor. . . . "Read the rest of the article here.

What do you think? Are Microfinance's potential shortcomings insumountable? Or are there solutions? Post your comments below.

Welcome to Point Loma Nazarene University's Microfinance Club!

2007-12-23T08:49:00.000-08:00

It is our mission to spread awareness about Microfinance and the impact it is making in alleviating poverty both locally and around the globe. We plan to empower individuals so that they may actively participate in the development of this movement.