Learning about microfinance in Akbarpura, India - by lecercle
MCF’s International Funders Network recently held a discussion on what international funders and donors need to know about microfinance in order to succeed.
Three experts were invited to provide information on this complex topic: Rob Scarlett, a member of ACCION International’s President’s Council and a trustee of Sundance Family Foundation (an MCF member); Monte Achenbach, VP for international programs at American Refugee Committee; and Jason Cons, director of research and project design at The Goldin Institute.
During the Q & A session, attendees had the opportunity to inquire about their specific areas of interest. Here is a flavor of the conversation:
Q: Is Microlending working?
A: It depends — it’s not working in Bangladesh where people have taken out multiple loans to pay for everyday living expenses and are now overextended. It is working in Bolivia. The answer is different depending on the country, regulations, and division between NGOs and for-profit lenders.
Q: How do funders work successfully with for-profit lenders?
A: The lack of government oversight and regulation makes this difficult. Funders really need to build a long-term relationship and communicate their needs with their lender.
Q: How do you determine and measure the impacts of giving?
A: There are many ways to make determinations and measure impact. The impact can be social, economic, societal – and all can be measured in different ways. Once you’ve determined what you want to measure, it’s recommended that you build in an ongoing, long-term process of internal and external accountability at all levels, and that you incorporate a community engagement process into your data collection and reporting activities.
Q: Where can we find more information about microfinance?
A: In addition to ACCION International, ARC and the Goldin Institute, you can find information at CGAP: Consultative Group to Assist the Poor and The MIX Market. These organizations are also in the beginning stages of reporting social key indicators and eco-mapping that can be used for comparison data.
- Submitted by Lisa Johnson, MCF’s manager of professional development and e-learning
