Microfinance Poverty Assessment Tool
Currently, no rigorous tool exists to measure the poverty level of microfinance institution (MFI) clients. In order to gain more transparency on the depth of poverty outreach, CGAP collaborated with the International Food Policy Research Institute...
Main Authors: | , , , |
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Language: | English en_US |
Published: |
Washington, DC: World Bank and CGAP
2013
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/2003/10/2857591/microfinance-poverty-assessment-tool http://hdl.handle.net/10986/15065 |
Summary: | Currently, no rigorous tool exists to
measure the poverty level of microfinance institution (MFI)
clients. In order to gain more transparency on the depth of
poverty outreach, CGAP collaborated with the International
Food Policy Research Institute (IFPRI) to design and test a
simple, low-cost operational tool to measure the poverty
level of MFI clients relative to nonclients. This tool is a
companion piece to the CGAP Appraisal Format; donors should
not use the poverty assessment tool without also conducting
a larger institutional appraisal. The concept of poverty is
complex and strongly influenced by local cultural and
socioeconomic conditions. The poverty assessment approach
presented in this manual supports a flexible definition of
poverty that can be adapted to fit local perceptions and
conditions of poverty. The tool is intended neither as a
means to target new clients nor to assess the impact of
microfinance services on the lives of existing clients. It
may provide a useful means to verify-both for the donor and
the MFI-the extent to which an existing strategy results in
poor clients joining the MFI. The tool assesses the poverty
levels of MFI clients compared to nonclients within the
operational area of an MFI. Using available data or expert
opinion, the tool also relates local poverty levels to
poverty measured at larger regional and national levels. |
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