poverty tools and financial inclusion
In the last decade there has been discussion of products and organisational structures to better serve the ultrapoor, and also with measurement of the extent of poverty targeting.
The issue of poverty targeting received particular attention from 2000 when the U.S. Congress passed the Microenterprise for Self-Reliance and International Anti-Corruption Act, which mandated that half of all USAID microenterprise funds benefit the very poor. To verify that USAID meets this target, subsequent legislation required USAID to develop and certify low-cost tools for assessing the poverty status of microenterprise beneficiaries, and required its microenterprise implementing partners to use those tools to measure and report the share of their beneficiaries who are very poor. This then stimulated design of a range of poverty assessment tools by different players in the microfinance sector.
Inclusive finance recognizes that
a continuum of financial services providers work within their comparative advantages to serve poor
and low-income people and micro and small enterprises. Building inclusive financial sectors includes Return to top
but is not limited to strengthening microfinance and MFIs.
social Performance management
Social Performance Management is defined by the Social Performance Taskforce as “the effective translation of an institution’s mission into practice in line with accepted social values.”
The SPTF Universal Standards for Social Performance Management (“the Standards”) are a set of management standards for microfinance institutions (MFIs) which aim to refocus MFIs on the client. The Standards are organized into the following six categories:
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- Define and Monitor Target Clients and Social Goals
- Ensure Board, Management, and Employee Commitment to Social Performance
- Protect Clients’ Rights
- Design products, services, delivery models and channels that respond to Clients’ Needs and Preferences
- Treat Employees Responsibly
- Balance Social and Financial Returns