You are currently browsing the monthly archive for March 2009.
> Posted by Amitabh Saxena
A Swadhaar/ICICI Kiosk
The Oscar-winning movie Slumdog Millionaire is a fictional account of one teenager’s tough life in the slums of Mumbai to eventually winning the jackpot of a TV game show. But would young Jamal spend all those rupees or open a savings account to keep them safe?
Through ACCION’s support of its microfinance partner Swadhaar FinAccess on Alternative Channels, I have had the opportunity a few times to walk around some of Mumbai’s slums – Kurla, Malad, and Dharavi (Asia’s largest) – and observe first-hand conditions there and poor people’s savings patterns. As an NGO, Swadhaar FinAccess is not regulated to offer savings accounts but wanted to offer the “service” to its poor clientele. So in January 2008 it struck a banking-correspondent agreement with ICICI, India’s largest private bank, where it would set up, staff, and manage small “kiosks” (see picture at right) in the poorer neighborhoods of Mumbai. Through these kiosks, clients can open ICICI savings accounts and make basic transactions, such as balance inquiries, deposits, and withdrawals. While these special savings accounts designed by ICICI have fewer options Read the rest of this entry »
> Posted by Kelley Mesa
Check out the latest country profile detailing the status of consumer protection in Ecuador.
Here’s the executive summary…
Ecuador’s current economic outlook is similar to that of many commodity-exporting Latin American countries, with moderate growth forecasted for 2009. The country’s exports consist mostly of hydrocarbons and agricultural products. Since the country is dollarized, and therefore dependent on United States monetary policy, it will probably not be able to withstand international shocks as well as its non-dollarized neighbors. Microfinance in Ecuador continues to experience growth and relative stability in large part because of support from the government, international donors and aid agencies. Clear laws specifying client rights and responsibilities support the status of client protection in Ecuador. Read the rest of this entry »
> Posted by Val Ng
Elisabeth Rhyne takes questions from students during the senior seminar at Beloit.
Sitting in on a senior seminar class reminds me that college is almost over. The atmosphere is more serious, and the topics of discussion are deeper (and sometimes fly over my head).
My main interest was Dr. Rhyne’s discussion of the public sector and how Indonesia has the most successful government-owned microfinance bank. Having lived 6 years of my childhood in Jakarta where my dad worked in Citibank, this topic fascinated me. I had no idea that Bank Rakyat Indonesia Read the rest of this entry »
> Posted by Kelley Mesa
Check out the latest Center for Financial Inclusion podcasts. Campaign for Client Protection Director Robin Ratcliffe interviews four Campaign Steering Committee members about why they joined the Steering Committee and their personal committments to client protection.
> An Interview with Samit Ghosh of Ujjivan and Asad Mahmood of Deutsche Bank
> An Interview with Mathias Katamba of Uganda Finance Trust and Shireen Farrag of Sanabel
> View all Center podcasts
The Campaign for Client Protection in Microfinance seeks to unite microfinance providers worldwide to develop and implement standards for the appropriate treatment of low-income clients based on the six principles. The overall objective of the Campaign is for these principles to become embedded within the fabric of the microfinance community and for microfinance to be recognized as a strongly pro-consumer industry.
> Learn more about the six principles of client protection
> View the newly named steering committee
> Endorse the Campaign!
> Posted by Val Ng
I hopped in on Professor Rachel Ellett’s “Introduction to International Relations” class today, where Dr. Rhyne was invited to speak. She began by defining Microfinance with two definitions: 1) financial services for low-income people in the developing world and 2) a movement where groups of institutions since the 1980s developed a certain set of methodologies on providing services to the poor. In the world today there are 600-700 major microfinance institutions that altogether serve around 100 million families.
Dr. Rhyne’s brief lecture on the history of microfinance and ACCION led to a rapid firing of questions. What are the issues with a not-for-profit organization transforming into a for-profit organization? An interesting fact Dr. Rhyne mentioned was how microfinance does not need money for lending but rather, money for expansion and the building of the industry. On the other hand, with microfinance on the rise, there is now danger of competition and the problems that come with competition in such a small industry. What’s the right way to communicate interest rates to clients? Read the rest of this entry »
> Posted by Val Ng
At the Career Panel today, students got the chance to ask Dr. Rhyne personal questions on her experience with microfinance and her journey to her position with ACCION as well as asking for advice for their own lives. What I found most interesting was Dr. Rhyne’s statement that the success of microfinance due to the vast demand for services – need – and this led to the idea of responding to current needs, such as energy and environment. What needs to be done in the world today and what can we do? Dr. Rhyne says her own guiding principle for planning a career was to think about the biggest problem in the world that you can have an impact on and work on it. Ambitious, but inspiring at the same time.
Another big topic of discussion was what to do after the undergraduate years – gathering experience in developing countries and eventually pursing a graduate degree was seen as necessary for those wanting a career in development. Is Peace Corps the best way to go or is it better to scout for opportunities below Read the rest of this entry »
> Posted by Val Ng
The Weissberg professorship in international studies at Beloit College was established in 1999 to provide a one-week on-campus residency each year for an individual who has made an important contribution to international understanding. It is designed to enrich the global perspective at Beloit College and allows for an extended period of exchange and interaction with respected active ‘players’ on the international stage as they examine some of the key issues of our time. The Weissberg professorship is underwritten and supported by Marvin Weissberg, a business leader and Beloit College parent.
Beloit College celebrates the 10th anniversary of the Weissberg Chair Program this year with Elisabeth Rhyne, managing director of the Center for Financial Inclusion at ACCION International. In class visits, public lectures and conference panels, Dr. Rhyne will be addressing the issue of Microfinance and its changing role in social and economic development.
I am Val Ng, a student at Beloit. All week, I will be posting discussion topics from Dr. Rhyne’s presentations Read the rest of this entry »
> Posted by Kelley Mesa
Notice something different? We’ve redesigned the Center’s blog to give you more tools and functionalities to take part in the dialog. If you have any questions or comments, please contact me at .
> Posted by Kelley Mesa
The latest edition to the Consumer Protection Library provides an overview of the legal and regulatory for consumer protection in Venezuela as well as a description of the banking associations and microfinance networks there.
Here’s the executive summary:
Venezuela has one of the strongest economies in Latin America. In terms of GDP, it ranks among the top 40 in the world. Venezuelan banks have been subject to intense regulation in arenas ranging from interest rate caps to mandatory minimum amounts for microfinance loans. The presence of few microfinance institutions and high market concentration results in weak competition. Additionally, microfinance must compete with heavily subsidized public programs, the latter of which can offer interest rates 6%-8% lower than private or not-for-profit programs. The growing trend towards regulation and nationalization means the presence of similar public programs will likely increase. Venezuelan law calls for strict regulation of financial institutions in the area of consumer protection. However, the extent of the regulation and government intervention Read the rest of this entry »
> Posted by David Levai
I’m on my way back from Uganda where I spent the last week working for the Energy Links project. Together with the Legacy Foundation, we were supporting a workshop to train members of a local NGO, UWESO (Ugandan Women’s Effort to Save Orphans) to produce biomass briquettes.
Biomass briquettes made by this Ugandan community
What on earth is a biomass briquette you might say?” – a reaction which happened to be mine when I first heard about it. It’s a type of solid cooking fuel made out of organic waste material. With its round shape and a hollow core, it looks like a donut. So, what makes it so important? It is an environmentally friendly alternative to charcoal and a cheaper substitute for the billions of households that cook their meals everyday using the inefficient combustion of charcoal or firewood.
In the developing world today, charcoal and firewood are the primary cooking fuels. But as forests shrink and as the prices of raw materials and energy keep rising, cooking fuel expenses are a growing burden on low-income households in developing countries Read the rest of this entry »
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