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financial inclusion

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

Global Anticorruption blog
International summits come and go, and all too often the promises made at these summits are quickly forgotten, lost in an online catacomb or otherwise hard to track. We at Transparency International are determined that the commitments made by government representatives at last May’s London Anticorruption Summit (648 total commitments by 41 of the 43 participating governments) must not slide into oblivion in this way. That’s why, as Matthew announced in a post earlier this month, we’ve gone through every single country statement and compiled all commitments into one central database, sortable by country, theme, and region. Our goal is for this database to be used by anticorruption advocates and activists to monitor what their countries have committed to, and whether and where they are making progress.
 
Wall Street Journal
The ubiquity of cellphones could allow a rapid expansion of financial services throughout the developing world, with major implications for growth and credit accessibility, a McKinsey & Co. report concludes. “With the technology that’s available today you could provide billions of people and millions of businesses opportunities that don’t exist to them today,” Susan Lund, co-author of the McKinsey Global Institute report on digital finance, said in an interview. The report found that with coordinated action by financial firms, telecommunications companies and developing-country governments, some 1.6 billion people could gain access to financial services by 2025, all without major new expenditures on physical infrastructure.
 

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

 
The Internet
Global Governance Monitor

The Internet has revolutionized communication and radically altered the conduct of business, politics, and personal lives. Information is now widely available and shared through instant message, email, and social media. Businesses can operate internationally with virtually no delay, enabling previously unimaginable opportunities such as providing medical advice across oceans. Moreover, the embedding of sensors, processors, and monitors in everyday products links the physical and virtual worlds, expanding vast streams of data and creating new markets. The Internet has also altered the relationship between governments and societies. Low-cost, nearly ubiquitous communication platforms allow citizens to mobilize and build transnational networks. The speed of communication can make governments more accountable, and open-data initiatives enable the participation of nongovernmental organizations and increased transparency. Though the technology has facilitated unprecedented economic growth, increased access to information, and delivered innovative solutions to historic challenges, the expansion of the Internet has also brought challenges and vulnerabilities.
 

The 2016 Brookings Financial and Digital Inclusion Project Report, Advancing equitable financial ecosystems
Brookings Institution

The 2016 Brookings Financial and Digital Inclusion Project (FDIP) evaluates access to and usage of affordable financial services by underserved people across 26 geographically, politically, and economically diverse countries. The 2016 report assesses these countries’ financial inclusion ecosystems based on four dimensions of financial inclusion: country commitment, mobile capacity, regulatory environment, and adoption of selected traditional and digital financial services. The 2016 report builds upon the first annual FDIP report, published in August 2015. The 2016 report analyzes key changes in the global financial inclusion landscape over the previous year, broadens its scope by adding five new countries to the study, and provides recommendations aimed at advancing financial inclusion among marginalized groups, such as women, migrants, refugees, and youth.

Want to empower women? Digital Financial Services are the way to go!

Duncan Green's picture

Sophie Romana (left) and Shelley Spencer (right) report back from the June 8 high level roundtable organized by NetHope and USAID, which brought together mobile banking and gender champions to reflect on how Digital Financial Services (DFS) can galvanize women’s empowerment.

Women’s empowerment is often measured by their access to resources and ability to make decisions over how they are used.  Recent evidence shows that DFS delivered through mobile phones deserves solid A's against each metric. This is not just hopeful musing by us as two empowered women with banking apps on our mobile phones, it is the consensus of a cross section of thought leaders with a seat at the table in Washington including USAID, the Bill & Melinda Gates Foundation, the Better than Cash Alliance and UNCDF, CGAP, and Women for Women International, as well as our own organizations, Oxfam and NetHope.  We recently spent a morning reflecting on rigorous academic and implementation research on DFS use by women — all to be published soon — and pathways to close the gender gap in DFS product use.

Oxfam has long known that women play a central role in financing family and community needs. What we are now finding is that DFS tools can enhance their role.  To study the impact of DFS on Saving for Change (SfC) savings groups in Senegal, Oxfam divided up 210 SfC groups (over 5,000 women) into 2 cohorts: one who participated in the project and the other as a comparison set.  Women who participated in the pilot saved and borrowed more than the comparison groups. The differences are not marginal.  There is a significant difference in savings.

 
Graphs: Saving for Change Mobile Banking, First Assessment & Learning Review, March 2016, Oxfam America

#5 from 2015: The things we do: How a simple text message is the difference between success and failure

Roxanne Bauer's picture
Our Top Ten blog posts by readership in 2015. This post was  originally posted on April 21, 2015.
 

A woman and her child get the anti-malaria drugs distributed in Freetown.Mobile phones are increasingly prevalent throughout the world, and researchers have found that sending text message reminders can help people follow-through with their intentions, significantly increasing the success of development interventions.

“People need to be reminded more often than they need to be instructed.”

These are the wise words of Samuel Johnson, an English author, critic, and lexicographer. Even though he lived more than 200 years ago, international development interventions are proving him correct today. 
 
Reminders for Malaria
 
It’s widely known that failure to adhere to a full course of antibiotic treatment leads to treatment failure and encourages bacterial resistance to antibiotics, threatening the sustainability of current medications. This is extremely important for malaria, which, according to the World Health Organization, results in 198 million cases each year and around 584,000 deaths.  The burden is particularly heavy in Africa, where around 90% of malaria deaths occur, and in children under 5 years of age, who account for 78% of all deaths. Moreover, low rates of adherence to artemisinin-based combination therapy (ACT) treatments has led to a prevalence of antibiotic-resistant Malaria in many parts of the world, particularly Africa. One of the biggest and simplest  reasons why people fail to complete the full treatment for Malaria is that they forget.

No Money, No Worry

Maya Brahmam's picture

Rafu, the chief of the fishing villageThe World Bank recently completed two surveys that confirm that large global banks are restricting or terminating relationships with other financial institutions and that banking services for money-transfer operators have become increasingly limited.

The risk is that a decline in correspondent banking services can lead to financial exclusion, particularly for remittance providers – poor people working in richer countries who send money home to their families in poorer countries. To a large extent, these restrictions have come about because of worries about money laundering or financing for terrorism and less appetite for risk.

However, there are alternatives. Mobile money is a fast-growing alternative to traditional banks. CBS’s Lesley Stahl recently reported on how MPesa has transformed financial inclusion in Kenya, where people- many of them poor- do most of their financial transactions via cellphone and outside of traditional banking systems.  She also pointed out that tech giants like Google, Facebook, PayPal and Apple are all exploring this new consumer market, where sending money can be as simple as sending a text message. Also, according to the Financial Times, mobile money is making serious inroads in Latin America, where 37 mobile money services are now operational across 19 countries. Unlike the experience of Africa, Latin Americans are using mobile money to support urban middle-class lifestyles.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

What Future For Emerging Markets?
Foreign Policy
Long before the current market debacle, I was confronted with a fundamental question about emerging markets. As I was finishing off my course at the Yale School of Management on “The Future of Global Finance” this past May, a student came up to me. “You have gone to great lengths to emphasize the role of emerging markets in a changing monetary system, “ he said, “ but everything I have been reading says that the era of the Brazils, the Indias, the Turkeys, the Indonesias as up-and-comers is history. Even China seems to have lost its luster. Have you been looking backwards and not forward?”

How Africa can benefit from the data revolution
The Guardian
The UN has estimated that across the world more people have access to mobile phones than to toilets. It is of course distressing to imagine what this means for many people’s exposure to disease and access to clean water, but the choice of mobile phone for the comparative statistic actually offers a great deal of hope. The mobile phone is part of a phenomenon where a new infrastructure is emerging, one that could bring the economic changes that enable those toilets to be built.  Our modern infrastructure is based on information. Since the 1950s, investment in data storage and distribution by companies and countries has been massive. Historically, data was centralised a single database. Perhaps one for representing the health of a nation, and another database for monitoring social security. However, the advent of the internet is showing that many of our existing data systems are no longer fit for purpose.
 

Weekly wire: The global forum

Roxanne Bauer's picture
World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.
 

Why don’t voters demand more redistribution?
The Washington Post
If you believe economic inequality is a political problem, these are trying times. As economic inequality increases in many of the world’s wealthy democracies, so does the disproportionate political influence of the rich. As a recent Monkey Cage post explained, even though economic inequality is on the rise, politicians around the world have grown increasingly attentive to the demands of the “1 percent” — and less responsive to the less well-off.  If you believe inequality is a bad thing, this trend is worrisome. The power of the rich to mute everyone else’s political voices could push economic inequality even higher, as the wealthy erect ever-higher barriers to policies that might work to reduce poverty and/or inequality.

Why Technology Hasn’t Delivered More Democracy
Foreign Policy
The current moment confronts us with a paradox. The first fifteen years of this century have been a time of astonishing advances in communications and information technology, including digitalization, mass-accessible video platforms, smart phones, social media, billions of people gaining internet access, and much else. These revolutionary changes all imply a profound empowerment of individuals through exponentially greater access to information, tremendous ease of communication and data-sharing, and formidable tools for networking. Yet despite these changes, democracy — a political system based on the idea of the empowerment of individuals — has in these same years become stagnant in the world.

Weekly wire: The global forum

Roxanne Bauer's picture

World of NewsThese are some of the views and reports relevant to our readers that caught our attention this week.

The surprising benefits of autocratic elections
Washington Post
After a bitterly contested election campaign and several controversial postponements, Muhammadu Buhari engineered an upset of Nigeria’s incumbent President Goodluck Jonathan on Tuesday, the country’s first-ever case of electoral turnover. Legislative elections will follow on April 11, while two other African countries, Sudan and Togo, are also scheduled to hold elections over the next two weeks. Besides the coincidence in electoral timing, these countries share another surprising link—all three are generally recognized as autocracies. The marriage of autocracy with contested elections is, in fact, the norm nowadays. All but five autocracies have held a national election since 2000, with about three in four allowing multiparty competition. What makes these regimes autocratic is that the elections fail to meet democratic standards, typically with state power being used to favor the ruling party.
 
Cellphones for Women in Developing Nations Aid Ascent From Poverty
New York Times
Here is what life is like for a woman with no bank account in a developing country. She keeps her savings hidden — in pots, under mattresses, in fields. She constantly worries about thieves. She may even worry about her husband taking cash she has budgeted for their children’s needs. Sending money to a family member in another village is risky and can take days. Obtaining a loan in an emergency is often impossible. An unexpected expense can mean she has to pull a child out of school or sell a cow the family relies on for income. Or, worse, it can mean she must give birth at home without medical assistance because she doesn’t have the money for a ride to a clinic. In ways big and small, life without access to financial services is more difficult, expensive and dangerous. It constrains a woman’s ability to plan for her family’s future. At the community level, it traps households in cycles of poverty. More broadly, it limits the economic growth potential of developing countries.

Show Me Your I.D., Please!

Johanna Martinsson's picture

If someone were to ask you to identify yourself, you would probably reach into your purse, or pocket, and pull out some form of identification.  Without it, one loses some of the basic benefits of living in a society. You cannot open a bank account, purchase a home, or vote, and so on.  Many countries, however, don’t have a functional identification system.  In India, for example, millions of citizens are unable to benefit from social and financial services because they don’t have proper identification.  Also, current welfare databases are plagued with fake names and duplications, entered by corrupt officials. Thus, the country has embarked on a massive identification project that will be one of the largest citizens’ databases of its kind.