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Microfinance

#Blog4Dev: Vocation and technical training and access to credit would create jobs

Mowliid Ahmed Hassan's picture



During my years in college, the number of unemployed graduates in my city made me want to study harder, and seek the skills required in the workplace while I was still a student. Luckily, in my fourth year, I began volunteering for a local NGO. That volunteerism really scaled up my skills and later helped me get a fulltime job.
 
The general lack of vocational training and a still-nascent volunteerism culture remain the main reasons why the majority of Somali youth are unemployed. We can boost youth employment opportunities by not only building up their skills, but also by encouraging volunteerism as a pathway to employment.

What happens when business training and capital programs get caught in the web of intrahousehold dynamics?

Markus Goldstein's picture
Two weeks ago, I blogged about a new paper by Arielle Bernhardt and coauthors which looked at the idea that when women receive a cash infusion from a program, they may give it to their husbands to invest in their business.
 

Building more affordable and disaster-resilient housing in Latin America and the Caribbean: a few policy ideas

Julian Palma's picture
Photo by C64-92 via Flicker Creative Commons

Between 2010 and 2017, Chile was struck by 10 major natural hazard events. These disasters affected as many as 340,583 houses and cost $3.6 billion in reconstruction (Ministry of Housing and Urbanism of Chile). Post-disaster assessments point to housing as one of the most affected sectors in the wake of climate-related and other natural hazards—most commonly floods, earthquakes, landslides, and fires. In a 22-year period between 1990 and 2011, minimum losses in the housing sector for 16 countries in Latin America and the Caribbean (LAC) amounted to $53 billion.

In the LAC region, one quarter of the population lives in slums, characterized by the prevalence of substandard housing quality as well as incremental and self-construction of homes. Families living in these informal settlements are at greatest risk to natural hazard impacts. Programs providing new housing do not always reach families in the lowest quintiles; and without access to affordable and well-located housing alternatives, households have no other option than to build informally, and in areas most prone to natural disasters.

Money for her or for him? Unpacking the impact of capital infusions for female enterprises

Markus Goldstein's picture
In a 2009 paper, David McKenzie and coauthors Chris Woodruff and Suresh de Mel find that giving cash grants to male entrepreneurs in Sri Lanka has a positive and significant return, while giving the same to women did not.   David followed this up with work with coauthors in Ghana that compared in-kind and cash grants for women and men.  Again, better returns for men (with in-kind working for some

The microfinance business model: Enduring subsidy and modest profit

Bob Cull's picture

Microfinance institutions aim to serve customers ill-served by traditional commercial banks and thus the associated business model is challenging by definition. And yet the industry has achieved impressive scale reaching 211  million customers globally in 2013. Paradoxically, recent evidence suggests that the benefits of microcredit to borrowers may be modest. For example, six prominent randomized controlled trials found small impacts of access to microcredit on the incomes and consumption levels of marginal borrowers, though the studies found some “potentially important” (though modest) impacts on “occupational choice, business scale, consumption choice, female decision power, and improved risk management.” (Banerjee et al., 2015, p. 14).

How digital financial services boost women’s economic opportunities

Leora Klapper's picture

Imagine having to skip work every month to travel to the city center just to pay your electricity bill or your child’s school fee? Would you not worry if your income relied on remittances and you were unable to pay rent because they were tied up in a network of agents? And wouldn't it frustrate you if you didn’t have a say in how your salary was spent or invested?

Having a bank account could help in all of these situations. Most of us probably have auto-pay set up so we don't need to worry about our monthly bill payments or money transfers. But the conveniences we take for granted are out of reach for the world's 1.1 billion women who lack an account. According to World Bank’s Global Findex database, men in developing countries are 9 percentage points more likely than women to own an account. The gap is largest in South Asia, where only 37 percent of women have an account compared with 55 percent of men.

How Ho Chi Minh City got a facelift: sustainable development solutions are changing a city

Madhu Raghunath's picture



When I visited Vietnam for the first time three years ago, I imagined a Ho Chi Minh City out of Hollywood movies, with panoramic buildings of French architecture, tree-lined, long boulevards and the melting pot of Indochine cuisine.

After I began working in the city as an urban professional in 2012, I quickly learned to see it as much more: a vibrant, young, hip and energetic city with a vision and determination to become a leading metropolis in East Asia, not just in Vietnam, one of the fastest-growing emerging economies in the region.

And it has taken all the right steps just to do that, combining infrastructure development with social services to make sure the city is more livable and growth more sustainable. As the World Cities Day approaches, I thought it would be useful to share the city’s experience with the world. 
 

Corridors for Shared Prosperity: A Case for Replication

Pallavi Shrivastava's picture

For those trying to address challenges in global poverty, inclusive businesses offer solutions to some of the world’s most intractable social problems. Business models that create value for the low-income communities are becoming viable - these have been tested, fine-tuned and perfected by some of the finest brains. Once perfected, it makes sense to contextualize and spread these innovations or the knowledge to markets across the globe. To be able to do this, replication is an important tool.

Measured Profit is not Welfare or is it? Intriguing evidence from when microfinance clients gave up microfinance

David McKenzie's picture
I finally got around to reading an intriguing paper by Banerjee, Duflo and Hornbeck that has been on my reading list for a while. This paper is a nice example of making lemonade out of lemons – they had intended to evaluate a health insurance product that a microfinance organization in India made mandatory for its clients in selected villages.

Weekly Wire: The Global Forum

Roxanne Bauer's picture

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

Accountability, Transparency, Participation, and Inclusion: A New Development Consensus?
Carnegie Endowment for International Peace
Four key principles—accountability, transparency, participation, and inclusion—have in recent years become nearly universal features of the policy statements and programs of international development organizations. Yet this apparently widespread new consensus is deceptive: behind the ringing declarations lie fundamental fissures over the value and application of these concepts. Understanding and addressing these divisions is crucial to ensuring that the four principles become fully embedded in international development work.
 
Ebola communication: What we've learned so far
Devex
This week, a World Health Organization infectious diseases expert reported the death rate due to Ebola in West Africa has now climbed to 70 percent, higher than previous estimates. And by December, new cases could hit 10,000 a week. For front-line medical workers, the projections couldn’t be grimmer. They are overwhelmed and their numbers are dwindling — Médecins Sans Frontières has already lost nine staff members to the epidemic — but reinforcements remain sparse. For organizations involved in communication and awareness-raising campaigns, meanwhile, this situation means they need to be more aggressive and robust, and their messaging fool-proof.  We know many of them are on the ground, conducting door-to-door campaigns and spot radio announcements, putting up posters and distributing pamphlets to inform communities about the disease. Some have even resorted to using megaphones to reach people who choose to remain indoors, conduct skits in schools and communities via youth drama troupes. A few aid groups are even considering perceived viral forms of communication like music and video messaging led by former football player and now UNICEF ambassador David Beckham.  But are these campaigns actually working? Will the new plans be effective?
 


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