Can Cashless Microfinance Increase Development?

I came across an interesting article in the NY Times International Blogs about how cashless microfinance is helping to open more doors for women in West Bengal. 

A few brief extracts from the article:
The hard-core poor, or people who live far below the national poverty line, are vulnerable to even small changes in circumstance, from a shift in daily wages to the onset of heavy rains. Repaying a microloan can become an untenable proposition.

Bandhan’s program is not for profit and offers cash-free grants to selected participants in poor villages for 24 months. A “grant” refers to everything a borrower may need to start and ply a sustainable trade — everything, that is, but cash.

The hard-core poor have no liquid assets, which they require to pull themselves out of poverty. But putting mere cash in the hands of people whose immediate concerns are regular meals and safe shelter is risky for them and for their lenders.

This is why the bridge programs inspired by BRAC are so important. They offer the poor opportunity but without the initial risk of debt. But they also demand commitment and require change in the habits
that may hurt the potential gains from microloans.
The article highlights the importance of having a holistic approach to debt financing as merely providing loans to vulnerable people may not improve their situation. After several decades of experience with microfinance, there are now lessons that we can draw upon and build better programmes to help less-developed communities to grow and improve their living conditions.

What are the pros and cons of microfinance?
What are some of the risks that should be factored in when considering a programme?
How should frameworks be designed to engage communities and improve the chances of success?

These are just some of the questions that will be dicussed in our upcoming microfinance programmes in 2013. If you are involved in microfinance projects or considering microfinance as a potential solution, we have a microfinance course coming up in March 2013: Microfinance - with a focus on African Countries. If you require a course sooner or if you are interested in a microfinance with a focus on countries in other parts of the world, please feel free to contact me to discuss the possibilities: andrea@alexanderbrookes.com, +44 7778 219 688 or +44 207 147 9989.

I recently read Microfinance for Bankers and Investors: Understanding the Opportunities and Challenges of the Market at the Bottom of the Pyramid, which provides a reasonable overview of the microfinance sector. If you would like other book recommendations, please feel free to email me babajooalbert@gmail.com.

Is Nigeria really the worst place to be born in 2013?

December 6th 2012

Most of us have seen the article in The Economist, showing Nigeria ranking last in the places to be born in 2013. But today I read an article entitled Lies, Damn Lies and GDP in the Guardian by Morten Jerven reminding us once again how bad the data and statistics are in many Africa countries.

Some excerpts:Shanta Devarajan, the World Bank's Chief Economist for Africa, struck a more dramatic tone. In an address to a conference organised by Statistics South Africa, he called the current state of affairs "Africa's statistical tragedy".
For a number of years now I have been trying to answer the question: How good are these numbers? The short answer is that they are poor. This is not just a matter of technical accuracy – the arbitrariness of the quantification process produces observations with very large errors and levels of uncertainty. This "numbers game" has taken on a dangerously misleading air of accuracy, and the resulting figures are used to make critical decisions that allocate scarce resources. International development actors are making judgments based on erroneous statistics. Governments are not able to make informed decisions because existing data are too weak or the data they need do not exist.
It is a real tragedy that the statistical capacities of sub-Saharan African economies are in such a poor state. African development statistics tell us less than we would like to think about income, poverty and growth in the region. One of the most urgent challenges in African economic development is to devise a strategy for improving statistical capacity. This system currently causes more confusion than enlightenment. However, governments, international organisations and independent analysts need these development statistics to track and monitor efforts at improving living conditions on the African continent.  Poor numbers are too important to be dismissed as just that.


I'm definitely looking forward to Poor Numbers coming out and I have already added it to my wish list! If you would like book recommendations or you would like to share your suggestions, please feel free to email asquare07@hotmail.com

Tycoon Talk by Freelancer.com :: Be a Big Fish!

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Protests As Egypt President Makes Power Grap

Egyptians took to Tahrir Square once again this weekend, after President Mohamed Morsi issued a decree that granted him expansive powers. Some of the most concerning powers he granted himself include immunity from judicial oversight on laws the president issues and the exemption of court appeals against the constitution being drafted by the Shura council (Egypt's upper parliament). On Friday scores of Egyptians protested the new laws. Police fired on protesters with tear gas and shotguns, they also tried to block the road to Tahrir Square. Protesters burned down offices of the Freedom and Justice Party, the political arm of the Muslim Brotherhood in several cities. Egypt's interior ministry said after Sunday's protests that 267 protesters have been arrested, while 164 policemen were injured. The announcement has had disastrous effect on the country's stock market, with the stock index plunging 10% - an estimated $5 billion loss in the value of shares. On Sunday Morsi released a statement addressing the concerns around his decrees. The statement said: "The presidency reiterates the temporary nature of those measures, which are not intended to concentrate power. "The presidency stresses its firm commitment to engage all political forces in the inclusive democratic dialogue to reach a common ground." Despite the statement, the country remains in a state of turmoil, with judges threatening to strike and more protests expected today. In other news: - African Headlines This Week (15/11 - 22/11) - Kenyatta vs. Odinga: Fact File - Timeline of DRC Rebellion Visit MSN Africa for more

Palestine threatens war crimes charges as Israel moves on settlement plans

JERUSALEM -- Israel is moving forward with plans for two major settlement projects in east Jerusalem, a spokeswoman said Tuesday, even as a senior Palestinian official warned that his government could pursue war crimes charges if Israel doesn't halt .