Articles (alphabetized)
[1] ACCION International, 2009, ‘Insight - Accelerating Financial Inclusion through Innovative Channels’, This paper outlines ten challenges that are holding MFIs back from deploying alternative channels and provides a roadmap for MFIs—and broader stakeholders—who seek to overcome these hurdles. This roadmap is relevant not only for MFIs and MFI networks but also for those who provide the enabling environment for financial inclusion, including social investors, banking regulators, grant-making institutions, and prospective partners, such as commercial banks, mobile operators, and technology vendors. The paper concludes with a description of competitive advantages that MFIs have in this space to make them more effective in reaching low-income groups using innovative channels.
[2] ANZ, Rural Banking Samoa’ ‘This document gives an overview of the ANZ Rural Banking services provides those living in the rural villages of Upolu Island and the villages of Savaii in Samoa.
[3] Aube, M., and Laidlaw, B., 2010, ‘Financial Services Models in Papua New Guinea: Increasing Access to Finance in Rural Areas’, The Foundation for Development Cooperation. As part of its work to increase financial inclusion in developing countries, FDC recently assessed various business models for the provision of financial services in Papua New Guinea (PNG). FDC assessed the following models: traditional branch model, electronic banking services, mobile phone banking, rural banking through mobile branch and community trust funds. This work resulted in a list of considerations that we believe are crucial in identifying and implementing the right business model(s) to meet the needs for financial services in rural PNG. We found that the suitability of financial services for a culturally and economically diverse country such as PNG must be determined based on a number of criteria such as social inclusiveness, accessibility, affordability and security for the user and provider, and community needs. Also, it was found that a combination of different business models may generate more positive outcomes than relying on a single approach.
[4] AusAID, 2006, ‘Pacific 2020: Challenges and Opportunities for Growth’, Pacific 2020 looks at what the long-term growth prospects for Pacific Island countries are and what can be done to improve these prospects. It is aimed to present a mix of growth opportunities and challenges to stimulate dialogue and debate. The Pacific 2020 is divided into two parts. Part One provides a self-standing overview of the reports context, motivation, key findings and common themes. Part two provides details on each of the nine growth topics studies as part of the project.
[5] AusAID, 2010, ‘Improving Poor People’s Access To Financial Services’. A new strategy launched today will help poor people improve their way of life through increased access to crucial financial services, increasingly being seen as important to reducing poverty and achieving the Millennium Development Goals. The Australian Government's Financial Services for the Poor: A Strategy for the Australian Aid Program 2010-15 was launched by Parliamentary Secretary for International Development Assistance, Mr Bob McMullan.
[6] Bablis, F. G., 1999, ‘The Lessons and Potential for Sustainability and Outreach of Microfinance Institutions in Papua New Guinea and other Pacific Island Countries’, The aim of this paper is to highlight a few strategic constraints, suggestions for improvement, and lessons to meet the challenge of providing microfinancial services to the 70-80% of PNG's approximately four million and other PIC's two million low income populations into the new millenium.
[7] Bedson, J., 2007, 'ENERGY LENDING: Microfinance and access to modern, alternative energies', The Foundation for Development Cooperation. A lack of access to modern, alternative sources of energy in rural areas compromises the quality of life, health and economic opportunities of countless households in developing countries. While a vanguard of microfinance institutions is making loans available to increase access to alternative sources of energy such as solar, biogas, micro hydropower and LPG, obstacles remain in convincing potential partners and funders as to the economic and financial benefits of energy lending.
[8] Byford, J., ‘Gender and Microfinance in Bougainville: A Case Study’. This article describes the experiences of raising gender awareness among participants in the Bougainville Microfinance Scheme (BMFS) it its initial stages of development.
[9] Casagrande, G., 2004, ‘Microenterprise: Laying the Foundation for Economic Development’, Economic Perspectives, U.S. Department of State. 9:1. This journal article looks at the South Pacific Business Development Foundation (SPBD), which is an independent, not-for-profit microfinance institution. SPBD provides unsecured loans for the creation of simple and sustainable businesses and is dedicated to serving the financial interests of the poor. The article is written by the founding president of SPBD and outlines some of SPBDs loan strategies that have resulted in a near 100 percent repayment rate by its borrowers. Available online at: http://pdf.usaid.gov/pdf_docs/PCAAB180.pdf
[10] Chhibber, A., Ghosh, J., and Palanivel, T., 2009, ‘The Global Financial Crisis and the Asia-Pacific Region. A synthesis study incorporating evidence from country case studies’, UNDP Regional Centre for Asia and the Pacific. This report summarises the impacts of the crisis and policy responses to the crisis over the past year. Impacts examined include the volatitility in the international commidity prices especially food and fuel, the social impacts such as employment, income and human poverty. The final section examines policy responses such as fiscal and monetary policies, financial regulation, redirecting production and demand to resolve external and internal imbalances, supporting agriculture and promoting faster rural development, the significance of social protection and policies for substantial and equitable future growth.
[11] Conroy, J. D., 2006, ‘Successful Microfinance in the Pacific: Achieving Financial Inclusion’, This article looks at the gap between the traditional subsistence economy and the modern monetized economy and ways to fill this gap (‘missing middle’) in the Pacific. In many other parts of the developing world this gap is filled by small and micro-enterprise economic activities, also called the ‘informal sector’. This informal sector is seen as a ‘stepping stone’ between the traditional and modern sectors. This paper argues that microfinance is necessary to achieve the financial inclusion of all in the Pacific and to help fill this gap.
[12] Conroy, J.D., ‘A National Policy For The Informal Economy In Papua New Guinea’. Associated with Foundation for Development Cooperation, Brisbane. The informal economy is important in Papua New Guinea because a majority of households are involved in it as producers and consumers. The livelihoods of householders could be improved by greater access to informal income-generating opportunities. This article rejects widely held negative perceptions of the informal economy, although it cautions against undue optimism concerning its potential. It points to the limits of government action in support of the informal economy and suggests that providing a supportive policy and regulatory environment for the sector is the best course of action. It asserts the need to increase the national level of ‘financial inclusion’ as a central economic policy goal, with microfinance as the primary policy instrument for that goal. It emphasises the importance of providing public goods and services whose absence or inadequacy has retarded the informal economy. Suggestions are made for public goods and associated government services of particular utility for the growth and development of the informal economy.
[13] Conroy, J.D., 2007, ‘Think Big! A Regional Role for Microfinance Pasifika’. This paper looks at how Microfinance Pasifika should adopt a policy that views microfinance as part of the broader financial system. It argues that Microfinance Pasifika should work with international agencies and regional entities to establish financially inclusive policies in the pacific. Microfinance Pasifika should look to APEC to aid in its campaign.
[14] Conroy, J.D., 2008, ‘APEC as a Force for Financial inclusion: A Regional Initiative’, The forthcoming APEC leaders meeting in Lima, Peru, in November 2008, presents a significant opportunity to place the objective of increasing financial inclusion for the poor at the forefront of current policy agendas. A proposed APEC Finance Ministers Initiative, should it be endorsed, will help achieve improved financial inclusion in APEC’s developing economies. Successful progress toward this objective will help mitigate the effects of international financial sector uncertainty on the world’s poorest.
[15] de Ville, A., Lecuyer, Q., Wiesner, S., & KPMG Luxembourg, 2009.’Does Foreign Ownership in Microfinance Interfere with Local Development?’The authors of the present paper identified a trend towards foreign ownership in a sample of MFIs over the last few years, and consequently explore the possible consequences of such a trend. Above all, they examine the question of whether foreign ownership in microfinance interferes with the establishment of locally driven MFIs and thus with the overall local development. They further seek to initiate a discussion between the professionals of the sector on this interesting subject.
[16] Fisher, D. and Bruett, T., 2010, ‘PFIP Focus Note01, Can Fiji’s MFIs Be Sustainable?’”…Clients of MFIs, past and present, mostly believe they have benefited from their services.This positive contribution has led many to overlook the failure of Fijian MFIs to become self-sufficient. Fijian MFIs have faced considerable external constraints, including challenging geography, lack of technical support and funding constraints. Stabilizing the MFIs involves a reorientation of their business model and incentive structures…..” For hard copies: contact Mereseini Senikau-Tuivuniwai onmereseini.senikau@undp.org
[17] Foundation for Development Cooperation, 1998, ‘Resource Mobilisation for Microfinance in Fiji’, This paper presents a framework for analysing resource mobilisation by MFI's, emphasing the relationship between resource mobilisation and self-sufficiency. It then applies this framework to the Women's Social and Economic Development project (WOSED), the most prominent MFI in Fiji. The paper also looks at some particular aspects of resource mobilistion, specifically donor agencies and governments, commercial banks and the private sector, and savings mobilisation.
[18] Foundation for Development Cooperation, 1995, ‘How to Build Self Help Groups for Successful Banking with the Poor.’ The purpose of these two booklets is twofold. First, they are intended to draw attention to the key role of self-help groups and non-government organisations (NGOs) in providing better access to credit for the poor in developing countries. Second, they provide NGOs and self-help groups with practical guidelines for the formation and operation of self-help credit management groups. Both booklets are based generally upon the detailed country studies carried out within the Banking with the Poor project. In addition, each draws specifically on the experience of particular members of the BWTP Network. The booklet on a rural model is drawn largely from the experience of the Mysore Resettlement and Development Agency (MYRADA), a prominent NGO which has organised large numbers of credit management groups in southern India. The National Bank for Agricultural and Rural Development (NABARD) and Vysya Bank, both involved in linkage programs with MYRADA, also contributed significantly to the preparation of the booklet. The booklet on an urban model in based largely on the experience of Kabalikat para sa Maunlad na Buhay, Inc (KMBI), or Partners for a Progressive Life. KMBI is a major NGO implementing successful self-help group credit management programs in the northern fringe of Metro Manila in the Philippines.
[19] Kavanamur, D., 2003, ‘Re-positioning Non-bank Service Strategy’. This article considers the experience of the application of microfinance in Papua New Guinea. It looks at a selection of institutions involved in microfinancing activities at various levels and in various ways. It then draws lessons about the difficulties they have faced.
[20] Kavanamur, D., ‘Strategic Alliance Issues in Microfinance Management’, This paper looks at how a lack of strategic alliance management skills has contributed to an unsatisfactory performance of MFI's involving two or more partners. The paper discusses possible lessons that might contribute to maximising the goals of MFI's in the region.
[21] Kinivuwai, L., 2009, ‘The way forward for Microfinance in Fiji’, The Foundation for Development Cooperation. In April 2009 the Reserve Bank of Fiji (RBF) announced a number of new economic and financial measures. These were the devaluation of the Fijian dollar by 20 percent; the adjustment of lending rates to the December 2008 rate; a reduction of the interest rate spread to 4 percent by the end of 2009; and, a directive to all banks to set up specialised micro-finance service centers in all branches by January 2010. The RBF has committed itself to supporting this directive by setting up a Microfinance Research and Development Unit. This FDC Briefing Note raises several issues related to the impact of this directive on commercial banks and other financial institutions and the implications for the microfinance industry and service levels in Fiji in the future.
[22] Kopunye, H., Purumo, A., and Newson, J., 1999, ‘Microfinance and Financial Intermediation in Rural Papua New Guinea: An Integrated Scheme’. This article outlines the development of Putim na Kisim (PnK) in Papua New Guinea. Putim na Kisim was created using a number of microfinance instruments used in different parts of the world in order to fit to the needs and circumstances of the rural people of Papua New Guinea. It explores the need for PnK to be flexible to encompass all because of the diverse amount of cultures within PNG and highlights the importance of developing a strong sense of local ownership.
[23] Lee, K., Stephan, C., and Pacheco, V., 2008, ‘Australia’s seasonal worker pilot scheme for Pacific Islanders—Ideas for the Next Phase’, The Foundation for Development Cooperation. In August 2008, the Australian Government initiated a seasonal worker pilot scheme for Pacific Islanders to examine whether a seasonal worker program could contribute to the Pacific region economic development objectives and also assist Australian employers. Even in a contracting Australian economy, the seasonal worker program should remain a high priority, in particular for the development dividend it produces in worker-sending countries. As the seasonal worker program expands, Melanesian and post-conflict countries such as East Timor should be accorded high priority.
[24] Liew, J., 2006, ‘Banking the Unbanked in Fiji: The ANZ Bank and UNDP Partnership Model’. This paper looks at the partnership between the ANZ Bank and UNDP which is aimed at creating commercially viable business models for delivering banking services to many in the pacific who do not have access to financial services. This paper highlights the important role that an inclusive financial sector has on poverty alleviation and educating populations on financial issues.
[25] Littlefield, E., Hashemi, S., and Jonathan Morduch, 2003, ‘Is microfinance an effective strategy to reach the Millenium Development Goals?’This note reviews the evidence on the impact of microfinance as it relates to the attainment of the MDGs.2 Specifically it assesses impact in the areas of eradicating poverty, promoting children’s education, improving health outcomes for women and children, and empowering women. Finally, the note addresses the feasibility of reaching significant numbers of the absolute poor with financial services on a sustainable basis and on a massive scale.
[26] Lewin, K., 2002,’ Microfinance in the Pacific - mipela katim bus!: The Experience of Putim na Kisim’. This article outlines the microfinance system evolved by Putim na Kisim, a network of rural savings and loans cells operating under the auspices of the Lutheran Development Service of the Evangelical Lutheran Church of Papua New Guinea. Thus article demonstrates how Putim na Kisim has utilised the thinking behind Grameen Bank, but with a strategy which is relevant to the root-crop economy of Papua New Guinea.
[27] Marino, P., 2005, ‘Beyond Economic Benefits: The Contribution of Microfinance to post-conflict recovery in Asia and the Pacific’. This paper describes microfinance's intangible benefits by reviewing the literature and exploring and synthesising lessons from conflicts in nine countries in Asia and the Pacific, with emphasis on microfiance experiments in Afghanistan, Bougainville and Timor Leste. This paper demonstrates that microfinance promotes conflict resolution, encourages democratic procedures and provides a way to bring people together by helping them to regain trust and confidence in each other. The paper concludes by drawing lessons from the country studies.
[28] Mathison, S., 2007.’E-BANKING WITH THE POOR: Opportunities and implications for microfinance providers’, Increasingly, microfinance practitioners see ICT innovation as a key strategy in taking the microfinance sector to the next level in terms of outreach and sustainability. We are already seeing innovations such as correspondent banking, card services and mobile phone banking. However, the roll-out of ICT-enabled microfinance is likely to change the business models and methodologies that have been core to the microfinance enterprise, and MFIs will need to respond accordingly.
[29] McGuire, P., and Conroy, J. D., 2000, ‘The Role of Central Banks in Microfinance in Asia and the Pacific’, Asian Development Bank. This study defines a framework for support of microfinance which avoids financially repressive measures and is consistent with contemporary views of the central bank's role. It considers how central bank regulation and supervision of licensed banks can affect the scope for such institutions to engage in microfinance. It also examines whether and in what circumstances a central bank should be involved in regulating nonbank microfinance institutions. This broad-ranging analysis is based on studies of central bank policies for microfinance in 12 developing member countries of ADB, but its findings are relevant to all developing economies. The 12 country studies on which this overview is based are published separately in a companion volume.
[30] McGuire, P.B., 1996, ‘Accounting and Reporting Standards for Microfinance Institutions’. This paper discusses the recent emphasis on accounting and reporting standards. It explains the key features of the Guiding Principles for Selecting and Supporting Intermediaries, agreed by the Committee of Donor Agencies for Small Enterprise Development and the Donors' Working Group on Financial Sector Development. It then goes on to note some areas that some members of the BWTP Network may need to look at, if they are to present data about their operations in the generally accepted format. The Guiding Principles are provided as an Annex to the paper.
[31] McGuire, P.B., 2000, ‘Microfinance in Vanuatu: Institutions and Policy’. This paper provides a brief introduction to microfinance in Vanuatu. Section 2 provides some general background information on microfinance. The institutions currently providing microfinance services in Vanuatu are discussed in section 3. The paper then discusses some conceptual issues affecting microfinance in Vanuatu, namely the demand for microfinance (section 4) and sustainability (section 5). Section 6 outlines a number of policy issues and section 7 concludes.
[32] McGuire, P.B., 2000, ‘South Asian economic models for the Pacific? The Case of Microfinance - A comment'. In this article McGuire reviews an article written by Chris Gregory, published in the December 1999 Pacific Economic Bulletin. McGuire challenges some of Gregory's findings regarding the application of microfinance models in a Pacific context. There are three main questions which McGuire addresses, these are - Are microfinance models culturally specific?, Where in the Pacific is microfinance appropriate? and Should microfinance target the 'poorest of the poor'?
[33] McMurray, A., 2009, ‘Mobile Financial Services: Extending the Reach of Financial Services through Mobile Payment Systems’, The Foundation for Development Cooperation. As part of FDC’s work with the Asia Pacific Economic Cooperation’s Business Advisory Council on Financial Sector Capacity Building, it became clear that there was limited summary information about the actual status of various mobile financial service initiatives around the world. Accordingly, FDC moved to compile an overview of the current literature on mobile financial services, with the intention of evaluating how effective mobile phones may be in providing financial services to the unbanked population in developing countries. This document highlights what the mobile financial services industry entails, including the benefits and challenges facing the industry, while also providing case studies to evaluate its effectiveness.
[34] Murphy, S. M., 2008, ‘Impact of the Global Financial Crisis on Microfinance’. The current global financial crisis has led to a significant decrease in international capital available to the microfinance sector. This decrease in capital inflow is adversely affecting the microfinance sector’s ability to achieve existing revenue and expansion targets. But microfinance may be less adversely affected by increases in global capital illiquidity than many other business sectors.
[35] Newson, J., 2002, ‘Bougainville Microfinance: Rebuilding Rural Communities After the Crisis’, This article examines the development and practice of the Bougainville Microfinance Scheme (BMFS). BMFS is a grass roots finance scheme created to meet the financial and community development needs in post-conflict Bougainville.
[36] Porter, S., 2009, ‘Mobile Remittances: a study of the Philippines and Tonga’. The purpose of this study was to see if the success factors that led to the development of mobile remittance services in the Philippines are present in Tonga. The objectives of this study were defined as - To understand the importance of mobile remittances to development, to clearly identify the success factors that led to the introduction of mobile remittances to development, to use these success factors as the basis of an examination of other potential markets for mobile remittance services in Tonga. This report concludes by offering policy recommendations for Tonga based on the outcome of the analysis.
[37] Reille, X. and Glisovic-Mezieres. J., 2009, ‘Microfinance Funds Continue to Grow Despite the Crisis', This report briefly explains how the microfinance industry has managed to be relatively unscathed by the global financial crisis. It look at how microfinance funds have still been able to attract a large pool of investors and how loan portfolio's proved to be resilient with no significant increase in non-performing loans in December 2008. The authors believe that continued by slower growth of the microfinance industry and that MFI's are preparing them for the increased credit risk caused by the GFC. It concludes by saying that while there are many challenges for MFI's caused by the GFC that the fundamentals of the sector will remain strong.
[38] Rosenberg, R., 2009, ‘Measuring Results of Microfinance Institutions - Minimum indicators that donors and investors should track - A technical guide', This technical guide is written for funding agency staff who design or monitor projects that finance microfinance institutions (MFI's) or Community-Managed Loan Funds (CMLF's). The main text covers indicators from MFI's, CMLF indicators are treated in an Annex A.
[39] Shaw, J., and Clarke, M., ‘Risky Business in Bougainville: Implementing Microfinance in Post-Conflict Environments’, This paper reviews the issues rasied by commercialisation in post-conflict environments with particular reference to a microfinance scheme in Bougainville, a province of Papua New Guinea currently in recovery from a prolonged period of armed conflict.
[40] Shuaib, F. (FDC—Local Economic Development Specialist), 2008, ‘The Resources Sector in Developing Countries: Strategies to Improve Community Livelihoods’, Resource sector companies in developing countries operate in a complex environment. They face a range of challenges which require innovative solutions. One such challenge is the need to help secure sustainable livelihoods for communities in areas/regions in which they operate. This FDC Briefing Note outlines current thinking in this field. Resource sector companies should consider more innovative strategies including investing further in local economic development (LED) through forging multistakeholder partnerships.
[41] World Bank, 2005, ‘Fiji Microfinance Policy Review’, This document is a shortened version of a review of the microfinance sector in Fiji, conducted by the World Bank in 2003. It provides a snapshot of microfinance in Fiji in 2003. This version was presented for discussion at the Small and Microenterprise (SME) forum in Suva in February 2005.