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Microfinance Pasifika Publications - Papers
A National Policy For The Informal Economy In Papua New Guinea : By John D. Conroy, 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.
Improving Poor People’s Access To Financial Services : AUSAID Media Release, 10 March 2010.
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.
Financial Services Models in Papua New Guinea: Increasing Access to Finance in Rural Areas, by Melanie Aube and Brooke Laidlaw - The Foundation for Development Cooperation, 2010.
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.
Does Foreign Ownership in Microfinance Interfere with Local Development?, by Axel de Ville, Quentin Lecuyer and Sophie Wiesner, in collaboration with KPMG Luxembourg, 2009.
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.
The way forward for Microfinance in Fiji, by Luse Kinivuwai - The Foundation for Development Cooperation, 2009.
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.
Mobile Remittances: a study of the Philippines and Tonga, by Sam Porter, 2009. 
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.
Mobile Financial Services: Extending the Reach of Financial Services Through Mobile Payment Systems, by Alaina McMurray - The Foundation for Development Cooperation, 2009.
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.
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.
Australia’s seasonal worker pilot scheme for Pacific Islanders—Ideas for the Next Phase, by Karen Lee, Carly Stephan and Vladimir Pacheco - The Foundation for Development Cooperation, 2008.
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.
Impact of the Global Financial Crisis on Microfinance, by Shawn Marie Murphy, 2008
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.
APEC as a Force for Financial inclusion: A Regional Initiative, by John D Conroy, 2008.
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.
The Resources Sector in Developing Countries: Strategies to Improve Community Livelihoods, by Dr Fikreth Shuaib, FDC—Local Economic Development Specialist, 2008.
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.
Think Big! A Regional Role for Microfinance Pasifika , by John D Conroy, 2007.
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.
ENERGY LENDING: Microfinance and access to modern, alternative energies, by Jamie Bedson - The Foundation for Development Cooperation, 2007.
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.
E-BANKING WITH THE POOR: Opportunities and implications for microfinance providers, by Stuart Mathison, 2007.
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.
Banking the Unbanked in Fiji: The ANZ Bank and UNDP Partnership Model, by Jeff Liew, 2006.
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.
Successful Microfinance in the Pacific: Achieving Financial Inclusion, by John D Conroy, 2006
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.
Pacific 2020: Challenges and Opportunities for Growth, by the Australian Agency for International Development, 2006.
Pacific 2020 looks at what hte 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.
Fiji Microfinance Policy Review, World Bank, 2005.
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.
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.
Risky Business in Bougainville: Implementing Microfinance in Post-Conflict Environments, by Judith Shaw and Matthew Clarke.
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.
Microfinance in Vanuatu: Institutions and Policy, by Paul B. McGuire, 2000.
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.
The Role of Central Banks in Microfinance in Asia and the Pacific, by Paul McGuire and John Conroy for the Asian Development Bank, 2000.
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.