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POWG in-person meeting, Monday June 1 (9am 5pm ET)In person:

1. Thierry van Bastelaer (CARE),

2. Kate Druschel (GF USA)3. Malini Tolat (GF USA),4. Dr Rao (Microcredit Summit Campaign),

5. Aude deMontesquiou (World Bank/CGAP),

6. Allyn Moushey (USAID),7. Natalie Domond (DAI),

8. Sabina Rogers (SEEP),

9. Mary McVay (SEEP),10.Jan Maes (Friend of SEEP, facilitator)

Virtual:

1. Brian Beard (IRIS; attended 2 half),2.

Bobbi Gray (FFH; attended 2d half)3. Tom Coleman (SIP author/consultant)

4. Divya Chaturvedy (SIP author/consultant),RSVP yes, but couldnt make it:

1. Lisa Kuhn-Fraioli (FFH),

2. Jo Sanson (Trickle Up),

3. Jenny Dempsey (ProMujer)4. Alexi Taylor-Grosman (FINCA)

RSVP no

1. Dev Miller (CCF) - traveling

2. Sachi Shenoy (Unitus) SPTF meeting in Madrid3. Susannah L (TU) in Mali

4. Jane Katz (HFHI) other meeting

5. Sarah Ward (MC)6. Amy Davis (HFHI, SPWG) SPTF meeting in Madrid

7. Jeff Blythe (MCS) preparing for next weeks Colombia MCS

Breakout session 1 (10a-12p): Frameworks for defining poverty

As a group, we identified 3 categories for why the very poor dont access MFI financialproducts

A. Services Not AccessibleWhat does it mean?

1. Physically: no service providers

2. Cost too high: quality (not a target market)

3. Customer awareness: of availability, of utility4. Lack of trust in service providers

How to Fix it?

1.

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a. Infrastructure

b. Incentivesi. Public auto ?? [couldnt read]

ii. Market diversity?

c. Better/efficient model => technology2. Incentivize development of models that work3. Marketing and educating ??? [how is this same as #4?]

4. Education/ marketing

5. consumer protection

B. Services Not Appropriate

What does it mean?

1. Mismatch between demand, supply

2. Too risky, expensive

3. Cash flow mismatch

4. Up-front/ sunk costs too high5. Models dont work for socially, culturally, or educationally excluded

6. Demand for wider range of products, services

How to fix it?

1. Increase incentives to reach ultra poor

2. Increase research on demands/ needs of poor3. New risk reduction strategies w/in

a. Households

b. MFIsc. Communities

4. Building improved linkages w/ safety nets, social protection5. Develop graduated models

6. Address exclusion7. Integrated programming

C. Services Not Enough

What does it mean?

1. Unmet basic needs (food, health)

2. Vulnerability to external/internal shocks3. Lack of complementary MF/ED services (market access, skills)

How to fix it?

1. Start where some basic needs/ complementary services available2. Strategic alliances for basic needs/ services

3. Advocacy

4. Community mobilization for local provision of needs/services

5. Products that affect basic needs (positive externalities)6. Staff orientation for #5

7. Financial literacy

8. SSN/insurance

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Breakout session 2 (1-3p): Utility of tools (PPI, PAT) beyond compliance

Social Performance Task Force (meeting now in Madrid)

- They are starting a WG (Nigel Biggar is involved) on the use of poverty tools for internal mgt of

MFI

- How does that fit in w/ what POWG is doing? How can we all work together?

SEEP AC Monday session: utility of tools beyond compliance

- How to use these tools beyond reporting, how to do it properly (and report out to USAID)

-How do you design programs, products/services to reach very poor

- Need to include implementers (whether theyre members or not)

- MSC: use of poverty scorecard

- What is the purpose of the day?

o Use PACT case studies (that POWG did in 2006): do analysis and provide to participants

as mini cases to work from

o Enough about the tools, what about the work?

o Distill key principles of product design => what is road map for how we get there?

o Even if we have that info (principles), what are road blocks that are barriers to MFIs from

reaching the poorest w/ appropriate products and services

- Practitioner (MFI staff) buy in

o They dont agree w/ the indicators

- How can you use the results of PPI (and PAT?) to redesign your program, products?

-Analysis of the data: characteristics of the clients helps MFI think strategically about program,next steps

o To use the data, forethought and planning is required

o Know what you want to know => run analysis

- USAID

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o Interested other uses of PAT

Ramifications: will it become a requirement written into grants?

- How can we responsibly make the trade-off between statistical reliability and usefulness

o People just want a final answer

- FORMAT FOR SESSION

Part of days

session

Sub-session Focus or takeaways Tools/resources

and

Life with

Poverty

tools

Poverty Assessment 3 years in:

Practitioner input

1. Are the challenges different?

2. Do you need 2 groups?

Technical

Capacity Building

Marketing

Why arent more

people using?Uses of poverty tools beyond

compliance (of USAID grant

requirements)

Applying to Enterprise

Development

Effective

Models for

reaching

and serving

the very

poor

Service/product design and delivery Grameen cases

market Expansion POWG cases

linking w/ other development

services/work

VALUE designs

Principles Cases

Application/adaptation

to own program

MF/MED together or separate?

Life after

Poverty

Tools

?

Other case studies, info to gather (for POWG activities, for AC session)

DAI: lessons learned, PAT in practice (will be coming out in DAI Developments this summer;

follow up w/ Natalie Domond)

o Attribution w/ VCD projects => how to differentiate between someone who received

services and those who didnt but who are expected to replicate

Grameen Fdn USA: results of using PPI (www.progressoutofpoverty.org/casestudies)

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http://www.progressoutofpoverty.org/casestudieshttp://www.progressoutofpoverty.org/casestudies

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BRAC: follow up w/ Imran Matin

EDA Rural: Grameen Kooten (follow up w/ Frances Sinha)

USAID: see if there is more data in MRR that would be useful; if not, perhaps Allyn could putrequest through appropriate channels

Microcredit Summit Campaign: will be publishing papers on

o (July) MF in Bangladesh

o (end June) India: nationwide survey of what % of clients have moved out of poverty;

qualitative survey

***Define parameters now that we want to know from Grameens (or other POWG members) data 2-3

yrs down the road.

VALUE facilitating a practitioner learning program on VCD, poverty tools,

outreach: what are their strategies? VC finance plans

- Swisscontact & Mercy Corps (Indonesia) => tofu and tempe

- ACCESS Dvt Services (India) => Jaipur jewelry association

- Katalyst Prgm (Bangladesh) =>

- AMPATH and Fintrac, maybe K-REP(Kenya) =>

- Jamaica Exporters Association (Jamaica) => ornamental fish

SEEP MEMBERS ONLY

Strategic direction of POWG (3 yr): On what should POWG focus?

- Principles for poverty outreach: looking at it from a population lens

- Have we passed the analysis phase (use of the tools)? Yes, so answer these questions:

o What is the meaning of the data?

o Are we learning anything about the usage of the tools? What are we learning?

o What have we been achieving w/ the tools?

- Product development process for products designed for very poor

o When they find out that theyre not reaching the very poor, what is our support?

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- What is the biggest value in terms of what we do?

o Product design (!) for very poor people

o Integrated, collaborate w/ other WGs

SEEP MEMBERS ONLY

Concrete product that POWG can produce in next 6 mo

- Research frame: characteristics, commonalities as data is being collected

- Data: who is willing to share data? What do we know already?

o Is the data reliable?

o What were the reactions at the MFIs to the data?

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