Grameen Foundation, a US-based nonprofit, has announced that “Asociacion Benefica Prisma”, a Peru-based microfinance institution (MFI), has become the first fully certified user of the Progress out of Poverty Index (PPI) [1].
The Progress out of Poverty Index (PPI) is set of country-specific assessment tools created to help institutions measure their outreach to poor people, monitor changes in the economic well-being of clients and provide data that can help managers improve the effectiveness of programs and services [1]. PPI was commissioned by Grameen Foundation in collaboration with the following three US-based organizations: CGAP (Consultative Group to Assist the Poor), a nonprofit policy and research center; Ford Foundation, a non-profit grant making organization; and Microfinance Risk Management LLC, a for-profit consultancy. Launched in 2005, PPI is now being used by 89 institutions worldwide [1].
2010 survey data, based on a sample of people that became new clients in 2009, demonstrated that 2.6 percent of clients crossed the national poverty line in one year’s time [1]. Prisma’s status as a certified user of PPI will be recognized on the MIX Market website of the Microfinance Information Exchange (MIX), a nonprofit organization offering business data relating to microfinance.
By: Alexandra Pattee, Research Associate
About Grameen Foundation: The Grameen Foundation, a nonprofit based in Washington, DC, aims to help microfinance institutions throughout the world replicate the microfinance model of the Grameen Bank, which is based in Bangladesh. It provides financial, technological and managerial support to provide new business opportunities and telecommunication services for poor people in rural areas. Though the Grameen Foundation is independent of the Grameen Bank, Muhammad Yunus, the founder of the Grameen Bank, serves on the foundation’s Board of Directors. Grameen Foundation reported total assets of USD 33.1 million as of March 31, 2010.
About Asociacion Benefica Prisma (Prisma): Prisma is a Peruvian microfinance institution (MFI). Prisma’s mission is to strengthen the capabilities of poor and vulnerable people so they are able to develop economically and socially by themselves in a sustainable way. Prisma was founded as a non-government organization in Peru 1986. Prisma’s head office is located in Lima, Peru. At the end of 2008, Prisma had 400 employees. As of 2009, Prisma has total assets of USD 16.7 million, 21,828 active borrowers and a gross loan portfolio of USD 13.3 million.
About Grameen Bank: Grameen Bank is a Bangladeshi microfinance institution that provides collateral-free loans to poor entrepreneurs in rural areas. It was founded in the late 1970’s by Muhammad Yunus, who, along with Grameen Bank, won the 2006 Nobel Peace Prize for his work in developing the concept of microfinance. As of February 2010, Grameen reports 8 million borrowers, 97 percent of whom are women. With 2,563 branches, Grameen Bank provides services through its 81,343 villages. Grameen Bank has the equivalent of USD 1.4 billion in assets as of 2009 as indicated by the Microfinance Information Exchange (MIX), the US-based microfinance data provider.
About CGAP (Consultative Group to Assist the Poor): Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to facilitating the provision of financial access to poor people worldwide. CGAP is supported by approximately thirty development agencies and private foundations. Its mission is to provide market intelligence, to promote standards and to offer advisory services to governments, microfinance providers, donors and investors.
About Ford Foundation: The Ford Foundation provides grants and loans that address the issues of democratic and accountable government, human rights, social justice philanthropy, economic fairness, sustainable development, educational opportunity and scholarship, freedom of expression, reproductive health and metropolitan opportunity (jobs, schools, transportation, housing). The foundation was chartered in 1936 by Edsel Ford in New York. Ford Foundation’s assets were valued at USD 10.2 billion for the 2009 fiscal year.
About Microfinance Information Exchange (MIX): Microfinance Information Exchange (MIX) is a nonprofit organization offering business data relating to microfinance. Established in 2002, Microfinance Information Exchange (MIX) is a nonprofit organization with headquarters in Washington, DC, and regional offices in Peru, Senegal, India and Indonesia. MIX provides detailed financial and social performance information from microfinance institutions (MFIs), as well as business information from market facilitators, donor organizations and investors in microfinance. MIX was founded by CGAP (Consultative Group to Assist the Poor) and is sponsored by Citi Foundation, Deutsche Bank Americas Foundation, International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.
[1] Grameen Foundation Press Release: “PRISMA Microfinance Becomes First Fully Certified User of Progress out of Poverty Index”, http://www.grameenfoundation.org/press-releases/prisma-microfinance-becomes-first-fully-certified-user-progress-out-poverty-index?
MicroCapital.org Article, February 8, 2011, “Microfinance Risk Management Develops Simple Poverty Scorecard for Jordan, Expanding Range of Progress Out of Poverty Index”, https://www.microcapital.org/microcapital-brief-microfinance-risk-management-develops-simple-poverty-scorecard-for-jordan-expanding-range-of-progress-out-of-poverty-index/
MicroCapital.org Article, November 1, 2010, “Grameen Foundation Commences Certificate Program for Users of Its Progress Out of Poverty Index, Inductees to Appear on Microfinance Information Exchange (MIX)”,https://www.microcapital.org/microcapital-brief-grameen-foundation-commences-certificate-program-for-users-of-its-progress-out-of-poverty-index-inductees-to-appear-on-microfinance-information-exchange-mix/
MicroCapital.org Article, September 2, 2010, “Grameen Foundation Issues Standards for Progress out of Poverty Index Prior to Commencement of Certification Program”, https://www.microcapital.org/microcapital-brief-grameen-foundation-issues-standards-for-progress-out-of-poverty-index-prior-to-commencement-of-certification-program/
MicroCapital.org Article, May 20, 2008 “Oikocredit of the Netherlands Invests $3.9m in Three South American Microfinance Institutions: Edpyme Nueva, Asociacion Benefica PRISMA, and Cooperativa de Ahorro y Credito 23 de Julio Ltd.”,?https://www.microcapital.org/microcapital-story-oikocredit-of-the-netherlands-invests-39-m-in-three-south-american-microfinance-institutions-edpyme-nueva-asociacion-benefica-prisma-and-cooperativa-de-ahorro-y-credito-23-de/
MicroCapita.org Article, May 6, 2008, “Peruvian Microfinance Institution Asociacion Benefica Prisma Launches Microinsurance Product in Partnership with InVita and FINSOL”. https://www.microcapital.org/press-release-peruvian-microfinance-institution-asociacion-benefica-prisma-launches-microinsurance-product-in-partnership-with-invita-and-finsol/
MicroCapital.org Article, September 20, 2007, “MicroVest Finances Microfinance Growth in Latin America with Debt Investment in PRISMA and FUNBODEM”, https://www.microcapital.org/microcapital-story-microvest-finances-microfinance-growth-in-latin-america-with-debt-investment-in-prisma-and-funbodem/
MicroCapital’s Microfinance Universe: Grameen Foundation,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Grameen+Foundation
MicroCapital’s Microfinance Universe: Asociacion Benefica Prisma (Prisma),https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Asociaci?n+Benefica+Prisma+%28Prisma%29
MicroCapital’s Microfinance Universe: CGAP (Consultative Group to Assist the Poor), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+%28Consultative+Group+to+Assist+the+Poor%29
MicroCapital’s Microfinance Universe: Ford Foundation,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ford+Foundation
MicroCapital’s Microfinance Universe: Microfinance Information Exchange (MIX), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microfinance+Information+Exchange+%28MIX%29
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
Progress out of Poverty: Grameen Foundation and PPI Partners, http://progressoutofpoverty.org/our-vision-0
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