Washington DC, United States, January, 26 2009 - As of December 31, 2007, 3,552 microcredit institutions reported reaching 154,825,825 clients, 106,584,679 of whom were among the poorest when they took their first loan.
Of these poorest clients, 83.4 percent, or 88,726,893, are women. Institutional Action Plans (IAPs) were submitted by 861 microfinance institutions (MFIs) in 2008. Together these 861 institutions account for 86 percent of the poorest clients reported. Assuming five persons per family, the 106.6 million poorest clients reached by the end of 2007 affected some 533 million family members. Reaching the goal, even 24 months late, is still a groundbreaking accomplishment.
This year, the Campaign was able to verify data from 284 institutions, representing 84,916,899 poorest families or 80 percent of the total poorest reported. A complete list of the institutions verified this year can be found in Appendix I of the report.
Loans to 106.6 million poorest clients affect a total of 533 million people, including both clients and their family members. The 533 million people affected nearly equals the total population of Latin America. Though microfinance is no longer micro in its reach, poverty still persists.
The Microcredit Summit goals and its core themes give microfinance its dignity, its majesty and its soul.
In 2007, the Campaign began asking for the number of clients who have crossed the US$1 a day threshold. Due
to a more rigorous strategy for collecting and verifying this data, it is too early to report findings for this indicator. Reporting on progress toward the goal on movement above the US$1 a day threshold will begin in next year’s report. For a more detailed discussion of the Campaign’s work regarding this goal, see the section, “Measuring Progress on the Summit’s New Goal, Client Movement above the US$1 a Day Threshold.”
This year’s report discusses the human face of global poverty, reviews microfinance breakthroughs in helping slum dwellers move out of the slums, and highlights the innovation of bringing renewable energy to some of the poorest communities in the world. These issues will be part of a larger discussion focused on how microfinance can serve as a platform for other services. The report also looks at renewed calls for embracing commercialization and a new initiative to bring truth-in-lending to interest rate pricing. The report outlines the need for the World Bank to increase its outreach to the very poor with microfinance, reviews the Campaign’s work to measure progress above the US$1 a day threshold, and takes a deeper look at 2007 data.
Finally, the report looks at the effects of the financial crisis and fluctuating food and fuel prices on MFIs and their clients, the Campaign’s work on integrating microfinance with health education, and discusses the recent and upcoming Summits.
Category: Payday loans