Cloning Grameen Bank Replicating a Poverty Reduction Model in India, Nepal and Vietnam

About this book

Inspired by the success of the Grameen Bank in providing financial assistance to the poorest of the poor, four individuals - a central banker, an appropriate-technology NGO organizer, a professor of international relations and a top-level communist official - each sought to replicate and adapt the model elsewhere in Asia. In different political and economic contexts they formed organizations which reached poor women and supplied their demand for credit, proving once and for all to the development theory doubters that replication works. This work draws on evaluation reports prepared by the CASHPOR Network (Credit and Savings for the Hard-Core Poor), case studies and interviews. By giving an account of the problems encountered in the first years of establishing a credit programme, it seeks to alert potential microcredit practitioners to the pitfalls and obstacles likely to be encountered in setting up a programme. The book provides the opportunity to analyze the process of creating a successful credit programme and draws from the experience of these four projects some lessons in best practice.

Contents

Part 1 Nirdhan, Nepal: key replicator in Nepal; the first year - rapid growth; second year - problems emerge; women's own use of loans; group formation; who gets the credit?; impact on the poor; financial viability; step by step to higher incomes; expansion potential of Nirdham Nepal; preparing the way for scaling up; teamwork and problem solving; Barsati wins love and livelihood from her grocery shop. Part 2 Share, Andhra Pradesh: first hurdles; origins; region of water - region of stones; thieves, thugs and other NGOs; investing in courage; impact on the poor; raising the house with her own hands; buffalo loans; self-employment; the high cost of SHARE; strength of Samson; finding a legal form for growth; grabbing the second chance. Part 3 Nirdhan, West Bengal: innovation and deviations; in a poor state; Grameen Bankers give advice; final evaluation report; group formation; group training; another Chit fund? Nirdhan convinces critics; group recognition test (GRT); centre discipline; credit delivery; credit discipline; chillies and sweet water build a centre house; group fund; field supervision; office management; staff training and performance measurement; accounting and financial system; fund management; operating costs; monitoring system; socio-economic impact on the borrowers; prospects for viability; recommendations; can Nirdham expand?. Part 4 Tau Yew Mai, Vietnam: the pilot years; growth - and enthusiasm - level off; weaknesses in Soc San 1; too poor for TYM?; staff in transition; building the future - training and planning; major impact on income; rapidly rolling credit; good prospects for financial viability; expansion and instutionalization; Soc San 2; a roof for the rain; baby beats the loan. Conclusion: the question of impact; demand for credit; the importance for leadership; operating in the field; building a professional operation; potential for poverty-reduction and sustainability; institutional financial viability; master plan for institutional financial self-sufficiency; fund mobilization; institutional capacity-building needs.

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