Dr Sanjay Sinha, managing director at Micro-Credit Ratings International (M-CRIL), authored an article featured in Microfinance Focus in which he proposed changes to several of the ideas advocated by CGAP (Consultative Group to Assist the Poor), an independent policy and research center housed at the World Bank Group.
“CGAP needs to modify its conventional messages such as ‘zero tolerance of delinquency’ and ‘no restructuring of client loans’ in the context of emerging over-indebtedness and the financial crisis. It also needs to strengthen its messages in relation to governance, social mission and improving depth of outreach to the poor,” stated Dr Sinha. He also proposed that CGAP encourage greater product innovation, expand its mandate to include technical support initiatives and redesign the MIX Market, the microfinance information clearinghouse, in a manner that would engage local researchers and analysts in developing countries.
By Stefanie Rubin, Research Associate
About of Consultative Group to Assist the Poor (CGAP):
Housed at the World Bank Group, CGAP (Consultative Group to Assist the Poor) is an independent policy and research center dedicated to providing financial access for the world’s poor. 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 the Microfinance Information Exchange (MIX):
Established in 2002, the 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 and leading 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, the International Fund for Agricultural Development (IFAD) and the Bill & Melinda Gates Foundation.
Additional Resources:
Source Article:
Microfinance Focus: How to calm the charging bull – An agenda for CGAP in the decade of the “teenies”: http://www.microfinancefocus.com/news/2010/06/15/how-to-calm-the-charging-bull-an-agenda-for-cgap-in-the-decade-of-the-%E2%80%9Cteenies%E2%80%9D/
MicroCapital Universe: CGAP: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=CGAP+(Consultative+Group+to+Assist+the+Poor)
MicroCapital Universe: The Microfinance Information Exchange: 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/
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