Message-ID: <3.0.1.32.19970912235001.006998e8@pworld.net.ph> Date: Fri, 12 Sep 1997 23:50:01 +0800 From: CARLOS ANI <mailto:microfi@PWORLD.NET.PH> Subject: Coalition for Microfinance Standards To: mailto:DEVEL-L@AMERICAN.EDU
Dear friends at DEVEL-L,For those interested in microfinance, we are pleased to inform you that the Philippine Coalition for Microfinance Standards is now constructing a mailing list, to send out free bimonthly newsletters. If you're interested to be included in the mailing list, pls send us an email request indicating your mailing address and your email address.
Information about our group is reprinted below.
Thanks.
Carlos Ani Project Coordinator
Microfinance Standards Coalition Secretariat, c/o TSPI Development Corporation, Unit B, Basement, Padilla Bldg., Emerald Avenue, Ortigas Center, Pasig City Metro Manila, Philippines Tel. nos. (632) 633-5904, (632) 631-57-20 and (632) 635-01-56 Fax number: (632) 633-5904 E-mail address mailto:microfi@pworld.net.ph
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Below is basic information about the Coalition for Microfinance Standards.
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PHILIPPINE COALITION FOR MICROFINANCE STANDARDS
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The Coalition for Microfinance Standards is a group of NGOs, government agencies, and other institutions which believe that there is a need to develop operating and financial standards for more effective and efficient delivery of financial services to the Filipino poor. This group has now more than 56 Coalition members consisting of practitioners, and concerned policy and resource agencies.
Most Philippine microcredit institutions are hampered from scaling up due to a traditional mindset, lack of knowledge, technology and trained personnel, and limited operating capital. Overall, the NGOs' marginal outreach and limited capability are attributed to the lack of common standards which can guide the growth and capacities of the institutions and their clients. Hence, this Coalition was formed in order to develop, propagate and advocate standards for NGO microfinance programs. This will mean greater access to financial services on a viable and sustainable basis.
This project has five major project components, namely: 1) coalition formation, 2) research, 3) developing and promoting standards, 4) training, and 5) advocacy.
This project is funded by USAID Philippines under its Civil Society program. The Project Holder is TSPI Development Corporation, a leading NGO in the field of microfinance. The major activities of the Coalition are funded by USAID, with significant counterpart contributions from the Coalition members.
Coalition objectives. The primary objective of the coalition is to develop and promote standards for NGO microfinance operations that seek to provide the poor with greater access to financial services on a viable and sustainable basis. Bounded together by a common objective and a common set of beliefs (which is called "The Core Principles"), the coalition moves and acts together as one.
Six key results. The project aims to deliver six major results:
1. An increased body of information on microfinance in the Philippines that is used by practitioners in the public and private sectors;
2. More skilled microfinance workers able to disseminate skills and knowledge;
3. A set of core standards on microfinance;
4. A number of Microfinance institutions have been provided with technical assistance on how to refocus or improve their operations to achieve institutional viability and greater reach among the poor;
5. Increased public and sectoral awareness of the proposed standards for microfinance and the opportunities for providing financial services to the poor.
6. Advocacy efforts with national policy groups on the proposed microfinance standards as well as on specific reforms needed to create a favorable policy environment for microfinance.
The implementing organizational structure of the Project consistd of three major groups: the Policy Advisory Group (PAG); Project Support Group (PSG); and the Secretariat.
The Policy Advisory Group (PAG) is the core group of the coalition. It focuses its attention on the development of standards and other related technical and policy issues. The Project Support Group (PSG) represents TSPI Development Corporation as Project Holder. The PSG monitors project implementation and shall be specifically in charge of fund management and internal control for proper accountability. It shall also be the executive decision-making body of the Coalition. The Secretariat is responsible for the coordination and/or management of all project activities. It shall provide the day-to-day oversight of the project. administrative support for the Coalition and the management of all sub-contracts shall also be the Secretariat's main responsibility.
Currently, the Coalition has a full-time Secretariat and holds office in this address:
Microfinance Standards Coalition Secretariat, c/o TSPI Development Corporation, Unit B, Basement, Padilla Bldg., Emerald Avenue, Ortigas Center, Pasig City Metro Manila, Philippines Tel. nos. (632) 633-5904, (632) 631-57-20 and (632) 635-01-56 Fax number: (632) 633-5904 E-mail address mailto:microfi@pworld.net.ph
The Secretariat has Project Manager in the person of Mr.Clarence Dingcong who leads a lean Secretariat staff. Mr. Carlos Ani serves as Project Coordinator.
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CORE PRINCIPLES of the COALITON
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All members of the Coalition for Microfinance Standards subscribe to the following beliefs and/or principles:
1. The poor need access to appropriate financial services.
2. The poor can repay loans, can pay the real cost of loans, and can save.
3. Microfinance is one effective tool for the alleviation of poverty.
4. Microfinance institutions must aim to provide financial services to great numbers of poor people.
5. Microfinance can and should be undertaken on a viable and sustainable basis.
6. Microfinance NGOs and programs must develop performance standards that will help define and govern the microfinance industry toward greater reach and sustainability.
A brief explanation of these principles is shown below:
1. The poor need access to appropriate financial services.
A great majority of the poor have no access to savings and credit services. The demand for microfinancial services has not been met by formal and semi-formal financial institutions. There is a strong demand among the poor for credit and savings services which are appropriate to their needs. Poor people deserve high quality financial services - fast, friendly and fair.
2. The poor can repay loans, can pay the real cost of loans, and can save.
We believe that the poor who are engaged in micro and small enterprises have the ability to utilize and manage funds allowing them to increase their incomes. They have the ability and willingness to repay the loans. They can pay the real costs of such credit. The poor can save. They need savings instruments that are accessible and appropriate to their needs.
3. Microfinance is one effective tool for the alleviation of poverty.
Microfinance which is the means of providing a range of financial services to the poor based on market-driven and commercial approaches, is now increasingly recognized locally and abroad as an effective tool for poverty alleviation. Microfinance allows the poor to increase their economic productivity and increase their income.
4. Microfinance institutions must aim to provide financial services to great numbers of poor people.
We believe that reaching out to great numbers of people with a range of market-sensitive financial services is necessary to contribute significantly to poverty alleviation.
5. Microfinance can and should be undertaken on a viable and sustainable basis.
Microfinance services should be made available on a continuing basis. Local and international experience have demonstrated that microfinance can be undertaken on a viable and sustainable basis. We believe that microfinance should aim for full cost recovery after a reasonable development period.
6. Microfinance NGOs and programs must develop performance standards that will help define and govern the microfinance industry towards greater outreach and sustainability.
These are organizational, operating, financial and reporting standards that will lead to the recognition of microfinance as a legitimate sector in the financial services industry. The establishment of standards will also allow the measurement of institutional efficiency and effectiveness, the comparison of players, the display of accountability, and will encourage MFIs to continuously move to a higher level of performance. The standards will also raise the investment attractiveness of MFIs.
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MAJOR PROJECT COMPONENTS
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This project - Project to Develop Standards for Microfinance - has five major components, namely:
1. Coalition Formation.
This entails the formation of a coalition of NGOs and other agencies which are involved in microfinance. It includes the formation of a core group of microfinance practitioners and policy advocates into a Policy Advisory Group (PAG) that will both be the life source and the driving force for the Project.
The specific outputs of this component on coalition formation are: (1) the formation of the PAG indicated by core group members signifying formal agreement based on a selection criteria; (2) formation of coalition with members formally signing an agreement; (3) strategic plan to be evidenced by an approved Project Implementation Plan (PIP); and (4) regular and special meetings with the PAG meeting monthly and/or as needed, and with general membership meeting on a semi-annual basis.
2. Design and Conduct of a National Microfinance Survey.
A national survey shall be undertaken to identify, locate and gather relevant data on existing NGOs that are involved in the delivery of credit and savings services to the poor. The survey is expected to yield data on basic performance indicators that shall serve as a major input in the development of standards. The establishment alone of a statistical database on microfinance in the Philippines will be a major breakthrough.
This component on the design and conduct of national microfinance survey shall produce (1) an inventory of MFIs; (2) a framework for the national microfinance survey; (3) training of enumerators; and (3) conduct of a national survey.
The MFI inventory will consist of a database of NGOs involved in the provision of financial services; and profiles of MFIs. The database should be readily accessible while the profiles produced should be published and disseminated to target audiences.
3. Training of Microfinance Institutions.
Reiterative consultations will be done to elicit participation in and ownership of the Project by microfinance institutions, who actually are, the primary stakeholders in the standards that will be developed. Also, training activities will be undertaken to improve the level of understanding and working knowledge of the recipient institutions on the application of microfinance standards and indicators.
4. Development and Promotion of Microfinance Standards.
A review of existing standards will be undertaken. This Project component will produce the standards document which will be agreed upon by the coalition. To promote the standards there will be several regional workshops and a big national workshops. The regional workshops will culminate in a national microfinance summit where the standards will be formally launched.
The standards document will also be disseminated and, to the extent possible, presented to donor agencies, government agencies and the banking sector.
5. Advocacy.
Advocacy efforts will be pursued throughout the Project duration. Linkages will be established with NGO networks, bankers' associations, international groups, among others. Exposure trips to successful microfinance models abroad for policy makers and MFI senior officers will be undertaken. As part of the Project's networking activity a coalition directory will be distributed to all members and concerned national and international agencies. Publications produced at various stages of the Project shall also be distributed to these institutions. The Project shall also facilitate the linking of agencies into an information sharing network through the provision of an on-line service. This network shall serve as a forum for advocacy of standards developed.
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IMPLEMENTING STRUCTURE of the PROJECT
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The implementing organizational structure of the Project shall consist of three major groups: the Policy Advisory Group (PAG); Project Support Group (PSG); and the Secretariat.
The Policy advisory Group (PAG) is the core group of the coalition and it shall serve as the policy advisory body of the whole coalition. It shall focus its attention on the development of standards and other related technical and policy issues. It shall lead in the advocacy of the standards and shall assure the active participation of members in the coalition as well the necessary support and information to the PSG and Secretariat.
The Project Support Group (PSG) represents TSPI Development Corporation as Project Holder. The PSG shall be responsible for the monitoring of project implementation and shall be specifically in charge of fund management and internal control for proper accountability. It shall also be the executive decision-making body of the Coalition. As such it shall be responsible for the approval of contracts and the terms of reference; review of progress reports of the Secretariat; and decide on the recommendations of the Secretariat to improve Project implementation.
The Secretariat will be responsible for the coordination and/or management of all project activities. It shall provide the day-to-day oversight of the Project. Administrative support for the Coalition and the management of all sub-contracts shall also be the Secretariat's responsibility. It shall be headed by a Project Manager who will be assisted by a Project Coordinator and a lean team consisting of a Training and Organizational Development Manager, Advocacy Officer, Research and Information Officer, an Administrative Assistant and a Utility/Messenger. The Project Manager shall be mainly responsible for planning, organizing and directing the activities and resources of the project towards the attainment of its goals. The Project Coordinator is responsible for establishing and maintaining the basic operating systems of the Secretariat; coordinating all assigned key activities of the project; supervising, leading, directing and controlling the activities of the Project staff, and for the preparation of reports needed by the Project Holder and the Donor Agency. The Secretariat, through the Project Manager, shall report directly to the PSG for matters related to management and administration, and to the PAG for policy related issues.
At the different stages of the Project the Secretariat shall be assisted by short term contractual personnel. These personnel, which, among others include short-term consultants, programmer, data encoder, will be hired to ensure timely and quality attainment of Project objectives.
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LIST of MEMBERS of the POLICY ADVISORY GROUP
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NAME OF ORGANIZATION, REPRESENTATIVE, DESIGNATION
1. Ahon sa Hirap, Inc., Ms. Mila G. Mercado-Bunker, President 2. Alalay sa Kaunlaran sa Gitnang Luzon, Mr. Rolando Victoria, Exec.Director 3. Alliance of Phil. Partners for Ent.Dev., Mr. Eduardo Jimenez, Exec. Dir. 4. ASDAR, Mr. Cesar Ledesma, Chairperson 5. Asian Institute of Management, Mr. Ronald Chua,Professor 7. Ayala Foundation, Ms. Victoria Garchitorena, Executive Director 8. Bangko Sentral ng Pilipinas, Mr. Ricardo Lirio, Managing Director 9. Bicol Business for Development Foundn, Mr Adolfo Olivan, President 10. CARE Philippines, Ms. Teresa Bayombong, Technical Advisor 11. Center for Agri. & Rural Developmt, Ms. Dolores M. Torres, Exec.Director 12. Center for Community Transformation, Mr. Edgardo F. Garcia, Exec.Director 13. Credit Policy Improvement Program, Gilbert Llanto, Chief of Party 14. Gerry Roxas Foundation Inc., Ms. Victoria Arches, Program Director 15. Hagdan sa Pag-Uswag Foundation, Inc., Ms. Yoleta C. Sareno, Exec.Director 16. Kabalikat Para sa Maunlad na Buhay, Mr. Noel M. Alcaide, Executive Director 17. Milamdec Foundation, Inc., Fr. Emeterio J. Barcelon, Exec. Director 18. National Credit Council - DOF, Ms. Ma. Cecilia Soriano, Undersecretary-Department of Finance 19. Negros Women for Tomorrow Foundation, Ms. Cecille del Castilo, President 20. People's Credit and Finance Corp., Mr. Jose C. Medina, Jr., Exec.Director 21. PHILNET, Dr Cecille del Castillo, President 22. Presidential Commission to Fight Poverty, Mr. Manolito Novales, Executive Director 23. Punla sa Tao Foundation Inc., Ms. Marcia Feria-Miranda, Exec.Director 24. Rangtay sa Pagrang-Ay, Inc., Mr. Angelito Pangilinan, Executive Director 25. Talete King Panyulung Kapampangan, Inc, Mr. Arnold Musni, Exec.Director 26. Taytay sa Kauswagan, Inc. Mr. Angel L. de Leon, Executive Director 27. Union Bank of the Philippines, Ms. Alegria Javier, First Vice President 28. USAID - Philippines, Mr. Gerry Porta, Program Officer 29. TSPI Development Corporation, Mr. Benjamin Montemayor, Executive Director
Note: A total of 59 organizations are members of the Coalition. A full list maybe obtained from the Coalition Secretariat.
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For further information, contact the secretariat. see below.
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Philippine Coalition for Microfinance Standards
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Address: TSPI Dev.Corp., Basement floor, Padilla Bldg., Emerald Avenue, Ortigas Center, Pasig City, Metro Manila, Philippines Phones (632) 631-5720, (632) 631-5721, (632) 631-2783 Fax (632) 6335904 E-mail: mailto:microfi@pworld.net.ph
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