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Graduating the Poorest into Microfinance
by CGAP, Ford Foundation in 2008
Community of Practice: Financial Services
To build a ladder for the poorest people, it is critical to combine the alleviatory elements of safety nets with the transformative elements of microfinance. The graduation model incorporates the targeting and transfer elements of safety net programs, and introduces entrepreneurial activity through training, an asset grant, and savings services. The graduation model coordinates partner organizations with specific comparative advantages to carefully sequence several development services over a period of two years to create food security and, subsequently, enterprise development.