Promoting Inclusive Markets and Financial Systems
Summary"In 2005, Grameen Foundation introduced the Progress out of Poverty Index (PPI) with the support of the Consultative Group to Assist the Poor (CGAP) and the Ford Foundation. Mark Schreiner of Microfinance Risk Management, L.L.C. developed the PPI, a ten-indicator composite index that produces estimates of individuals’ poverty likelihoods and tracks changes in those likelihoods over time. The PPI resonated well with Grameen Foundation because of the characteristics it shared with the Grameen Bank 10 Point System, a set of easily observable indicators that helps Grameen Bank track the movement of its clients out of poverty.
Negros Women for Tomorrow Foundation (NWTF) in the Philippines was one of the first MFIs to adopt the PPI. The lessons learned from NWTF’s implementation process can help lead the way for other organizations as they use the PPI. This case study provides an overview of why and how NWTF adopted the PPI. It also details how the organization is using the results to shape its products, services, and recruitment and management processes, enabling it to reach a greater number of poor borrowers as efficiently as possible.