[email protected] Client Needs: What do we know (and how do we Reach the Poorest) Chris Pain, Social and Economic Development Unit, Concern

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Client Needs: What do we know (and how do we Reach the Poorest)

Chris Pain, Social and Economic Development Unit, Concern Worldwide


Low Assets

Lack of Return on Assets

How Concern Understands Extreme Poverty

Extremely Poor Peopl

e

Inequality

Risk and

Vulnerability


How have we utilised this – to distinguish between countries

Countries in which we work Countries in which we do not work

Bottom 1 – 10

Afghanistan, Somalia, Sudan, Chad, DR Congo, Niger, Haiti,

Central African Republic, Angola, Eritrea

Bottom 11 – 20

Sierra Leone, DPRK, Ethiopia, Zimbabwe

Guinea, Guinea Bissau, Yemen, Mali, Myanmar, Nigeria

Bottom 21 – 30

Burundi, Rwanda, Liberia, Bangladesh, Mozambique

Cote d’Ivoire, Djibouti, Lesotho, Mauritania, Cameroon

Bottom 31 – 40

Zambia, Uganda, Pakistan, Malawi; Kenya

Nepal, Burkina Faso, Papua New Guinea, Madagascar, Senegal

OutsideBottom 40

India, Cambodia, Tanzania Timor Leste, Gambia, Comoros, Togo, Benin, Ghana


What does this mean at programme Level

Reaching this target group will cost more and require a different type of programme=> A shift away

from sector based

programme Multi Sectoral Series of

Interventions, pulling in a number of elements of our work

To make this work requires a multitude of skills – many of which we do not have – we need to work in partnership

Source: http://data.worldbank.org/indicator/SI.DST.02ND.20/countries?page=3

Income Distribution – Sierra Leone



Level Two Level Three Level Four Level Five

12 months 6 months 6 months 6 months

36 months 6 months 6 months 6 months

Ideal timeframe

Potential timeframe

HH at this level have moved beyond vulnerability to poverty and have “sustainable livelihoods”

All included in the programme are at this level

Poverty Line

Survival Line (Food Poverty Line = All resources spent on consuming 2,100 kcal per day)

Livelihood Line

Asset Generation Line

Level One

Always the possibility HHs will fall back a level due to shocks – programme will be flexible enough to allow them to rejoin


Developing a Relationship with a Microfinance Investor

Takes time to build the relationship Foundation depends on shared values, vision and working

principles Operational - Cambodia (AMK) and Zambia (AMZ) Feasibility Studies – Malawi and Mozambique

The needs of the poorest is the starting point in the design of an appropriate product Seasonality of clients agricultural livelihoods Transparent Communications on the price of loans Reducing transaction costs

Focus on both Social and Financial returns AMK – submits social performance reports to MIZ markets AMZ – internal reports on limited number of social indicators


Reacting to the needs of the Poorest – Differences in Monthly Cash Flows and Expenses (Zambia)

Net cashflow by quintile

(500,000)

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

1 2 3 4 5 6 7 8 9 10 11 12

Month

ZMK


Where does the complementarity between Concern and Agora Emerge

Concern MIV ComplementarityTarget Based on wealth ranking,

equality, vulnerabilityDepth of outreach Programme participants and

MFI clients pools overlap

Needs/ Demand

Focus on the basic needs and capacity to generate income to access basic services

Focus on the need to better manage finances: demand for a range of appropriate financial services

smooth consumption and increase income

Purchasing Power

Programme participants may be unable to pay for the goods and services

Clients are able to pay for appropriate financial services

Provide resources that help sustain and develop purchasing power

Equality Addressing practical needs (basics of life) and strategic interests (power, control, legal rights….)

Starting operations where financial inclusion is the lowest; providing equitable access to appropriate products to different client groups

Social performance Management – not just access to credit but clients have the potential to transform power relations and empower the poor


Where does the complementarity between Concern and Agora Emerge

Concern MIV Complementarity

Assets Focus on human, social, physical, natural and financial assets

Focus on financial assets MFIs are one group of partners that Concern works with

Returns 100% returns on programme participants’ assets stay with programme participants

Financial costs are charged to programme participants for the use of service; both client and MFI sustainability are considered

Both focus on graduating and maintaining the poor to above extreme poverty / food poverty line

Risk and vulnerability

DRR Client protection

We have very common areas of interest, but often use different language

Documents

[email protected] Client Needs: What do we know (and how do we Reach the Poorest) Chris Pain, Social and Economic Development Unit, Concern