Initiatives to Support the Advancement and Health of Women

1. Initiatives to Support the Advancement and Health of Women Jennifer Schmidt, Senior Manager, FINCA International August 4, 2010

2. Microfinance and Women

3. Status of Women Globally • 60% of the world’s poorest people are female • Despite comprising more than 50% of the population, women own only 1% of the world’s wealth • 55% of all children not attending school are girls • 18% of parliamentarians are women “Development cannot be achieved if fifty percent of the population is excluded from the opportunities it brings.” – Helen Clark, UNDP Administrator “Gender and Poverty.” United Nations Development Programme. 2010. “Gender Equality Factsheet.” DFID. Dec. 2008.

4. Microfinance - Opportunity for Women • Women comprise an estimated 67% of all microfinance clients • Studies have shown that women are more likely to: • Repay loans and save • Invest earnings in their families’ health, nutrition, and education • Participate in groups that lessen the cost of delivering small loans • “Virtuous spiral” of economic empowerment, improved household well-being, and social and political empowerment . “Who are the clients of microfinance?” CGAP. 2010. “Gender and Rural Finance: Reaching and Empowering Women.” IFAD. Aug 2009

5. IFAD’s “Virtuous Spirals” Women’s repayment & premiums Financial Services Women’s decisions on financial management Increased income under women’s control Women’s economic activity Increased status & changing roles Women’s economic empower-ment Women’s social & political empower-ment Householdwell-being Poverty reduction Economic growth Women’s human rights “Gender and Rural Finance: Reaching and Empowering Women.” IFAD. Aug 2009.

6. FINCA International

7. FINCA’s Role • Mission: to provide financial services to the world’s lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living • Operates in 21 countries in Latin America, Eurasia, Africa, and the Greater Middle East • Village bank model helps FINCA reach the most poor and rural populations • As of April 2010, FINCA served 704,443 clients – 479,021 of whom are women (68%)

8. Case Studies

9. USDA Food for Progress in UgandaOverview • Uganda’s HIV prevalence among highest in the world • High percentage of single mother and non-traditional headed households • Decreased productivity among family members • Increased number of AIDS orphans per household • Increased healthcare, educational, and food security costs • Reduced household assets to pay for emergency costs

10. USDA Food for Progress in UgandaClients 80% Clients belonging to an HIV-affected household 49% Clients with 1+ HIV-positive household members

11. USDA Food for Progress in UgandaResults • Over 10,000 new clients served • 98% Loan repayment rate • 38% used FINCA assistance to cover medical expenses • Clients less likely to liquidate household assets to pay for HIV-related expenses or emergencies • School-age children more likely to attend school • FINCA’s presence helped combat the spread of HIV by reducing poverty, promoting HIV awareness, female education, and gender equality

12. Life Savings Partnership ProjectOverview • Partnership with Johns Hopkins University’s School of Public Health Center for Communication Programs • Supported by the Gates Foundation • Nearly 15 percent of people in Malawi between 15 and 49 are HIV-positive • Life expectancy is 37 years (down from 55) • Continued stigma with the illness, little social discussion, and a traditionally subservient role among women • Goal to of expanding access to HIV prevention and behavior change education utilizing village banking groups of female entrepreneurs

13. Life Savings Partnership ProjectStructure • Peer educators received intensive training on HIV and training methodologies, then led a series of HIV-related sessions • Piloted in 175 Village Banking Groups over 16 months in central Malawi • Conducted a baseline and follow-up studies among treatment and control groups

14. Life Savings Partnership ProjectOutcome In the past, I was very much afraid to go for HIV testing but now I have managed to talk to my husband and both of us went for HIV testing. We were counseled and received guidance. We are now staying happily because both of us know our sero-status - Client testimonial • 400 peer educators trained • 5,600 clients educated • Participation in LSP associated with greater: • Knowledge • Comfort in interacting with HIV-infected persons • Self-efficacy • 81 “buddy group clusters” formed to continue program activities beyond project end

15. FINCA’s Client Assessment Tool

16. FCAT Results • Microfinance leads to job creation for women • 1 new job is created for another individual by each FINCA client • 17% of clients created a new business after taking a loan from FINCA • Microfinance enables asset growth • Helps protect women against external shocks and improves family access to basic necessities • Village bank structure empowers women • Peers elect women to leadership positions • Clients experience success in their businesses

17. New Initiatives

18. New Initiatives • Ongoing research into the link between food security and microfinance • Study aims to determine what effect financial services have upon food security of rural and urban clients • Girls’ savings project in Uganda • Reducing vulnerability for adolescent girls. • Scaling up savings • Supported by the Gates Foundation • Mobilize $400 million in savings accounts in 10 years