amerms workshop 13: cutting edge in spm (ppt by abebual demilew)

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www.brac.net Implementation of Poverty Scorecard Experience from BRAC Uganda Abebual Zerihun April 08, 2010

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FULL TITLE: What is the Cutting Edge in Managing and Measuring Social Performance? ROOM: Tsavo A Translated session: English & French PANEL: Chair: Mr. Christian Loupeda, Director Imp-Act Consortium, Freedom from Hunger (FFH), USA Panelist: Mr. Abebual Zerihun Demilew, Research Manager, BRAC, Uganda Panelist: Ms. Refilwe Mokoena, Research & Development Manager, Small Enterprise Foundation (SEF), South Africa Panelist: Ms. Ging Ledesma, Manager of Social Performance, Oikocredit, The Netherlands

TRANSCRIPT

Page 1: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Implementation of Poverty Scorecard

Experience from BRAC UgandaAbebual Zerihun

April 08, 2010

Page 2: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

The Poor and Microfinance

% of people below poverty line

Region Total Who can borrow from MFI

Uganda (2005) 31 17Central 16 9Eastern 36 24Western 21 11Northern 61 35

Page 3: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Poverty Scorecard

• Reliable and practical monitoring and targeting tool

• Can monitor movements in and out of a poverty line

• Can be used to improve products and services

Page 4: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Construction of PSC for Uganda

• Developed by BRAC Africa research unit

• 10 simple multidimensional indicators [demographic, asset, and housing] screened from UNHS-2005

• Sum of scores to each indicator yields the poverty score for the household

• Provides poverty likelihoods in different score range

• Public knowledge goods

Page 5: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Poverty likelihood conversion chartScore range Poverty likelihood for people

with score in range (%)

0-4 95.25-9 97.2

10-14 93.615-19 80.620-24 76.125-29 71.230-34 62.535-39 47.740-44 44.045-49 38.750-54 27.055-59 26.260-64 13.365-69 8.170-74 6.575-79 2.780-84 3.185-89 1.390-94 0.7

95-100 0.0Total n = 5,112

score of 21

This client’s household has a 76.1% likelihood of falling below poverty line-$1/day.

Page 6: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Poverty scorecard for Uganda

Page 7: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Implementation• Integrated with MIS and loan appraisal system

• Full coverage across all the 89 branches including all the borrowers, regardless of their loan cycle

• Orientation during monthly managers meetings

• For new staff, training mainstreamed through the microfinance management trainings.

• Credit officers collect data for poverty scorecards

Page 8: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Implementation

• Branch level MF data entrant

• Periodic analysis of client poverty status

• Sept 2010 longitudinal survey

Page 9: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Contextualizing Score

Majeri OduHandicrafts & PoultryFirst Loan: Ush 200,000Poverty Score: 39

Semujju LuigaSells cooked food and condimentsFirst Loan: Ush 300,000Second Loan: Ush 500,000Poverty Score: 57

Naigaga AnnetteSells used clothes and BRAC CHPFirst Loan: Ush 300,000Second Loan: Ush 600,000Poverty Score: 65

Page 10: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Quality Control

• Periodic checks by monitoring unit• Data capture for 20 sample branches

– Credit Officers tend to ‘overscore’, i.e. identify households to be more better of than they actually are.

Sample Question Total reported score

Total monitoring score

% discrepancy

Wall material 4547 4641 -2.02Number of children 2855 2713 5.23Household head’s education 1704 1700 ~0Over all average (June 09-Oct09) 2.4

Over all average (Nov09-Feb10) ~0

Page 11: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Key success factors

• Senior level management commitment

• Good and reliable system

• Triangulation to control quality

• Piloting

Page 12: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Lessons

• Monitor or target, but not both

• Quality, quality and quality

• Get management buy-in

• Keep it real. Understand limitations. Manage expectations

Page 13: AMERMS Workshop 13: Cutting Edge in SPM (PPT by Abebual Demilew)

www.brac.net

Thank You