Mexico, El Salvador, Guatemala, Ecuador, Nicaragua, Haiti, Uganda, Tanzania

Poverty Assessment Research of Eight FINCA Country Programs

How poor are FINCA’s new clients when they enter the program?Chart 1-Based on daily per-capita household expenditures (DPCE) as a proxy for income

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total NEW clients interviewed 55 126 37 83 77 39* 21 21 4592 Household DPCE of less than $1/day 17 30 16 14 57 30 19 18 2013 Percent 31% 24% 43% 17% 74% 77% 90% 86% 44%4 Household DPCE of $1-1.99/day 20 67 10 42 15 5 1 4 1645 Percent 36% 53% 27% 51% 19% 13% 5% 14% 36%6 Household DPCE of more than $2/day 18 28 11 27 5 4 1 0 947 Percent 33% 22% 30% 33% 6% 10% 5% 0% 20%8 Median DPCE for all NEW clients $1.39 $1.36 $1.17 $1.64 $0.73 $0.42 $0.31 $0.39 $1.13

*In Haiti, due to under-reporting of household expenditures as w ell as income, estimates based on 1.36% of client's business profits (8-country average rate).

44% of new clients have a DPCE of less than $1/day;

How poor are FINCA’s new clients when they enter the program?Chart 1a-Daily household expenditures expressed in Daily Minimum Wage equivalents (DMW)

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total NEW clients interviewed 55 126 37 83 77 39 21 21 4592 Average daily minimum wage (DMW) $8.16 $5.20 $4.74 $5.24 $1.61 $0.70 $1.22 $0.683 NEW clients living on less than 1 DMW 30 39 10 15 9 30 4 1 1374 Percent 55% 31% 27% 18% 12% 77% 19% 4% 30%5 NEW clients living on 1.to 1.9 DMWs 13 75 20 45 21 5 5 2 1876 Percent 24% 60% 54% 54% 27% 20% 24% 10% 41%7 NEW clients living on 2 or more DMWs 12 12 7 23 47 4 12 18 1338 Percent 22% 10% 19% 28% 61% 12% 58% 86% 29%

Country Economic Development Level9 GNP per capita of the country (annual) $4,400 $1,900 $1,660 $1,310 $430 $460 $320 $240

10 Daily GNP per capita $12.05 $5.20 $4.54 $3.59 $1.26 $1.26 $0.88 $0.6511 Average market rate daily minimum wage $8.16 $5.20 $4.74 $5.24 $1.61 $0.70 $1.22 $0.68

How poor are FINCA’s current clients?Chart 2-Based on daily per-capita household expenditures

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total CURRENT clients interviewed 165 227 62 169 195 66 86 79 1,0492 Household DPCE of less than $1/day 40 58 21 37 106 45 76 41 4243 Percent 24% 26% 34% 22% 54% 68% 88% 52% 40%4 Household DPCE of $1-1.99/day 75 111 27 77 66 8 9 23 3965 Percent 45% 49% 44% 46% 34% 12% 11% 29% 38%6 Household DPCE of more than $2/day 50 58 14 55 23 13 1 15 2297 Percent 30% 26% 23% 33% 12% 20% 1% 19% 22%8 Median DPCE for all CURRENT clients $1.48 $1.32 $1.40 $1.53 $0.92 $0.62 $0.33 $0.39 $1.11

Surprise: current clients are slightly poorer ($1.11) than new clients ($1.13), especially in El Salvador & Ecuador, the two programs showing mission drift.

How poor are FINCA’s ex clients? Chart 3-Based on daily per-capita household expenditures

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total EX-clients interviewed 51 51 7 25 51 28 22 19 2532 Household DPCE of less than $1/day 14 14 1 9 23 22 20 17 1203 Percent 27% 27% 14% 36% 45% 79% 91% 90% 47%4 Household DPCE of $1-1.99/day 15 24 3 7 18 4 2 1 745 Percent 29% 47% 43% 28% 35% 14% 9% 5% 29%6 Household DPCE of more than $2/day 22 13 3 9 10 2 0 1 527 Percent 43% 25% 43% 36% 20% 7% 0% 5% 21%8 Median DPCE for all EX-clients $1.88 $1.40 $1.04 $1.40 $1.04 $0.41 $0.38 $0.32 $1.14

Another surprise: ex-clients are doing better ($1.14) than both current ($1.11) and new ($1.13)

How poor are FINCA’s non-clients in communities where FINCA works?Chart 4-Based on daily per-capita household expenditures

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total NON-clients interviewed 157 162 28 182 180 56 81 79 9252 Household DPCE of less than $1/day 40 42 13 36 107 44 76 74 4323 Percent 25% 26% 46% 20% 59% 79% 94% 94% 47%4 Household DPCE of $1-1.99/day 53 67 11 75 49 7 4 4 2705 Percent 34% 41% 39% 41% 27% 13% 5% 5% 29%6 Household DPCE of $2-$2.99/day 64 53 4 71 24 5 0 1 2237 Percent 41% 33% 14% 39% 13% 9% 0% 1% 24%8 Median DPCI for all NON-clients $1.71 $1.58 $1.07 $1.67 $0.83 $0.52 $0.28 $0.35 $1.15

Overall, non-clients ($1.15) are slightly better off than clients, but still 47% of them still live in severe poverty—meaning there is still many being left behind.

Does school attendance improve with higher levels of household expenditure?

No. Description El Salvador1 Total respondents2 Without school-age children3 With school-age children

4 All Children in school5 DPCE of $0-$0.99 68 25% 82 25% 30 36% 65 20% 186 56% 152 100% 153 92% 132 95% 868 48%6 DPCE of $1-$1.99 111 41% 172 52% 38 46% 157 48% 108 32% 0 0% 12 7% 6 4% 604 33%7 DPCE of $2.00 or more 95 35% 77 23% 15 18% 104 32% 39 12% 0 0% 2 1% 1 1% 333 18% 8 Some Children in school9 DPCE of $0-$0.99 8 31% 32 55% 11 69% 2 17% 56 82% 25 100% 20 95% 18 90% 172 70%

10 DPCE of $1-$1.99 10 38% 21 36% 5 31% 9 75% 11 16% 0 0% 1 5% 2 10% 59 24%11 DPCE of $2.00 or more 8 31% 5 9% 0 0% 1 8% 1 2% 0 0% 0 0% 0 0% 15 6%

12 No Children in school13 DPCE of $0-$0.99 0 0% 11 38% 4 80% 1 20% 13 76% 2 100% 1 100% 7 100% 39 56%14 DPCE of $1-$1.99 3 75% 14 48% 0 0% 4 80% 3 18% 0 0% 0 0% 0 0% 24 34%15 DPCE of $2.00 or more 1 25% 4 14% 1 20% 0 0% 1 6% 0 0% 0 0% 0 0% 7 10%

7017 2 1 74 29 5 5

24668 25 21 2026 58 16 12

1,805333 152 167 139274 331 83 326

2,121418 179 189 166304 418 104 343

2,688127 148 30 116 86 6 21 33 567

504 185 210 199431 566 134 459Haiti Uganda Tanzania TotalMexico Guatemala Ecuador Nicaragua

Qualitative Findings

Description of response Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda TanzaniaTotal # of responses

%

Continues as before 25 19 2 10 11 5 4 76 52%Stopped business 6 3 6 8 4 4 31 21%Business is worse off 1 6 2 4 2 4 7 26 18%Business is better; less worries about making payments 2 1 1 1 2 7 5%Business has improved 1 2 1 1 1 6 4%

Total 35 31 5 21 22 0 15 17 146 100%

What has happened to you and your business since you left?

Qualitative Findings

Why haven't you joined the village bank?

Description of response Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda TanzaniaTotal # of responses

%

Didn't know about it 39 35 1 107 4 2 14 16 218 47%Fears of not repaying loan 15 4 2 13 3 6 10 53 11%Doesn't like 8 day repayment period 13 2 5 10 9 5 5 49 11%No interest in joining 5 5 5 8 14 1 1 39 8%Doesn't have business 1 1 3 8 14 27 6%Interest rates too high 4 5 2 2 2 2 2 4 23 5%Doesn't need it 3 8 5 2 4 22 5%No one invited them 6 6 1 1 3 17 4%Business doing poorly 4 1 9 2 16 3%

Total 70 80 13 131 47 33 39 51 464 100%

No. Description Mexico El Salvador Guatemala Ecuador Nicaragua Haiti Uganda Tanzania Total1 Total NEW clients interviewed 55 126 37 83 77 39* 21 21 4592 Household DPCE of less than $1/day 10 3 0 0 1 5 6 12 373 Percent 18% 2% 0% 0% 1% 13% 29% 57% 8%4 Household DPCE of $1-1.99/day 18 19 11 8 4 15 5 5 855 Percent 33% 15% 30% 10% 5% 38% 24% 24% 19%6 Household DPCE of more than $2/day 27 104 26 75 72 19 10 4 3377 Percent 49% 83% 70% 90% 94% 49% 48% 19% 73%8 Median DPCE for all NEW clients $1.94 $3.18 $2.90 $3.82 $3.93 $1.97 $1.89 $0.84