The GDLN Newsletter, Pathways to Prosperity

In This Issue:

Don’t Miss This! Important Announcement

The Prosperity of the Trees is the Well-Being of the Birds.From Asia to Latin America and Africa, GDLN Affiliates are helping build capacity for healthy forests through microfinance initiatives.

Rethinking Design. GDLN Affiliates across Southeastern Europe partner to make one private sector development initiative a pioneering example of innovative learning.

Think Local, Go Global: Developing Microfinance Expertise Where it’s Needed Most. How the Microfinance Management Institute’s global ambitions are investing in local capacity across the developing world.

Report Back: What Happened at the First GDLN World Forum?

News from the GDLN Family. Outcomes from GDLN regional meetings, Affiliate initiatives, the latest client survey results and more.

At a Center Near You. Upcoming events and activities in your region.

Note from the Editor. October 13, 2006 was a remarkable day for many in the developing world: The Nobel Peace Prize went to Mohammad Yunus and the Grameen Bank, the microfinance institution he founded 30 years ago. This global recognition confirms what many have known for decades; namely that microfinance contributes to reducing poverty and empowering people. After pioneering the microfinance industry with the first few small loans to Bangladeshi women in the seventies, Yunus estimates that microfinance initiatives have now reached more than 100 countries and 50 million people worldwide. These successes were inconceivable just three decades ago, when the poor had virtually no opportunity to access the few dollars needed to invest in their own productivity. Today, the biggest challenges for microfinance relate to using emerging technologies to sustain and further increase the poor’s access to finance, and to enhance the capacity of those living and working in developing countries to design and implement their own microfinance programs. As partners in a global network devoted to using information and communications technologies for faster and more efficient global collaboration and learning, GDLN Affiliates are well poised to partner with microfinance initiatives in tackling these challenges.

This issue of the GDLN Newsletter features initiatives where GDLN Affiliates and their partners are working to improve access to financial markets for the world’s poor. It surveys the activities of Affiliates in Southeast Asia, Latin America and Africa in microfinance; and takes an in-depth look at a unique private sector initiative in Southeastern Europe that combines innovative design elements to foster shared ownership and enhance the learning experience. We profile the Microfinance Management Institute, which advances capacity in microfinance management worldwide through its Microfinance in MBA Programs project. This GDLN Newsletter also shares some of the outcomes of GDLN’s first World Forum in October 2006; connecting readers to Forum materials, videos and photos online. As usual, you’ll also find the regular updates about GDLN meetings, client survey results and upcoming activities.

Don’t Miss This! Important Announcement

Have you completed the newly simplified GDLN quarterly reporting questionnaire? By now all GDLN Affiliates should have found the simplified quarterly reporting questionnaire in their email in-boxes! We would sincerely like to thank the 54 Affiliates who submitted their response by the December 1, 2006 deadline. If your Affiliate still has not completed the online questionnaire, we invite you to contact Elena Rose (erose@worldbank.org) immediately. Once we have received sufficient data from a majority of Affiliates, we will share the results with you through the GDLN website and on the GDLN Community Space. Please note that this simplified questionnaire replaces the old quarterly reporting system. For more information click here or contact Elena.

The Prosperity of the Trees is the Well-Being of the Birds
From Asia to Latin America and Africa, GDLN Affiliates are helping build capacity for healthy forests through microfinance initiatives

The money that buys one child school lunches for a week in the developed world is about enough to cover the loan that could help a family start their own business in some developing countries. Yet without this loan their day-to-day struggle for survival and any prospect of financial planning for the future are likely to be bleak. Millions in this predicament have had their lives changed by microfinance, which has provided the financial support they needed to lift themselves out of poverty and begin investing according to their own priorities – school fees, nutrition, housing or health care. Below we highlight just some of the ways in which GDLN Affiliates are partnering with governments, individuals and organizations around the world to improve and expand microfinance services; often venturing into some of the poorest communities where the capital to build better futures was previously in short supply.

Building local capacity to take care of local gardens. In the region where the “world’s banker to the poor” and recent Nobel Peace Prize winner, Mohammad Yunus, gave the first microcredit loan and created the Grameen Bank thirty years ago, the Tokyo Development Learning Center (TDLC) is now partnering with the World Bank Institute (WBI) and the Asian Development Bank Institute (ADBI) to broaden the reach of microfinance. Since 2005, some 46 trainers of microfinance have been certified across the region through three Training of Trainers on Microfinance courses. Participants came from countries as diverse as China, India, Pakistan, the Philippines, Sri Lanka, and Vietnam. To help these countries scale up capacity to meet high demand for microfinance—some one billion people in the region still lack access to financial services—these courses focus on building the expertise of local people to stimulate growth in the sector. In each of the three-month long courses conducted so far, future trainers participated in four GDLN videoconference sessions to guide them in completing a self-study program on CD-ROM and in print. During the videoconferences, microfinance experts presented key trends, including case studies from Afghanistan, Philippines, Mongolia and Vietnam, and discussed issues with the participants. WBI, the TDLC and the ADBI co-sponsored the third program and one of the original sponsors, the United Nations Capital Development Fund continues to provide most of the learning materials for the course. Contact Jiping Zhang for more information (jzhang1@worldbank.org).

Helping microfinance institutions to flourish. Microfinance is a rapidly growing business in many developing countries, but it is often marginalized and its potential benefits not always well understood by governments. This is partly why six national microfinance associations representing 82 microfinance institutions in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama are working with GDLN Affiliates to enhance understanding of the role that microfinance can play in poverty alleviation and development. Together these institutions boast an active loan portfolio of $311 million and 576,000 clients. The Central American Microfinance Network (Redcamif) which represents these national associations, partnered with the World Bank’s Knowledge Management Team and Private Sector Development (PSD) department from the Latin America and Caribbean region, and GDLN Affiliates to develop this course. Collectively, they brought together some 175 participants from microfinance institutions, national microfinance associations, donors and government financial sector authorities. Launched in May 2005 this GDLN series is the predecessor of a broader program funded by the United Kingdom’s Department for International Development, the South to South Knowledge Exchange in Microfinance – South American Knowledge Sharing Program. Scheduled to begin on December 11, 2006, the program will deliver twelve sessions to strengthen the capacity of microfinance institutions in the region and mainstream them into national financial markets. Michael Goldberg from the Bank’s PSD department underscored the important timing of such initiatives in the region, explaining that “as newly elected governments begin to attack microfinance interest rates…the links between these national microfinance networks could be an important way to educate governments and the public about the need for sustainable rates”. By using GDLN tools and facilities, the series has inspired people in Bolivia, Colombia, Ecuador and Peru to pursue similar initiatives to foster broader exchange amongst participants and stakeholders on microfinance. Daniel de la Morena (ddelamorena@worldbank.org) is the information contact for these events.

Long-term investments in learning reap healthier returns. Across francophone Africa, more than 400 participants from the public and private sector have made the most of a long-running series of GDLN events linking microfinance development with poverty reduction. Since 2001, the Centre d’études financiers, économiques et bancaires (CEFEB) has worked in partnership with the GDLN Center in Paris to deliver five events on different aspects of microfinance – each building on the previous one to enhance the knowledge of returning participants while also welcoming new ones. The latest learning event in September 2005 looked at the entry of commercial banks into the microfinance sector and potential partnership models. GDLN Affiliates in Burkina Faso, Côte d’Ivoire and Senegal worked with organizers and a partner in Cameroon to bring together some 60 representatives from central and commercial banks, microfinance institutions, government and other diverse stakeholders. On hand to help participants learn about the challenges were international and local experts connecting via videoconference, a combination of on-line resources and open discussions. The CEFEB is the training and capacity building arm of the French Development Agency, and collaborates in a number of areas with GDLN Affiliates to offer courses on microfinance, banking, governance and public-private partnerships. For more information please visit the CEFEB website or contact Laurent Porte (lporte@worldbank.org) at the GDLN Center in Paris.

Rethinking Design
GDLN Affiliates across Southeastern Europe partner to make one private sector development initiative a pioneering example of innovative learning

The design and implementation of learning events are often constrained only by the limits of our imagination. One exciting private sector development (PSD) initiative in Southeastern Europe is proving just how flexibly GDLN tools can be utilized to produce unique learning opportunities that satisfy demand, foster shared ownership with government counterparts and realize long-range outcomes. The World Bank’s Europe and Central Asia (ECA) GDLN team partnered with GDLN Affiliates to develop this initiative in response to strong demand from Southeastern European countries for technical assistance in PSD. While the demand and keen interest have certainly been key factors in the initiative’s success, the collaboration and preparation that preceded its implementation have been equally important. After floating the idea for the PSD initiative in early 2006, the Bank team held a Stakeholder Workshop in Sarajevo in June to explore issues and areas of common interest. Senior government officials from participating countries, members of the Bank team and Bank PSD experts joined representatives of GDLN Affiliates at the workshop. Out of this meeting came the initial design for three learning components—Investment Climate, Small and Medium Enterprise (SME) Development and Access to Finance, and Regional Competitiveness—to promote comprehensive policy dialogue and encourage greater knowledge sharing to generate improved business environments across Southeastern Europe. “As many countries seek to implement European Union policies and guidelines, “ explains Gary Fine, head of the Bank team, “knowledge sharing between them through the GDLN Affiliates in the region can significantly enhance cross-border exchange of experiences, making this entire process more of a shared, collaborative effort”. To further capitalize on the learning outcomes achieved, a final face-to-face conference in Vienna in June will enable stakeholders and participants to evaluate experiences and broaden their understanding of how each component comprises an integrated whole in creating strong private sectors.

In total, some 150 participants, mainly public officials in Albania, Bulgaria, Bosnia, Croatia, Kosovo, Macedonia, Romania and Serbia will take part in the initiative. Each of the three components runs from late 2006 to April 2007, and all are designed to equip participants with the skills and knowledge needed to contribute to the growth of vibrant private sectors. The SME component got off to a flying start on October 25, 2006, with more than 50 participants from public and private sectors, civil society, academia and the media taking part in the first of six videoconferences facilitated by GDLN Affiliates throughout Southeastern Europe. “The first two sessions have been very well received by participants here in Bulgaria,” said Daniela Mineva from the Affiliate in Sofia. “Participants are looking forward to upcoming sessions, and have already identified issues for future consideration.” The focus of this component is on what is essentially Southeastern Europe’s ‘microfinance challenge’: overcoming the barriers to the growth of micro, small and medium-sized enterprises (MSMEs). Participants will examine diverse issues ranging from how they can improve much needed access to finance for MSMEs, to the reforms needed to stimulate public-private partnerships and scale up government support in this sector.

In laying the groundwork for this initiative, the Bank team was also careful to look at strategies to engage governments in the region. They tapped senior government officials from participating countries to contribute first as planners during the design phase, then as learning participants in the components relevant to their areas of practice. These same officials also helped identify other suitable counterparts within their countries’ ministries, the private sector, civil society and academia, thus widening the reach of the initiative and building broader communities of practice. Representatives of the Austrian government, who supported this initiative financially through the Austrian Development Agency, also contributed. GDLN Affiliates are involved throughout: three Affiliates are responsible for coordinating one component each, and engage with participants to collect feedback and evaluations. They then work with the Bank team to channel the outcomes of these evaluations into improving the design of future sessions. “We are working hard to achieve this”, said Gary, “and are now incorporating elements like offline workshops prior to videoconferences, panel and interview style presentations, and breaks to allow for locally facilitated discussions and reflection time”. For participating Affiliates, this approach forms part of their efforts to build capacity as self-sufficient, fully equipped learning centers capable of attracting funding and designing innovative programs suited to client needs. It also ties in with ongoing collaboration amongst ECA Affiliates and the Bank team to develop regional GDLN governance structures.

For more information visit the PSD initiative website or click here to view a webcast of one of the sessions. Gary Fine is the information contact for this initiative (gfine@worldbank.org).

Think Local, Go Global: Developing Microfinance Expertise Where it’s Needed Most
How the Microfinance Management Institute’s global ambitions are building local capacity across the developing world

With the ambition to introduce microfinance training and education into Masters of Business Administration (MBA) programs throughout the developing world, the Consultative Group to Assist the Poor (CGAP) partnered with the Open Society Institute to found the Microfinance Management Institute (MFMI) in 2003. “Our objective is to address the learning gaps and opportunities that exist in both academia and training in many of these countries by developing the human capacity needed to locally design and implement inclusive financial systems,” says Leslie Barcus of the MFMI. To achieve this, the program is building a network of 55 training and academic professionals worldwide to foster knowledge sharing across the group, stimulate joint research, and underpin the dissemination of microfinance publications, tools and messages to broader communities worldwide. To sow the seeds for broader knowledge sharing, the MFMI is also equipping the academics involved to become skilled microfinance trainers, and is supporting their own efforts in education and training on financial inclusion.

Over the next two years the Institute aims to establish the foremost information clearinghouse of quality, vetted resources on training and education, in collaboration with the Microfinance Gateway. At the same time, it will work to motivate local service providers to deliver competitive, high-quality services and courses, and to improve donors’ effectiveness in supporting microfinance training and education. Ambitious though these goals may seem they are underpinned by over eight years of CGAP’s highly successful experience in supporting capacity building initiatives throughout the developing world. The MBA program’s success thus far means that MFMI will continue to expand this project, while also developing mergers with other in-house training initiatives in CGAP.

GDLN Affiliates who would like to learn more about the MBA program or are interested in collaborating with the MFMI can visit the website (www.themfmi.org) or contact Leslie Barcus (lbarcus@themfmi.org).

Report Back: What Happened at the First GDLN World Forum?

Go to www.gdln.org/worldforum to access Forum materials, view videos and photos, and watch the video competition entries

Over 170 members of the GDLN community from more than 80 countries and GDLN Affiliates came together at the first GDLN World Forum in Washington. From October 9-11, 2006 the event showcased the achievements and experiences of the GDLN community, and challenged those attending to take development work to the next level. Echoing throughout the opening speakers’ remarks was a strong message of GDLN’s potential. Former World Bank President Jim Wolfensohn challenged participants to “dream about what may happen in the next ten years”; and Ayisi Makatiani, the Kenyan entrepreneur who founded the largest and most successful African Internet Service Provider outside of South Africa, exhorted participants to “never take ‘no’ for an answer … because you have a powerful tool in your hands”.

The first full day of the Forum (October 10) opened with a tour around the GDLN world through brief presentations by regional delegates. Introducing GDLN work in Africa, Charles Senkondo of Tanzania underscored the Network’s collective strength, remarking that: “Together we can operate as a network of resources, ideas, inspiration, and experience for governments, civil society and businesses.” This introduction was followed by a café-style discussion and collective debate about how community members perceive GDLN today. The afternoon saw participants engage in a variety of break-out sessions each designed carefully to suit topics ranging from the Potential of Internet2, to Emerging Social Technologies and The Client’s Perspective.

The following morning participants discussed their role in improving local and national governance efforts, before taking the afternoon to either meet with colleagues, clients and partners in the date2collaborate session, to get to know technology vendors or watch Video Competition entries in the GDLN World Forum Marketplace. Frannie Léautier, vice president of the World Bank Institute, facilitated the closing session on the afternoon of October 11, showcasing how GDLN partnerships add value to the work of development agencies. Woven throughout the event were drawings, photos, video clips, music, dancing and the chance to meet in person with colleagues who had often collaborated together “across distances” for many years. As participants formed new partnerships and explored opportunities for greater collaboration, a new sense of our global community’s strengths flourished, demonstrating what the G in GDLN is all about. “It was quite something,” said Bahiah Khamsi from Ecuador about meeting in person colleagues with whom she has collaborated virtually for years. “We use distance learning tools on a daily basis to plan GDLN events on behalf of our clients, but this was a new and much needed experience.”

GDLN Affiliates then took this energy into their ensuing regional meetings, the highlights of which are included below. Stay tuned for future World Forum follow up and collaborative virtual initiatives on key Forum topics in the New Year.

Contribute to the GDLN Newsletter! Please share your feedback, suggestions for stories, photos, upcoming GDLN activities, and any other news with Elena Rose (erose@worldbank.org).

General questions? Email us at gdln@worldbank.org, or visit us at www.gdln.org.

Global Development Learning Network/World Bank Institute
The World Bank, 1818 H St. NW
Washington, DC 20433
Tel: +1 202 458 8196
Fax: +1 202 522 2005