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IFC PACIFIC MICROFINANCE      INITIATIVE (PMI)- Gender Strategy Framework -
IFC experience – Women present an  untapped Business Opportunity
Access to financial services in the   Pacific is poor to start ….                                          Adult          ...
Microfinance is challenging for                    providersProduct          FI view point                  Customer viewM...
An Overview of Gender Issues in the              Pacific regionIsland economies have long been challenged by geography, l...
An Overview of Gender Issues in the            Pacific regionSome of the most pressing human rights in the region such as...
An Overview of Gender Issues in the               Pacific regionCultural attitudes and normative discrimination restrict ...
An Overview of Gender Issues in the              Pacific region   On paper laws are generally the same for men &women    ...
An Overview of Gender Issues in the             Pacific regionWomen have reduced access to:      Resources, including    ...
Fewer women are employed as           compared to menWomen are discriminated against:   Horizontal segregation: women are...
Employment data in selected PIC’sTimor Leste        30% of women of working age are                   employed, mostly in ...
Examples from the Pacific region:    W omen as a Business OpportunityWomen are important economic actors in the Pacific r...
Women are less “banked” than men   30% of rural women have bank accounts vs. 45% of men (PFIP, Fiji    2009) Same dispar...
Fewer women are employed as           compared to men« The wellbeing of a rural household can be quantifiably improved if ...
Women participate less at financial        training than men Reasons for not participating at financial literacy training...
FI’s Have Successfully Invested in    Women and Gender-diverse Policies Standard Chartered - embarked on a company-wide c...
The business case for investing in women   and promoting stronger gender diversity                  within FIsFI’s can gr...
Examples of Financial Institutions in         the Pacific Region that have         successfully targeted women MFIs (see ...
PNG offers substantial opportunities  to FI’s to increase their female     customer base… & staffA bank that has taken the...
Conclusion: There are opportunities for gender finance    that make business sense   … new products, new channels of distr...
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John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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Transcript of "John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework"

  1. 1. IFC PACIFIC MICROFINANCE INITIATIVE (PMI)- Gender Strategy Framework -
  2. 2. IFC experience – Women present an untapped Business Opportunity
  3. 3. Access to financial services in the Pacific is poor to start …. Adult % # of ATMs # of POS Mobile-cellular COUNTRY Population Banked per 1000 per 1000 subscriptions per (millions)1 (Adults)1 Adults2 Adults2 100 inhabitants3 Fiji 0.5 39% 0.31 8.33 81.1 Vanuatu 0.2 25 0.1 0.3 119.0 PNG 3.6 8% 0.22* 1.5* 27.8 Samoa 0.1 19% 0.19 3.16 91.4 Solomon Islands 0.3 15% 0.1 0.3 5.6 Tonga 0.1 40 0.24 2.05 52.2 Timor Leste 0.6 13% 0.01 0.73 53.4  United Kingdom 49 91% 1.3 23.9 130.81. Financial Access Initiative, "Half the World Unbanked", October 20092. World Bank Group, "Payment Systems Worldwide - Outcomes of the Global Payment Systems Survey 2010"3. International Telecommunication Union, ICT Indicators database, November 2011* Estimates
  4. 4. Microfinance is challenging for providersProduct FI view point Customer viewMicro loans: Specialised lending – not Limited commercial opportunities- <$10,000 mainstream banking. that generate regular income to- Commercial Limited collateral pay interest.purpose Small value loans / low Alternate sources of money volume > high rates to cover costsMicro deposits High system liquidity in - Cash is the low cost option Islands – limited government - expenses exceed income so borrowing and lending saving is difficult opportunities to invest – no - access to financial services is so desire for small expensive low that cash is easiest deposits – no need to pay interest to customers
  5. 5. An Overview of Gender Issues in the Pacific regionIsland economies have long been challenged by geography, labor skills and tiny economies-of-scale, which contributed to isolate women and men, especially in rural areas, and thus to maintain strong traditional gender rolesW works for one country might not be relevant for hat another, given very different contexts, vulnerabilities and capacities
  6. 6. An Overview of Gender Issues in the Pacific regionSome of the most pressing human rights in the region such as: widespread poverty, violence against women and children, lack of judicial independence, weak governance are challenges to gender achievementsPICs Governments (except Tonga) adopted the convention to end the discrimination against women (CEDAW), yet action is slow to materialize. Millennium Development Goals (MDG) have provided a “call for action”: Goal 3 calls for promoting gender equality and empowering women, PICs are slow to comply…
  7. 7. An Overview of Gender Issues in the Pacific regionCultural attitudes and normative discrimination restrict women’s full participation in economic activities:  Traditional gender roles persist throughout the region; differences among Melanesia, Micronesia, Polynesia Ka s to m , a d e fining c ha ra c te ris tic o f the M la ne s ia n e c ulture a nd g e nd e r Wa nto k could be equated to a traditional safety net can have adverse effects, is fundamental to the Melanesian culture  Women receive less business training and development than men and workplace policies are not women friendly
  8. 8. An Overview of Gender Issues in the Pacific region  On paper laws are generally the same for men &women but in practice they are not implemented in a gender equal manner  Discriminatory provisions against women in the legal framework governing property rightsSex disaggregated statistics are needed to:  Monitor gender gaps and their change over time  Lobby and advocate for gender equality showing the extent of existing discrimination  Inform to which extent business regulations affect women relative to men, especially re. time and social networks
  9. 9. An Overview of Gender Issues in the Pacific regionWomen have reduced access to:  Resources, including  - land – issues with ownership & inheritance  - movable assets  Capital: financial, human, social, time  Formal Business Registration  Decision Making  Security – physical: widespread violence against women This hinders women’s ability to engage in economic activities, as employees and/ as successful business or owners
  10. 10. Fewer women are employed as compared to menWomen are discriminated against:  Horizontal segregation: women are employed in only a few economic sectors: services, sales and “elementary occupations”  Vertical segregation: “the glass ceiling”: women have less access to decision-making  Pay gap: women are paid smaller salaries than men
  11. 11. Employment data in selected PIC’sTimor Leste 30% of women of working age are employed, mostly in rural areas 45% of women work on their ownPapua New Guinea 73% of women>15 economically activeFiji 38% of women are employed rural/urban 40% of working women self-employedSamoa 20% of women >15 employed 75% rural 43% of women receive income/remittances
  12. 12. Examples from the Pacific region: W omen as a Business OpportunityWomen are important economic actors in the Pacific region as producers and sellers of goods and servicesWomen business entrepreneurs have a good track record as savings and credit clientsWomen are better development agents than menAcross the region women tend to manage the household finances more than menWomen are highly interested in insurance products andAre more frequent remitters
  13. 13. Women are less “banked” than men 30% of rural women have bank accounts vs. 45% of men (PFIP, Fiji 2009) Same disparity for savings, loans, investments Women understand & manage household finances better than men Household Financial Management and Gender Men WomenKeep Financial Records 18% 63%Checks bills & accounts 45% 66%are correctHave a household budget 37% 57%
  14. 14. Fewer women are employed as compared to men« The wellbeing of a rural household can be quantifiably improved if oneperson in that household attends financial literacy training and has asavings account. A significantly higher level of wellbeing is achievedwhen that person is a woman ». Conclusion from Financial Capability, Financial Competence and Wellbeing in Rural Fijian Households, PFIP Note No 1, December 2009
  15. 15. Women participate less at financial training than men Reasons for not participating at financial literacy training workshop Men WomenWas not in the village when training 60% 33%was heldHad other work or family 25% 20%commitmentsW not aware of training or was as 10% 35%not askedWas not interested in attending 5% 9%
  16. 16. FI’s Have Successfully Invested in Women and Gender-diverse Policies Standard Chartered - embarked on a company-wide coordinated approach to step up gender diversity in 2005. Now, 22% of senior managers and 33% of middle managers are women. Several of its country offices are headed by women CEOs Bancosol, Bolivia – introduced a full-coverage maternity insurance product. Women are over 60% of microinsurance clients & 45% of borrowers Kashf Foundation, Pakistan – offers credit exclusively to women and It supports women empowerment at client and staff level for which it has set gender diversity targets closely monitored by its president Banco ADOPEM, Dominican Republic – originally a MFI, 89000 active borrowers and savers, 77% women, 52% rural clients. In addition it provides insurance products and remmitances. A member of Women’s World Banking it also promotes women empowerment at institution level
  17. 17. The business case for investing in women and promoting stronger gender diversity within FIsFI’s can grow their customer base by targeting women clientsWomen clients make for a better bottom linePromoting gender diversity makes for a more productive, innovative workforceFI’s can improve their image by investing in women
  18. 18. Examples of Financial Institutions in the Pacific Region that have successfully targeted women MFIs (see case studies):  - Moris Rasik and Tuba Rai Metin in Timor Leste  - SPBD in Samoa, Fiji and Tonga; Vanwoods Microfinance Inc, Vanuatu  - PML and Nationwide Microbank in PNG Local commercial and national banks:  - National Development Bank of PNG  - National Bank of Vanuatu International commercial banks  - Westpac in Fiji, Tonga Insurance companies:  - Life Insurance Corporation of India (LICI), Fiji and several MFIs (ex: Timor Leste)
  19. 19. PNG offers substantial opportunities to FI’s to increase their female customer base… & staffA bank that has taken the lead in targeting women clients: PNG NDB – introduced women’s desks in 2010,: appointed women representatives at all branches to service. No of women borrowers went from 27 & USD 0.3 M in 2010 to over100 & USD 4.3 M in 2011. A call center accepts loan applications from women entrepreneurs. Women are calling from across the country. In March 2012 PNG NDB hosted a Women in Business Summit where a new website for women in business & a textile credit scheme for women was launched. Challenges seem commensurate with PNGs economic opportunities (LNG included), large population, sizable numbers of women potential clients
  20. 20. Conclusion: There are opportunities for gender finance that make business sense … new products, new channels of distributionMobile banking can channel to women – including in remote rural areas – credit, savings, remittances and insurance products Yes, challenges exist but are worth taking given the opportunities that are in sight!
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