The document summarizes Bolivia's experience with microcredit and job creation over 25 years. It shows graphs of growing microfinance institutions, loan portfolios, number of offices and employees, indicating microcredit has contributed to financial inclusion. While no major studies have assessed job creation directly, the presence of microcredit clients in many economic sectors implies increased incomes and opportunities likely led to jobs within families and elsewhere. The vibrant microcredit sector, along with recent social changes, have enabled social and economic participation for those previously excluded.

1. MICROCREDIT AND JOB CREATION
Bolivia's Experience
MICROCREDIT SUMMIT 2011
Valladolid, Spain
Pilar Ramirez
CONFIE Holding SL

2. “BOLIVIA: beacon
of commercial
microfinance”
In F. Bédécarrats, F. Doligez, NOUVELLES GAUCHES ET INCLUSION
FINANCIERE: LA MICROFINANCE CONTESTEÉ EN BOLIVIA,
EQUATOR ET NICARAGUA, page 137. Cairn.Info

3. -
100,000
200,000
300,000
400,000
500,000
600,000
700,000
1990
1990
1991
1992
1993
1994
1995
1996
1997
REGULATED MFIs
1998
1999
2000
2001
2002
2003
2004
2005
NON-REGULATED MFIs
2006
2007
2008
2009
2010
2011
2011

4. -
500
1,000
1,500
2,000
1990
1990 2,500
1991
1992
1993
1994
1995
1996
1997
REGULATED MFIs
1998
1999
2000
2001
2002
(In MM US Dollars)
2003
Loan Portfolio
2004
NON-REGULATED MFIs
2005
2006
2007
2008
2009
2010
2011
2011

5. NUMBER OF OFFICES
900
785
800
713
700 678
600
494
500
400 325
308
300
200
100
0
REGULATED MFIs NON-REGULATED MFIs BANKS
2010 2011

6. NUMBER OF OFFICES
250 232 234
197
200
170
150
100
67 66
50
0
REGULATED MFIs NON-REGULATED MFIs BANKS
2010 2011

7. NUMBER OF EMPLOYEES
12,000
10,000 9,575
8,897
8,038
8,000
7,306
6,000
4,874
4,539
4,000
2,000
0
REGULATED MFIs NON-REGULATED MFIs BANKS
2010 2011

8. (INTEREST INCOME / GROSS PORTFOLIO)
60%
50%
40%
30%
20%
10%
0%
2004
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2005
2006
2007
2008
2009
2010
2011
1993
2011
REGULATED MFIs NON-REGULATED MFIs BANKS

9. No major studies on new employment and job
creation in the microenterprise sector, as a result of
access to microfinance services, have been done
yet.
NEVERTHELESS
In Bolivia today, the impact of microfinance activity
can be inferred from the presence of MFI clients in:
financial institutions, schools, public and private
universities, parks, shopping centers, markets,
music, theater and night life centers, land and air
transportation, language schools for trade in far
away countries such as China and Korea, etc.

10.  25 years of vibrant and still growing microfinance
activity in the country have, without any doubt,
contributed to this inclusion in places and services
where before the majority of the population was
absent.
 This inclusion and active participation is clearly
accompanied by increased incomes, better
knowledge of financial transactions, use of money
and other financial instruments such as remittances
and possibilities in foreign trade, etc. most likely
resulting in job creation within families and others.

11.  All of this cannot be attributed solely to microfinance
activity in Bolivia.
 Since 2006 there have been major social changes in
the country fostered and encouraged by, for the first
time in our history, by a government led by the
indigenous majority that was always marginalized
from the country’s political powers…..
 Having access to microfinance services, from
so many providers, has definitely contributed
to this “social and political inclusion” and
“buying power” of the once before excluded
masses.

12. 25 YEARS OF MICROCREDIT WORK OF FIE
 Microenterprises yesterday that today are small or
medium size enterprises.
 Clients that now own more than one enterprise.
 Increase in income levels of microenterprise clients.
 Increased amounts of loans required.
 95% of loans approved with guarantees of
machinery showing an increase in the capacity to
purchase assets and guarantee loans with these.
 Increase in clients that today are home-owners and
those houses having indoor plumbing and at least
1 computer.
 Increase in the formalization of enterprises and
payment of taxes.

13. THANK YOU!