Discussion on PPI.pdf

8/20/2019 Discussion on PPI.pdf

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Project objective & Target beneficiaries

MARC project

Improve the livelihoods and food security of 54,000 rural poor,marginal farmers and non-farming individuals

LIFT

One of the LIFT’s outcome indicators is “to increase the incomeof rural households and LIFT also mentioned some importantoutputs in its strategy such as “ Increased sustainable

agricultural production by small holder farmers” “ Increasedemployment in non-farm activities for small holders andlandless” and “ Increased access to affordable financialservices by small holders and landless”.


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At the end of the discussion, the participants will

be able to:

• Explain the relationship between PPI® and Social

Performance

• Practice the use of PPI in the field


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Mission

SocialPerformance

Financial

Performance

Performance Management

“Social

performance

management

is standard business

practice and considered

fundamental to

achieving the socialpromise

of microfinance.”

Social Performance


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Measuring SP using the PPI

*

*Graphi icc f f r r oommImIm pp-A-Act cStPSMPMTraTinraininging

•System use

•Service delivery

•Human resources

•Goals

•Objectives

•Range of products and

services

*


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What is your Mission? Mission statement

Write your own Mission

Statement

Analyze its

components by

answering the

questions on the right

SPM Results

Are we reaching our

TARGET CLIENTS?

Are we MEETING THEIR

NEEDS?

Are we

CHNAGING their

LIVES?


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Measuring SP using the PPI

*

*Graphi icc f f r r oommImIm pp-A-Act cStPSMPMTraTinraininging

•System use

•Service delivery

•Human resources

•Goals

•Objectives

•Range of products and

services

*

P

P

I


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PPI

PPI helps an

institution

monitor its

social goalof reaching

the poor

clients


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Measurement is Key to Managing

Social Performance

Progress out of Poverty Index® by Grameen Foundation


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Direct measurement

• Use of indicators such

as income, household

assets, calorie intake,etc.

• This methodology is

difficult to validate

and collect

Indirect

measurement

• Use of proxy indicators

such as condition ofthe house, access to

services

• Experts’ scorecard and

the PPI are examples

2 common ways to measure poverty


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What is the Progress out of Poverty

Index® (PPI®)? PPI is an indirect poverty measurement tool for

organizations and businesses with a mission

to serve the poor

• Inexpensive and easy to collect

• Derived from representative national

household income and expenditure surveys

Comprised of simple, non-financial indicators;

easily verifiable; takes 3-5 minutes for field staff to

collect

•


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Benefits of using the PPI

Measures poverty outreach of the institution –

client poverty levels

Support product development and its review to

benefit the poor

Track changes in clients’ poverty levels over

time

Report compliance to social performancestandards i.e. SPTF, MiX market, donors


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Poverty outreach

7.2%10.6%

65.3%

10.1%14.1%

67.1%

0%

10%

20%

60%

50%

40%

30%

70%

80%

Below NPL Below $1 .25/day Below $2 .50/day

% L

i v i n g B e l o w P o v e r t y

L i n e

BTPN Clients Pove rty Rates Indone sia Pove rty Rates


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The PPI Components

Progress out of Poverty Index® by Grameen Foundation 50


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What happens…

•If you change a

question in the PPI?

•If you change the

scoring in the PPI?

IT’S BROKEN!


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How to use the PPI?

53


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PPI collection process


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PPI Fundamentals: Basic use

55

Client Response Indicators Points

Indicator Possible response Points Total

1. How many people aged 0 to 17 are in the household? Five or more

Four

Three

Two

One

None

04

813

20

27

8

2. What is the household's principal occupation? A.Labourers (agricultural, plantation, other farm), hunters,

tobacco preparers and tobacco product makers, and otherlabourers

B. Others

C.Professionals, technicians, clerks, administrators, managers,executives, directors, supervisors, and teachers

0

8

14

0


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PPI Fundamentals: PPI score

56

Indicator Points Total Possible response

1. How many people aged 0 to 17 are in the household?

Five or more

Four

Three

04

8

TwoOne

None

1320

27

2. What is the household's principal occupation?

A. Labourers (agricultural, plantation, other farm), hunters,

tobacco preparers and tobacco product makers, and otherlabourers

B. Others

0

8

14C. Professionals, technicians, clerks, administrators, managers,

executives, directors, supervisors, and teachers

3. Is the residence all pucca (burnt bricks, stone, cement, concrete,

jackboard/cement-plastered reeds, timber, tiles, galvanised tin orasbestos cement sheets)?

A. No 0

B. Yes 4

4. What is the household's primary source of energy for cooking? A. Firewood and chips, charcoal, or none

B. Others

C. LPG

0

5

17

5. Does the household own a television? A. No

B. Yes

06

6. Does the household own a bicycle, scooter, or motor cycle? A. No

B. Yes

0

5

7. Does the household own a almirah/dressing table? A. No

B. Yes

03

8. Does the household own a sewing machine? A. No

B. Yes

0

6

9. How many pressure cookers or pressure pans does the householdown?

A. None

B. OneC. Two or more

05

9

10. How many electric fans does the household own?

A. None

B. One

C. Two or more

05

9Total:

8

0

4

5

6

0

3

0

0

5

31


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Thank You

• Data Entry and analysis series will be completed byMARC team for Yr-2015- PPI.

Documents

Discussion on PPI.pdf