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IFC PACIFIC MICROFINANCE INITIATIVE (PMI) - Gender Strategy Framework -

John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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Page 1: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

IFC PACIFIC MICROFINANCEINITIATIVE (PMI)

- Gender Strategy Framework -

Page 2: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

IFC experience – Women present an untapped Business

Opportunity

Page 3: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Access to financial services in the Pacific is poor to start

…. COUNTRY

Adult Population (millions)1

% Banked

(Adults)1

# of ATMs per 1000 Adults2

# of POS per 1000 Adults2

Mobile-cellular subscriptions per 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 23.9 130.8

1. Financial Access Initiative, "Half the World Unbanked", October 2009

2. World Bank Group, "Payment Systems Worldwide - Outcomes of the Global Payment Systems Survey 2010"3. International Telecommunication Union, ICT Indicators database, November 2011* Estimates

Page 4: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Microfinance is challenging for providers

Product FI view point Customer view

Micro loans:- <$10,000- Commercial purpose

Specialised lending – not mainstream banking.Limited collateralSmall value loans / low volume > high rates to cover costs

Limited commercial opportunities that generate regular income to pay interest.Alternate sources of money

Micro deposits High system liquidity in Islands – limited government borrowing and lending opportunities to invest – no desire for small expensive deposits – no need to pay interest to customers

- Cash is the low cost option- expenses exceed income so saving is difficult- access to financial services is so low that cash is easiest

Page 5: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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

What works for one country might not be relevant for another, given very different contexts, vulnerabilities and capacities

Page 6: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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…

Page 7: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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 Kastom, a defining characteristic of the Melanesian

culture and genderWantok 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

Page 8: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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 timeLobby 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

Page 9: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

An Overview of Gender Issues in the Pacific region

Women have reduced access to:Resources, including

- land – issues with ownership & inheritance - movable assets

Capital: financial, human, social, timeFormal Business Registration Decision MakingSecurity – physical: widespread violence against women

This hinders women’s ability to engage in economic activities, as employees and/or as successful business owners

Page 10: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Fewer women are employed as compared to men

Women 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

Page 11: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Employment data in selected PIC’s

Timor Leste 30% of women of working age are employed, mostly in rural areas45% of women work on their own

Papua New Guinea

73% of women>15 economically active

Fiji 38% of women are employed rural/urban 40% of working women self-employed

Samoa 20% of women >15 employed 75% rural 43% of women receive income/remittances

Page 12: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Examples from the Pacific region: Women as a Business

OpportunityWomen 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

Page 13: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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 GenderMen Women

Keep Financial Records 18% 63%

Checks bills & accountsare correct

45% 66%

Have a household budget 37% 57%

Page 14: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Fewer women are employed as compared to men

« The wellbeing of a rural household can be quantifiably improved if one person in that household attends financial literacy training and has a savings account. A significantly higher level of wellbeing is achieved when that person is a woman ».

Conclusion from Financial Capability, Financial Competence

and Wellbeing in Rural Fijian Households,

PFIP Note No 1, December 2009

Page 15: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Women participate less at financial training than men

Reasons for not participating at financial literacy training workshop

Men Women

Was not in the village when training was held

60% 33%

Had other work or family commitments

25% 20%

Was not aware of training or was not asked

10% 35%

Was not interested in attending 5% 9%

Page 16: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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

Page 17: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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

Page 18: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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)

Page 19: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

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

Page 20: John Vivian, IFC - IFC Pacific Microfinance Initaitive Gender Strategy Framework

Conclusion: There are opportunities for gender

finance that make business sense

… new products, new channels of distribution

Mobile 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!