1. Ensuring access to microfinance services for people with disabilities - Workshop for stakeholders from the disability and microfinance sectors Day 1

2. Workshops rules Confidentiality Respect for the opinions of others Listening Speaking freely Co-responsibility Punctuality Photographs

3. Disability & Inclusive Development

4. Definition Persons with disabilities include those who have long-term physical, mental, intellectual or sensory impairments which, in interaction with various barriers, may hinder their full and effective participation in society on an equal basis with others. (Art. 1 - UNCRPD)

5. International Convention The Convention on the Rights of Persons with Disabilities received its 20th ratification on 3rd April 2008, triggering the entry into force of the Convention and its Optional Protocol 30 days later. This marks a major milestone in the effort to promote, protect and ensure the full and equal enjoyment of all human rights and fundamental freedoms of persons with disabilities, and to promote respect for their inherent dignity.

6. Disability is a Human Rights Issue Disability is an unavoidable and universal part of human diversity There has been a change in the way the person with disabilities is viewed:  From being seen as an object of charity and a burden = approach of assistance  To a subject of law = approach based on the respect of all human beings Shift from a charitable to a rights-based approach whereby the individual is respected and empowered

7. In light of this change, four core human rights values take on particular importance in the context of disability :  Dignity: respect for a person’s physical and moral integrity  Autonomy: capacity for self-directed action, decision and behaviour  Equality: no discrimination  Solidarity: social support  Everybody has the same rights and should have the same access to their rights

8. The problem is within the individual: the disability is the direct result of the person’s impairment Disability is only a health (thus medical) issue Solutions are designed by « medical experts » on the basis of a medical diagnosis Focus: elimination or cure of disability ; normalisation Reference to people with disabilities as an oppressed minority The environment of people with disabilities is the problem Disability is the result of barriers linked to the physical environment, attitudes, information and communication. This leads to unequal access to opportunities Focus: elimination of barriers linked to physical space, attitude and information/communication Disability viewed as an individual pathology MEDICAL MODEL Disability viewed as a social pathology SOCIAL MODEL Contrasting disability models Adapted from Rioux, 1997 - Cité par Interactif déc 2002 - Understanding disability : look, then act

9. SOCIAL PARTICIPATION Environmental factors Interaction Personal factors Human development model (RIPPH, 1996) IntrinsicExtrinsic HUMAN DEVELOPMENTAL MODEL

10. Personal factors Life Habits HUMAN DEVELOPMENTAL MODEL Facilitator - Obstacles Environmental Factors Capabilities Ability – Funct. impairment Organic systems Integrity - Impairment Social Participation - Disabling Situation Interactions Adapted from the Disability Creation Process, Fougeyrollas et al., 1997

11. Approach that respects the full human rights of every person, acknowledging diversity, eradicating poverty and ensuring that all people are fully included and can actively participate in the development process and in activities, regardless of age, gender, disability, state of health, ethnic origin or any other characteristic. Inclusive development

12. Specific services Access to mainstream services whenever necessary For an « equal enjoyment of all human rights and fundamental freedoms » Twin-track approach ! United Nations Convention on the Rights of Persons with Disabilities - 2006 whenever possible

13. TWIN TRACK APPROACH Specialised services (direct rehabilitation services for PwD) Physiotherapy Occupational therapy Prosthetic + Orthotic services Sign language Corrective surgery Information leaflets in Braille Care-givers, etc… Mainstream services (non-specialised services for society in general) Awareness campaigns to change communities’ attitudes towards disability (positive attitude) Removal of physical barriers Accessible information /communication Access to livelihood opportunities PwDs included in mainstream MFI targets, etc… A principle : access to mainstream services whenever possible, and a specialised approach whenever necessary

14. Disability, poverty and livelihoods

15. General figures…  10% - 12% of the world’s population has some form of impairment disability (over 600 million people)  80% live in low-income countries  82% of people with disabilities live below the poverty line  80% of people with disabilities of working age are unemployed

16. … & Facts  Women with disabilities are generally worse off than men with disabilities  The majority of people with disabilities in developing countries live in rural areas  There is a higher rate of unemployment among people with disabilities than among the rest of the population

17. Link between poverty and disability Sources : DFID

18. Disability: a dormant factor… … which does not affect people facing severe and chronic poverty. Sources : National disability survey in Afghanistan - 2005 The impact of being a person with disabilities is felt when the situation starts improving The situation in Afghanistan

19. Livelihood opportunities Employment Social security resources / safety net Self-employment  Lack of opportunities in the job market  Exist in only some developed countries  Most often the only option available : 80% of disabled people who have an economic activity are self-employed

20. Conclusion ✓ People with disabilities suffer from high poverty levels and high rates of unemployment; yet employment is essential to earning a living, helping to support the family and improving self- esteem. ✓ Self-employment is often the only option open to many people with disabilities. In most cases, it is difficult for them to find a formal job in developing countries.

21. Being self-employed

22. Non- specific to PwD Specific to PwD Needs for starting and managing a business

23. Non- specific to PwD Specific to PwD Needs for starting and managing a business Technical skills Business management skills – experience Conducive legal environment Reliable suppliers – good products & services Market – potential clients Capital (to buy tools, equipment, supply, etc.) Physical access to facilities (business sites, market, suppliers sites) Absence of discrimination – community support Adapted workstations Self-confidence

24. Access to capital Grants Own capital (savings) Loans

25.  In the absence of collateral  In the absence of a source of income/business (very poor)  Existing business management capacity and technical skills  To compensate competitive disadvantages Providing grants In what situations is it appropriate to provide grants? Needs assessment of the individual situation and business plan

26. Entrepreneur follow-up – combine with a loan Define appropriate business plan Develop access to other sources of capital (savings or loans) If in cash, require receipts/invoices and conduct follow-up visits If in kind, allocate resources Seek contributions from authorities, community, existing entrepreneurs Set-up clear procedures & criteria – democratic decision-making process – ensure that controls are enforced Providing grants AdvantagesDisadvantages Limiting risks for the entrepreneurs Usually the poorest are targeted Tends to take responsibility away from the person concerned Usually limited in amount Usually one shot If in cash, could be misused If in kind, complex to manage Not sustainable for the « donor » - difficulties in raising funds for grant schemes System could be unfair/corrupted Preventive & corrective measures

27.  Existing repayment capacity (existing business or income)  Existing business management capacity and technical skills  Existing collateral or possibility of pressure Needs assessment of the individual situation Providing loans In what situations is it appropriate to provide a loan?

28. AdvantagesDisadvantages Preventive & corrective measures Providing loans Motivation to succeed in business Once the person has a good credit record, s/he could be provided with successive and bigger loans to develop the business Sometime, the only source of capital accessible Sustainable system Interest to be paid Capital to be reimbursed – burden on the business System could be or become discriminating Not for the poorest Create an interest-free non- profit mechanism Business follow-up & counselling; provide training; support/initiate business development activities (creation of cooperatives, organisation of fair) Raise awareness of microfinance services providers Combine with a grant system

29.  Existing saving capacity and saving habits  Existing business management capacity Need to develop saving habits Using one’s own savings In what situations is it appropriate to use savings?

30. AdvantagesDisadvantages Autonomy Using one’s own savings Vulnerability once savings are used up by starting one’s business Preventive & corrective measures Develop/maintain saving habits Provide savings scheme

31. What is microfinance?

32. Definition Microfinance refers to the provision of financial services to low-income clients, including consumers and the self- employed, who traditionally lack access to banking and related services (Wikipedia) Microfinance offers poor people access to basic financial services such as loans, savings, money transfer services and micro-insurance (CGAP)

33. Objectives of microfinance services To increase income To reduce vulnerability Loans, money transfers Saving, micro-insurance

34. History  In the 70’s : the first known experiences in Brazil and Bangladesh : ACCION and Grameen  In the 80’s: development of numerous initiatives worldwide  2004: 3000 MFI and 120 million accounts. Grameen bank, BRAC, FINCA, Prodem…

35. Microfinance service providers Formal sector: banks, cooperatives, NGOs, credit unions Microfinance Institutions (MFI) Informal sector: money-lenders (usurer), self-help groups, rotating savings and credit associations

36. Microfinance methodologies Individual lending: usually a larger loan for microenterprises - collateral Group lending : can start from a very small amount - groups of borrowers of between 5 and 30 – peer pressure – women as priority target Village banking: loan to a community in charge of lending out smaller amounts

37. Being a MFI client  Saving may be compulsory prior to accessing credit  Collateral may be required  Charges to be paid in addition to the capital to be reimbursed: for opening an account, interest, on late repayments, etc.  Need for repayment capacity  A good repayment record usually gives access to bigger loans

38. Difficulties encountered by disabled entrepreneurs - Supporting the entrepreneurship of people with disabilities

39. Most people with disabilities… Prefer not to apply for microcredit, even if it is available locally Are able to adapt and learn quickly Are risk-averse, afraid to lose what they have Consider a loan as a last resort Do not know how to approach an MFI Have had unhappy experiences in approaching offices Mersland - 2005

40. Are misinformed about MFIs and existing MF products May wait for specific programmes Who were denied access to a loan believe it is because of their impairment (even if the real reason is business capacity) May have higher operational costs in their activity Most people with disabilities… Mersland - 2005

41. Difficulties - solutions InternalExternal In accessing funding In managing a business