1. Microfinance Council of the Philippines, Inc. (MCPI) Social Performance Task Force Meeting 11 June 2007 / Paris, France

2. MCPI has 35 MFI members 6 responded to the survey: ABS-CBN Bayan KMBI MILAMDEC NWTF TSPI VEFI 3 provided responses to qualitative questions in the survey: KMBI NWTF TSPI

3. MCPI members' feedback The very poor clients  Defined as those living below the poverty line (less than $1/day)  Targeting mechanism: PPI, Housing Index, Means Test  Measurement & tracking: PPI, Housing Index, Means Test  NWTF: PPI used for all clients entering the program

4. MCPI members' feedback The low income groups  Defined as those living below $2/day, without fixed incomes  NWTF: second priority clients  Targeting based on the PPI and Housing Index

5. MCPI members' feedback SMEs  Defined as those with business assets worth more than US$3,000 to about US$22,000.  Not exactly targeted  Clients who have stayed long with the MFI, have borrowed for a number of cycles, businesses have experienced growth and expansion  Oftentimes graduate to another loan product

6. MCPI members' feedback Underdeveloped areas  Defined as areas without or with very limited access to basic services including microfinance  Remote rural areas: islands, highlands, coastal communities  Targeting: government list of “hard-to- reach” areas

7. MCPI members' feedback Socially marginalized or excluded groups  Broadly defined as those belonging in ethnic, tribal or indigenous minorities, cultural groups  KMBI: groups of people tagged with negative reputation or stigma  NWTF: no exclusion, PPI as basis  TSPI: No targeting mechanism and no specific products designed for this group

8. MCPI members' feedback Change in the lives of clients  Definition:  KMBI: significant shift in the status of clients and their households  NWTF: movement from one poverty band (below $1/day, $2/day and above $2/day) to another  Measurement using the PPI, impact studies

9. MCPI members' feedback Change in local communities  Not yet fully and specifically articulated  MFIs see its services affecting the clients and households

10. MCPI members' feedback SR - staff  Incentive systems  Policies on imposition of sanctions and penalties  Social programs: medical missions, feeding programs, scholarships, tree- planting, blood donation

11. MCPI members' feedback SR - clients  Transformation (values and spiritual)  Weekly meetings  Client training programs (e.g., leadership and business skills)

12. MCPI members' feedback SR - community  Not defined SR - environment  Loan products that promote protection of environment

13. MCPI perspective MCPI perspective: context  The industry sees the need to show evidence of social performance  Competition  Are MFIs really reaching the poor?  Benefits  Social performance = impact on clients  Much attention on SP information systems

14. MCPI perspective MCPI perspective: next steps  Promote, raise the level of awareness on SP  MFIs, donors, networks, policy makers, service providers  What is the value of reporting SP? MFIs  transparency, benchmark, reflections, sound decisions  Engaging the rest of the industry in the process