Good Governance in Microcredit Strategy for Poverty Reduction: Focus on Western Mindanao, Philippines
Edition: no
Publisher: University of the Philippines
Published: 2004
Place of publication: Quezon City, Philippines
Copyright date: 2004
Other titles: no
Table of contents: title: I.   INTRODUCTION .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  1; title: A.  Background of the Study   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	1; title: B.  Situational Analysis: The Western Mindanao; title: Community Initiatives Project (WMCIP)	.  .  .  .  .  .  .  .  .  .  .  .  .   7; title: C.  Statement of the Problem	.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  17; title: D.  The Research Objectives   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   21; title: E.  Significance of the Study	.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 22; title: F.  Scope and Limitation	.  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   25; title: II.   REVIEW OF RELATED LITERATURE AND CONCEPTUAL FRAMEWORK  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .	27; title: A.  Review of Related Literature .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	27; title: A.1. Global Movement for Poverty Reduction through; title: Microcredit  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	27; title: A.2.  Microcredit as a Mechanism to Reduce Poverty .  .  .  .   .  .  .	31; title: A.3.  Controversies and Current Debates in Microcredit .  .   .  .  .  .   34; title: A.4.  Microcredit for Poverty Alleviation: A Critique .  .  .  .  .  .  .  .  42; title: A.5.  Microcredit as an Instrument of Governance .  .  .  .  .  .  .  .  .	46; title: A.6.  Successful Microcredit Models   .  .  .  .  .  .  .  . .  .  .   .  .  .  .	60; title: A.7.  Implementation Strategies of Successful; title: Microcredit Models  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   62; title: A.7.a.  The Grameen Credit-Only Strategy; title: (minimalist approach) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   63; title: A.7.b.  Bangladesh Rural Advancement Committee (BRAC):; title: A Graduated Process for Helping the Poorest .  .  .  .  .  66; title: A.7.c.  Bank Rakyat Indonesia’s (BRI) Character; title: References . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   70; title: A.7.d.  Association for Social Advancement (ASA); title: and Compulsory Savings Scheme .  .  .  .  .  .  .  .  .  .  .   71; title: A.8.  Microcredit for Poverty Alleviation: The Philippine; title: Experience . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   77; title: A.9.  Grameen Replication in the Philippines: Selected; title: Best Practices .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	80; title: A.9.a.  Cooperative Rural Bank of Laguna, Inc. (CRBLI) .  .	81; title: A.9.b.  Center for Agriculture and Rural Development; title: (CARD) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  82; title: A.9.c.  Tulay Sa Pag-Unlad Inc. (TSPI) .  .  .  .  .  .  .  .  .  .  .  .   85; title: A.9.d.  Negros Women for Tomorrow Foundation, Inc.-; title: Project Dungganon (NWFTFI)   .  .  .  .  .  .  .  .  .  .  .  .   86; title: A.10. The National Government’s Performance as a Banker; title: for the Poor .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  93; title: A.11. The National Strategy for Microfinance .  .  .  .  .  .  .  .  .  .  .  .   96; title: A.12. Microfinance Rhetoric in the General Banking Law .  .  .  .  .   100; title: A.13. The Factors Affecting Microcredit Programs . .  .  .  .  .  .  .  .  101; title: A.13.a.  Household Financial Conditions .  . .  .  .  .  .  .  .  .  .  104; title: A.13.b.  Credit Needs of the Poor .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  107; title: A.13.c.  Credit Experience .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 109; title: A.13.c.1.  Access to Loans .  .  .  .  .  .  .  .  .  .  .  .  .  .  112; title: A.13.c.2.  Loan Utilization .  .  .  .  .  .  .  .  .  .  .  .  .  .  113; title: A.13.c.3.  Loan Repayment .  .  .  .  .  .  .  .  .  .  .  .  .  . 115; title: A.13.d.  Credit Providers  for the Poor .  .  .  .  .  .  .  .  .  .  .  .  . 117; title: A.13.e.  Microcredit Preferences and Demand .  .  .  . .  .  .  .	120; title: A.13.f.  Good Governance as Microcredit Strategies  .  .  .  .	125; title: A.13.f.1.  Participation .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	128; title: A.13.f.2.  Transparency .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   131; title: A.13.f.3.  Accountability .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	132; title: A.13.f.4.  Sustainability  .  .  .  .  . .  .  .  .  .  .  .  .  .  .	136; title: B.  The Conceptual Framework .  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	143; title: C.  Operational Definition of Variables .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   154; title: III.  RESEARCH METHODOLOGY  .  .  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .	160; title: A. Research Technique	.  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .	160; title: B.  Difficulties Encountered	.  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .  .  166; title: C.  Population and Sampling	.  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .  . 167; title: D.  Data Analysis and Interpretation	.  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .	171; title: IV.   PRESENTATION AND INTERPRETATION OF FINDINGS; title: AND OBSERVATIONS	.  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .  .  .  . 176; title: A.  Credit Options for WMCIP Beneficiaries  .  .  .  .  .  .  .  .  .  .  .  .  .  .   176 a.1. Credit Option #1:  LBP Assistance to Cooperatives .  .  .  .  .  .  .  178 a.2. Credit Option #2: Credit Assistance Program for; title: Program Beneficiaries Development (CAP-PBD) .  .  .  .  .  .  .	188 a.3. Credit Option #3:  PCFC’s Credit Program for; title: Grameen Bank Approach Replication (GBAR) .  .  .  .  .  .  .  .	193 a.4  Credit Option #4. QUEDANCOR’s Microcredit; title: Program (Grameen Replication) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  197 a.5.  Summary of Findings: Credit Program Designs .  .  .  .  .  .  .  .  .  201; title: B.  Limiting and Enabling Factors in Microcredit Program .  .  .  .  .  .  .  . 214 b.1. Demographic Attributes of the Respondents .  .  .  .  .  .  .  .  .  .  . 215 b.1.a. Gender  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  . .216 b.1.b. Age .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   216; title: b.1.c. Ethnicity .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .   217 b.1.d. Religion  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .   219 b.1.e. Household Role .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  ..  .  .  .  .  .  . 220 b.1.f.  Number of Children  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .  221 b.1.g. Summary of Findings: Demographic Attributes ..  .  .  .  .  222; title: b.2. Household Financial Conditions .  .  .  .  .  .  .  .  .  .  ..  .  .  .  .  .    226 b.2.a. Type of House .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .   228 b.2.b. Main Source of Income   .  .  .  .  .  .  .  ..  .  .  .  .  .  .  .  .  .  229 b.2.c. Other Sources of Income for the Family .  .   .  .  .  .  .  . .   231 b.2.d. Estimated Average Monthly Income .  .  .  .  .  . .  .  .  .  .  234 b.2.e. Average Monthly Expenses .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 239 b.2.f. Household Cash Flow .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .. 242 b.2.g. Actions Toward Savings  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  245 b.2.h. Actions Toward Cash Shortages   .  .  .  .  .  .  .  .  .  .  .  .  . 247 b.2.i. Summary of Findings: Household Financial Conditions    249 b.2.j. The Appropriateness of Microcredit Program; title: based on Household Financial Conditions .  .   .  .  .  .  .  .  256 b.3. Credit Experience .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  264 b.3.a. Credit Experience in the Last Two Years	.  .  .  .  .  .  .   266; title: b.3.b. Credit Needs: Overspending Situations .  .  .  .  .  .  .  .  .   260 b.3.c. Creditor  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .    262 b.3.d. Access to Loan and Other Credit Services .  .  .  .  .  .  .  .  270 b.3.e. Uses of Amount Borrowed     .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 272 b.3.f.  Interest Rate .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   273 b.3.g. Mode of Payment .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 274 b.3.h. Loan Utilization .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  276 b.3.i. Repayment .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   277 b.3.j. Summary of Findings: Credit Experience .  .  .  .  .    .  .  .  280; title: b.4.  Microcredit Preferences and Demand  .  .  .  .  .  .  .  .  .   .  .  .  .  .288 b.4.a. Income-Generating Activities for Financing .  .   .  .  .  .  . 291 b.4.b. Loan size .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  . .  292 b.4.c. Collateral .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .  . .  294 b.4.d. Public Support Services .  .  .  .  .  .  .  .  .   .  .  .  .  .  .  .  .  296 b.4.e. Summary of Findings: Microcredit Preferences; title: and Demand .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .  .	301 b.4.f. Appropriateness of Credit Program Design to; title: Credit Needs, Preferences and Demand  .  .  .  .  .  .  .  .  .  303 b.5.  Summary of Findings: Enabling and Limiting Factors .  .  .  .  .   307; title: C. Good Governance in Pro-poor Microcredit Strategies . .  .  .  .  .  .  .    314 c.1.   Participation .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .  .  .    317 c.2.   Transparency .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  321 c.3.   Accountability .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 325; title: c.4.   Sustainability .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   331 c.5.   Summary of Findings: Good Governance in Pro-poor; title: Microcredit Strategies .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	335; title: D. Good Governance Strategies in Microcredit Program; title: for Poverty Reduction .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 337 d.1.   Beneficiary Perspectives .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  337; title: d.2.   Program Implementors’ Perspectives .  .  .  .  .  . .  .  .  .	.	.  .	341; title: E.  Summary of Findings and Observations  .  .  .  .  .  .  .  .   .  .  .	.	.  .	348; title: V.; title: SUMMARY AND CONCLUSION .  .  .  .  .  .  .  .  .  .  .  .  .  .  .; title: .; title: .  .; title: 359; title: Summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .   359; title: Conclusion .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .	370; title: VI.   LESSONS LEARNED AND RECOMMENDATIONS  .  .  .  .  .   .  .	377; title: A.	Lessons Learned  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	.	. 377; title: a.1. Productive Potential of Target Beneficiaries  .  .  .  .  .  .  .  .  .	.	378; title: a.2. Resources and Capabilities of Potential Governance; title: Partners  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .	.  .	380; title: a.3. Natural Resource Endowments  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .	.  .	383; title: a.4. Direct Involvement of the National Government and; title: International Donors  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .  . 384; title: B.  Recommendations .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .   391; title: 1.  Creation of Two Special Microcredit Windows  .  .  .  .  .  .  .  .  .	395; title: A. CAP-PBD Application  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  396; title: B. QUEDANCOR Microcredit Window for; title: Self-Reliant Teams (SRTs) .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   397; title: 2.  Creation of Special Poverty Alleviation Sub-component (SPAS)	398; title: 3.  Administration of Microcredit Program and Special Poverty; title: Alleviation Sub-component and Microcredit Program .  .  .  .  .  .   401; title: A.  Socio-Economic Parameters; title: (Poor and Non-Poor Beneficiaries)  .  .  .  .  .  .  .  .  .  .  .  .  .	402; title: B.  Operating Guidelines for Microcredit and SPAS  .  .  .  .  .  .	408; title: 4.  The Recommended Microcredit Goverance Model   .  .  .  .  .  .  .	413; title: A.  Participation .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . .  .  .  .  .	414; title: B.  Transparency  .  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	414; title: C.  Accountability  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   415; title: D.  Sustainability  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .	419; title: 5.  Impact Assessment   .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   421; title: Bibliography .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .   .  .  .  .  .  .   424; title: Appendix A	Survey  Questionnaire for Availers of Credit Services  .  .  .  .  .   .	433; title: Appendix B	Survey  Questionnaire for Non-Availers of Credit Services  .  .  .  .   442; title: Appendix C	List of WMCIP-covered Barangays .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .	449; title: Appendix D	List of Sampled Barangays .  .  .  .  .  . .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . 451