Progress out of Poverty (PPI)

In 2007, Oikocredit became the first social investor to support the use of the Progress out of Poverty Index, a poverty assessment tool developed by Mark Schreiner of Microfinance Risk Management, L.L.C. and commissioned by the Grameen Foundation in coordination with the Ford Foundation and CGAP.

The PPI estimates the likelihood that clients, or borrowers, fall below the national poverty line of the countries where they live. A different PPI scorecard is developed for each country.

The process starts with a nationally representative income and/or expenditure survey. The data from the survey are analyzed to rank indicators that strongly correlate with poverty.

These indicators are then tested and vetted with local microfinance institutions or development organizations and their representatives. The result is an easy-to-use scorecard of about ten indicators (see the examples from the Peru scorecard on the right).

The PPI is a 10-question survey tool developed by Grameen Foundation. It enables poverty-focused MFIs to accurately select their clients.

Implementation over time provides information on whether clients have moved out of poverty. Oikocredit supported 38 partners in using the PPI in 2012, and over 80 of our partners are now using this tool.

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