ABSTRACT: How do civil society organisations (CSOs) affect microfinance? The aim of this paper is to apply a conceptual assessment of civil society organisations to microfinance. A preliminary literature review demonstrates that civil society organisations (CSOs) work with and sometimes pressure microfinance institutions (MFIs) to expand lending or targeting of excluding groups. MFIs operate in a microfinance sector embedded in a sociopolitical environment, which will include the civil society of a country. All countries have a civil society, but some countries have a strong civil society, while other countries have weak civil societies; for example, Somalia would be a country with a weak civil society. The assumption is that strong civil societies are conducive to microfinance operational stability. However, there is a sparse amount of research that connects civil society to microfinance; conceptual research demonstrates that civil society organisations could improve microfinance through developing a dialogue, voicing concerns, fighting corruption, and promoting financial inclusion of excluded groups of borrowers, notably the physical disabled. In former conflict regions, there are thousands of physically disabled people as a consequence of landmines/UXO. The landmine population is considered an underserved market using microfinance terminology. Unfortunately, there are few active and sustainable microfinance lending initiatives for landmine victims. Civil society organisations have a role to play in socioeconomic reintegration, including areas such as government policy, victim assistance, and information distribution, as well as pressuring MFIs to lend to physically disabled people.

1. ABSTRACT: How do civil society organisations (CSOs) affect microfinance? The aim of this paper is to apply a conceptual assessment of civil society organisations to microfinance. A preliminary literature review demonstrates that civil society organisations (CSOs) work with and sometimes pressure microfinance institutions (MFIs) to expand lending or targeting of excluding groups. MFIs operate in a microfinance sector embedded in a sociopolitical environment, which will include the civil society of a country. All countries have a civil society, but some countries have a strong civil society, while other countries have weak civil societies; for example, Somalia would be a country with a weak civil society. The assumption is that strong civil societies are conducive to microfinance operational stability. However, there is a sparse amount of research that connects civil society to microfinance; conceptual research demonstrates that civil society organisations could improve microfinance through developing a dialogue, voicing concerns, fighting corruption, and promoting financial inclusion of excluded groups of borrowers, notably the physical disabled. In former conflict regions, there are thousands of physically disabled people as a consequence of landmines/UXO. The landmine population is considered an underserved market using microfinance terminology. Unfortunately, there are few active and sustainable microfinance lending initiatives for landmine victims. Civil society organisations have a role to play in socioeconomic reintegration, including areas such as government policy, victim assistance, and information distribution, as well as pressuring MFIs to lend to physically disabled people. Andrew Bacchus | ISES XVI Summer University, Hungary | 8 July 2011 abacchus@uwaterloo.ca (MAES) Candidate Local Economic Development, University of Waterloo Highlighting the role of Civil Society Organisations in Improving Microfinance

2. Outline Main finding Methodology Different Dimensions (Chart) Defining: Microfinance, Civil Society Organisations, and Landmines Discussions of Findings: What are the roles of civil society organisations? Conclusion

3. Main Finding (Question) What is the role of civil society organisations (CSOs) in improving microfinance? *Improving = subjective and somewhat technical term… “improving” can refer to reaching an underserved market) (Answer) After several weeks, my research insight is that CSOs have a role to play in financial inclusion for physically disabled borrowers especially from landmines/ UXO.

4. Methodology There is little to no research explicitly / directly connecting microfinance and civil society, or microfinance and physically disabled landmine survivors. Literature review of select academic journals using Scholar’s Portal Online research of practitioner data from microfinance institutions and civil society organisations. Participated in a workshop titled “Concept, Relevance and Use of the Civil Society Index” facilitated by PSO with presentations by CIVICUS, the World Alliance for Citizen Participationin The Hague. Email interviews with one -two questions posed to academics from Asian, Australian and North American institutions. (low % response rate; only approx. 40% useful/ applicable responses). * After ISES will post on Slideshare and email more practitioners for feedback Understand civil society Feedback from practitioners

5. CIVIL SOCIETY ORGANISATIONS Dimensions CIVIL SOCIETY AND CSOs Mine-affected region Excluded Borrowers GOVERNMENT MICROFINANCE SECTOR

6. Microfinance in plain-English Microfinance includes products such as micro-insurance, microcredit and microloans but also services like business support and financial education; range from $50 to +$3000 Microfinance is an effective mechanism in supporting entrepreneurs and micro-business Microfinance offers financial access in a formal, regulated environment, as opposed to informal money lenders, or unsustainable borrowing from family members Technology and innovation are essential to operational sustainability

7. Civil society according to CIVICUS The “space” of civil society includes civil society networks and organisations; trade unions; faith-based networks; professional associations; NGO capacity development organisations; philanthropic foundations and other funding bodies. (CIVICUS, 2011) Government Private Sector Family

8. Civil society: CSO or NGO? CSO or NGO? […] in brief, the term civil society has also a normative aspect (it is seen as a good thing, contributing to democracy, rule of law, stability, tolerance) while the term NGO can be seen as a descriptive term; civil society denotes a variety of organizations that are not within the market or the state and seek a public good; NGOs tend to denote formalized organizations run by professionals who seek grants and funds to implement programs for the public good; that is civil society has a realm of political affirmation that NGOs need not have. (N. Srinivas, 2011).

9. The global landmine crisis Art installation; shoes in Colombia, the former number one country affected by landmines.

11. The global landmine crisis There is one landmine for every 48 adults in the world, one for every 16 children (Berhe, 2007:1). At the current rate of cleanup, it will take 1000 years to cleanup landmines and for every landmine cleared, a further 20 are being buried (Sun and Li, 2005). It is believed that there are about 80–120 million landmines spread around 90 countries, with about 230 million landmines waiting to be deployed in 94 countries. Berhe (2007:2)

12. Map No. 290 Worldmapper (2005)

13. Findings from literature: The various roles of (CSOs) transferrable to improving microfinance

14. Findings from emails to practitioners: The various roles of (CSOs) transferrable to improving microfinance

15. Logic: making connections CSOs provide a voice for marginalized groups. CSOs are capable of influencing policy and regulation. Physically disabled persons are excluded from microfinance. In developing countries, what causes physical disabilities? There is a global landmine crisis, which means that over a lifetime, there will be continual stream of physically disabled people, especially in countries like Colombia, Afghanistan and Cambodia. Physically disabled entrepreneurs can form a market for MFIs, which in the long run expands the market and can ensure business sustainability.

16. Conclusion & Next steps Civil Society Organisations (CSOs) can: Create a better policy environment * Advocate for financial inclusion. Be the Voice for the excluded landmine-affected entrepreneurs Create a dialogue with MFIs regarding needs and business opportunities Assist in landmine clearance Start a microfinance institution Next Steps Contact MFIs in Afghanistan, Colombia, Pakistan, Myanmar and Cambodia about landmine-affected borrowers Post on SlideShare and ask for feedback and comments from researchers and practitioners Culture Jam & Advocate (see UNICEF slide)

17. References Abbey, E. (2007). Constructive regulation of non-government organizations. The Quarterly Review of Economics and Finance. 48. Anderlini, S. (2000). “Women at the Peace Table: Making a Difference.” UN Development Fund for Women, New York. Aga Khan Development Fund (AKDF) (2007). Building a Strong Civil Society Sector: The NGO Resource Centre in Zanzibar. Berhe, A. A. (2007). The Contribution of landmines to land degradation. Land Degradation and Development (18)1-15. doi: 10.1002/ldr.754. Bernard, H. et al. (2006). Good practices for the economic inclusion of people with disabilities in developing countries. Handicap International. Brazilian Institute of Consumer Defense (IDEC) (Found on ACCION, 2008). Summary of Client Protection in Brazil. http://www.accion.org/Page.aspx?pid=1758 Goldstein, J. (June 2010). A New Financial Access Frontier: People with Disabilities. http://www.centerforfinancialinclusion.org/Document.Doc?id=830 Hottentot, E. <email removed> (2011, July 7). RE: Landmines, civil society and microfinance. [Personal email]. Hoxha, T. The process of NGO Law amendment in Kosovo – a brief description of civil society involvement. http://civicus.org/blog/csi/files/2010/10/a-civil-society-success-story-from-kosovo.pdf Interface for Cycling Expertise (IC-E). Bicycle Partnership Program. http://www.bikepartners.nl/index.php?option=com_content&task=blogcategory&id=61&Itemid=158I-CE Kamrang, < email removed> (2011, July 5). RE: Landmines, civil society and microfinance. [Personal email]. 2011, July 7. Martinelli, E. (2006). Twin-tracking to promote increased access of people with disabilities to economic empowerment opportunities. World Bank & LCI side event of PSD Forum 2006. McKague, K. < email removed > (2011, June 30). RE: Landmines, civil society and microfinance. [Personal email]. 2011, July 7. Mweemba, S. < email removed > (2011, June 24). RE: Landmines and microfinance. [Personal email]. 2011, July 7. Naidoo, S. < email removed >(2011, July 06). RE: Landmines, civil society and microfinance. [Personal email]. 2011, July 7. Re: Civil Society and microfinance? Partnership for Transparency Fund. (2011). “About Us.” http://ptfund.org/about/ Sun, Y., & Li, J. (2005). Adaptive Learning Approach to Landmine Detection. Ieee Transactions On Aerospace, 41(3), 1-9. World Bank (2011). The World Development Report 2011: Conflict, Security, and Development Zivkovic, R. <office@stopmines.org>(2011, July 06). RE: Landmines, civil society and microfinance. [Personal email]. 2011, July 7.

18. Awareness Raising