Plan International : credit/MED [credit and microenterprise development] institutional strengthening initiative -- mid-term evaluation

Mid-term evaluation covers the period 9/96-8/99. PLAN's microfinance program today differs from its past programs in that it: (1) uses poverty lending models that are guided by core principles instead of providing an undifferentiated mix of financial and non-financial services; (2) consciously works in partnership with specialized service providers instead of building PLAN's own direct service capacity; (3) pilot tests national programs in a limited number of strategically located PLAN countries (those in Bolivia, Mali, and the Philippines are discussed in the report) as the foundation for future replication and institutional support; (4) addresses non-program elements (national office marketing strategies and human resource policies that constrain the pursuit of higher impact and sustainable programs); (5) includes a central technical unit and supports its efforts to actively push high performance models and standards at the upper level of PLAN; and (6) improves capacity in high-performance programming at the field level by hiring and training one local staff person at each pilot site to serve as the national credit/MED coordinator. Each of the above changes has improved PLAN's credit/MED programming capacity in qualitative terms. Another aspect of improved capacity is expanded outreach, which lends itself to more quantitative measurement. Progress toward accomplishing matching grant targets (number of partnerships, number of pilot and non-pilot program countries adopting high performance credit/MED programming, and number of clients reached) is on track and should be accomplished by the end of the grant. While there is still room for improvement, the overall direction being pursued is valid. Valid for USAID, because PLAN is implementing a program design that allows it to reach the indicators put forth in the grant proposal. Valid for PLAN, because efforts at institutional strengthening are resulting in improved microfinance programs in the field and in increased ability through the organization to sustain the new approach. And valid for the microfinance industry, because PLAN is playing a role in building local institutional capacity for high performance microfinance programming. Contains numerous recommendations. (Author abstract, modified)