The Microfinance Information Exchange

Microfinance
Information Exchange

Proposal for the setting up of a "Microfinance Information Exchange" for the dissemination of information on microfinance policies, programmes and projects in low-income countries of Asia, Africa, and Latin America.

Background

The Virtual Library on Microcredit (VLM), formerly the "Informal Credit Homepage", has been providing information on microfinance and related issues over the internet since April 1995. It has grown considerably, and has become a premier web site for microfinance information. Besides internal efforts to enlarge the range of information available, it has benefited from a large number of contributions received from its users, as well as other sources and means. Even in the focussed field of microfinance, more than 180 users (not hits!) access the homepage every day.

User-profile:

The user profile was developed by analysing more than 15-25 email user queries received everyday. They include students, NGOs, MFIs, community groups, commercial banks, government agencies, press persons and journalists, donor agencies, consultants, etc. Users of the Virtual Library on Microcredit fall under three categories - each satisfying a particular need.

Microfinance education: Students and academic faculty who are studying or teaching microfinance issues frequently correspond for more information. This is particularly true with students whose dissertations deal with microfinance. ("What is microfinance? Is microfinance efficient? Is it really reaching the poorest?")
Microfinance research: NGOs, donor agencies, UN and international agencies, use the VLM for various purposes - design and development of programmes, monitoring and evaluation, integration into mainstream finance etc. ("Do you know of microfinance institutions in Mozambique? How will a MFI network be helpful? How can links between MFIs and Banks be established?")
Microfinance practice: This covers microfinance institutions, networks of MFIs, who use the checklists, strategies, and tools for programme development and management, performance enhancement and other activities ("Do you have any tools, such as CAMEL, to evaluate microfinance programmes? We are planning on expanding, can you give us some donor contacts? We plan to introduce computerization - do you know of good software?").

Shortcomings:

In spite of the relative success of the website, it has faced two distinct shortcomings. Few people, if any, outside of those who have access to the internet, know of its existence or are able to access its information. Secondly, many of the intended target users of the website - particularly NGOs and community groups in low-income countries of Asia, Africa and Latin America - do not have the necessary computer and internet connections to access and utilize the website. Besides, information costs in general in these countries continue to be prohibitive, prompting the need for cost-effective means of selective dissemination of information.

Proposal:

With this in mind, a proposal to set up "The Microfinance Information Exchange" (MIFEX) is being proposed to extend the services and information offered by the website to a wider audience, including non-internet users.

Objectives:

The objectives of MIFEX are -

To develop a library of articles, documents, reports, news items and case studies on microfinance.
To disseminate information on microfinance to various users in low-income countries in Asia, Africa and Latin America using a variety of means.
To organize and participate in interactive sessions such as seminars, training programmes, and other activities.

Organizational Structure

The overall development of MIFEX will be handled by an International Advisory Committee. Besides a Coordinator of the Exchange, the organizational structure of the Exchange can be flexible, with administrative and other staff recruited on a need-basis, either full time, or part-time. It can include consultants who carry out specific tasks, depending on the availability of funding. Frequent users of the website can be asked to volunteer as 'monitors' for information gathering.

Operational structure

Operations of the Exchange will revolve around three aspects -

creating a database of published and unpublished materials from various sources, both on-line and off-line.
collaborating with other organizations and institutions in generating focussed and selectively packaged information.
communicating with potential users and disseminating of information.

Information is intended to be collected from a wide range of sources, including journals; government reports and publications; press media; academic, research and consultant reports; information and reports from NGO and special interest groups; and other sources.

This process of information gathering will be closely coordinated with the development and maintenance of the VLM itself. A sub-focus within this process will be the exploration of making information available to users who have access only to electronic mail, but not to full internet services.

It will also be necessary to identify regional focal points who will collate/disseminate information on microcredit to non-internet users locally.

Intended output:

A regular feature will be a "Microfinance Digest" which outlines the various advances in the field of microfinance and other related fields. It will also contain abstracts of resources that are available on-line, with the option of requesting a hard-copy of the full report or resource. A "catalogue" of all documents with 3-5 line annotations is to be made available to facilitate this process. It will be made available to regional focal points.

Other periodical working papers, seminars and informal meetings, training sessions can also be planned, depending on demand.

Information currently available on the VLM will be made available on other electronic formats, such as CD-ROMs and floppy disks so as to facilitate offline browsing of documents on the VLM.

A key output of the Exchange will be a 'cybercourse' on microfinance, covering all organizational and operational aspects, that will be made available on the internet for use of established and emerging microfinance institutions and networks.

Location:

To be negotiated ...

Current Status:

Certain activities have been initiated, but is not fully operational yet. Funding sources and institutional anchorage are being explored.