pilar ramirez, microcredit and job creation
TRANSCRIPT
MICROCREDIT AND JOB CREATION
Bolivia's Experience
MICROCREDIT SUMMIT 2011
Valladolid, Spain
Pilar Ramirez
CONFIE Holding SL
“BOLIVIA: beacon of commercial microfinance”
In F. Bédécarrats, F. Doligez, NOUVELLES GAUCHES ET INCLUSION FINANCIERE: LA MICROFINANCE CONTESTEÉ EN BOLIVIA, EQUATOR ET NICARAGUA, page 137. Cairn.Info
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100,000
200,000
300,000
400,000
500,000
600,000
700,000 1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
REGULATED MFIs NON-REGULATED MFIs
19
90
20
11
-
500
1,000
1,500
2,000
2,500 1
99
0
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
Loan Portfolio (In MM US Dollars)
REGULATED MFIs NON-REGULATED MFIs
19
90
20
11
713
494
308
785
678
325
0
100
200
300
400
500
600
700
800
900
REGULATED MFIs NON-REGULATED MFIs BANKS
NUMBER OF OFFICES
2010 2011
170
232
67
197
234
66
0
50
100
150
200
250
REGULATED MFIs NON-REGULATED MFIs BANKS
NUMBER OF OFFICES
2010 2011
8,897
4,539
7,306
9,575
4,874
8,038
0
2,000
4,000
6,000
8,000
10,000
12,000
REGULATED MFIs NON-REGULATED MFIs BANKS
NUMBER OF EMPLOYEES
2010 2011
0%
10%
20%
30%
40%
50%
60% 1
99
3
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
(INTEREST INCOME / GROSS PORTFOLIO)
REGULATED MFIs NON-REGULATED MFIs BANKS 20
11
19
93
No major studies on new employment and job creation in the microenterprise sector, as a result of access to microfinance services, have been done yet.
NEVERTHELESS
In Bolivia today, the impact of microfinance activity can be inferred from the presence of MFI clients in: financial institutions, schools, public and private universities, parks, shopping centers, markets, music, theater and night life centers, land and air transportation, language schools for trade in far away countries such as China and Korea, etc.
25 years of vibrant and still growing microfinance activity in the country have, without any doubt, contributed to this inclusion in places and services where before the majority of the population was absent.
This inclusion and active participation is clearly accompanied by increased incomes, better knowledge of financial transactions, use of money and other financial instruments such as remittances and possibilities in foreign trade, etc. most likely resulting in job creation within families and others.
All of this cannot be attributed solely to microfinance
activity in Bolivia.
Since 2006 there have been major social changes in
the country fostered and encouraged by, for the first
time in our history, by a government led by the
indigenous majority that was always marginalized
from the country’s political powers…..
Having access to microfinance services, from
so many providers, has definitely contributed
to this “social and political inclusion” and
“buying power” of the once before excluded
masses.
25 YEARS OF MICROCREDIT WORK OF FIE
Microenterprises yesterday that today are small or medium size enterprises.
Clients that now own more than one enterprise.
Increase in income levels of microenterprise clients.
Increased amounts of loans required.
95% of loans approved with guarantees of machinery showing an increase in the capacity to purchase assets and guarantee loans with these.
Increase in clients that today are home-owners and those houses having indoor plumbing and at least 1 computer.
Increase in the formalization of enterprises and payment of taxes.
THANK YOU!