Originally published: June 30, 2008
Source: CGAP
CGAP has announced the results of the SmartAid for Microfinance Index for six of the seven participating funders. CGAP launched the Index in 2007 to measure whether funding agencies are set up to support microfinance effectively. This project is the first of its kind with the twin objectives of promoting transparent external assessments of funders and influencing the aid effectiveness dialogue to place greater emphasis on strong management systems.
The results of the pilot round show mixed performance, ranging from 53 to 86 out of 100 points. Staff capacity emerged as the area with the most challenges, while average scores were relatively high for appropriate instruments. All participants received a short report with an analysis of their strengths and weaknesses, and suggestions for how they can improve their effectiveness. The reports also highlight good practice examples.
SmartAid builds on the aid effectiveness work undertaken by CGAP and its members starting in 2002 with the microfinance donor peer reviews. The SmartAid team, with academic advisors and microfinance experts, developed a set of indicators along a framework of five elements: strategy, staff, accountability, instruments, and knowledge management. SmartAid’s premise is that the proper management of these elements is a necessary though not sufficient condition for successful programs and investments.
The Index hopes to impact the industry by highlighting the requirements for effective support to microfinance and benchmarking funders. Learn more about SmartAid, including who were the top performers in the pilot round.
Read the complete article: CGAP Unveils Results of New SmartAid for Microfinance Index (CGAP)